The increasing frequency of internet shutdowns in Pakistan is significantly impacting the nation’s economy, particularly affecting businesses that shifted to online operations during the COVID-19 pandemic. A recent report from the Overseas Investors Chamber of Commerce and Industry (OICCI) highlights the economic toll of these disruptions. The report reveals that internet blackouts have resulted in a direct 0.57% loss to the country’s GDP, amounting to Rs. 1.3 billion.
When indirect losses are considered, the total economic impact rises to an estimated Rs. 1.7 billion, based on 2023 figures.
In developing countries like Pakistan, internet connectivity is essential for modernizing public services through digital public infrastructure (DPI) and enabling businesses to compete globally. However, recent actions suggest a regression in Pakistan’s digital transformation efforts. A significant internet shutdown in August 2023 reportedly cost e-commerce businesses 30% of their revenue.
Experts stated that for Pakistan to unlock its potential as a thriving digital economy, the government must prioritize widespread, affordable internet access and invest in robust digital infrastructure. The current trend of internet shutdowns is counterproductive and threatens to stifle the country’s economic growth in an increasingly digital world.
Despite the challenges, recent data shows that over 58% of Pakistan’s population has access to mobile internet networks but has not yet subscribed to these services.
This gap between availability and adoption presents a growth opportunity for the telecom sector. Industry experts suggest that telecom providers could tap into this large pool of potential subscribers by improving affordability and enhancing service quality. Such expansion could boost the sector’s revenues and contribute to Pakistan’s broader digital transformation goals.
As Pakistan continues to grapple with constant internet disruptions, the need for strategic investment in digital infrastructure and policy reforms becomes increasingly urgent to ensure sustainable economic growth and digital advancement.
