Islamabad: The Senate Standing Committee on Finance was informed that banks in Pakistan collected Rs 18.7 billion annually from customers for SMS services, even though the actual cost of sending one SMS is merely 1 to 2 paisa.
During the meeting, it was revealed that banks are charging customers up to Rs 3.40 per SMS.
Committee members expressed strong concern over this huge difference between cost and charges.
The committee was also told that both banks and telecom companies recover the cost of their promotional campaigns and service messages directly from customers’ accounts.
Representatives of the banks stated that the cost of one SMS had increased from 42 paisa in 2021 to Rs 3.40 in 2025 due to higher charges imposed by telecom companies.
They argued that unless telecom companies reduce their rates, banks cannot lower the charges on their own.
Deputy Governor of the State Bank of Pakistan, Inayat Hussain, informed the committee that banks received Rs 18.7 billion from customers for SMS services but paid Rs 25.6 billion to telecom companies.
This shows that banks have paid around Rs 7 billion extra.
Senator Abdul Qadir remarked that since banks are earning annual profits of Rs 400 billion, it is unfair to burden customers with these extra charges.
He questioned why a service that costs only a few paisa is being sold at several times higher rates.
Senator Anusha Rahman pointed out that the actual cost of one SMS for telecom companies is just 1 to 2 paisa, yet commercial banks are also making profits from it.
The telecom company representative claimed that their business is transparent and has been audited multiple times.
Chairman of the committee, Salim Mandviwala, directed the banks to submit a complete one-year record of all SMS charges collected from customers.
He said that after reviewing the data, the committee will find a comprehensive solution to the issue and determine the actual cost per SMS.
