No Digital Nation Pakistan without Open Internet
Waqas Naeem
Islamabad: In January, hot on the heels of the enactment of the controversial cyber law amendment, the Parliament also approved the Digital Nation Pakistan Act.
The Act, which intends to help develop a blueprint for Pakistan’s digital future, will create an apex-level commission chaired by the Prime Minister and a government-appointed authority. These entities will provide policy and practical advice for the country’s digital transformation in line with economic, governance and development aims.
While the law does not offer much other than ideal definitions of digital terminologies and a general framework for policy-led entities, it is still a significant development because of the interest shown thus far by the federal government to it. In June 2024, Pakistan’s finance minister had promised Rs. 79 billion for the IT sector and an additional one billion that is likely go to the fund and entities created under the Act. The IT minister has on several occasions reminded critics and allies alike about the growth in IT exports. An ambitious $25 billion five-year target for IT exports was set in November.
And yet 2024 was a rough year for the domestic tech sector with Internet restrictions and slowdowns as the government reportedly deployed and tested new surveillance infrastructure and planned to register Virtual Private Networks to regulate online activities. Industry representatives were quick to raise concerns about these developments, estimating their losses at $300 million.
The internet regulation measures, it appeared, had suddenly created a new external problem for the local tech companies and freelancers on top of issues with credit lines, banking, taxation and registration. The freelance marketplace Fiverr made Pakistani service providers “unavailable” on its platform, impacting the livelihoods of hundreds.
Another indication about the reluctance and dis-satisfaction in the sector was reflected in the finance minister’s December remarks about IT companies not fully remitting their earnings back to Pakistan.
While the government seems to have patched things up with the big players of the IT sector – perhaps delaying an imminent company drain on top of an ongoing brain drain – it has left the freelancers in the lurch for now.
The 2.3 million freelancers make up around 15% of the country’s IT exports, according to one estimate. Retaining their contribution to the digital economy is likely to be one of the tasks for the Pakistan Digital Authority to be set up under the Act.
It is obvious that by fostering an open internet environment and incentivizing tech startups and established firms, Pakistan can attract both domestic and international investments.
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Countries such as India, Bangladesh and Vietnam have demonstrated how policy reforms, digital infrastructure investments, and tax incentives for tech firms can exponentially grow their economies. Pakistan, too, can emulate this success by enabling an innovation-friendly environment.
It is then sad to note that the Internet shutdowns in the country continue despite causing an estimated Rs. 1.3 billion in losses per one day of shutdown and total financial losses of around $1.62 billion in 2024, according to another estimate. Poor Internet services, such as the lag experienced during the time the government’s testing of the upgraded web management system, could create losses of up to $300m, as already pointed out according to industry representatives.
Most of Pakistan’s 63 million youth will be eager to be digitally literate and engage in the global digital economy. However, restrictive internet policies and limited government support for the tech industry stifle their potential. Policymakers should understand that further legal amendments aimed at censoring content and controlling online discourse with efforts that also affect general connectivity and access are a step in the wrong direction.
Contrary to the government’s claims, strict content regulation will not resolve issues of information integrity. In fact, controls on digital information will only make users more vulnerable to disinformation and hate speech as the clampdown would push them to seek alternative avenues for information and expression where they are more likely to run into non-reliable content.
Information integrity considerations require integrating a human rights approach in any digital policy or plan. The Digital Nation Pakistan Act appears to address only technological concerns, ignoring the broader contextual use and implications of tech. Its outputs – a national digital masterplan and sectoral plans – must, however, consider global best practices for an open and accessible internet, including respect for fundamental freedoms, consultative processes and proportionate measures.
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By ensuring unrestricted internet access, providing stable internet access and developing business-friendly policies, the government can not only empower young entrepreneurs, freelancers, and developers to connect with global clients, compete in international markets, and drive local innovation, but also attract foreign investment in the tech sector. Global tech giants are unlikely to invest in a country where internet shutdowns are frequent, regulatory frameworks are unpredictable, and digital freedom is curtailed.
The digital economy is not just an economic opportunity—it is a strategic imperative for Pakistan. At a time when global geopolitics increasingly hinges on technological capabilities, building a robust digital infrastructure will enhance Pakistan’s regional and global competitiveness.
Without opening the internet and incentivising the tech industry, Pakistan will struggle to pave the way for a more prosperous, inclusive, and innovative future. The framers and implementers of the Digital Nation Pakistan Act should bear this in mind.
The article is the writer’s opinion, it may or may not adhere to the organization’s editorial policy.
Waqas Naeem is a researcher and former journalist. He works in the development sector, with a focus on media systems and countering disinformation.
