Pakistan faces significant economic challenges from internet disruptions, with reported losses of $1.62 billion in 2024, attributed largely to political events affecting millions of users. Governmental measures, including internet throttling and censorship, are criticized for hampering growth in the IT sector. Industry leaders call for expedited 5G rollout and improved connectivity to enhance economic prospects and support freelancers.
Pakistani IT associations and experts are urging the government to expedite the rollout of 5G technology and address the pressing issue of slow internet speeds, as the nation grapples with substantial economic losses resulting from internet disruptions. A report from Top10VPN.com indicates that Pakistan suffered the world’s most significant financial losses from internet outages in 2024, amounting to $1.62 billion, surpassing those in countries facing conflict such as Sudan and Myanmar.
The report highlights that Pakistan endured approximately 9,735 hours of internet disruptions, impacting around 82.9 million users, primarily due to political events such as elections and protests. Governments commonly implement measures like internet censorship, complete blackouts, and throttling, severely limiting users to basic text communication while obstructing activities like live video streaming that are essential for documenting events like protests.
The Pakistan Software Houses Association (P@SHA) recently cautioned that the IT sector may incur annual losses of up to $150 million as a result of slow internet performance and VPN restrictions. P@SHA Chairman Sajjad Mustafa Syed emphasized the dire financial implications, stating, “Pakistan suffers a loss of more than one million dollars per hour on account of internet shutdowns.” He called upon the government to hasten the 5G rollout slated for a spectrum auction in March 2025 and to enhance infrastructure by optimizing fiber connections and deploying new undersea cables.
Despite a positive trajectory in IT-related exports, which reached $3.2 billion in the fiscal year 2023-24, experts warn that recurring internet disruptions could hinder the government’s target of achieving $15 billion in IT exports for the current year. Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), highlighted the detrimental effects of sluggish internet on the nation’s 2.37 million freelancers, noting that potential gains from IT exports could have been considerably greater without these disruptions.
Khan praised the National Fiberization Policy initiated in November 2024, which aims to broaden broadband access and enhance internet speeds. He urged the government to adopt more favorable internet and VPN policies to aid freelancers in attracting foreign remittances and decreasing reliance on government employment initiatives. These developments underscore the mounting pressure on Pakistan to modernize its digital infrastructure to foster economic growth and bolster the global competitiveness of its IT sector.
The topic of internet disruptions in Pakistan is critical for understanding the implications of limited connectivity on the nation’s economy and technological advancement. High levels of internet censorship, coupled with significant economic repercussions, underscore the urgency of improving internet infrastructure. The context provided by industry experts illustrates the complexities of balancing governmental control with the needs of an increasingly digital economy, particularly in the IT sector that is essential for economic growth.
In light of the alarming economic losses attributed to internet disruptions, Pakistani IT associations are fervently advocating for the swift implementation of 5G technology and improved internet infrastructure. The substantial financial impact, coupled with the global competitiveness of the IT sector, necessitates immediate governmental action to modernize digital resources. Only through significant improvements in internet speed and access can Pakistan hope to sustain its IT export goals and support its burgeoning freelance economy.
Original Source: profit.pakistantoday.com.pk
