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A recent report by Top10VPN.com revealed that Pakistan suffered the highest financial losses worldwide from internet and social media outages in 2024, amounting to $1.62 billion. Given the country’s already struggling economy and IT industry, this loss is significant.
Frequent internet shutdowns began in Pakistan in 2022 following the ouster of Prime Minister Imran Khan in a no-confidence vote. However, in 2024, these shutdowns increased significantly, with 18 reported instances of deliberate internet disruptions. The primary reasons for these shutdowns included elections, information control, and protests. In total, these disruptions lasted for 9,735 hours and impacted approximately 82.9 million users.
Among social media platforms, X (formerly Twitter) has faced persistent shutdowns since February 18, 2024, with an estimated economic loss of $1.34 billion – the vast majority of the estimated cost of internet restrictions. Additionally, restrictions on X have resulted in a dramatic increase in the number of virtual private network (VPN) users, which is estimated to have risen by 6,000 percent.
The Pakistan Software Houses Association (P@SHA) warned that these disruptions could lead to significant losses, stating that for every hour the internet is shut down in the country, the IT sector loses $1 million. P@SHA also revealed that 99 percent of firms have reported that their services were disrupted, and 90 percent reported losses. Additionally, the telecom operators warned that the sector could face an annual loss of 12 billion rupees.
The damage to Pakistan’s economy in 2024 was considerable. In 2023, the total loss from the internet shutdowns was comparatively low, amounting to 65 billion rupees. At that time, Pakistan ranked seventh on the list of countries most affected financially by internet shutdowns. These shutdowns still caused significant damage to Pakistan’s economy, with the telecom sector suffering a loss of 20.46 billion rupees (approximately $130 million) due to the internet shutdown in only three days in 2023. The government also lost approximately $5.5 million in tax revenue over the three-day period. Additionally, the IT industry suffered a loss of 10 billion rupees (approximately $63.8 million).
With outages increasing in 2024, the costs did as well.
While the internet shutdown is one issue, the slowdown is another problematic issue. Pakistan ranks 100th out of 111 nations for mobile internet speed and 141st out of 158 for broadband, according to a recent Ookla Internet Speed Test report.
As Pakistan People’s Party Chairman Bilawal Bhutto put it, “Pakistan has 4G services, but the internet is working at a speed reminiscent of the internet from the 1990s.”
With each instance of an internet slowdown or shutdown, Pakistani authorities provided implausible explanations. At various times, they claimed there was a global issue, cited faults in undersea cables, or outright denied that internet shutdowns were occurring at all. This pattern continues.
The first significant disruption in 2024 was initially blamed on undersea cable repairs, a frequent issue in the past. However, as weeks passed and disruptions persisted, it became evident that the problem was far more deliberate and widespread.
Limiting Internet Freedom
In its 2024 “Freedom on the Net” report, Freedom House, a Washington, D.C.-based organization, classified Pakistan as “not free” on the internet. It received a score of 27 out of 100, placing it among a group of nations including China, Saudi Arabia, the UAE, and Iran.
The Pakistani internet’s dark days began last year when the Pakistani government was unable to effectively counter the anti-government political content on X from Pakistan Tehreek-e-Insaf (PTI) supporters. It resorted to a new strategy: installing a firewall and blocking VPNs. These measures were aimed at containing PTI followers.
However, experts warned that in addition to Pakistan’s economy losing up to $300 million due to internet disruptions caused by the implementation of a firewall, there could be widespread social repercussions. Despite the warnings and outcry against the installation of the firewall, the Pakistani government proceeded with its implementation. The government justified this decision by citing the need to improve cybersecurity.
On the other hand, to justify the blocking of VPNs, the Council of Islamic Ideology, a state body, issued a decree declaring VPN use to be contrary to Shariah (Islamic law) or simply un-Islamic. This invited strong condemnation from the populace. Meanwhile, the Interior Ministry claimed that VPNs were being utilized by terrorists to carry out attacks and were also being used by people to access pornographic content.
Despite the justifications, the primary goal of these actions was to restrict access to social media, especially given the noticeable increase in anti-government activity among PTI protesters online around the time the ban was implemented.
As the government faced increasing pressure for internet disruptions, Syed Sajid Mehdi, the parliamentary secretary for the Cabinet Division, came up with a strange suggestion: “People should use the internet less and reserve it for important matters only.”
Mehdi’s comment reflects the extent of indifference that the ruling elites have toward the general populace and their issues.
To make it further ridiculous, the Pakistan Telecommunication Authority (PTA) justified the VPN ban by citing concerns over the internet slowdown. It stated, “The rising use of VPNs is bypassing local Content Delivery Networks (CDNs), which are responsible for delivering 70% of internet services in Pakistan. VPNs rerouted traffic to international servers, circumventing CDNs.”
However, blocking VPNs was the most damaging action against internet freedom and digital and constitutional rights in Pakistan in 2024. “The decision to block VPNs contradicts the rights to privacy granted in the Constitution,” Nighat Dad, the executive director of the Digital Rights Foundation, said.
Ironically, the country’s prime minister, IT minister, and other Cabinet members themselves resort to VPNs to access X.
With restrictions on the internet persisting, the global #KeepItOn coalition issued a statement urging Pakistani authorities to stop suppressing digital rights.
Affecting Lives
While it’s believed to be mostly affecting IT and related industries, the impact of internet disruptions extends to all the different sectors of the Pakistani economy. Brigadier (R) Mohammad Yasin, senior adviser emeritus at the Sustainable Development Policy Institute, said, “Sluggish speeds and frequent disruptions are taking a toll on businesses, education, healthcare, and governance.”
The Overseas Investors Chamber of Commerce warned that the ongoing internet disruptions could jeopardize Pakistan’s economy. Many multinational companies are reportedly considering exiting the country due to these disruptions, with WhatsApp becoming the first to cease its operations in the country recently.
Although the internet disruptions are detrimental to Pakistan’s economy as a whole, their effects cascade down to individuals and small businesses, causing severe hardships.
Freelancers, who contribute $400 million to Pakistan’s economy, are struggling to maintain their online work. Farhan Murtaza, a 27-year-old freelancer from Rawalpindi, told The Diplomat, “I have lost a large number of clients since the internet problems began. While I used to earn $500 monthly before the internet issues, now I can barely make $150.”
The persistent internet shutdowns have left many people hopeless, especially those who rely heavily on connectivity for their livelihoods.
“I thought the issue would be resolved soon and that things would return to normal, but I didn’t realize that it would persist. It has robbed me of my means of earning a living,” Murtaza concluded, disappointment evident in his voice.
Just like the freelancers, the internet blockage affects those individuals who rely on daily wages earned from online ride and delivery services like Careem, InDrive, FoodPanda, and Yango.
Zubair Ali, a 24-year-old bike driver with InDrive, told The Diplomat, “I used to rely on our only bike service for income, but with the internet shutdowns becoming more frequent, I am desperately looking for other ways to make a living.”
“I wish our lives were made easier, but unfortunately, nobody seems to care,” Ali concluded in a saddened tone.
The suspension of internet services in Pakistan is also disruptive to the digital lifeline for online health services. Health tech companies that offer virtual consultations, telemedicine, and online healthcare platforms have been severely affected by these internet outages.
Shahid Azeem*, a 34-year-old dermatologist in Islamabad, told The Diplomat, “My consultations with my clients are primarily online, and since the internet disruptions began, I am unable to connect with them.”
He added, “In this age of AI, it is unacceptable to have such poor internet service. My profession cannot function effectively without reliable internet.”
Moreover, students who study remotely have been severely impacted by internet shutdowns.
Niaz Hussain*, a 23-year-old university student from Rawalpindi enrolled in distance learning, told The Diplomat, “I am finding it extremely hard to continue my studies since the internet shutdowns began. I cannot connect with my university, and it’s affecting both my academic performance and my mental health as I constantly worry about the situation.”
“I am unable to attend my classes on time because of the internet outages – it’s such a pathetic situation. I urge the government and authorities in Pakistan to restore internet services to normal,” Hussain concluded.
*Names marked with an asterisk are pseudonyms at the sources’ request.