PTA has imposed a fine of Rs. 116.7 million on China Mobile Pakistan, operating under the Zong brand, after an investigation uncovered serious regulatory violations in how the operator issued and activated SIM cards, including failures in biometric verification that compromised the integrity of Pakistan’s subscriber registration system.
According to a 16-page enforcement order, Zong failed to verify the physical presence of subscribers during SIM issuance, did not enforce Live Finger Detection features on its biometric verification devices, and maintained an ineffective system for monitoring the activities of its franchisees and retailers. PTA stated that these lapses collectively undermined the security of the SIM issuance regime. The investigation originated from a citizen’s complaint alleging that two SIM cards had been issued and activated against their Computerized National Identity Card without their consent or physical presence. Acting on the complaint, PTA conducted raids on two Lahore-based Zong franchise outlets in October 2025, recovering biometric verification devices, laptops, mobile phones, and a large number of suspicious SIM cards, with authorities also registering a First Information Report in connection with the case.
During the investigation, PTA identified irregular activation patterns tied to biometric devices operated by two franchise channels. One device showed a disproportionately high number of SIM activations registered against female Computerized National Identity Card holders across multiple districts, while another device showed activations concentrated outside its designated geographic area, specifically in Sheikhupura. PTA viewed these patterns as clear indicators of a weak monitoring framework rather than isolated incidents. The regulator rejected Zong’s argument that independent franchisees bore sole responsibility for the misconduct at the retail level, citing the Subscribers Antecedents Verification Regulations, which place responsibility squarely on the operator for any SIM sold through any channel, whether directly or via third-party retailers.
In its defence, Zong maintained that all SIM activations were processed through PTA-approved biometric procedures and that internal reviews found no evidence of system manipulation or biometric failures, arguing that the flagged devices accounted for only a small fraction of total franchise sales and that demographic and geographic patterns remained within normal operational limits, which is why internal compliance alerts were never triggered. The company also informed the regulator that it had taken disciplinary action following the incident, including blacklisting the individuals involved, blocking hundreds of suspicious SIMs for re-verification, and taking action against the responsible franchisees. Despite these measures, PTA concluded that Zong could not be absolved of responsibility, finding that weak enforcement directly enabled unauthorised SIM activation without the complainant’s consent. The regulator has directed Zong to deposit the fine within 10 days under Section 23 of the Pakistan Telecommunication Re-organization Act, 1996, warning that failure to comply will trigger further legal proceedings.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.