The Overseas Investors Chamber of Commerce and Industry (OICCI) has issued a warning that ongoing internet disruptions in Pakistan could significantly hinder the country’s economic progress.
In a statement shared on the social media platform X on Thursday, OICCI emphasized the importance of a robust digital infrastructure as essential for Pakistan’s economic development.
“Frequent internet outages, like the current situation highlighted by the Wireless and Internet Service Providers Association of Pakistan (WISPAP), jeopardize this vision. WISPAP has reported a 30-40% decline in internet speeds over the past few weeks,” the OICCI stated.
Internet services are currently experiencing disruptions across Pakistan, although the exact cause remains unclear.
The OICCI’s statement sheds light on the ongoing challenges facing Pakistan’s economy, which has struggled for decades to attract and retain investment. The country’s persistent issues with instability, inconsistent policymaking, and a tendency to increase spending in non-productive sectors have deterred investors, who do not view the population of over 240 million as a sufficiently viable market. Frequent bailouts from the International Monetary Fund (IMF) highlight the economy’s vulnerability to shocks compared to its regional peers.
According to OICCI, Pakistani startups raised only $75.8 million across 39 deals in 2023, marking a dramatic year-over-year decline of 77% in funding and 42% in deal volume.
“Importantly, freelancers contribute over $1 billion in revenue to Pakistan’s economy each year, with this income being spent on local goods and services, thereby supporting other businesses,” the statement noted.
“Combined with recurring internet disruptions, these setbacks exacerbate the challenges faced by the services sector and undermine investor confidence. With Pakistan already struggling to attract foreign direct investment (FDI), these actions risk further isolating the country from the global digital economy,” it added.
The OICCI warned that such disruptions “could derail Pakistan’s economic progress, stifle innovation, and severely impact the prospects for much-needed FDI, which is crucial for the nation’s economic revival.”
Additionally, the National Assembly’s Standing Committee on IT has requested an explanation from the Chairman of the Pakistan Telecommunication Authority (PTA), Hafiz Rehman, regarding the ongoing nationwide social media disruptions.
