By Web Desk 
Frequent internet shutdowns in Pakistan are severely impacting the economy, resulting in losses exceeding Rs. 1.3 billion, according to a report from the Overseas Investors Chamber of Commerce and Industry (OICCI). These disruptions, which have become increasingly common, are particularly harmful to businesses that shifted their operations online during the COVID-19 pandemic.
Economic Toll of Internet Shutdowns
The OICCI report highlights that internet blackouts directly contribute to a 0.57% reduction in the country’s GDP, translating to Rs. 1.3 billion in economic losses. When indirect losses are considered, the total economic impact is even more staggering, climbing to around Rs. 1.7 billion in 2023 alone. The August 2023 internet blackout further underscores these challenges, causing e-commerce businesses to lose 30% of their revenue in a matter of days.
For developing nations like Pakistan, reliable internet connectivity is critical to fostering economic growth, modernizing public services, and enabling businesses to compete on a global scale. Yet, the recent shutdowns have set back the country’s digital transformation efforts, raising concerns about its ability to thrive in a digitally-driven world.
Bridging the Digital Gap
In addition to shutdowns, Pakistan faces another challenge in its digital landscape: limited internet adoption despite widespread availability. While 58% of the population has access to mobile internet networks, a significant portion has yet to subscribe to these services. This highlights an opportunity for growth in the telecom sector, which could potentially increase its revenue by targeting these untapped users.
Industry experts suggest that improving the affordability and quality of internet services could help close this gap, driving greater internet adoption across the country. As Pakistan aims to evolve into a thriving digital economy, ensuring access to affordable and reliable internet will be crucial in unlocking new opportunities for growth and innovation.