The Cost of Social Media Silence

News Desk

Islamabad: The rapid growth of Pakistan’s technology exports, which have surged by 143 percent over the past five years, from $1 billion in fiscal year 2018 to nearly $2.6 billion in 2023, is a testament to the country’s potential to emerge as a digital innovation hub.

However, despite policymakers’ efforts to promote this sector and emphasise its export potential, their actions are paradoxically jeopardising its long-term viability.

Arbitrary internet shutdowns are the primary culprit behind this uncertainty, casting a dark cloud over one of Pakistan’s few economic success stories. Whether these shutdowns are targeted at specific social media platforms or more widespread, their continuation is poised to have profound consequences for investor confidence, export growth, and Pakistan’s standing in the global technology market.

As Pakistan’s technology sector gains momentum and garners attention internationally, it is imperative for policymakers to address the issue of internet shutdowns to ensure the sustained growth and competitiveness of the country’s digital ecosystem.

Growth naturally attracts new investments in any sector, especially those capable of generating precious foreign exchange, a critical need in economies facing significant inflationary pressures.

However, investors prioritise stability and predictability when allocating capital, particularly in ventures necessitating innovation and patient capital for scalability.

In the technology sector, characterised by rapid change and an essential reliance on consistent internet connectivity, arbitrary shutdowns represent a major concern for both local and foreign investors.

Such interruptions hinder the smooth operation of digital services and the reliable delivery of products to market, posing a significant obstacle to sustainable growth.

While organisations can temporarily navigate these shutdowns through the use of virtual private networks (VPNs) and diverse wired and wireless connections, the overall sentiment is adversely affected.

Moreover, these workarounds entail additional costs that competitors outside the affected region do not incur, thereby eroding competitiveness and dampening investor confidence.

Furthermore, sudden internet disruptions impede technology firms’ ability to meet deadlines, resulting in financial losses and reputational damage.

This is particularly devastating for startups and freelancers, who constitute a significant portion of the technology sector, as missed deadlines can irreparably harm their credibility with clients.

Addressing these challenges is crucial for fostering a conducive environment for investment and growth in the technology sector, necessitating concerted efforts to ensure consistent and reliable internet access and minimise disruptions.

The negative publicity resulting from arbitrary internet shutdowns significantly increases the perception of risk among foreign companies and clients.

While these companies may be enticed by Pakistani technology partners offering lower costs and superior product quality, the heightened risk perception may lead them to hesitate.

In sectors such as software development, customer support, and back-office operations, which heavily depend on uninterrupted internet access, such disruptions are deemed unacceptable.

The unpredictability associated with these shutdowns fosters a perception of risk that many companies, particularly larger foreign enterprises with a lower risk appetite for substantial technology contracts, are unwilling to tolerate.

These interruptions undermine trust and confidence in the reliability of Pakistani technology partners, ultimately jeopardizing potential collaborations and hindering the growth of the technology sector.

Therefore, addressing these concerns and ensuring consistent and uninterrupted internet access is essential for attracting and retaining foreign investment and fostering mutually beneficial partnerships.