Telecom Sector Will Lose Rs. 12 Billion Per Year Due to Ongoing Internet Disruptions
The ongoing nationwide slowdown in internet speeds is posing severe challenges across various sectors, including commerce, health, education, financial and banking services, and public sector operations.
The Telecom Operators Association (TOA) has urgently appealed to Prime Minister Shehbaz Sharif to address and resolve the current internet slowdown crisis. The TOA outlined the following critical issues:
Impact on Telecom Sector: The financial health of Pakistan’s telecom sector is already under strain, and the recent slowdown in internet speed is expected to exacerbate this issue. The sector is projected to incur a loss of approximately Rs. 12 billion annually due to a significant reduction in internet traffic—down by around 6,400 Terabytes per day. This slowdown will also lead to a reduction in government revenue exceeding Rs. 3 billion per year. The health of the telecom sector is crucial as it supports operations and growth in other sectors that rely on its infrastructure.
Impact on Freelancers: Pakistan, home to the world’s fourth-largest freelancer community, faces severe repercussions as a result of the internet slowdown. Freelancers, who are vital to the country’s IT export sector, are experiencing project cancellations or terminations. Platforms like Fiverr have marked Pakistani IT freelancers as offline, further disrupting their work.
Impact on Business and National GDP: The slowdown affects every sector of the economy, from education and health to commerce and financial services. According to a recent Deloitte study, internet disruptions in a smaller country (with a population of 40 million and broadband penetration of 5%) can negatively impact the national economy by up to USD 3 million per day. Given Pakistan’s larger population and broader economic reliance on digital infrastructure, the economic impact is expected to be significantly greater.
