In 2024, Pakistan faced severe financial losses due to frequent internet shutdowns and social media restrictions. The country reported the highest global financial losses from these disruptions, amounting to $1.62 billion. Given Pakistan’s already fragile economy, these losses are significant.
Causes of Internet Shutdowns
Internet shutdowns in Pakistan started in 2022 after Prime Minister Imran Khan was removed from office. By 2024, these disruptions became more frequent, with 18 instances recorded. The primary reasons for these shutdowns included elections, political protests, and attempts to control information.
| Year | Number of Shutdowns | Economic Loss |
|---|---|---|
| 2023 | 3 | 65 billion PKR |
| 2024 | 18 | $1.62 billion |
Social Media Restrictions and Economic Losses
One of the most affected platforms in 2024 was X (formerly Twitter). From February 18, 2024, Pakistan imposed strict restrictions on X, causing an estimated loss of $1.34 billion. This led to a massive increase in VPN usage, up by 6,000%.
Impact on Pakistan IT Sector
The IT industry has been hit hardest by these disruptions. The Pakistan Software Houses Association (P@SHA) warned that for every hour of shutdown, the IT sector loses $1 million. In 2023, the telecom sector lost about 130 million USD during just three days of internet shutdowns.
| IT Sector Losses | Amount |
|---|---|
| Loss per hour | $1 million |
| Three days of loss | $130 million |
| Tax revenue loss | $5.5 million |
Slow Internet Speeds: A Growing Issue
Pakistan ranks poorly in internet speed globally. According to Ookla’s report, Pakistan is 100th in mobile internet speed and 141st in broadband speed. This slow internet hampers businesses, education, and healthcare.
Government Control and Censorship
Pakistan’s government has faced international criticism for internet censorship. The country’s internet freedom score dropped to 27 out of 100 in the 2024 Freedom House report, positioning it alongside countries like China and Saudi Arabia. The government has blocked VPNs, claiming they bypass local content delivery networks, further limiting access.
| Freedom Score | 27/100 |
|---|---|
| Countries in Group | China, Saudi Arabia, UAE, Iran |
Broader Economic Effects
The internet shutdowns have negatively affected various sectors of Pakistan’s economy. Multinational companies, such as WhatsApp, have already started to exit Pakistan. Many small businesses and freelancers have struggled to maintain their work and income due to unreliable internet services.
| Sector Affected | Impact |
|---|---|
| Freelancers | $400 million loss |
| Businesses | Service disruptions |
| Healthcare | Online consultations disrupted |
Personal Stories of Impact
Individuals relying on internet-based work, such as freelancers, delivery drivers, and online healthcare providers, have been significantly affected. Freelancers have seen their income drop by up to 70%, and healthcare professionals have struggled to maintain patient consultations.
| Person | Occupation | Impact |
|---|---|---|
| Farhan Murtaza | Freelancer | Income reduction |
| Zubair Ali | Delivery driver | Job loss |
| Shahid Azeem | Online doctor | Consultation issues |
Summary
The ongoing internet shutdowns and social media restrictions in Pakistan have caused widespread disruption across various sectors. The government must act quickly to restore stable internet access to mitigate further economic losses and support its citizens’ livelihoods.
