Pakistan IT Sector Loses $1 Million Per Hour Due to Internet Shutdowns, Economic Impact Revealed

The ongoing internet shutdowns in Pakistan are having a significant impact on the country’s economy, with the IT sector losing an alarming $1 million per hour. Recent reports highlight the drastic effects of these disruptions, particularly during periods of political unrest or government-imposed restrictions. According to the Pakistan Institute of Development Economics (PIDE), a single day of internet shutdown results in a direct financial loss of approximately Rs1.3 billion, which is about 0.57% of the nation’s daily GDP​.

The freelance sector, which plays a vital role in Pakistan’s digital economy, has been hit especially hard. Freelancers, who often rely on global platforms for work, saw a loss exceeding $1.3 million when the internet was temporarily suspended​. Additionally, essential services such as ride-hailing platforms and food delivery services experienced a severe decline in activity. Ride-hailing services, for instance, saw a 97% reduction in daily bookings, resulting in a daily loss ranging from Rs29 to Rs32 million​.

Furthermore, the telecommunication sector is also impacted by the shutdowns, with the suspension of 3G/4G services alone costing Rs450 million daily​. These shutdowns not only affect business operations but also hinder opportunities for education and professional development, particularly for youth in remote areas. The lack of access to digital tools limits their ability to compete both locally and globally​.

In light of these findings, experts are advocating for more consistent internet access across the country, emphasizing the critical role of the internet in supporting economic growth, education, and job creation. The government’s decision to impose shutdowns is therefore being scrutinized for its long-term economic consequences.

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