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Pakistan’s E-Commerce Struggles: HCSTSI Urges Govt to Address Internet Disruptions

  • January 6, 2025
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Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) has raised serious concerns over the disruption caused by poor telecom services, which are significantly hampering the growth of e-commerce and other online businesses in Pakistan. The HCSTSI President, Muhammad Saleem Memon, has appealed to the government and Pakistan Telecommunication Company Limited (PTCL) to take immediate corrective measures to address the situation, which he claims is having a severe impact on the national economy.

Memon’s criticism comes after widespread complaints about interruptions in internet services, particularly in areas such as Hirabad, Anaj Mandi, and Tower Market in Hyderabad. These areas are vital hubs for e-commerce businesses, freelancers, and other services that depend heavily on a stable internet connection. According to Memon, the constant disruptions are obstructing the smooth functioning of various online businesses and services, including food delivery companies, courier services, pathology laboratories, and even freelancers who contribute significantly to the country’s economy.

A particularly worrying aspect of this issue is the impact on e-commerce. The global rise of e-commerce has made reliable internet access crucial to businesses across the world. Pakistan’s burgeoning online retail industry, along with numerous home-based entrepreneurs, has been significantly affected by the ongoing connectivity issues. As online transactions grow, businesses are increasingly relying on uninterrupted internet services to handle orders, process payments, and connect with customers. The instability in telecom services jeopardizes not only their operations but also the consumer trust that is vital for the growth of e-commerce in Pakistan.

The Uraan Pakistan programme, announced by Prime Minister Shehbaz Sharif, aims to propel the IT sector to new heights, with a focus on fostering a robust digital economy and facilitating online businesses. The project’s ambitious goals include generating $5 billion annually through freelancing, imparting IT skills to 200,000 professionals each year, and creating an environment conducive to tech-driven growth. However, the lack of reliable internet access stands as a major roadblock to achieving these targets.

“The federal government’s Uraan Pakistan programme is a critical initiative aimed at stabilizing the national economy and promoting the IT sector. However, without consistent internet services, it will be impossible to meet the project’s objectives,” said Memon. He stressed the importance of uninterrupted connectivity to ensure the success of IT training programs, which are essential for creating a skilled workforce capable of meeting international demand for tech-related services.

Memon also pointed out that the telecom sector’s reliance on inconsistent electricity supply, particularly from Hyderabad Electric Supply Company (HESCO), exacerbates the situation. HESCO’s ongoing 10-hour load-shedding exacerbates the problem, leaving businesses without internet for hours. He urged PTCL to take the initiative and install backup batteries in key areas like Hirabad, Anaj Mandi, and Tower Market to avoid disruptions during power outages.

Memon’s call for action comes at a time when the e-commerce industry in Pakistan is witnessing rapid growth. Online shopping, digital payments, and the rise of home-based businesses have become central to the economic activity in the country. This has been further supported by the growing number of online buyers, as Pakistan sees a marked increase in e-commerce participation, particularly during the pandemic. However, without a stable and reliable internet infrastructure, this growth is at risk.

For the success of the Uraan Pakistan programme and the digital economy, Memon stressed that the government must ensure uninterrupted internet connectivity. Without reliable infrastructure, Pakistan risks falling behind its global counterparts in harnessing the potential of the IT sector. According to Memon, the government’s vision for Pakistan’s future depends heavily on a functioning telecom and internet ecosystem that supports businesses of all sizes, especially the emerging e-commerce sector.

As the call for action continues, stakeholders in the IT and e-commerce sectors are hoping for quick resolutions from PTCL and the government to ensure a stable digital infrastructure that can support Pakistan’s fast-growing online economy. The key to Pakistan’s economic future lies in the digital landscape, and stakeholders are urging the government to step up its efforts to address the existing challenges. Without stable internet services, Pakistan’s ambitious goals for IT growth and the future of e-commerce could remain unfulfilled.

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