The recent nationwide slowdown in internet speeds is creating significant challenges across various sectors, including commerce, health, education, financial services, and public operations. The Telecom Operators Association (TOA) has urgently appealed to Prime Minister Shehbaz Sharif to address and resolve the ongoing internet slowdown crisis.
The TOA outlined several critical issues:
Impact on Telecom Sector: The telecom sector in Pakistan is already under financial strain. The slowdown in internet speeds has further exacerbated this issue, potentially resulting in a loss of approximately Rs. 12 billion annually due to reduced internet traffic. Daily internet usage has decreased by around 6,400 Terabytes, placing additional financial stress on the sector. This downturn will also lead to a revenue shortfall of over Rs. 3 billion for the government each year. Given that other sectors depend heavily on telecom infrastructure, the health of the telecom sector is crucial for overall operational stability and growth.
READ MORE: Meta Executives Confer with Pakistani Prime Minister
Impact on Freelancers: Pakistan is home to the world’s fourth-largest freelancer community, which plays a significant role in the country’s IT exports. The internet slowdown has severely impacted freelancers, putting their projects at risk. Platforms like Fiverr have marked Pakistani IT freelancers as offline, further jeopardizing their work and income.
Impact on Business and National GDP: The slowdown is affecting all sectors, including education, health, commerce, banking, financial services, manufacturing, and e-citizen services. A Deloitte study indicates that internet disruptions in smaller countries can cost up to USD 3 million per day. Given Pakistan’s larger population, the economic impact is expected to be substantially higher.
Impact on the IT Industry: To achieve the goal of growing IT exports to USD 25 billion in the coming years, urgent measures are needed to restore internet speeds. Proper connectivity is vital for sustaining the IT ecosystem. The current situation threatens not only future export aspirations but also existing IT export revenues.
Impact on Blue-Collar Workforce: Many blue-collar workers, such as plumbers, electricians, and gardeners, rely on the internet to connect with customers and prospects. The slowdown jeopardizes their ability to earn a living, causing financial strain on Pakistan’s lower middle class.
Impact on Foreign Direct Investment (FDI): Inadequate communication infrastructure deters foreign investors. In today’s digital age, the internet is as critical as traditional infrastructure. The current internet situation in Pakistan may discourage potential foreign investment.
In light of these issues, the TOA urges the Prime Minister to take immediate action to identify and resolve the technical problems causing the internet slowdown. Any delay could have severe and lasting economic consequences for the country. The telecom operators, committed to their national responsibilities, are ready to collaborate in finding solutions to restore optimal internet performance.
