Pakistan’s IT industry warns that even brief internet disruptions cause significant financial damage, with export businesses bearing the brunt

Pakistan’s IT sector has reported a staggering loss of over one million dollars following just one hour of internet disruption, a figure that highlights the profound impact on the nation’s digital economy. The Pakistan Software Houses Association (P@sha) Chairman, Sajjad Mustafa Syed, voiced his concerns during a media talk on Tuesday, emphasising that internet slowdowns and unplanned outages are significantly damaging the IT services sector, particularly exports.

Syed pointed out that while brief internet interruptions may not immediately affect the general public, the consequences are far-reaching for businesses that rely on real-time operations. In a globalised market, where Pakistan’s IT services cater to clients in advanced countries, even minor disruptions can lead to a loss of confidence in the country’s digital infrastructure. He explained, “A one-hour internet slowdown might not seem significant to people, but for clients in sectors like stock markets, airports, or banking, the repercussions are substantial.”

The P@sha Chairman further warned that such disruptions could lead to long-term consequences for the IT industry. “If clients shift to other countries due to unreliable connectivity, it will be incredibly difficult to bring them back,” Syed cautioned. He also revealed that an internal survey by the association found that most of its members had reported financial losses, with many foreign clients expressing dissatisfaction over the instability of Pakistan’s internet services.

The situation has prompted P@sha to bring the issue to the attention of both the IT ministry and the Pakistan Telecommunication Authority (PTA), highlighting the negative effects on IT service exports. Syed pointed out that while authorities have acknowledged the issue, they have also clarified that banning Virtual Private Networks (VPNs) is not a viable solution due to the lack of a legal framework for such a measure.

The scale of the problem is underscored by the findings of NetBlocks’ Cost of Shutdown Tool, which estimates that a complete internet outage in Pakistan for just one hour could result in a loss of $2.21 million. This tool, which aggregates data from organisations like the World Bank and the International Telecommunication Union, further reveals the economic vulnerability of Pakistan’s digital sector in an increasingly connected world.

As businesses across the country grapple with these challenges, Syed has called for an alternative plan to streamline VPN use and enhance the reliability of Pakistan’s internet infrastructure. He stressed the importance of urgent reforms to protect the IT sector, particularly the export-oriented businesses that are essential to the nation’s economy.