The Pakistan Telecommunication Authority (PTA) has imposed a Rs77.8 million fine on China Mobile Pakistan (CM Pak) after finding that the company failed to enforce mandatory geo-fencing rules for biometric verification system (BVS) devices used in SIM sales.
According to the regulator’s enforcement order, the violation came to light during a field inspection on March 30, 2026. Officials found an authorised sales representative linked to CM Pak’s Taxila franchise selling SIM cards at Islamabad’s I-10 Markaz, outside the franchise’s approved area and beyond the permitted geo-location for its BVS device. The activity was also carried out without PTA approval for door to door or kiosk based sales.
Under PTA regulations, BVS devices must remain within 100 metres of an authorised sales outlet unless prior permission has been granted. The requirement is intended to keep SIM sales restricted to approved locations and strengthen oversight of the registration process.
CM Pak argued that the incident was an isolated lapse by a single Data Sales Officer rather than a failure of its overall compliance system. The company said all SIMs were activated only after successful biometric verification through NADRA and that no fake, anonymous or unverified SIMs had been issued.
The operator also informed the PTA that it had taken disciplinary action after the incident by issuing a show cause notice and warning to the franchise, terminating the employee involved, issuing fresh compliance instructions and tightening internal monitoring.
The PTA, however, rejected the explanation, saying biometric verification and geo-fencing are separate legal requirements. It held that while biometric checks confirm a customer’s identity, geo-fencing ensures SIM sales take place only from authorised locations and helps prevent misuse of BVS devices.
The regulator further ruled that responsibility for compliance rests with the telecom operator, regardless of whether the breach was committed by a franchise or an individual employee.
Holding CM Pak liable under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996, the PTA directed the company to deposit the fine within 10 days, warning that failure to do so could lead to further legal action.