Pakistan’s Internet Shutdowns Cause Over Rs. 1.3 Billion in Business Losses

Pakistan’s frequent internet shutdowns are taking a significant toll on the economy, with businesses experiencing losses exceeding Rs. 1.3 billion, according to a report by the Overseas Investors Chamber of Commerce and Industry (OICCI).

These disruptions are particularly harmful for companies that have moved to digital platforms, especially after the COVID-19 pandemic, which accelerated the need for online operations. The OICCI’s report reveals that internet blackouts result in a direct 0.57% loss to Pakistan’s GDP, amounting to Rs. 1.3 billion. When indirect losses are considered, the total economic hit climbs to an estimated Rs. 1.7 billion based on 2023 data.

Internet Shutdowns Hurting E-commerce and Digital Growth

In developing countries like Pakistan, internet access is critical to fostering economic growth, enabling public services to modernize, and allowing businesses to compete globally. However, frequent internet disruptions hinder progress in these areas. For example, a major internet shutdown in August 2023 reportedly caused a 30% drop in revenue for e-commerce businesses, reflecting the severe economic consequences of these blackouts.

Experts argue that for Pakistan to evolve into a digital economy, the government must ensure consistent and affordable internet access. Ongoing internet restrictions and blackouts only set back the country’s digital transformation, posing risks to long-term economic stability in an increasingly digital world.

Limited Internet Access and Opportunities for Growth

Beyond shutdowns, another issue plaguing Pakistan’s digital landscape is the gap between internet availability and adoption. Recent data shows that while over 58% of the population has access to mobile internet networks, many have not subscribed to these services.

This gap represents an untapped market for the telecom sector, which could significantly increase revenues by improving service quality and making mobile data more affordable. Expanding internet adoption could be a crucial step toward achieving Pakistan’s broader digital transformation goals, unlocking new economic opportunities, and fostering a more connected society.