Internet Shutdowns: A Hindrance to Pakistan’s Tech Growth

The substantial expansion of Pakistan’s technology exports within the last five years has been remarkable, with a staggering growth of 143%, surging from $1 billion in fiscal year 2018 to almost $2.6 billion in 2023. Despite this, the ongoing arbitrary internet shutdowns pose a threat to the potential of the technology sector and jeopardize its long-term sustainability.

Investors are attracted to rapidly growing industries, such as Pakistan’s technology sector. However, stability and predictability are essential for capital allocation. The arbitrary nature of internet shutdowns in Pakistan raises concerns for both local and foreign investors, making it challenging to ensure the smooth functioning of digital services and consistent product delivery to the market.

Furthermore, these shutdowns not only undermine investor confidence but also create a negative perception among foreign companies and clients. This adversely affects both new business opportunities and existing relationships, as the unpredictability of internet access presents an unacceptable risk for many companies. Moreover, each internet shutdown generates negative international media coverage, further damaging Pakistan’s reputation in the global technology market.

The long-term consequences of these shutdowns should not be underestimated. Pakistan has previously experienced the adverse effects of instability, such as the impact of deteriorating security conditions on the country’s manufacturing export sector. This resulted in cancelled export orders, reduced connections with foreign supply chains, and a decline in investment that the country still grapples with today.

When it comes to technology, sustained restrictions on internet access directly threaten Pakistan’s exports and the wider technology sector. They undermine the country’s potential to become a digital innovation hub and contribute to increased discontent within society. Given that the technology sector remains one of the few economic success stories in Pakistan, it is imperative that measures are taken to address these issues and put an end to arbitrary internet shutdowns.