Amir Saeed

Internet restrictions in Pakistan threaten the survival of its tech sector, risking widespread business closures and stifling innovation as freelancers and IT companies grapple with unreliable connectivity and diminished global competitiveness.

Talking to WealthPK, Maher Nafees, a senior software engineer at Rin Technologies Ltd, a tech company, said that the ongoing internet restrictions in Pakistan posed a significant threat to the country’s burgeoning tech sector, with potential closures looming for many businesses. “As the digital landscape becomes increasingly vital for economic growth, the ramifications of these restrictions are becoming more pronounced.”

“In 2025, if current challenges persist, tech companies may find themselves at a disadvantage in the global market due to limited access to essential tools and platforms. This situation could stifle innovation and operational efficiency, ultimately leading to a reduction in economic potential,” he warned. He lamented that freelancers and IT businesses had already felt the brunt of these disruptions. “Popular communication platforms are operating sluggishly, making basic tasks like uploading or downloading files exceedingly difficult.”

“The internet speeds across the country have dropped significantly as users are experiencing delays of hours for simple online activities. Such slowdowns have led to substantial losses for freelancers and online business owners who rely on these services for their livelihoods,” Nafees noted. He pointed out that they were losing clients because of this prolonged outage. “It’s not just about money; it’s about their credibility.”

The State Bank of Pakistan has highlighted that IT and ITeS exports currently stand at $3.2 billion, growing at a remarkable Compound Annual Growth Rate (CAGR) of 22.6%. This sector is one of the largest employers of youth in the country, empowering over 600,000 skilled workers and 2.37 million freelancers. Talking to WealthPK, Awais Ahmad, Director at Tech Solutions Pro, a provider of modern graphic design services, highlighted that reliable internet was not merely a convenience; it was essential for exporting services and maintaining competitiveness in an increasingly digital world.

“Past disruptions have already eroded investor confidence and damaged the country’s global standing as a viable market for tech investments. The perception of Pakistan as less stable for innovation could deter foreign investment and clients, further exacerbating the challenges local businesses face. The potential loss of innovation and economic opportunities could be devastating if these trends continue unchecked,” Ahmad warned. Estimates suggest that a 24-hour suspension of internet services can result in financial losses of around Rs1.3 billion ($15.6 million), equating to about 0.57% of the nation’s average daily GDP. As internet shutdowns become more frequent, they threaten not only individual businesses but also the overall economic fabric of the country.

Ahmad warned that if current trends persisted, many IT companies might face closures due to operational challenges stemming from poor internet services. He expressed concerns that continued disruptions could lead to irreparable setbacks for the tech industry and a mass exodus of talent seeking better opportunities abroad. “To mitigate these impacts, the government must prioritise policies that promote digital freedom and strengthen its tech ecosystem. This includes addressing infrastructure issues that hinder reliable internet access and creating an environment conducive to innovation and growth. If the government fails to act decisively, it risks losing its vibrant freelance community and jeopardising its ambitious goals for the IT sector’s growth,” Ahmad warned.

Credit: INP-WealthPk