Title: The Economic Impact of Internet Disruptions in Pakistan and its Global Implications
A recent study by Top10VPN.com uncovered that Pakistan experienced the most significant financial damage globally from internet and social media stoppages in 2024, amounting to a staggering $1.62 billion. This loss is particularly impactful considering the country’s already strained economy and information technology sector.
Internet shutdowns became a frequent occurrence in Pakistan in 2022 after the removal of Prime Minister Imran Khan through a vote of no confidence. These shutdowns escalated noticeably in 2024, with 18 reported instances of deliberate online disruptions. These were primarily due to reasons such as elections, information management, and public protests. In total, these disruptions spanned 9,735 hours and affected an estimated 82.9 million users.
Among social media platforms, X (formerly Twitter) has been repeatedly shut down since February 18, 2024, resulting in an estimated economic loss of $1.34 billion – a large portion of the estimated cost of internet restrictions. This has led to a dramatic surge in the number of virtual private network (VPN) users, estimated to have increased by a whopping 6,000 percent.
The Pakistan Software Houses Association (P@SHA) cautioned that these disruptions could lead to significant financial losses, stating that the IT sector loses a hefty $1 million for every hour the internet is shut down in the country. Additionally, the telecom operators warned that the sector could face an annual loss of 12 billion rupees.
In 2023, the total loss from internet shutdowns was comparatively lower, amounting to 65 billion rupees. Despite this, the shutdowns still caused substantial damage to Pakistan’s economy, with the telecom sector suffering a loss of 20.46 billion rupees (approximately $130 million) due to the internet shutdown in only three days in 2023. The government also lost approximately $5.5 million in tax revenue over the same three-day period. Additionally, the IT industry suffered a loss of 10 billion rupees (approximately $63.8 million).
Pakistan’s internet speeds have also been a cause for concern. The country ranks 100th out of 111 nations for mobile internet speed and 141st out of 158 for broadband, according to a recent Ookla Internet Speed Test report.
Despite the severity of the situation, Pakistani authorities have offered dubious explanations for each internet slowdown or shutdown, sometimes attributing it to global issues, faults in undersea cables, or outright denying that internet shutdowns were occurring at all.
The country’s internet freedom has also been under threat. In its 2024 “Freedom on the Net” report, Freedom House, a Washington, D.C.-based organization, classified Pakistan as “not free” on the internet, placing it in the same group as nations including China, Saudi Arabia, the UAE, and Iran.
The introduction of a firewall and blocking of VPNs has been another strategy to control online activity. However, this has led to an economic loss of up to $300 million due to internet disruptions, and could have widespread social repercussions.
The impact of these internet disruptions extends beyond the IT industry, affecting various sectors of the Pakistani economy. The Overseas Investors Chamber of Commerce warned that these disruptions could jeopardize Pakistan’s economy.
The disruption of internet services in Pakistan has not only affected businesses but also individuals and small businesses, causing severe hardships. Freelancers, who contribute $400 million to Pakistan’s economy, are struggling to maintain their online work due to these disruptions.
Moreover, students who study remotely have been severely impacted by internet shutdowns.
In conclusion, the ongoing internet disruptions in Pakistan have had a significant impact on the country’s economy and the lives of its people. The situation calls for urgent attention and action to restore normalcy and prevent further damage.
