Amir Saeed

Frequent internet outages pose a serious threat to the online business sector in Pakistan, undermining the growth of digital economy. Talking to WealthPK, Saqib Azhar, CEO of Enablers, an e-commerce network, highlighted that internet outages and poor connectivity had become a regular problem for business owners. The consequences are severe and immediate for the e-commerce platforms. Online sellers struggle with transaction processing, listing product updates, and customer service. He further highlighted that there was a loss of potential sales, a decline in consumer trust, and a general decline in corporate performance. Such interruptions can be especially harmful to startups and SMEs, which frequently run on thin margins and undermine their ability to survive and expand. He pointed out that the issue was not limited to online shopping. Fintech firms, e-learning sites, and telemedicine providers are among the digital service providers that are similarly hit. For these industries to operate effectively, continuous internet access is essential.

He lamented that the scenario was worsened by government-imposed internet shutdowns, which were frequently implemented during times of public upheaval or security concerns. Even though these actions typically aim to uphold public order, they have unexpected negative economic effects. He suggested that the policies governing internet access and shutdowns should also be explicit and unambiguous, balancing the financial burden of safety measures against other considerations. In this digital age, partnerships between the public and commercial sectors can foster resilience and innovation. Talking to WealthPK, Zeeshan Riaz, Chief Operating Officer of Urtasker, an e-commerce consulting agency, said the companies that relied on a stable internet presence faced the risk of losing earnings and experiencing operational disruptions. Furthermore, the sense of uncertainty and instability created by frequent shutdowns deters foreign and local investment in the country’s digital economy.

“The users might experience delays, service interruptions, or even total outages due to internet disruptions. Loss of customers and income could stem from this, and in the case of vital services like telemedicine, there may be dire repercussions for people who rely on prompt assistance.” He highlighted that infrastructure limitations also exacerbated the problem. High-speed internet is still unavailable in many parts of the country, and the infrastructure that is in place is usually insufficient to manage peak traffic. “The digital divide, where businesses in urban regions may prosper while those in underserved or rural areas suffer, is worsened by this discrepancy in internet quality. For the digital economy to be more inclusive and for every business to be able to run efficiently, this gap must be closed.” He suggested that a multifaceted strategy was required to deal with such disruptions. The government must prioritize digital infrastructure investment to ensure high-speed internet availability nationwide.

Credit: INP-WealthPk