Pakistan’s Internet Shutdowns Caused Losses of 1.3 Billion
Pakistan’s rising frequency of internet shutdowns is proving detrimental to its economy, particularly affecting businesses that shifted online during the COVID-19 pandemic. A recent report by the Overseas Investors Chamber of Commerce and Industry (OICCI) highlights the financial losses caused by these disruptions.
According to the report, internet blackouts result in a direct loss of 0.57% to Pakistan’s GDP, amounting to Rs. 1.3 billion. When considering indirect effects, the total economic impact climbs to an estimated Rs. 1.7 billion, based on 2023 figures.
In a developing nation like Pakistan, internet connectivity plays a pivotal role in modernizing public services and allowing businesses to compete in the global market. However, recent events indicate a possible regression in the country’s digital progress. A significant internet shutdown in August 2023 alone caused e-commerce businesses to lose 30% of their revenue.
Experts emphasize that if Pakistan aims to thrive in the digital economy, the government must prioritize affordable, widespread internet access and invest in a strong digital infrastructure. The ongoing trend of internet shutdowns hinders these efforts and poses a threat to the country’s economic growth in an increasingly digital world.
Despite the current challenges, there’s still potential for growth. Recent data shows that while over 58% of Pakistan’s population has access to mobile internet networks, many have yet to subscribe to these services. This gap presents an opportunity for telecom providers to expand by improving affordability and service quality, which could drive revenue and support Pakistan’s digital transformation.
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