Pakistan’s internet throttling risks economic fallout

Economic Fallout

Pakistan’s economic recovery is at risk as the government throttles internet and social media to suppress dissent, according to activists and business leaders. Since July, internet networks have been up to 40 percent slower, significantly disrupting daily digital communication. These disruptions have primarily affected WhatsApp, used by tens of millions of Pakistanis for sharing documents, images, and voice notes.

Digital rights experts believe the government is testing a national firewall and content filtering system aimed at increasing surveillance and censoring political dissent. Usama Khilji, a digital rights expert and activist, stated, “The internet slowdown is due to the installation of a national firewall and content filtering system by the state aimed at increasing surveillance and at censoring political dissent, especially the criticism of the security establishment for its interference in politics.”

Authorities appear to be targeting WhatsApp for its end-to-end encryption that allows users to share information securely without third-party access. The government and telecommunications authority, led by a retired general, initially refused to comment on the slowdown.

Defence Minister Khawaja Muhammad Asif eventually acknowledged the connectivity issues, attributing them to a transitional phase, without confirming whether the firewall was involved. Prominent journalist Hamid Mir has filed a legal challenge against the government over the suspected installation of the firewall, with the case due to be heard at the Islamabad High Court. Pakistan’s military, the country’s most powerful institution, claims it is fighting digital terrorism.

Internet throttling jeopardizes economic recovery

This year, rallies have called for more action against militant violence in border regions with Afghanistan, while protesters in southwestern Balochistan have raised concerns over alleged rights abuses. However, analysts believe the primary target of the digital disruption is the party of jailed opposition leader Imran Khan, who remains popular among young, tech-savvy voters.

Business leaders warn that disrupting internet service amid ongoing political instability is exacerbating Pakistan’s economic woes. The Pakistan Software Houses Association estimates the firewall could cost the IT sector up to $300 million. Shahzad Arshad, head of the Wireless & Internet Service Providers Association of Pakistan, warned of a potential mass exodus of businesses if the slowdown continues.

Ehsan Malik, CEO of the Pakistan Business Council, commented on the negative impact of the firewall on the IT sector, particularly freelance software developers, and the country’s credibility as a reliable IT service provider. Activists criticize the government’s increasing censorship and control over the internet and media, limiting free speech in Pakistan. The social media platform X has been banned since the election, cutting off a crucial outlet for airing allegations of poll rigging.

The social media team of Khan’s party has faced numerous arrests and detentions. Shahzad Ahmad, head of the independent digital rights watchdog Bytes for All, expressed concerns that the firewall would diminish trust among IT investors and compromise citizens’ fundamental rights.