Pakistan Telecommunication Authority (PTA) has imposed a fine of Rs 77.8 million on Zong Pakistan, operated by CMPak Limited, for failing to enforce mandatory 100 meter geo-fencing rules on its biometric verification system (BVS) devices during SIM sales. The enforcement action stems from a PTA field inspection conducted on March 30, 2026, during which regulators found an authorized sales representative from CMPak’s Taxila franchise operating well outside the permitted boundary, conducting SIM sales at I-10 Markaz in Islamabad without securing the required door to door or kiosk approval from the regulator.
CMPak contested the enforcement action, arguing that the breach was an isolated operational lapse caused by a single Data Sales Officer rather than a systemic failure within its broader compliance network. The company emphasized that every SIM involved in the incident underwent successful biometric and National Database and Registration Authority (NADRA) verification, meaning no fake or anonymous SIMs bypassed the verification system. CMPak also stated that it took immediate corrective action after learning of the violation, including terminating the responsible officer, issuing a show cause notice and warning letter to the Taxila franchise, and circulating compliance advisories to strengthen internal monitoring.
PTA rejected these defenses, clarifying that successful biometric verification does not excuse a separate geo-fencing breach, since the two obligations serve distinct regulatory purposes. Biometric verification confirms a subscriber’s identity, while geo-fencing ensures that BVS devices remain within their authorized locations to prevent unauthorized movement of equipment and untraceable SIM issuance. The regulator also dismissed CMPak’s attempt to attribute the violation to the franchise or the individual sales officer, noting that under the Subscribers Antecedents Verification Regulations and the operator’s license conditions, the company retains direct statutory responsibility for all SIM sales conducted across its authorized network.
After reviewing the show cause notice, compliance reports, and hearing submissions, PTA concluded that CMPak had failed to exercise effective supervision over its sales channel, and held the company liable under Section 23 of the Pakistan Telecommunication Re-organization Act, 1996. The regulator noted that correcting a violation only after being caught does not erase the original offense, and warned that allowing operators to neutralize established violations through subsequent corrective action would undermine the broader regulatory framework. PTA has ordered CMPak to deposit the Rs 77.8 million fine within 10 days of receiving the order, warning that further legal action would follow if the company fails to comply.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
