Pakistan’s increasing number of internet shutdowns is having a serious impact on the country’s economy, especially on businesses that moved online during the COVID-19 pandemic. According to a recent report from the Overseas Investors Chamber of Commerce and Industry (OICCI), these shutdowns are causing significant financial damage.
The direct loss to Pakistan’s GDP from these internet blackouts is about 0.57%, which equals Rs 1.3 billion. When including indirect losses, the total economic impact rises to approximately Rs 1.7 billion, based on data from 2023.
In developing countries like Pakistan, having good internet connectivity is essential for improving public services and helping businesses compete internationally. Internet helps modernize services through digital tools and supports businesses in the global market.
However, recent internet shutdowns in Pakistan are putting these efforts at risk. For example, a major internet shutdown in August 2023 led to e-commerce businesses losing 30% of their revenue. This suggests that Pakistan may be moving backward in its efforts to improve its digital infrastructure and economy.
Experts believe that for Pakistan to succeed as a strong digital economy, the government needs to focus on providing widespread and affordable internet access and invest in strong digital infrastructure. They argue that the frequent internet shutdowns are harmful and could slow down the country’s economic growth. In a world that is becoming more digital, these shutdowns are counterproductive and could hold Pakistan back from reaching its full potential.
Recent data shows that while over 58% of people in Pakistan have access to mobile internet networks, they have not subscribed to these services. This means that although many people can connect to mobile internet, they are not using it.
The significant difference between having access to mobile internet and actually using it shows a big opportunity for growth in the telecom industry. Experts believe that telecom companies could attract these potential customers by making their services more affordable and improving the quality of their service. By doing this, they could increase their revenue and help Pakistan move forward with its digital development goals.
