Pakistan’s economy is suffering greatly as a result of the country’s more frequent internet outages; this is especially true for companies who moved to online businesses during the COVID-19 outbreak.
These losses are contextualized in the most recent report from the Overseas Investors Chamber of Commerce and Industry (OICCI).
These interruptions have serious economic repercussions; internet outages alone cause a direct loss to the nation’s GDP of 0.57%, or Rs 1.3 billion. Including indirect losses raises the anticipated overall economic effect to Rs. 1.7 billion (expected for 2023).
Internet access is essential for upgrading public services through digital public infrastructure (DPI) and empowering companies to participate in the global market in developing countries like Pakistan.
Recent events imply that Pakistan’s efforts to undergo a digital revolution may backfire. According to reports, a significant internet outage in August 2023 lost e-commerce companies 30% of their earnings.
Experts contend that in order for Pakistan to reach its full potential as a booming digital economy, the government has to make investments in reliable digital infrastructure and give priority to universal, reasonably priced internet access.
In an increasingly digital age, the pattern of internet shutdowns that is now occurring is unproductive and might stunt the nation’s economic progress.
This significant discrepancy between acceptance and availability points to a possible area of expansion for the telecom industry.
Industry insiders advise telecom carriers to increase pricing and improve service quality in order to get access to this vast pool of prospective customers.
Such growth might increase industry earnings and support Pakistan’s larger objectives for digital transformation.
