The recent nationwide slowdown in internet speed is creating multifaceted challenges across various sectors, including commerce, health, education, finance, and public sector operations. The Telecom Operators Association (TOA) has urgently appealed to Prime Minister Shehbaz Sharif to address the ongoing internet slowdown crisis. They have highlighted several critical issues resulting from the slowdown:
Impact on the Telecom Sector: The financial condition of Pakistan’s telecom sector is already strained. The slowdown is expected to result in a loss of approximately Rs. 12 billion annually due to reduced internet traffic. Daily internet traffic has decreased by around 6,400 Terabytes, increasing financial stress on the sector. Consequently, the reduction in telecom revenue will lead to a loss exceeding Rs. 3 billion annually for the exchequer. Given that other sectors depend on telecom infrastructure, the health of this sector is crucial for overall operational and economic stability.
Read More: The PTA Chairman attributes the internet slowdown to fiber optic cable failures and VPNs
Impact on Freelancers: Pakistan boasts the fourth largest freelancer community globally, significantly contributing to IT exports. The internet slowdown has severely impacted freelancers, putting their projects at risk or causing them to be terminated. Platforms like Fiverr have marked Pakistani IT freelancers as offline, exacerbating the issue.
Impact on Business and National GDP: The internet slowdown affects all economic sectors, including education, health, commerce, banking, financial services, manufacturing, and e-citizen services. According to a Deloitte study, internet disruptions in small countries can reduce the national economy by up to USD 3 million per day. Given Pakistan’s larger population, the economic impact is likely to be much greater.
Impact on the IT Industry: To achieve the goal of growing IT exports to USD 25 billion in the coming years, immediate corrective measures to restore internet speed are essential. The current situation jeopardizes not only future IT export aspirations but also the viability of current IT exports.
Impact on the Blue-Collar Workforce: Many in the labor class—such as plumbers, electricians, masonry workers, and gardeners—rely on the internet for communication with customers and prospects. The current slowdown threatens their ability to earn a living, adversely affecting Pakistan’s lower middle class.
Impact on New Foreign Direct Investment (FDI): Investors are deterred by underdeveloped communication infrastructure. In today’s digitally connected world, the state of the internet is a critical factor. Pakistan’s current internet conditions could discourage new FDI, impacting economic growth.
The TOA has called for immediate action to identify and rectify the technical issues causing the internet slowdown. They stress that any delay in addressing these issues will have significant and long-lasting economic repercussions. The association is ready to collaborate with relevant authorities to find solutions and improve the situation.
