nternet connectivity has become the backbone of modern economies around the globe. It helps to facilitate the global trade and economic growth of a country. In Pakistan, recurring internet shutdowns have emerged as a critical issue.

These disruptions have become more frequent over the recent years. The government maintains that there are technical reasons behind these issues, such as faults in undersea cables. However, some industry experts have pointed out that many outages have coincided with major political events.

Bilawal Bhutto Zardari, the Pakistan Peoples Party chairman, has acknowledged this issue. In an interaction with media in December 2024, he said, only Pakistan’s undersea fiber optics cables seemed to be prone to such damage. “In the past, there were attempts to control and censor people. This is proof that you are strong and that they fear you … they do not want you to exercise your rights through the internet.”

In May 2023, the government had shut down mobile phone internet services for four days during the violent protests following the arrest of Imran Khan. It was estimated that this shutdown caused a loss of $53 million a day.

The government said it needed to prevent the spread of misinformation and ensure public safety. These disruptions have placed Pakistan among the top five countries globally with the highest frequency of internet shutdowns. In 2022, the country had experienced 12 major disruptions. These disruptions significantly affect the economy.

Internet closures have resulted in massive economic losses across Pakistan. It is estimated that internet disruptions in 2024 cost Pakistan $1.62 billion, nearly 0.6 percent of the GDP. The telecom sector, an important contributor to the national economy, faced significant revenue losses during these disruptions.

Many online businesses experienced significant transaction failures during the shutdowns. These failures lead to abandoned shopping carts and a drop in sales. Daraz and other e-commerce platforms reported to have seen a 30 percent decline in transactions during the 2023 shutdown. Payment gateway services like Easypaisa and JazzCash were also disrupted. This inconvenienced millions of users.

The IT sector is a critical pillar of Pakistan’s economy. It has been disproportionately affected by internet shutdowns. Export-oriented IT firms have reported delays and missed deadlines because they rely on uninterrupted internet access to deliver projects and efficiently communicate with global clients.

Telecom sector, one of the largest contributors to the national economy, has suffered significant losses during these disruptions. 

Freelancers were also impacted. They have been contributing significantly to the gig economy of Pakistan. Pakistan ranks among the top five countries for freelance work globally. It has been reported that Pakistani freelancers earn $400 million annually. Recurring internet closures affect their ability to meet deadlines and access platforms like Upwork and Fiverr. It then results in reputational damage and loss of income.

Prolonged internet disruptions are driving the emigration of skilled professionals from Pakistan. IT experts and freelancers are increasingly seeking opportunities in countries with stable digital environments. Many startups are facing new challenges in retaining talent and sustaining operations. According to data from 2024, thousands of skilled IT professionals left Pakistan. The most common reason for this was digital instability.

Internet shutdowns also impact foreign direct investment in the IT sector in Pakistan. Potential investors view reliable digital infrastructure as a prerequisite for investment. A 2023 report by the World Bank highlighted that the digital economy of Pakistan is expected to grow to around $20 billion by 2025. However, frequent disruptions threaten this potential.

The repercussions of internet shutdowns go far beyond immediate financial losses: Countries with reliable internet infrastructure are better positioned to attract global business opportunities. Pakistan, because of these disruptions risks being left behind regional competitors like India and Bangladesh. International investors are less interested in committing to projects in a country where basic digital services can be arbitrarily suspended.

The entrepreneurial ecosystem suffers as startups struggle to scale and innovate in an environment marked by uncertainty and instability.

The government should recognise internet access as a fundamental right. It needs to implement laws to ensure uninterrupted connectivity. It is important to introduce clear protocols to minimise the economic impact of internet restrictions. Internet shutdowns should exclude critical services such as banking and emergency communication. A contingency plan should be developed to help ensure the continuity of essential services during disruptions.

Investments in robust and decentralised digital infrastructure can help reduce and mitigate the impact of shutdowns. The government should also collaborate effectively with private sector stakeholders in order to enhance the reliability of internet services.

The writer is a telecom engineer. He can be reached at hadi990@gmail.com