OICCI warns of economic risks as internet disruption continues

Author: News Desk

Overseas Investors Chamber of Commerce and Industry (OICCI) warned that frequent internet disruptions in Pakistan “could derail” the country’s economic progress.

In a statement posted on social media platform X on Thursday, OICCI said it has consistently advocated for a strong digital infrastructure as the backbone of Pakistan’s economic development.

“However, frequent internet disruptions, such as the one currently affecting the nation, as highlighted by the Wireless and Internet Service Providers Association of Pakistan (WISPAP), threaten this vision. WISPAP has reported that, over the past few weeks, internet speeds have plummeted by 30-40%,” OICCI said.

Internet services are currently disrupted across Pakistan, with the exact cause yet to be identified. OICCI statement highlights issues plaguing Pakistan’s economy that has for decades struggled to attract and retain investment. Its constant run-ins with instability, inconsistent policymaking, and a general knack of increasing expenditure in non-productive sectors have pushed away investors that do not see the population of over 240 million as a viable enough market. Bailouts with the International Monetary Fund (IMF) are a frequent event, and the economy has stayed more susceptible to shocks than regional peers.

In its statement, OICCI highlighted that in 2023, Pakistani startups raised just $75.8 million across 39 deals, reflecting a sharp year-over-year decline of 77% in funding and 42% in deal volume.

“More significantly, freelancers generate over $1 billion in revenue for Pakistan’s economy each year, with this additional income being spent on local goods and services, thereby supporting other businesses,” it said.

“These setbacks, coupled with recurring internet curbs, exacerbate the challenges faced by the services sector and erode investor confidence. With Pakistan already struggling to attract FDI, these actions risk further isolating the country from the global digital economy,” it said.

The OICCI warned that such disruptions “could derail Pakistan’s economic progress, stifle innovation, and severely impact the prospects for much-needed FDI—a vital component for the nation’s economic revival”.