Daily Times

As the whole country is in the grip of slow internet speed and continuous disruptions for the last one month, losing at least $300 million, the Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel (BMP) has asked the authorities to address the issue and restore the full internet services in the country.

FPCCI former president and BMP Chairman Mian Anjum Nisar observed that the disruption is a direct and aggressive assault on the industry, estimating the financial loss of $300 million, which may escalate further if the situation persists. He said that the internet slowdown is causing substantial financial losses in the IT and e-commerce sectors, as over $3.2 billion in annual IT and freelancing exports, and a $5 billion domestic e-commerce ecosystem is now at stake. He said that when the internet slows down, businesses experience major disruptions in daily operations, as key functions such as communication, order processing, inventory management, and customer service are all hindered. Small businesses, in particular, are vulnerable as they often depend entirely on mobile internet and Whatsapp to attract and serve customers. These challenges have made it difficult for the trade and industry, including freelancers to meet project deadlines and secure future business, leading to significant revenue losses. According to industry experts, Pakistan is the fourth-largest freelancing industry having more than 2.5 million freelancers and if the issue continues the online freelancing platforms may not stand further.

Quoting the Economic Survey of Pakistan, they said that the freelancers have generated $350 million in 2023-24, reporting 40% annual increase in revenue, underscoring the rapid growth and importance of the freelancing industry to national economy.

The FPCCI former president said the internet freedom is declining in the country, with increased censorship across social media, e-commerce platforms, and search engines. Interestingly, many countries with strict internet regulations are also popular tourist destinations, highlighting the global challenge of balancing security with connectivity. After months of speculation, Pakistan’s IT minister recently confirmed that the government is indeed upgrading its web management system to address cyber security threats. The government has stressed the importance of protecting the country’s interests in the face of these challenges.

Anjum Nisar said that the growing anxiety within the business community reflects the broader implications of these internet disruptions. As the country navigates these challenging times, the future of Pakistan’s digital landscape hangs in the balance. Both businesses and consumers are feeling the effects of the slowdown, raising questions about how to balance the government’s security measures with the need for a robust and reliable digital economy.

Mian Anjum said that firewalls on devices like laptops serve to protect against harmful network traffic. However, a national firewall operates on a much larger scale, performing crucial functions such as content filtering, surveillance of internet traffic for illegal activities, bandwidth control to prevent congestion, and the enforcement of internet usage regulations.

Warning that the disruption may pose a significant threat to the country’s digital economy he said that IT companies, small traders, and everyday citizens are suffering substantial daily losses due to this.

He said that the image and credibility of the local businesses serving foreign clients are being impacted, which could result in further financial damage if not permanently addressed. If any disruptions are imminent or occurring, the government and regulators must provide proactive information, and clear timelines for resolution so that individuals and businesses can plan accordingly.

The businessmen leader highlighted that the reliance on mobile internet extends to various professions, including small contractors who use WhatsApp for work-related communication. Those employed in the gig economy, such as drivers for inDrive and Careem, delivery personnel for Bykea and Foodpanda, and shopkeepers selling goods through e-commerce platforms, are entirely dependent on a stable internet connection. He called for an immediate resolution to these internet disruptions in the broader interest of the nation. He appealed to the authorities to prioritize this issue and take immediate action to restore full internet services, as the stable and secure internet connection is crucial for the trade and industry to continue their work. The current situation not only tarnishes the reputation of Pakistani businesses but also poses significant risks to the broader digital economy.