ISLAMABAD: Pakistan’s telecom regulator said on Saturday it had arranged temporary bandwidth to address degraded Internet services caused by a fault in the Asia-Africa-Europe-1 (AAE-1) submarine cable, ensuring Internet stability across the country.
The AAE-1 cable is one of seven international undersea cables connecting Pakistan to the global Internet. Disruptions in these cables can significantly impact Internet performance, affecting individual users and businesses reliant on stable connectivity for daily operations.
“The Pakistan Telecommunication Authority (PTA) announces that to address the issue of degradation of Internet services due to fault in AAE1 submarine cable on January 2, 2025, ad hoc bandwidth has been arranged and added in the system,” the PTA said in a statement. “Now there is no degradation of Internet services across the country.”
The telecom regulator added it was actively monitoring restoration efforts for the AAE-1 cable and remained committed to ensuring stable services throughout the process.
The fault comes amid growing scrutiny of the Pakistan government’s handling of Internet and social media policies.
Following the February 2024 general elections, marred by allegations of irregularities, the government faced severe backlash over a ban on X, formerly known as Twitter. Local media also reported the government’s decision to establish an Internet firewall aimed at controlling “anti-state propaganda” and content deemed blasphemous, stirring further controversy.
Freelancers and businesses were also instructed later in the year to register VPNs to access online platforms, prompting public outrage, though the government extended the compliance deadline indefinitely since only a fraction of users had adhered to the directive.
Digital rights activists and political rivals accused the government of using these measures to suppress dissent, with a coalition partner, the Pakistan Peoples Party (PPP), also voicing concerns.
PPP Chairman Bilawal Bhutto-Zardari criticized the government for Internet slowdown, questioning why submarine cable faults always disproportionately affected Pakistan.
Pakistan arranges temporary bandwidth to counter Internet slowdown amid submarine cable fault
https://arab.news/4v97d
Pakistan arranges temporary bandwidth to counter Internet slowdown amid submarine cable fault
- The country’s telecom regulator says there is no Internet service degradation is in the country currently
- Digital rights activists say government trying to suppress dissenting voices by minimizing online access
IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan
- Pakistan rebuilt reserves, cut its deficit and slowed inflation sharply over the past one year
- Fund says climate shocks, energy debt, stalled reforms threaten stability despite recent gains
ISLAMABAD: Pakistan’s economic recovery remains fragile despite a year of painful stabilization measures that helped pull the country back from the brink of default, the International Monetary Fund (IMF) warned on Thursday, after it approved a fresh $1.2 billion disbursement under its ongoing loan program.
The approval covers the second review of Pakistan’s Extended Fund Facility (EFF) and the first review of its climate-focused Resilience and Sustainability Facility (RSF), bringing total disbursements since last year to about $3.3 billion.
Pakistan entered the IMF program in September 2024 after years of weak revenues, soaring fiscal deficits, import controls, currency depletion and repeated climate shocks left the economy close to external default. A smaller stopgap arrangement earlier that year helped avert immediate default, but the current 37-month program was designed to restore macroeconomic stability through strict monetary tightening, currency adjustments, subsidy rationalization and aggressive revenue measures.
The IMF’s new review shows that Pakistan has delivered significant gains since then. Growth recovered to 3 percent last year after shrinking the year before. Inflation fell from over 23 percent to low single digits before rising again after this year’s floods. The current account posted its first surplus in 14 years, helped by stronger remittances and a sharp reduction in imports. And the government delivered a primary budget surplus of 1.3 percent of GDP, a key program requirement. Foreign exchange reserves, which had dropped dangerously low in 2023, rose from US$9.4 billion to US$14.5 billion by June.
“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said in a statement after the Board meeting.
But he warned that Islamabad must “maintain prudent policies” and accelerate reforms needed for private-sector-led and sustainable growth.
The Fund noted that the 2025 monsoon floods, affecting nearly seven million people, damaging housing, livestock and key crops, and displacing more than four million, have set back the recovery. The IMF now expects GDP growth in FY26 to be slightly lower and forecasts inflation to rise to 8–10 percent in the coming months as food prices adjust.
The review warns Pakistan against relaxing monetary or fiscal discipline prematurely. It urges the State Bank to keep policy “appropriately tight,” allow exchange-rate flexibility and improve communication. Islamabad must also continue raising revenues, broadening the tax base and protecting social spending, the Fund said.
Despite the progress, Pakistan’s structural weaknesses remain severe.
Power-sector circular debt stands at about $5.7 billion, and gas-sector arrears have climbed to $11.3 billion despite tariff adjustments. Reform of state-owned enterprises has slowed, including delays in privatizing loss-making electricity distributors and Pakistan International Airlines. Key governance and anti-corruption reforms have also been pushed back.
The IMF welcomed Pakistan’s expansion of its flagship Benazir Income Support Program, which raises cash transfers for low-income families and expands coverage, saying social protection is essential as climate shocks intensify. But it warned that high public debt, about 72 percent of GDP, thin external buffers and climate exposure leave the country vulnerable if reform momentum weakens.
The Fund said Pakistan’s challenge now is to convert short-term stabilization into sustained recovery after years of economic volatility, with its ability to maintain discipline, rather than the size of external financing alone, determining the durability of its gains.
