Summary:

Internet disruptions in Pakistan linked to a new government-installed firewall have caused significant business losses.
The Pakistan Software Houses Association (P@SHA) expressed frustration over being excluded from discussions on the issue.
Over 2 million freelancers are facing challenges, with fears of reputational damage to the country.

A recent internet slowdown across Pakistan has sparked widespread concern, particularly among businesses and freelancers who rely heavily on consistent online connectivity. The slowdown, which experts link to a newly installed government firewall aimed at controlling unwanted content, has had significant repercussions on the country’s economy. The Pakistan Software Houses Association (P@SHA) has voiced frustration over being kept “out of the loop” by the government on such a critical issue, expressing a desire to collaborate but lamenting the lack of communication.

The internet firewall, designed to filter and block content deemed undesirable by the government, has been linked to increased security and surveillance measures. This filtering system inspects information from various internet protocols, potentially affecting the flow of online traffic, including on major platforms like Facebook, YouTube, and X (formerly Twitter). Additionally, preparations are underway to regulate the use of Virtual Private Networks (VPNs), with citizens potentially being required to inform the Pakistan Telecommunication Authority (PTA) about their VPN usage.

Despite widespread complaints about the internet slowdown, government officials have denied responsibility, attributing the issue instead to the use of VPNs. During a recent press conference, Minister Shaza Khawaja stated, “I can swear that the government of Pakistan did not block the internet or slow it down […] Turning VPN on slows down the phone.”

However, P@SHA officials recalled that no such issues had arisen in the past decade when they were included in policy discussions. The association stressed that previous collaborations had allowed for the development of solutions that protected businesses from adverse impacts. P@SHA’s Senior Vice Chairman emphasized that had they been consulted, they would have recommended whitelisting IT businesses from the internet firewall, given that these companies’ IP addresses are tracked through identification records.

The economic impact of the slowdown has been severe, with P@SHA estimating a loss of $300 million due to business disruptions and reputational damage. The association reported that leading IT companies have experienced significant disruptions, with some seeing up to 40% of their Business Process Outsourcing (BPO) services affected. A major healthcare company, conducting business primarily in the United States, reported that 200 of its lines were down for a week, while another firm faced contract losses due to internet issues.

The Pakistan Freelancers Association (PAFLA) also raised alarms, revealing that over 2.3 million freelancers have been struggling to meet client deadlines due to the internet disruptions. PAFLA CEO Tufail Ahmed Khan warned that Pakistan’s rating could be downgraded if freelancers continue to face such difficulties, further harming the country’s economic standing.

As businesses and freelancers continue to navigate these challenges, there are growing calls for the government to address the internet slowdown and involve key stakeholders in finding a sustainable solution. The concerns are not just about connectivity but also about the broader implications for Pakistan’s economy and global reputation.