“Pakistan’s IT Sector Faces Challenges from Internet Disruptions”
Recent internet outages in Pakistan have raised serious concerns among businesses that are already grappling with a struggling economy. Executives, investors, and technology leaders are sounding the alarm, highlighting how these disruptions are adversely impacting business operations and making investors increasingly apprehensive.
This issue comes at a crucial time when Pakistan is relying heavily on its burgeoning information technology sector to help revitalize its economy. Internet monitoring organizations have reported a significant decline in internet speeds and frequent service interruptions affecting widely used platforms such as WhatsApp, a popular messaging service owned by Meta.
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Nadeem Elahi, the head of TRG, a major venture capital firm and the operator of Pakistan’s largest outsourcing company, has expressed grave concerns about the deteriorating state of internet connectivity in the country. Elahi, who has observed a 30% to 40% decline in internet quality over the past year, underscores the importance of reliable internet for attracting global clients to business processing operations.
The technology sector, a rare success story in Pakistan’s otherwise struggling economy, is facing a major hurdle due to unreliable internet service. The government is counting on the country’s growing IT workforce, including software developers and freelancers, to boost exports and attract foreign investment. This is particularly crucial as Pakistan continues to deal with a persistent foreign currency shortage that has led to numerous bailouts from the International Monetary Fund (IMF). Despite these challenges, IT exports surged to a record $3.2 billion for the year ending in June, marking a 24% increase, according to the State Bank of Pakistan.
However, the recent spate of internet outages threatens to erode this progress. Kalsoom Lakhani, co-founder of i2i Ventures, a venture capital firm focused on Pakistan, warns that these connectivity issues are damaging the country’s reputation among international investors.
