Pakistan’s economy faced staggering losses of $1.62 billion in 2024 due to internet disruptions, as revealed in a report by global internet monitor Top10VPN.com. This figure, the highest globally, even surpassed losses incurred in conflict-ridden nations like Sudan and Myanmar, highlighting the urgent need for improved digital infrastructure in the country.
The report, published on January 2, 2025, detailed that Pakistan experienced 9,735 hours of internet disruptions last year, impacting 82.9 million users. These disruptions, primarily linked to political events such as protests and elections, were enforced through blackouts, social media blocks, and severe internet throttling. These measures often rendered activities like live-streaming and documenting human rights violations impossible, leaving users with only basic communication options.
Social media platform X (formerly Twitter) was the most disrupted globally, with Pakistan among the countries imposing extended blockades. Asia bore the brunt of these restrictions, with Pakistan, Myanmar, India, and Bangladesh ranking among the top six most-affected nations. The region experienced internet shutdowns ten times longer than other parts of the world.
The economic impact of these disruptions has raised alarms within Pakistan’s IT sector. The Pakistan Software Houses Association (P@SHA) warned of up to $150 million in annual losses for the industry due to slow internet speeds and VPN restrictions. P@SHA Chairman Sajjad Mustafa Syed emphasized the urgency of addressing these issues, stating, “Pakistan suffers a loss of more than one million dollars per hour on account of internet shutdowns.”
He called on the government to expedite the rollout of 5G services through the spectrum auction planned for March 2025. Additionally, Syed highlighted the importance of fiber-optimizing cell towers and installing undersea cables to enhance connectivity. Despite IT-related exports reaching $3.2 billion in the 2023-24 fiscal year, Syed cautioned that continued disruptions threaten the government’s ambitious target of $15 billion in IT exports for the current fiscal year.
Freelancers, a vital segment of Pakistan’s IT ecosystem, have also been significantly impacted. According to Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), the country’s 2.37 million freelancers faced productivity losses due to slow internet speeds and inconsistent connectivity. While IT exports showed positive growth, Khan noted that these gains could have been much higher in a stable digital environment.
Khan praised the National Fiberization Policy introduced in November 2024, which aims to expand broadband access and improve internet speeds. He urged the government to adopt more internet- and VPN-friendly policies to empower freelancers, attract foreign remittances, and reduce dependence on government employment initiatives.
Pakistan’s IT associations and experts continue to advocate for swift modernization of the country’s digital infrastructure. The calls for action come amid increasing pressure to sustain economic growth and ensure global competitiveness in the IT sector. With mounting losses and a growing demand for reliable connectivity, addressing these issues has become critical for Pakistan’s digital and economic future.