Islamabad, January 9, 2025: The ongoing issues of slow internet speed and service disruptions have dealt a significant blow to Pakistan’s IT industry, prompting international companies operating in the country to move parts of their operations abroad. Consequently, export growth in the IT sector has dwindled to just 34%, officials reported.
The challenges posed by slow and unreliable internet connectivity are taking a toll on the country’s IT landscape. In a notable development, WhatsApp has relocated its session server routing operations outside Pakistan due to the poor internet infrastructure. The Pakistan Telecommunication Authority (PTA) confirmed the move, acknowledging that the shift has caused difficulties for users in maintaining seamless communication.
Despite the PTA’s claim of recent improvements in both fixed-line and mobile networks, Pakistan’s global ranking in internet speed remains dismal. Fixed-line internet speeds have improved by two ranks, placing the country at 139th globally, while mobile network speeds improved by three ranks, standing at 97th.
The year 2024 was particularly challenging for internet services in Pakistan, with four major disruptions in submarine cables causing a shortfall of 1,750 gigabytes per second in internet capacity. Compounding the issue were problems with firewalls and web management systems, which further hampered connectivity.
Internet service providers have highlighted the financial toll of such disruptions, stating that one hour of internet downtime results in losses of $900,000, while a full day of outages costs $12.5 million. Export growth, which stood at 47% in 2021, has plummeted to just 24% in the past year.
Prominent IT expert Nighat Dad warned that if the current state of internet connectivity persists, more IT companies are likely to shift their operations overseas. She emphasized the need for immediate reforms to retain businesses in the country.
The impact of slow internet extends beyond the IT sector, affecting e-commerce and online businesses. Ride-hailing services and other app-based platforms have suffered significantly, leaving drivers and riders frustrated with the delays.
The PTA has completed its investigation into the issue, pointing to several factors behind the poor connectivity. Telecom operators have flagged various problems on social media platforms, while the PTA identified the increased use of VPNs as a major contributor to excessive bandwidth consumption. The authority emphasized the urgent need to expand bandwidth capacity to meet rising internet demand.
The government and telecommunications authorities face growing pressure to address these issues, as the stability and growth of Pakistan’s IT industry—and its broader economy—hang in the balance.
