As Pakistan strives to establish itself as a key player in the global digital economy, a coalition of professionals, entrepreneurs, and service providers is sounding the alarm over the country’s current digital regulatory practices. The Association for PR, Events, Digital and Activation (PREDA), which represents a broad spectrum of industry stakeholders, is calling on the government to reconsider policies that are undermining the potential of Pakistan’s growing digital sector.
At the heart of the issue are frequent disruptions to digital services, including throttled internet speeds and the banning of social media platforms, which are severely impacting businesses, startups, freelancers, and service industries that rely on consistent and open access to the internet. For many of these professionals, the internet is not just a tool—it's the lifeline that enables them to operate both locally and internationally.
According to PREDA, Pakistan’s digital economy has become a significant contributor to the nation's GDP, and it continues to grow at a rapid pace. Data from the State Bank of Pakistan reveals that the country’s technology exports surged by 143% between 2018 and 2023, rising from $1 billion to $2.6 billion. This growth highlights the crucial role of digital services in Pakistan’s economic diversification and global competitiveness.
However, the ongoing disruptions to digital infrastructure are creating a major roadblock to further growth. Every hour of internet downtime or restriction, the association warns, places undue pressure on productivity, business operations, and client relations. The resulting financial losses ripple across the economy, affecting not just the technology sector but also other industries that depend on reliable digital communication.
The Pakistan Institute of Development Economics (PIDE) has estimated that a 24-hour internet shutdown can cost the economy around PKR 1.3 billion (approximately 0.57% of the country’s daily GDP). In 2023 alone, Pakistan suffered a staggering loss of PKR 65 billion (USD 237.6 million) due to internet shutdowns.
The socio-economic repercussions of these disruptions are far-reaching. The service industry, including freelancers and small businesses, has become one of the largest employers of Pakistan’s youth, offering an avenue out of poverty for many. With millions of young people relying on the digital economy for work and livelihood, restrictions on internet access not only disrupt their daily activities but also jeopardize their future prospects, education, and access to basic services like healthcare.
The impact of social media bans is equally concerning. Social media platforms have become vital channels through which businesses can promote themselves internationally, showcase their work, and connect with clients from around the world. The government’s decision to ban platforms such as X (formerly Twitter) has had severe consequences for Pakistan’s digital image abroad.
According to global cybersecurity watchdog NetBlocks, the financial cost of banning X alone over a span of 200 days amounts to nearly $844 million. Additionally, the imposition of a national firewall could cost the economy up to $300 million annually, further crippling Pakistan’s digital economy, according to estimates by the Pakistan Software Houses Association (P@SHA).
Beyond the immediate financial losses, these restrictions are painting a picture of instability, which could deter foreign investors and clients who may perceive the country as unreliable or unpredictable. For Pakistan’s burgeoning tech sector, this is a significant setback, as global competition for tech contracts is fierce, and maintaining an open, accessible online presence is key to attracting international business.
While PREDA acknowledges the government’s legitimate concerns about national security, the association argues that the current approach—of imposing blanket bans and throttling internet access—fails to strike a balance between security and economic growth. The association is calling for the development of a more nuanced and targeted strategy that addresses security issues without stifling the growth of the digital economy.
"An open and consistent internet is a foundational requirement for any country that aims to lead in the digital age," said a PREDA spokesperson. "We understand the importance of safeguarding national interests, but we strongly believe that there are alternative methods to achieve security without jeopardizing the progress we’ve made in the digital space."
PREDA members are urging the government to adopt a more collaborative approach when designing digital policies, one that involves consultations with industry stakeholders to find solutions that protect both national security and economic development. A more predictable and open digital environment, they argue, will enable Pakistan to realize its potential as a key player in the global digital economy.
The recent comments made by Finance Minister Senator Muhammad Aurangzeb, acknowledging the importance of digitalization for Pakistan’s economic growth, have been welcomed by the industry. If the government acts on these sentiments, there is significant potential for Pakistan’s digital economy to unlock trillions of dollars in value by 2030. By creating enabling policies, Pakistan could see an additional $6 billion in annual technology exports, a crucial boost to the country’s foreign exchange reserves.
In conclusion, PREDA members are calling on the government to work with the private sector to strengthen Pakistan’s digital infrastructure and foster a more stable, secure, and open internet environment. Such efforts will not only protect the digital economy but will also support the broader national goals of innovation, economic growth, and global competitiveness. The time for action is now, as Pakistan stands at a critical juncture in its digital journey.