Pakistan’s IT associations and industry experts are urging the government to accelerate the rollout of 5G services and address ongoing issues with slow internet speeds, as the country grapples with significant economic losses caused by internet disruptions.
According to a recent report by global internet monitor Top10VPN.com, Pakistan suffered the highest economic losses in the world from internet outages in 2024, with total losses amounting to $1.62 billion. This figure surpassed losses in conflict-ridden countries such as Sudan and Myanmar.
The report, published on January 2, revealed that Pakistan experienced a staggering 9,735 hours of internet disruptions, which impacted 82.9 million users. The disruptions were primarily attributed to political events, including elections and protests.
The Pakistan Software Houses Association (P@SHA) warned last month that the country’s IT sector was at risk of incurring annual financial losses of up to $150 million due to slow internet speeds and restrictions on Virtual Private Networks (VPNs).
P@SHA Chairman Sajjad Mustafa Syed said,
“Pakistan suffers a loss of more than one million dollars per hour on account of internet shutdowns in the country.”
Syed further stressed the need for urgent action, calling on the government to expedite the rollout of 5G through a spectrum auction planned for March 2025. He also advocated for the fibre-opticisation of cell towers and the installation of new undersea cables to improve connectivity.
The IT sector has seen positive growth in recent years, with IT-related exports reaching $3.2 billion in the 2023-24 fiscal year. However, Syed warned that frequent disruptions could undermine the government’s target of $15 billion in IT exports for the current fiscal year.
Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), highlighted the impact of internet slowdowns on the country’s freelance workforce, which numbers over 2.37 million. Despite these challenges, Pakistan’s IT exports continued to show growth, though Khan noted that the gains could have been stronger without the disruptions.
Khan also praised the government’s National Fiberization Policy, announced in November 2024, which aims to expand broadband coverage and improve internet speeds, benefiting freelancers.
He urged the government to make policies more internet and VPN-friendly, emphasising that this would encourage freelancers to bring more foreign remittances into the country and reduce pressure on government employment schemes.
Zohaib Khan, a former P@SHA chairman, echoed concerns about the long-term impact of internet shutdowns on Pakistan’s international reputation. He said,
“Reports of internet shutdowns are damaging Pakistan’s brand image on the global stage, which indirectly impacts the industry.”
Khan suggested that freelancers work from co-working spaces when outages occur to minimise disruption to their work.
In response to recent internet slowdowns, the Pakistan Telecommunications Authority (PTA) arranged temporary bandwidth to address disruptions caused by a fault in the Asia-Africa-Europe-1 (AAE-1) submarine cable, which affected the country’s internet performance. The AAE-1 cable is one of the seven international undersea cables linking Pakistan to global networks.
PTA has also announced plans to enhance internet speeds and connectivity by joining the 2Africa submarine cable system later this year. The 2Africa cable, one of the world’s largest, spans 45,000 kilometres and connects 46 locations across Africa, Europe, and the Middle East, offering speeds of up to 180 Tbps.
Additionally, the government is in talks with Elon Musk’s Starlink to introduce satellite internet services in Pakistan, as part of broader efforts to improve connectivity across the country. The challenges posed by internet disruptions continue to weigh heavily on Pakistan’s IT sector, particularly its freelancers.
With growing calls for action from industry experts, the government’s next steps in rolling out 5G and addressing infrastructure gaps will be crucial in mitigating the economic impact and enhancing the country’s global standing in the digital economy.
