Pakistan, a country where many regularly interact with foreigners, has always had to answer tough questions about its democracy, human rights, and security. However, these conversations were once just small talk. In recent years, though, the focus has shifted from theoretical concerns to more practical questions, particularly regarding the country’s internet situation. For those working with foreign clients, a common question is no longer just “Is it safe to visit there?” but “Can you guarantee the project given the internet situation?”
This shift highlights a sobering reality for Pakistan digital economy, which already faces numerous challenges like macroeconomic instability, lack of capital, and a shortage of skilled talent. On top of this, Pakistan now faces a major issue: its internet shutdowns.
Pakistan Ranks Second in Internet Shutdown Duration Globally
According to Top10VPN, a platform that tracks global internet disruptions, Pakistan ranked second worldwide in terms of the duration of internet shutdowns in 2024, with 1,861 hours of downtime. Only Myanmar experienced longer disruptions. This placed Pakistan in an undesirable position, with the cost of these shutdowns estimated at $351 million, second only to Myanmar.
| Country | Internet Shutdown Hours (2024) | Estimated Loss ($) |
|---|---|---|
| Myanmar | More than Pakistan | Higher than Pakistan |
| Pakistan | 1,861 hours | $351 million |
The scale of Pakistan internet shutdowns was also significant. With almost 83 million users affected, Pakistan accounted for over 40% of the total internet disruptions in the top 15 most vulnerable countries globally.
A Sharp Increase in Internet Shutdown Duration
Pakistan internet shutdowns have become more frequent and longer in duration. In 2024, the country experienced a 619% increase in the duration of shutdowns compared to 2023, which saw just 259 hours of downtime. This surge in internet shutdowns caused a rise in economic losses, increasing by an additional $114 million.
| Year | Internet Shutdown Duration | Economic Loss ($) |
|---|---|---|
| 2023 | 259 hours | $237 million |
| 2024 | 1,861 hours | $351 million |
Such disruptions have a direct impact on the tech industry and the digital economy, especially considering the country’s growing reliance on the information and communication sector. In 2024, this sector contributed $3.3 billion to Pakistan economy, second only to textiles and food exports. Although internet shutdowns don’t completely wipe out these contributions, they increase operational costs for local tech companies, making it harder to compete internationally.
Impact on Local Tech Companies and Foreign Exchange
The rising costs due to internet disruptions discourage local tech companies from bringing back foreign currency (forex). This exacerbates the problem of undocumented exports, which are difficult to measure but likely represent a significant portion of the country’s total exports. As long as official exports are showing growth, policymakers are less concerned with the informal sector, even though it affects the overall economic stability.
| Factor | Impact on Tech Industry |
|---|---|
| Increased Shutdowns | Raises operational costs |
| Reduced Forex Return | Discourages bringing in foreign currency |
| Undocumented Exports | Exacerbates the problem of undocumented trade |
Decline in Internet Usage and Speed in Pakistan
Another troubling trend for Pakistan is the decline in internet usage. According to Cloudflare, Pakistan saw a decrease in web traffic for most of 2024. Only 30 days in the first 11 months showed a positive growth rate, and even then, the peak growth was just 3%, compared to the global average of 17%.
| Month | Pakistan Web Traffic Growth | Global Web Traffic Growth |
|---|---|---|
| 2024 (First 11 months) | Mostly negative | 17% average growth globally |
On top of this, the quality of internet service in Pakistan is relatively poor. The average download speed was just 22 Mbps, significantly slower than other countries in the region like the Philippines (97 Mbps), Bangladesh (37 Mbps), and Indonesia (31 Mbps).
| Country | Average Internet Speed (Mbps) |
|---|---|
| Pakistan | 22 Mbps |
| Philippines | 97 Mbps |
| Bangladesh | 37 Mbps |
| Indonesia | 31 Mbps |
Consequences for Young Talent in Pakistan
The frequent internet shutdowns and poor internet quality are having a significant impact on Pakistan young, tech-savvy population. Many talented young people are already disillusioned by the country’s economic conditions, where the value of money has been severely eroded and prices have skyrocketed. For these individuals, the lack of reliable internet access further weakens their incentives to stay in the country.
The internet shutdowns, in particular, have a psychological impact. Many young Pakistanis view the internet as one of their few remaining freedoms, a space where they can express themselves. However, with constant disruptions and surveillance, it becomes harder for them to stay motivated or optimistic about their future in Pakistan.
| Factor | Impact on Young Talent |
|---|---|
| Internet Shutdowns | Reduces motivation to stay in Pakistan |
| Devaluation of Currency | Erodes savings and purchasing power |
| Lack of Opportunities | Forces talented youth to seek opportunities abroad |
The Growing Challenges for Pakistan Digital Future
In conclusion, Pakistan growing issue of internet shutdowns presents a significant barrier to the country’s digital economy. The rise in shutdown durations and the increasing cost of these disruptions hurt not only the tech industry but also hinder Pakistan potential in the global market. These problems, combined with declining internet usage and poor speeds, create an environment where young talent is increasingly looking to leave for better opportunities abroad. Unless the government can find a solution to these issues, Pakistan digital future may remain uncertain.
