Pakistan has emerged as the second-most affected country by internet shutdowns in 2024, recording a staggering 1,861 hours of disrupted connectivity, second only to Myanmar. According to data from Top10VPN, these shutdowns have cost the country an estimated $351 million, underscoring the economic and social toll of these interruptions.
The digital economy, already grappling with challenges such as macroeconomic uncertainty, lack of capital, and a scarcity of skilled talent, now faces yet another obstacle. Businesses and professionals working with foreign clients have seen a shift in how Pakistan is perceived. Conversations have moved beyond general queries about safety to pointed concerns about the reliability of the country’s internet infrastructure.
The shutdowns that took place in Pakistan are massive, with nearly 83 million users impacted. This increases to well over 40% of the top fifteen most vulnerable countries in the world today. The situation indicates a 619% increase over the year 2023 where shutdowns were for 259 hours which ranked Pakistan on the 7th position.
It is just as devastating on the financial front as well. Industry groups such as the Pakistan Software Houses Association (P@SHA) put each hour of Internet outages at $1 million. Since the information and communication sector, for instance, was expected to contribute $3.3 billion to exports in 2024, the closures have raised operational costs for technology firms and rendered them less competitive in the global market.
Declining Internet Usage
They have caused noticeable reductions in internet usage in certain areas for specific periods of time. Cloudflare data reveals that Pakistan has an average of negative monthly Web traffic growth in 2024 and it has only 30 days of growth in total of 11 months. The country’s apex growth rate is at 3% while the average growth rate in the world is at 17%.
However, the quality of connectivity is still an issue even if the connectivity exists. Currently in Pakistan, internet download speed is approximately 22 Mbps, which is much lower than that of competitors in the region such as Philippines at 97 Mbps, Bangladesh at 37 Mbps and Indonesia at 31 Mbps.
Impact on Talent and Forex
The frequent power outages have perplexed and frustrated the youth and the professionals in Pakistan and now many are questioning their future in the country. Having few rights and a declining currency, the inability to access dependable internet also decreases one’s reason to remain.
Further, the disruptions make organizations avoid the repatriation of foreign exchange earnings to their home country but to the extent necessary. This aggravates the situation about undeclared exports that are believed to equal the officially stated numbers.
Since Pakistan continues to experience recurrent balance-of-payment challenges, it becomes crucial to maintain stable and reliable internet connectivity to support the digital economy and attract investors. It is imperative to tackle these problems to ensure domestic and global investors trust Pakistan and realize the country’s digital potential.
Internet shutdowns in 2024 show that there is a dire need for policies that support such disruptions and also funding for the expansion of digital networks. Failing these adjustments, Pakistan is apt to retard the development of its IT industry and slip out of its position in the digital economy.
