In a recent study conducted by the Pakistan Institute of Development Economics (PIDE), startling revelations have emerged regarding the economic impact of internet shutdowns in Pakistan.
PIDE estimates show that the closure of internet services for just 24 hours results in a direct loss of PKR 1.3 billion, which equates to a staggering 0.57 percent of the daily GDP average for the nation.
This eye-opening revelation is part of PIDE’s research infographic titled “The Economic Cost of Internet Closure” and highlights the severe consequences of internet shutdowns on the Pakistani economy, said an official of the PIDE on Sunday.
According to Dr Nadeem ul Haque, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE) and Mohammad Shaaf Najib, Research Fellow at PIDE, the internet has become a fundamental necessity in modern times. However, Pakistan’s internet infrastructure lags behind in terms of both quality and coverage.
The PIDE Infographic shows that online Cab Services, a cornerstone of modern transportation, saw a staggering 97 percent reduction in the number of rides on days when the internet has been closed down. This significant downturn equates to a loss of Rs 29 to 32 million for the industry per day. Similarly, Online Food Delivery Services suffered a 75 percent reduction in the number of orders, translating into a substantial daily loss of Rs 135 million.
Meanwhile, the freelance community, which contributes significantly to Pakistan’s economy, has also felt the brunt of internet disruptions. Denial of orders to Pakistan-based freelance workers resulted in over $1.3 million loss of revenue, equaling Rs 390 million, impacting livelihoods of many and the national economy as a whole too.
Besides, suspension of 3G/4G services for a single day causes a loss of Rs 450 million to the telecommunication sector alone. Dr. Nadeem ul Haque, PIDE’s Vice Chancellor, said that access to high-quality internet not only enhances opportunities for the youth, particularly in remote areas but also plays a pivotal role in bridging the divide between the privileged and the common public. Utilizing online tools for education and professional purposes can empower youth from rural regions to compete on a national and international level.
