Disruption of Internet, Ban on Social Media Websites Serious Threat to Pakistan’s Socio-Economic Wellbeing: PREDA

The Association for PR, Events, Digital and Activation (PREDA) has urged the government to ensure stable digital policies to support Pakistan’s growth.  The Association, representing a wide cross-section of professionals, founders, service providers and entrepreneurs, said in a letter to the government that it is confronted by regulatory practices that hinder, rather than help, our collective vision.  The letter highlights that the frequent disruption of digital services, from throttled internet speeds to the banning of specific social media platforms, is presenting a serious threat to the socio-economic wellbeing of our collective industries.  PREDA said that Pakistan’s digital economy has become a lifeline for millions of professionals and small businesses. Our businesses, freelancers, startups, and service-based industries all rely on a consistent and open internet to operate within and beyond our borders and contribute towards expanding Pakistan’s IT exports. According to the data provided by State Bank of Pakistan, Pakistan’s technology exports grew by 143 percent from $1 billion in 2018 to $2.6 billion in 2023.1 However, when access to this digital backbone is disrupted, our country’s ability to deliver services, meet international commitments, and compete globally is greatly compromised.  The association said that every hour of internet disruption or restriction places undue strain on productivity, project delivery, and client trust. It causes substantial financial losses that are absorbed by businesses, which then ripple into the larger economy. According to a study by the Pakistan Institute of Development Economics, a mere 24-hours of internet shutdown leads to a direct loss of Rs. 1.3 billion or 0.57 percent of the country’s daily GDP. In 2023, Pakistan’s economy suffered a loss of Rs. 65 billion owing to internet shutdowns.  The socioeconomic impact of these unpredictable measures is deeply concerning. In a country where job creation and economic diversification are vital, the service industry has emerged as a valuable contributor to both employment and foreign exchange reserves.   A significant percentage of our country’s youth find employment in all the sectors we represent, supporting their families and lifting themselves from the grip of economic hardship. When their capacity to work is impaired by restrictions, it does more than disrupts a workday—it impacts lives, education, healthcare and basic security.   The letter highlights that according to global watchdogs for cybersecurity and internet governance, Net Blocks, the total cost impact of banning X alone, based on a calculation of 200 days, is $844,085,940. Furthermore, a national firewall is likely to further cripple the digital economy, losing up to $300 million due to internet disruptions caused by its imposition, according to the Pakistan Software Houses Association (P@SHA).  Furthermore, banning social media channels disconnects Pakistan from the rest of the world and limits our ability to promote our narrative, culture and economic achievements. Social media is a core platform through which international clients discover and engage with Pakistan’s service providers. These restrictions not only stymie the country’s digital potential but also cultivate an image of instability that risks deterring foreign investment and clients.  “As PREDA members, we appreciate the government’s security concerns and understand the responsibility we play as citizens of our country; however, we strongly believe that a balanced approach should be adopted. We urge the government to consider alternate means of addressing these issues that do not involve wholesale bans or limitations,” the letter says.  An open and consistent internet is a foundational requirement for any country that aims to lead in the digital arena. Our members are ready to collaborate in crafting policies that secure our interests while preserving the integrity of our operations. This is a pivotal moment for Pakistan’s digital economy.   A clear, consistent, and collaborative approach to digital policy would be a testament to our commitment to growth, innovation and global presence.   If enabling policies are created for the digital economy, Pakistan could tap into trillions of dollars by 2030. Despite existing challenges, Pakistan’s digital exports are set to add an additional $6 billion in annual exports value, the letter notes.