Internet shutdown cost Pakistani businesses over Rs1.3bn: report

The rising frequency of internet outages is negatively impacting Pakistan’s economy, especially for companies that shifted to online platforms during the COVID-19 outbreak.

The Overseas Investors Chamber of Commerce and Industry (OICCI) released a study that highlights these losses.

Internet outages directly reduce the GDP of the nation by 0.57%, or Rs 1.3 billion, as a result of these interruptions, which have serious economic repercussions.

The entire economic effect increases to an estimated Rs1.7 billion when indirect losses are taken into account, according to the latest data.

Internet access is essential for developing countries like Pakistan in order to implement digital public infrastructure (DPI), modernize public services, and allow enterprises to compete on the world market. But it appears that Pakistan’s efforts to undergo a digital transition may be backfiring based on recent events.

According to reports, e-commerce companies lost 30% of their sales due to a significant internet outage in August 2024.

Speaking of restricted internet access, new research shows that more than 58% of Pakistanis have access to mobile internet networks but do not currently have a subscription to these services. The telecom industry may see growth in this significant gap between availability and uptake.

Experts in the field advise telecom companies to increase service quality and price in order to attract more customers from this sizable pool of prospective customers. This kind of growth might increase industry profits and help Pakistan achieve its larger objectives for digital transformation.