Internet Shutdowns Cost Rs 1.3b In Direct Loss

APP

Peshawar: The closure of internet services for just 24 hours results in a direct loss of Rs 1.3 billion which equates to a staggering 0.57 percent of the daily GDP average for the nation, according to a recent study.

The Pakistan Institute of Development Economics (PIDE) conducted a study titled ‘The Economic Cost of Internet Closure’ which highlights the severe consequences of internet shutdowns on the Pakistani economy, said a PIDE official on Sunday.

The PIDE Infographic shows that online cab services 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.

PIDE Vice Chancellor Dr Nadeem ul Haque and Research Fellow Mohammad Shaaf Najib said that Pakistan’s internet infrastructure lags behind in terms of both quality and coverage.

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 in revenue loss, equaling Rs 390 million, impacting the livelihoods of many and the national economy as a whole too.

Besides, the suspension of 3G/4G services for a single day caused a loss of Rs 450 million to the telecommunications sector alone.

Access to high-quality internet enhances opportunities for the youth, particularly in remote areas, and also plays a pivotal role in bridging the divide between the privileged and the common public, further said Dr Nadeem.

Utilising online tools for education and professional purposes can empower youth from rural regions to compete on a national and international level, added Vice Chancellor.