The Telecom Operators Association (TOA) of Pakistan has raised an urgent alarm over the recent nationwide slowdown in internet speed, warning of severe financial repercussions for the telecom sector and the broader economy.
In a letter addressed to Prime Minister Mian Muhammad Shehbaz Sharif, the TOA highlighted the critical challenges posed by the internet slowdown, urging immediate government intervention.
The TOA estimates that the telecom sector, already grappling with financial difficulties, stands to lose approximately Rs. 12 billion annually due to a reduction in internet traffic. The slowdown has resulted in a daily decrease of about 6,400 terabytes of internet usage across the country.
This decline not only threatens the financial stability of telecom companies but also poses a significant loss to the national exchequer, estimated to exceed Rs. 3 billion annually.
The repercussions extend beyond the telecom industry, affecting various sectors reliant on robust internet connectivity. Pakistan’s thriving freelancer community, ranked as the fourth largest globally, faces severe disruptions. Many freelancers risk losing projects, with platforms like Fiverr marking Pakistani freelancers as offline due to connectivity issues.
The slowdown’s impact is also felt across education, health, commerce, and financial services, with a recent Deloitte study indicating that internet disruptions can severely affect national economies. Given Pakistan’s larger population, the economic impact is expected to be substantial.
The TOA emphasized the urgency of addressing these issues to safeguard current IT exports and achieve the country’s ambitious goal of increasing IT exports to USD 25 billion. The slowdown also threatens the livelihoods of blue-collar workers who rely on the internet for customer communication, further straining the lower middle class.
Moreover, the current state of internet connectivity could deter foreign direct investment (FDI), as investors seek markets with developed communication infrastructure. The TOA has called for immediate technical interventions to rectify the slowdown, offering to collaborate with government bodies to find solutions.
The letter, signed by TOA Secretary General Kamal Ahmed, was also sent to key government officials, including the State Minister for Information Technology and Telecommunications, the Chairman of the Pakistan Telecommunication Authority, and CEOs of TOA member organizations.
As the nation grapples with these challenges, the TOA’s call for action underscores the critical need for swift measures to restore internet speeds and protect Pakistan’s economic interests.
