Pakistan faces economic hit from internet slowdown

Economic Slowdown

Pakistan’s internet has slowed to a crawl in recent weeks. The disruptions have affected millions of users and businesses across the country. The government denies responsibility for the slowdown.

However, many Pakistanis fear the authorities are secretly testing a new firewall system to better surveil and control the internet. Shafi Naeem, a freelance software designer in Karachi, has already lost over half his monthly income due to the disruptions. “It’s not just bad for business; it’s devastating,” he said.

“Our work depends on fast, reliable internet.”

Internet speeds have dropped to half their usual rates, according to trade groups and business owners. Files that once uploaded in minutes now take hours. Online calls and video conferencing suffer from frozen screens and delayed voices.

The Pakistan Software Houses Association said in a statement that it “unequivocally condemns the grave consequences of the hastily implemented national firewall.” They warn Pakistan’s economy could lose up to $300 million because of the disruptions. Rights groups have also expressed concerns. They claim the Pakistani authorities are introducing technology to surveil and control the country’s internet.

Internet disruptions impact Pakistan’s economy

Digital researchers say the government is accused of throttling speeds while it tests new controls to crush dissent. The government attributes the slow speeds to technical issues.

However, the widespread disruptions and their timing have fueled growing fears among Pakistanis of increased online surveillance and control. Industry sources suggest there is “gateway-level deployment at the two largest CDN providers … to control and monitor internet traffic in Pakistan.” The Pakistan Internet Exchange is where all international internet traffic enters and leaves the country. The chairman of the Pakistan Telecommunication Authority conceded before the National Assembly’s Committee on Information Technology that the web management system, also called the national firewall system, was being upgraded.

However, there is no disclosure as to what this system upgrade entails. Privacy rights remain compromised in Pakistan under the doctrine of necessity, frequently applied by the legislature and judiciary in response to national security concerns. The acceptance of executive overreach without adequate scrutiny undermines the rule of law and the constitutional framework.

The damage to individuals and businesses is irreversible. Pakistan is being viewed as an unstable, unviable market where investment leads to losses, with no guarantee of service or data privacy. Centralised network filtering and monitoring affect everyone personally and professionally.

The livelihood of citizens and their fundamental rights of expression, access to information, and privacy are at stake.