Pakistan’s IT industry is suffering from significant economic losses due to internet disruptions, totaling $1.62 billion in 2024 as reported by Top10VPN.com. The country experienced 9,735 hours of outages, primarily due to political events, prompting calls for faster 5G implementation. Industry leaders warn that without improvements in internet connectivity, future IT growth and freelancing opportunities will be severely hampered, threatening the government’s export targets.
Pakistan’s information technology sector is grappling with dire economic repercussions due to extensive internet disruptions, leading to calls for expedited 5G implementation and enhancements in broadband infrastructure. According to a report by Top10VPN.com, the nation incurred the highest financial losses from internet outages globally in 2024, totaling a staggering $1.62 billion, surpassing even those in war-torn countries such as Sudan and Myanmar.
The study revealed that 2024 saw Pakistan endure 9,735 hours of internet disruptions, severely impacting over 82.9 million users. These outages were largely a response to political instability, including elections and demonstrations. Governments often resort to enforcing internet blackouts and throttling, significantly limiting civilians’ online capabilities and leaving minimal room for communication. In this context, social media platforms, particularly X (formerly Twitter), suffered the brunt of these limitations.
The Pakistan Software Houses Association (P@SHA) has issued warnings regarding the financial fallout from inadequate internet speeds, suggesting potential annual losses could reach $150 million. P@SHA Chairman Sajjad Mustafa Syed highlighted the magnitude of the issue, stating that Pakistan incurs losses exceeding one million dollars every hour due to internet closures. He has implored the government to accelerate the 5G rollout, scheduled for auction in March 2025, alongside necessary upgrades to fiber optics and undersea cables.
Although the IT sector reported growth, with export figures reaching $3.2 billion in the 2023-24 fiscal year, such disruptions pose a threat to the government’s ambitious target of $15 billion in IT exports for the current year. Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), emphasized that the country’s 2.37 million freelancers are adversely affected by slow internet speeds, which hinder potential earnings on international platforms.
Khan commended the newly introduced National Fiberization Policy that aims to enhance broadband coverage and internet speed. He urged the government to establish more supportive policies for internet usage and VPN access to facilitate freelancers in attracting foreign remittances and diminishing reliance on governmental employment measures. The overarching sentiment among industry experts is a pressing need for modernization in Pakistan’s digital infrastructure to bolster economic growth and maintain competitiveness in the global IT market.
The report discussed provides a sobering overview of the economic toll that internet disruptions can impose on a nation. In Pakistan, political instability has often led to significant internet outages, hindering both personal communication and economic activities. The necessity for improved digital infrastructure has become paramount, especially in light of the growing dependence on internet-based services across various sectors, including freelancing and IT exports. The call for 5G services reflects a broader trend of modernization needed in developing nations to keep pace with global advancements and demands.
In conclusion, Pakistan faces profound challenges stemming from extensive internet disruptions, which significantly impact its economic landscape, particularly within the IT sector. The reported losses of $1.62 billion underscore the urgency for the government to prioritize the rollout of 5G services and improve broadband connectivity. With growing calls from industry leaders for systemic reform in digital infrastructure, the future competitiveness of Pakistan’s IT sector may hinge on these critical advancements. Promoting favorable policies for freelancers will also be essential in harnessing economic opportunities in the face of such disruption.
Original Source: profit.pakistantoday.com.pk
