Pakistan Faces Economic Losses Due to Internet Disruptions; IT Sector Urges 5G Rollout

Pakistani IT associations and industry experts are calling on the government to fast-track the rollout of 5G services and address ongoing issues of slow Internet speeds. The call comes after Pakistan suffered the highest economic losses globally from Internet outages, totaling $1.62 billion in 2024.

A report by global Internet monitor Top10VPN.com, published on January 2, revealed that Pakistan endured 9,735 hours of Internet disruptions, affecting 82.9 million users. The disruptions were largely driven by political events such as elections and protests.

The Pakistan Software Houses Association (P@SHA) warned of potential annual financial losses of up to $150 million due to slow Internet speeds and VPN restrictions. P@SHA Chairman Sajjad Mustafa Syed emphasized the severe impact on Pakistan’s IT sector, stating that the country loses over one million dollars per hour from Internet shutdowns.

Syed has urged the government to accelerate the rollout of 5G through an auction scheduled for March 2025 and to invest in fibre-optic technology for cell towers and new undersea cables. He expressed concerns that ongoing disruptions could derail 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), echoed concerns about the impact of slow Internet speeds on Pakistan’s freelance workforce, which numbers over 2.37 million. Despite the challenges, Khan praised the government’s National Fiberization Policy, aimed at expanding broadband coverage, but urged the government to create more Internet- and VPN-friendly policies to encourage freelancers to contribute more foreign remittances.

Industry experts, including former P@SHA Chairman Zohaib Khan, raised concerns about the long-term damage to Pakistan’s global reputation due to frequent Internet shutdowns. Khan suggested freelancers seek alternative workspaces to minimize disruption during outages.

In response to the disruptions, the Pakistan Telecommunications Authority (PTA) arranged temporary bandwidth to address issues from the Asia-Africa-Europe-1 (AAE-1) submarine cable fault. The PTA also announced plans to join the 2Africa submarine cable system later this year, enhancing speeds and connectivity. Additionally, the government is in discussions with Elon Musk’s Starlink to introduce satellite Internet services in Pakistan, aiming to improve connectivity and reduce disruptions.

The challenges presented by Internet slowdowns continue to affect Pakistan’s IT sector and its freelancers. With growing calls for action from industry leaders, the government’s efforts to roll out 5G and address infrastructure gaps will be crucial in mitigating economic impacts and strengthening Pakistan’s position in the global digital economy.

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