Pakistan continues to lag in global internet race

KARACHI: Pakistan’s internet speeds are woefully behind international standards, threatening to leave the country in the dust of the global digital economy.

Shahzad Arshad, chairman of the Wireless and Internet Service Providers Association of Pakistan (WISPAP), blames the country’s outdated infrastructure. “We lack the necessary investment in fibre-optic networks, leaving us miles behind,” he explains. This translates to unreliable connections and slow speeds that cripple businesses and hinder education.

While leading nations boast average broadband speeds exceeding 100 Mbps, Pakistan struggles with a sluggish 10-20 Mbps, far below the global average, according to a report by Speedtest.net.

Adding fuel to the fire are bureaucratic hurdles and exorbitant costs. “Whenever we try to expand our networks, we face outrageous fees,” says Arshad. From exorbitant charges by Pakistan Railways to excessive demands from housing societies, ISPs are essentially taxed for building the very infrastructure the nation needs.

The country’s woes extend beyond domestic challenges. Monopolistic international gateways gouge ISPs with high costs for global internet access. “These gateways charge in USD while we earn in rupees,” explains Arshad. “Currency fluctuations further squeeze our budgets, forcing us to pass on the cost to consumers, keeping internet expensive and slow.”

The lack of competition among these gateways only worsens the situation. “With limited options, prices remain artificially high,” says Arshad. “This stifles innovation and leaves Pakistan’s internet sector strangled.”

Compounding these issues is an outdated regulatory framework. While countries like the US mandate minimum broadband speeds of 100 Mbps, Pakistan lacks similar regulations. “The government provides no pressure or help to enforce higher speeds or modernize infrastructure,” laments Arshad. “A 100 Mbps minimum, coupled with streamlined regulations, would compel ISPs to upgrade.”

Further complicating matters are licensing issues. Current ISP licences do not allow laying fibre-optic cables, forcing them to rely on expensive and less efficient options. Upgrading to licenses that do permit fibre comes with a hefty price tag, denominated in US dollars, further burdening Pakistani companies.

“Why should Pakistani businesses pay for licences in dollars when they earn in rupees?” asks Arshad. “It is an unnecessary barrier.”Arshad proposes several solutions. He calls for “government intervention” through subsidies, tax breaks, and reduced regulations to incentivize ISP investment in fibre networks. He also emphasizes the need for “increased competition” among international gateways to drive down bandwidth costs.

To combat the impact of fluctuating exchange rates, Arshad urges the government to “localize costs” by finding ways to price internet bandwidth in Pakistani rupees or introduce safeguards against currency volatility.

Most importantly, Arshad believes raising the minimum broadband speed to 100 Mbps is crucial. “With a 100 Mbps standard and streamlined regulations, ISPs would readily upgrade,” he says. “This wouldn’t just improve speeds; it would open new doors for education, business, and healthcare.”

Pakistan risks falling behind in the global digital race without immediate action. The nation’s future hinges on investing in a modern internet infrastructure, fostering competition, and creating a regulatory environment that promotes innovation and growth. As Arshad warns, “The future of Pakistan’s economy is digital. If we don’t invest in it today, we will be left behind tomorrow.”