Pakistan’s Digital Suppression Costs the Nation Billions and Stalls Economic Growth

[post-views]
[post-views]

Pakistan’s continued crackdown on digital technologies and internet freedoms is taking a severe toll on the country’s economic prospects, technological advancements, and global competitiveness. A recent report by Ookla’s Speedtest Global Index, released on December 9, revealed that Pakistan ranks among the lowest globally for mobile and broadband internet speeds, sitting at 100th out of 111 countries in mobile internet speeds and 141st out of 158 countries in fixed broadband speeds as of October 2024. These dismal rankings are not just a technical issue; they reflect a larger, more concerning trend of governmental policies that undermine the potential of the digital economy.

The country’s continued descent in internet speed rankings is no surprise, considering the government’s ongoing campaign to control and restrict digital access. This year alone, Pakistan has seen significant setbacks to internet freedom. The ban on social media platform X (formerly Twitter) and frequent internet shutdowns during politically sensitive periods, such as during elections or opposition protests, are only a few examples of how the government’s overbearing control has led to technological stagnation. These actions, coupled with the installation of a national firewall in recent months, have not only slowed internet speeds but have also crippled businesses, freelancers, and ordinary citizens who rely on stable and fast internet for their livelihoods.

A breakdown of Ookla’s data provides a more granular view of the situation. Lahore and Karachi, two of Pakistan’s largest cities, lead the country in internet speeds, with Lahore boasting a median mobile speed of 24.38mbps and Karachi recording the fastest fixed broadband speed at 19.28mbps. However, these speeds are abysmally slow when compared to global leaders like the UAE, where mobile data speeds reach a staggering 428.53mbps, or Singapore, where fixed broadband speeds soar to 316.99mbps. These comparisons starkly highlight the digital divide that Pakistan faces, signaling how far behind the country is in the race for digital connectivity.

The internet is the lifeblood of a modern economy, particularly one that aims to transition to a knowledge-based economy. Reliable and fast internet speeds are essential infrastructure for any digital economy, enabling everything from online education to e-commerce, from business communications to cutting-edge technological innovations. Unfortunately, Pakistan’s digital infrastructure is sorely lacking. The country’s information technology sector, which could have been a major engine for economic growth, is routinely hindered by internet disruptions, with losses amounting to over USD 1 million per hour due to internet shutdowns. Moreover, the recent national firewall initiative, designed to monitor and restrict online activities, is expected to cost Pakistan’s economy a staggering USD 300 million, due to slowed internet speeds and disruptions in digital business operations.

In 2023 alone, internet shutdowns cost Pakistan over Rs65 billion, affecting approximately 83 million people and lasting for over 250 hours. According to estimates from Statista, the total economic losses from internet disruptions amounted to USD 237.6 million, positioning Pakistan as the seventh-largest economy globally to suffer from such disruptions. These statistics paint a grim picture of a country that is not just falling behind in digital connectivity but actively shooting itself in the foot by curbing access to essential technologies.

Pakistan’s regulatory framework for digital technologies is being shaped by individuals who have little understanding of the global digital landscape and the necessary infrastructure to compete in a modern, interconnected world. The government’s attempts to throttle the internet, restrict virtual private networks (VPNs), and monitor online activities are not only stifling the growth of businesses and tech startups but also impeding the progress of industries that rely on digital technologies for innovation and global competitiveness. In particular, cutting-edge sectors like Artificial Intelligence (AI), blockchain, and software development, which thrive on free and open access to digital resources, are being hampered by these restrictive measures.

One of the most critical sectors affected by these policies is the information technology (IT) industry. The very sector the government is depending on to boost the national economy, attract foreign reserves, and increase exports is being systematically undermined by the government’s own actions. The IT sector, which holds immense potential for driving economic growth and creating jobs, has seen its progress stunted by poor internet infrastructure and restrictive digital policies. The country’s entrepreneurs, developers, and startups are often forced to work in suboptimal conditions, with internet shutdowns, slow speeds, and unreliable connections causing delays, inefficiencies, and financial losses. This is not just an inconvenience; it’s a systemic problem that undermines Pakistan’s ability to compete on the global stage.

The impact of these policies is far-reaching. It is contributing to a substantial brain drain, as young and talented individuals in the tech sector, frustrated by the lack of opportunities at home, seek to relocate to countries with more robust digital ecosystems. This loss of talent is particularly damaging to a country like Pakistan, where the youth demographic holds the key to long-term economic and technological development. The country’s best minds, discouraged by government policies that stifle innovation and progress, are opting to build their futures elsewhere, depriving Pakistan of its most valuable resource: human capital.

Moreover, the government’s fixation on controlling the digital space through censorship and surveillance is counterproductive. Rather than fostering an environment of open innovation, collaboration, and technological growth, it creates a climate of fear and distrust. Entrepreneurs and tech professionals are increasingly wary of the government’s interference in their operations, which results in a chilling effect on innovation. In turn, this lack of innovation hampers Pakistan’s potential to become a global player in the digital economy, limiting its ability to attract international investments and forge global partnerships.

While the government’s intentions may be driven by security concerns or a desire to control the flow of information, the long-term consequences are far more damaging. The focus should not be on stifling digital freedoms but on creating an ecosystem that nurtures creativity, experimentation, and technological development. No amount of infrastructure investment, like the much-publicized IT city in Punjab, will be able to compensate for the lack of a supportive digital ecosystem that values freedom, innovation, and international cooperation. A conducive environment for digital growth requires more than just physical infrastructure—it needs an open, secure, and innovation-friendly regulatory framework that empowers businesses, entrepreneurs, and professionals to thrive.

In conclusion, Pakistan’s heavy-handed approach to managing digital technologies is proving to be a self-defeating policy. Instead of fostering growth in the technology sector, it is undermining the country’s digital potential, damaging businesses, and pushing talented individuals abroad. To reverse this trend, the government must reconsider its approach to digital regulation, focusing on fostering an open, inclusive, and innovation-friendly environment. Only then can Pakistan hope to harness the full potential of its digital economy and compete on the global stage.

Leave a Comment

Your email address will not be published. Required fields are marked *

Latest Videos