Slow internet speeds threaten economic growth, warned OICCI

ISLAMABAD: The Overseas Investors Chamber of Commerce and Industry (OICCI) raised concerns over the impact of slow internet speeds on Pakistan’s economic trajectory on Thursday.

The OICCI, representing international investors, warned that persistent internet disruptions could severely impact the country’s economic growth.

Read more: Pakistan’s internet firewall could cost economy $300 million, association says

Due to the government’s decision to implement a firewall to screen online content, particularly on social media, users have been experiencing frequent internet service interruptions over the past several days.

The OICCI warned this could hinder innovation and diminish foreign investment, vital for inflation-hit Pakistan to economically recover. The organisation has long promoted the development of a strong digital infrastructure as important for Pakistan’s economic advancement.

However, the ongoing internet issues threaten to undermine the efforts.

The OICCI stated that freelancers contributed over $1 billion annually to Pakistan’s economy. The income helped support local businesses and services, shedding light on the importance of reliable internet access for economic stability.

Recent reports of decreased internet speeds heavily impacted online businesses and freelancers, with concerns growing about potential job losses affecting approximately 2.5 million freelancers.

The Wireless and Internet Service Providers Association of Pakistan (WISPAP) observed a 30 to 40 per cent reduction in internet speeds in recent weeks. The slowdown led to disruptions for online businesses, with some considering relocating their operations abroad.

The lack of government response to these issues was sharply criticised by the association, which views it as a serious threat to the business sector.

The association’s chairman criticised the Pakistan Telecommunication Authority (PTA) for not providing clear reasons for the slow internet speeds. This has forced some businesses to consider moving their operations abroad.

Reports indicate that the decline in already slow 4G speeds represents a setback in technological advancement, likely to adversely impact IT exports, as well.

Among the 138 million internet subscriptions in Pakistan, 135 million are for mobile services.

Read more: Digital businesses threaten to exit Pakistan over internet disruptions

According to sources, the second trial for nationwide firewall installation was successful. Full restoration of internet services is expected within 2 to 3 days.