Pakistan is facing growing concerns over its internet services, which are causing significant disruptions for businesses and freelancers. The problems are linked to a new government-installed firewall system, which was designed to enhance cybersecurity but has resulted in widespread internet slowdowns and connectivity issues.
Risk Of Mass Exit Of Foreign Companies From Pakistan
Major business and industry groups, including the Pakistan Business Council (PBC) and the Pakistan Software Houses Association (PSHA), have warned that this situation could lead to a mass exit of foreign companies from Pakistan. In recent months, multiple prominent international companies, such as Uber, Pfizer, and Shell, have sold their stakes in Pakistan, signaling a decline in foreign investment.
Various Sectors Affected By Internet Disruption
The PBC stated that many multinational companies are either planning to move their operations out of Pakistan or have already done so due to the severe internet disruptions caused by the new firewall system. These ongoing Internet disruptions have affected various sectors in the country, including call centers, e-commerce, and digital services, which rely heavily on stable Internet connections.
Lack Of Confidence In Pakistan’s Economic Policies And Political Instability
A recent report highlighted that nine wealthy companies have divested their assets in Pakistan over the past two years, reflecting broader concerns about the country’s business environment. The lack of confidence in Pakistan’s economic policies, high business costs, and political instability have further fueled these concerns.
Freelancers And Gig Workers Began Protesting
The internet slowdown has also hit major social platforms like Facebook and WhatsApp hard, leading to widespread frustration. Freelancers and gig workers, many of whom rely on these platforms for their regular income, have taken to the streets to protest the lack of reliable connectivity.
Pakistan Government Attempts to Upgrade Web Management System
The Pakistani government has acknowledged the internet issues and is working towards upgrading its “web management system” to address cybersecurity threats. However, it has so far failed to reassure businesses and freelancers who are suffering from slow internet speeds and frequent disconnections. Despite these issues, the Pakistani government is pushing forward with its plans for digital development, including bringing 5G technology to the country, which is also faced with immense critique.