PTA Decides to Hire Consultant for Mobile Financial Services in Pakistan

Pakistan Telecommunication Authority (PTA) has decided to hire a consultancy firm/consultant to carry out a study of Mobile Financial Services in Pakistan covering technical, legal, and financial aspects, etc viz-a-viz international best practices in the implementation of mobile financial services.

Ministry of Information Technology and Telecom (MoIT&T) issued a “Policy Directive to Support Technical Implementation of Mobile Banking including Mobile Money Transfers and Remittances” on 20th May 2008, wherein PTA was required to implement a framework for telecommunication sector development for reaching out with m-banking services through regulations to be framed by PTA as per details provided in the aforesaid directive.

The regulations are required to govern the technical implementation of m-banking systems, through the mobile infrastructure of cellular operators facilitating transfers and remittances, etc based on the general and technical parameters set out in the directive.

Accordingly, PTA in consultation with the State Bank of Pakistan issued the “Regulations for Technical Implementation of Mobile Banking, 2016” (hereinafter referred to as “Mobile Banking Regulations”) which are applicable on all mobile cellular licensees and third-party service providers to offer technical services for mobile banking through service level agreements with authorized financial institutions by means of the mobile banking models prescribed in the regulations.


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Terms of References

Objectives of Consultancy: Study of Mobile Financial Services (hereinafter referred to as “MFS”) models in Pakistan covering policy, financial and technical aspects viz-a-viz international best practices.

Scope of Work (SoW): The scope of the work shall include the following list of tasks:


Thorough evaluation/ assessment of existing regulatory Frameworks, viz-a-viz scope of “MFS” in accordance with provisions of the Pakistan Telecommunication (Re-organization) Act, 1996 and Mobile Cellular License. Further, it also involves a study of relevant regulations and guidelines issued by the State Bank of Pakistan. Considering the above the Consultant shall ascertain the following:

  • Whether existing regulatory frameworks including Regulation of Technical implementation of Mobile Banking 2016 provide sufficient basis for regulating MFS and revenue earned by CMOs.
  • Whether the mandate of PTA and State Bank of Pakistan in terms of MFS is distinct or is there any overlap.
  • Other aspects related to MFS with reference to existing regulatory practices.


To review international and regional best practices in the application of regulatory requirements on MFS revenue earned by CMOs. Further, the following will also be considered:

  • Evaluation of different MFS models with respect to regulatory requirements/compliances.
  • International best regulatory practices for MFS including identification/classification of revenues for calculations of regulatory dues/fees/charges etc, by telecom and banking regulators.
  • GAP analysis with respect to current regulatory frameworks and international best practices.


To review existing business and technical MFS models being implemented by CMOs taking into account the followings;

  • Agreements between Financial Institutions and CMOs
  • Branchless banking arrangements
  • Standalone arrangements of banks and applicability/relevancy with MFS


The Consultant shall carry out an in-depth analysis of the following:

  • Financial statements of banks
  • Financial statements of corresponding CMOs including projections of contribution by MFS in future revenue streams.
  • Costing (i.e direct and indirect costs incurred for the telecom infrastructure and related overheads) and revenue/pricing of MFS for telecom operator and financial institution.


  • Upon completion of tasks 1 to 4, the consultant shall identify areas requiring review or modification in prevailing Telecom regulations or any related regulations.
  • Accordingly, the Consultant shall devise recommendations encompassing the way forward including the application of Annual Regulatory Dues.


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For completion of the above tasks, the Consultant will be required to follow the below-mentioned methodology

  1. Meeting with stakeholders to gather market information, challenges, and potential regulatory framework.
  2. Preparation of questionnaire including but not limited to potential regulatory framework’s highlights, impact on the local market, impact on the existing licensing etc. The consultant will prepare a report for this purpose and give a presentation to the Authority before finalizing the report.
  3. The consultant may complete his exercise in 65 days. To make presentation/briefing and report for information as per contract.

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