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Home Economy

Pakistan suffers Rs 65bn loss due to Internet Shutdown

News Desk by News Desk
September 5, 2024
in Economy, South Asia
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Pakistan suffers Rs 65bn loss due to Internet Shutdown
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In 2023, Pakistan’s economy took a significant hit due to internet shutdowns, losing over Rs65 billion ($237.6 million). These disruptions, which lasted a total of 259 hours, impacted approximately 83 million people across the country. The financial and social consequences of these shutdowns have been highlighted by Statista, a German data platform specializing in gathering and visualizing statistics.

Pakistan Ranks 7th in Global Monetary Loss from Internet Shutdowns

Statista’s data places Pakistan 7th on the list of countries suffering the most monetary losses due to internet shutdowns. Pakistan’s economy has struggled to cope with the ramifications of internet restrictions, which are often employed during periods of political unrest, protests, or examinations. The loss of digital connectivity stifles economic growth, business operations, and social communication, making these shutdowns particularly damaging for developing nations reliant on the digital economy.

Pakistan suffers Rs 65bn loss due to Internet Shutdown

Global Context: Russia and India Lead in Internet Shutdown Losses

Globally, Russia experienced the most significant economic damage from internet shutdowns in 2023, losing over $4 billion during 1,350 hours of restricted cyberspace access. The restrictions affected 113 million users. India, often cited as the country with the longest internet shutdowns, ranks fourth in terms of financial loss, with a staggering Rs161 billion in economic damage, affecting 59 million people. The Indian government often implements these shutdowns in regions like Kashmir and Manipur, particularly during periods of unrest or to prevent anticipated protests.

Russia and India Lead in Internet Shutdown Losses

Broader Global Impact of Internet Shutdowns

Other countries that suffered substantial financial losses due to internet shutdowns include Ethiopia, Myanmar, Iran, and Turkey. Ethiopia ranks second globally with a loss of $1.6 billion, followed by Myanmar. Iran, ranked fourth, lost close to $1 billion. Turkey’s shutdowns, though less frequent, still resulted in a loss of $5.8 million, affecting over 70 million users.

The Rising Cost of Internet Disruptions

Internet shutdowns not only disrupt economic activities but also inhibit access to essential services, education, and communication, particularly in regions where the internet is a critical infrastructure. These shutdowns often include throttling, full blackouts, or partial blocks, especially of social media platforms. In Pakistan, these blackouts have affected various sectors, ranging from e-commerce to banking, amplifying the socio-economic damage.

A Global Call for Internet Freedom

Pakistan suffers Rs 65bn loss due to Internet Shutdown

As internet shutdowns become a global issue, the need for policies safeguarding digital rights has never been more pressing. Iceland, with a score of 94 out of 100, ranks at the top of the Internet Freedom Index 2023, followed by Estonia and Canada. The disruption of internet connections, particularly in developing nations like Pakistan, highlights the delicate balance between national security measures and the need to maintain internet freedom for economic and social progress.

The Path Forward

The growing frequency of internet shutdowns, particularly in Asia and Africa, raises concerns over their long-term impact on economies and societies. In the wake of these shutdowns, countries like Pakistan face increasing pressure to protect internet freedom while addressing security concerns. For Pakistan, curbing unnecessary shutdowns could help prevent further economic losses and improve the overall business environment.

 

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