ISLAMABAD: Pakistani information technology (IT) associations and experts on Sunday urged the government to address the issue of slow Internet speeds by expediting the rollout of 5G spectrum and taking other measures, amid reports that the country suffered the highest economic losses in the world from Internet disruptions last year.
Pakistan suffered a total of $1.62 billion losses due to Internet outages and social media shutdowns in 2024, according to a recent report by global Internet monitor Top10VPN.com, surpassing losses in war-torn countries like Sudan and Myanmar.
The report, released on Jan. 2, said Pakistan, home to over 240 million people, experienced 9,735 hours of Internet disruptions that affected 82.9 million users, with elections and protests cited as the primary causes.
Last month, the Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned that Internet slowdowns and restrictions on virtual private networks (VPNs) could lead to financial losses and increase operational costs for the industry by up to $150 million annually.
“Pakistan suffers a loss of more than one million dollars per hour on account of Internet shutdown in the country,” P@SHA Chairman Sajjad Mustafa Syed told Arab News.
“The country urgently needs to address Internet outages and speed issues by rolling out 5G through a spectrum auction expected in March this year, while simultaneously completing the fiberization of cell towers and bringing new undersea cables to enhance connectivity and ensure the efficient deployment of next-generation telecommunications infrastructure.”
He said Pakistan’s IT sector had been thriving in recent years and its IT-related exports clocked in at $3.2 billion in the last fiscal year, which ended in June 2024, however, frequent Internet shutdowns could lead to a loss of revenues.
“Achieving the government’s target of $15 billion in IT exports [this fiscal year] depends on market access, infrastructure stability, a supportive taxation policy, and a skilled workforce,” he noted.
Internet speeds in Pakistan have dropped by up to 40 percent over the past few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP), as the federal government last year moved to implement a nationwide firewall to block malicious content, protect government networks from cyberattacks, and allow authorities to identify IP addresses associated with what it called “anti-state propaganda” and “terror attacks.”
Authorities have also announced plans to ban VPNs, which encrypt data and mask IP addresses to create a secure connection between a device and a network over the Internet. Access to social media platform X has already been blocked in Pakistan since February 2024, with the government saying the block was aimed at stopping “anti-state activities” and due to a failure by X to “adhere to local Pakistani laws.”
Rights activists say the moves are designed to “stifle critical voices and democratic accountability” in the South Asian country, the government denies it.
Tufail Ahmed Khan, president of the Pakistan Freelancers Association (PAFLA), said Pakistan has over 2.37 million freelancers who were directly impacted by frequent Internet shutdowns in 2024.
“Despite challenges such as Internet shutdowns and connectivity issues, Pakistan’s IT exports showed an upward trend last year, although growth could have been even stronger without these obstacles,” he told Arab News.
Khan praised the government’s announcement in Nov. last year about a National Fiberization Policy initiative to enhance broadband coverage and boost Internet speeds, saying the policy would benefit freelancers.
“The connectivity issue should be resolved on priority, so that we can work on increasing freelancing in Pakistan which will not only increase our foreign remittances, but also reduce pressure on government for employment,” he said.
“We request government to make Internet and VPN-friendly policies and there is also a need to bring freelancers in the banking eco-system and they should be encouraged to bring their money to Pakistan.”
Zohaib Khan, a former P@SHA chairman who owns a leading IT company, said freelancers were the most affected by downgraded speeds or Internet closures last year as Internet outages did not impact fiber optic and fixed lines.
“But reports of Internet shutdowns are damaging Pakistan’s brand image on the global stage, which indirectly impacts the industry,” he told Arab News, advising freelancers to use co-working spaces for their work in such situations.
“The government should consider addressing this issue on priority.”
Arab News reached out to the Pakistan Telecommunications Authority (PTA), which regulates Internet in the South Asian country, and the IT Ministry for a comment on the subject, but did not receive a response.
On Saturday, the PTA said it had arranged a temporary bandwidth to address degraded Internet services caused by a recent 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 globally. Disruptions in these cables can significantly impact Internet performance, affecting individual users and businesses reliant on stable connectivity for daily operations.
The PTA has also announced that the country was set to enhance its Internet speeds and connectivity by linking up with the 2Africa submarine cable later this year.
2Africa, one of the world’s largest submarine cable systems, spans 45,000 kilometers and connects 46 locations across Africa, Europe and the Middle East, offering speeds of up to 180 Tbps.
State Minister for IT Shaza Fatima Khawaja last week said that Pakistan was also in talks with Elon Musk’s Starlink to bring satellite Internet services to the country.