Pakistan Urged to Accelerate 5G Rollout Amid Economic Losses
Pakistan is facing urgent calls to expedite the rollout of 5G services as the country grapples with significant economic losses caused by Internet disruptions. According to a recent report by global Internet monitor Top10VPN.com, Pakistan suffered the highest economic losses in the world from Internet outages in 2024, totaling $1.62 billion. This surpasses losses in conflict-ridden countries like Sudan and Myanmar.
Economic Impact of Internet Disruptions
The report, published on January 2, revealed that Pakistan experienced a staggering 9,735 hours of Internet disruptions, affecting 82.9 million users. These disruptions were primarily linked to political events such as elections and protests. The Pakistan Software Houses Association (P@SHA) warned that the IT sector could face annual financial losses of up to $150 million due to slow Internet speeds and VPN restrictions.
P@SHA Chairman Sajjad Mustafa Syed emphasized the urgent need for action, highlighting that Pakistan loses over one million dollars per hour due to Internet shutdowns. He called on the government to accelerate the 5G rollout through a spectrum auction planned for March 2025, as well as improve connectivity through fibre-opticisation of cell towers and new undersea cables.
Impact on IT Sector and Freelancers
The IT sector in Pakistan has shown positive growth, with IT-related exports reaching $3.2 billion in the 2023-24 fiscal year. However, continued disruptions could hinder the government’s target of $15 billion in IT exports for the current fiscal year. Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), highlighted the impact of Internet slowdowns on the country’s freelance workforce, urging the government to adopt more Internet-friendly policies.
Khan noted that while Pakistan’s IT exports have grown, they could have been stronger without disruptions. He praised the National Fiberization Policy announced in November 2024, which aims to expand broadband coverage and improve Internet speeds, benefiting freelancers. Khan also emphasized the importance of policies that encourage freelancers to bring in more foreign remittances and reduce reliance on government employment schemes.
Infrastructure Improvements and Future Plans
In response to recent Internet slowdowns, the Pakistan Telecommunications Authority (PTA) provided temporary bandwidth to address disruptions caused by a fault in the Asia-Africa-Europe-1 (AAE-1) submarine cable. The PTA has also announced plans to enhance Internet speeds by joining the 2Africa submarine cable system later this year, offering speeds of up to 180 Tbps.
Furthermore, the government is in discussions with Elon Musk’s Starlink to introduce satellite Internet services in Pakistan, aiming to improve connectivity nationwide. The challenges posed by Internet disruptions continue to impact Pakistan’s IT sector and freelancers. The government’s actions in rolling out 5G and addressing infrastructure gaps will be crucial in mitigating economic losses and enhancing the country’s global reputation in the digital economy.
