Economic Impact of Pakistan’s Internet Shutdowns: OICCI Report
ISLAMABAD – Pakistan’s increasing frequency of internet shutdowns is having a profound negative impact on the nation’s economy, particularly affecting businesses that have transitioned online during the COVID-19 pandemic. According to the latest report from the Overseas Investors Chamber of Commerce and Industry (OICCI), these disruptions are costing the country dearly.
The report highlights that internet blackouts have resulted in a direct loss of 0.57% to Pakistan’s GDP, translating to approximately Rs 1.3 billion. When including indirect losses, the total economic impact rises to an estimated Rs 1.7 billion, based on 2023 figures.
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In developing nations like Pakistan, internet connectivity is essential for modernizing public services through digital public infrastructure (DPI) and enabling businesses to compete globally. However, recent trends suggest a regression in Pakistan’s digital transformation efforts. A notable internet shutdown in August 2023 alone reportedly led to a 30% loss in revenue for e-commerce businesses.
Experts assert that to realize its potential as a digital economy, Pakistan must prioritize widespread, affordable internet access and invest in robust digital infrastructure. The current trend of frequent internet shutdowns is seen as counterproductive, risking significant harm to the country’s economic growth in an increasingly digital world.
Limited Internet Access
Recent data shows that over 58% of Pakistan’s population has access to mobile internet networks but has not subscribed to these services. This gap between availability and adoption presents a potential growth area for the telecom sector.
Industry experts suggest that telecom providers could capitalize on this opportunity by improving affordability and service quality. Expanding access could not only boost sector revenues but also contribute to Pakistan’s broader digital transformation goals.
