ISLAMABAD: Pakistani information technology (IT) associations and experts urged the government on Sunday to address the issue of slow Internet speeds. They called for expediting the rollout of 5G spectrum and taking other measures. This comes amid reports that the country suffered the highest economic losses in the world from Internet disruptions last year.
Pakistan suffered a total of $1.62 billion in losses due to Internet outages and social media shutdowns in 2024. This is according to a recent report by global Internet monitor Top10VPN.com. The losses surpassed those in war-torn countries like Sudan and Myanmar.
The report, released on Jan. 2, said Pakistan, home to over 240 million people, experienced 9,735 hours of Internet disruptions that affected 82.9 million users and also caused economic losses, with elections and protests cited as the primary causes.
Also See: Internet Services Face Disruption in Several Cities
Losses from Internet Restrictions
Last month, the Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned about Internet slowdowns and restrictions on virtual private networks (VPNs). They said these issues could lead to financial losses. The restrictions could also increase operational costs for the industry by up to $150 million annually.
“Pakistan suffers a loss of more than one million dollars per hour on account of Internet shutdown in the country,” P@SHA Chairman Sajjad Mustafa Syed told Arab News.
“The country urgently needs to address Internet outages and speed issues. This can be done by rolling out 5G through a spectrum auction expected in March this year. At the same time, the government should complete the fiberization of cell towers. It should also bring in new undersea cables to enhance connectivity and ensure the efficient deployment of next-generation telecommunications infrastructure.”
He said Pakistan’s IT sector had been thriving in recent years. Its IT-related exports reached $3.2 billion in the last fiscal year, which ended in June 2024. However, he added that frequent Internet shutdowns could lead to a loss of revenues.
“Achieving the government’s target of $15 billion in IT exports [this fiscal year] depends on market access, infrastructure stability, a supportive taxation policy, and a skilled workforce,” he noted.
Internet Slowdowns
Internet speeds in Pakistan have dropped by up to 40 percent over the past few months. This is according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP). The federal government moved last year to implement a nationwide firewall. The firewall aims to block malicious content and protect government networks from cyberattacks. It also allows authorities to identify IP addresses associated with what the government calls “anti-state propaganda” and “terror attacks.”
Authorities have also announced plans to ban VPNs. VPNs encrypt data and mask IP addresses to create a secure connection between a device and a network over the Internet. The government has blocked access to the social media platform X in Pakistan since February 2024. The government states that the block aims to stop “anti-state activities.” It also claims the block is due to X’s failure to “adhere to local Pakistani laws.”
Rights activists say that the government designed the moves to “stifle critical voices and democratic accountability” in the South Asian country, but the government denies this.
Impact on Freelancers and IT Exports
Tufail Ahmed Khan, president of the Pakistan Freelancers Association (PAFLA), said that frequent Internet shutdowns in 2024 directly impacted over 2.37 million freelancers in Pakistan.
He told Arab News, “Despite challenges such as Internet shutdowns and connectivity issues, Pakistan’s IT exports showed an upward trend last year, although growth could have been even stronger without these obstacles.”
Khan praised the government’s announcement in Nov. last year about a National Fiberization Policy initiative to enhance broadband coverage and boost Internet speeds, saying the policy would benefit freelancers.
He said, “The government should resolve the connectivity issue on priority, so that we can work on increasing freelancing in Pakistan, which will not only increase our foreign remittances, but also reduce pressure on government for employment.”
He said, “We request the government to make Internet and VPN-friendly policies, and we also need to bring freelancers into the banking ecosystem and encourage them to bring their money to Pakistan.”
Effects on Pakistan’s Global Image
Zohaib Khan, a former P@SHA chairman who owns a leading IT company, said freelancers were the most affected by downgraded speeds or Internet closures last year. He explained that Internet outages did not impact fiber optic and fixed lines.
“But reports of Internet shutdowns are damaging Pakistan’s brand image on the global stage,” he told Arab News. He added that this indirectly impacts the industry. He also advised freelancers to use co-working spaces for their work in such situations.
“The government should consider addressing this issue on priority.”
Arab News reached out to the Pakistan Telecommunications Authority (PTA), which regulates Internet in the South Asian country. They also contacted the IT Ministry for a comment on the subject. However, they did not receive a response.
Plans to Enhance Connectivity
On Saturday, the PTA said it had arranged a temporary bandwidth. This was done to address degraded Internet services caused by a recent fault in the Asia-Africa-Europe-1 (AAE-1) submarine cable. The PTA ensured Internet stability across the country.
The AAE-1 cable is one of seven international undersea cables connecting Pakistan globally. Disruptions in these cables can significantly impact Internet performance resulting in economic losses and significantly affecting individual users and businesses reliant on stable connectivity for daily operations.
The PTA has also announced that the country was set to enhance its Internet speeds and connectivity by linking up with the 2Africa submarine cable later this year.
2Africa, one of the world’s largest submarine cable systems, spans 45,000 kilometers and connects 46 locations across Africa, Europe and the Middle East, offering speeds of up to 180 Tbps.
State Minister for IT Shaza Fatima Khawaja last week said that Pakistan was also in talks with Elon Musk’s Starlink to bring satellite Internet services to the country.
This news is sourced from [Arab News] and is for informational purposes only.
