The Auditor General of Pakistan has highlighted significant monitoring and compliance gaps in telecom projects worth nearly Rs5.97 billion executed through the Universal Service Fund (USF), revealing that mandatory quality-of-service (QoS) assessments were not conducted after project completion.
According to the audit report for FY2023-24, the issue relates to 16 completed projects under the Broadband for Sustainable Development (BSD), Next Generation BSD (NG-BSD), National Highways and Motorways (NH&MW), and Optical Fiber Cable (OFC) programs.
The audit noted that service providers were contractually required to submit implementation plans and service quality reports under the terms of their Service Subsidy Agreements. However, auditors found no evidence that PTA-compliant QoS surveys or related reports were available on record despite payments totaling Rs5.968 billion.
The report further disclosed that the USF received 216 complaints during the fiscal year concerning connectivity and service quality after the networks had become operational. Auditors observed that the complaints were neither resolved by the company nor referred to the Pakistan Telecommunication Authority (PTA) for regulatory action.
According to the audit, the absence of mandatory service-quality verification weakened oversight mechanisms and raised concerns about whether residents in underserved and unserved areas were receiving the level of telecom and broadband services promised under the projects.
In its response, USF management said service providers regularly submitted progress updates and that project implementation was reviewed through monthly meetings. The company also maintained that project milestones were assessed against contractual requirements and PTA benchmarks before payments were released.
The audit, however, rejected the explanation, stating that while implementation progress may have been monitored, no documentary evidence was provided to show that quality-of-service surveys had been conducted in accordance with PTA standards.
The matter was reviewed by the Departmental Accounts Committee (DAC) in December 2024. The committee directed the USF to submit monitoring reports for completed projects and provide details of complaints referred to the PTA. The audit report noted that no progress on these directives had been communicated by the time the audit was finalized.
The Auditor General has recommended strict implementation of the DAC’s instructions to improve oversight, strengthen accountability, and ensure compliance with service quality obligations in future telecom projects.
