Pakistan incurs $1.62B loss, leads world in 2024 internet shutdown costs

Pakistan emerged as the most affected country in 2024, incurring $1.62 billion in losses due to government-imposed internet shutdowns, according to Tech Radar.

These disruptions, linked to political unrest and elections, were part of a global trend where governments intensified internet blackouts.

Impact of shutdowns in Pakistan

Frequent internet shutdowns significantly hurt Pakistan’s economy, particularly its freelance and business sectors, which rely heavily on stable connectivity. Protests by the Pakistan Tehreek-e-Insaf (PTI) and elections saw the most severe disruptions.

Despite official claims of "technical glitches," the government periodically tested internet filtering systems, often leading to slow speeds and service interruptions.

VPN usage surges amid restrictions

As shutdowns became routine, many Pakistanis turned to Virtual Private Networks (VPNs) to bypass restrictions. VPN providers like Proton VPN reported increased sign-ups from Pakistan. Even government officials used VPNs to access X (formerly Twitter), despite its ban.

In November 2024, the Interior Ministry announced a crackdown on "illegal" VPNs, citing security concerns. A registration deadline for VPNs with the Pakistan Telecommunication Authority (PTA) was extended after backlash from businesses and freelancers.

Parliamentary debate

The shutdowns sparked heated debate in Pakistan’s parliament. Opposition lawmakers demanded explanations for the disruptions and questioned the poor quality of internet services.

The government defended its actions, citing national security. IT Minister Shaza Fatima argued that the restrictions were necessary and aligned with regulatory policies. She dismissed allegations of censorship, stating, "Less than two percent of the population uses X."

Global context

Globally, internet shutdowns caused $7.69 billion in losses across 28 countries in 2024, according to Top10VPN. Iraq led in the number of incidents, primarily linked to national exams.

Pakistan’s losses were the highest globally, reflecting the broader economic and social costs of internet disruptions. While the government insists these measures ensure security, critics argue they stifle free expression and economic progress.

As Pakistan navigates this digital dilemma, the economic and social impacts of internet restrictions remain under scrutiny.