In recent months, Pakistan has witnessed substantial internet disruptions and sluggish speeds, leading to widespread discontent among users and businesses. These interruptions have had a significant impact on the nation's IT and e-commerce sectors, which are critical to economic growth and development.
Core Issues and Causes
Submarine cable failures have been a major cause of internet interruptions in Pakistan. Pakistan experienced four submarine cable outages in 2024 alone, resulting in a data shortage of 1.75 Tbps. These outages have significantly disrupted internet connectivity across the country.
Increased Surveillance and Security Measures: The federal government's increased attempts to monitor internet traffic have also contributed the slowness. These security measures have inadvertently hampered the digital economy. Users have reported 30-40% slower internet speeds, making it difficult to do online commercial tasks.
Economic Challenges: Pakistan's economic predicament has increased internet concerns. Delays in importing telecom equipment and a lack of investment in digital infrastructure have hampered efforts to expand internet services1. Businesses have struggled to compete globally due to a lack of reliable internet connectivity.
Unexpected Load Shedding: Internet service providers have also identified unexpected load shedding as a contributing factor to sluggish internet connections. This has mostly impacted mobile data services, making it impossible for customers to upload or download media files5.
Impacts on Pakistan's Information Technology: The e-commerce industry has experienced huge economic losses due to frequent internet shutdowns and sluggish speeds. According to the Overseas Investors Chamber of Commerce and Industry (OICCI), these disruptions resulted in commercial losses of more than Rs. 1.3 billion, with indirect losses totaling Rs. 1.7 billion. E-commerce enterprises have been especially badly hit, with some reporting a 30% decline in income.
Business flight: The deteriorating internet condition has raised concerns about a mass flight of enterprises from Pakistan. Many businesses are considering migrating to countries with more stable internet connections. This could have a long-term impact on Pakistan's digital economy and ability to attract international investment.
Impact on Digital Transformation: Slow internet speeds and frequent outages are impeding Pakistan's digital transformation ambitions. The country's rapidly expanding digital economy is now at risk of stagnation. Without dependable internet connectivity, Pakistan will struggle to modernize its public services and compete in the global economy.
The recent internet disruptions and sluggish speeds in Pakistan emphasize the critical need for upgraded digital infrastructure and better internet service management. Addressing these concerns is critical to the nation's economic stability and progress. The government and appropriate agencies must collaborate to guarantee that Pakistan's IT and e-commerce sectors prosper in a stable and secure digital environment.
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