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% 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.
According to DrNadeemulHaque, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), and Mr Mohammad ShaafNajib, 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 recent internet closure in various parts of Pakistan has had a profound impact on multiple sectors, leading to substantial financial losses and operational challenges.
Online cab services, online food delivery services, freelancers, transport companies, and postal services have all been severely affected by the prolonged disruption of internet services.
The PIDE Infographic shows that online Cab Services, a cornerstone of modern transportation, saw a staggering 97% reduction in the number of rides on days when the internet has been closed down.
This significant downturn equates to a loss of PKR 29 to 32 million for the industry per day.
Similarly, Online Food Delivery Services suffered a 75% reduction in the number of orders, translating into a substantial daily loss of PKR 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 PKR 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 PKR 450 million to the telecommunication sector alone.
Furthermore, PIDE had earlier estimated the economic costs of protests to be around 2.0% of the GDP.—NNI
