Internet shutdowns in Pakistan may lead to long-term economic damage, warns US Expert

Islamabad [Pakistan], November 15 (ANI): The Vice President of the US think tank, Information Technology and Innovation Foundation (ITIF), Daniel Castro, on Thursday expressed his concern over Pakistan's ongoing internet restrictions, warning that while these measures may provide short-term political benefits, they could result in significant long-term economic instability, the Express Tribune reported on Friday.
Castro described the country's internet shutdowns as a "puzzle" and "anomaly," particularly considering Pakistan's push toward digitalization, noting that these disruptions carry high economic costs, including the potential for citizens and businesses to leave the country.
Speaking during a discussion organized by the US Embassy in Pakistan, Castro stressed that governments must prioritise long-term economic stability over short-term political gains.
"We recognize country sovereignty. But what countries have to decide is basically what their goal is going to be and are they putting short-term interests ahead of long-term interests...Most of the arguments for shutdowns are that it is good for political stability or maybe political power in the short term. And my argument would be that economic stability that you would get from not having shutdowns outweighs any short-term benefits," Castro said.
The comments come amid growing concerns about internet censorship in Pakistan, including the recent ban on the social media platform X and the imposition of social media firewalls that disrupt access to various platforms. Castro highlighted that such restrictions are particularly damaging to women entrepreneurs and small businesses that rely on platforms like X to connect with clients and customers, the Express Tribune reported.
"When Twitter is taken down, that actually hugely impacts her source of revenue because it impacts where she's actually getting her clients. And so I think that part of the message is also sometimes lost, that people might say, Well, we are not shutting down the Internet," he said.
Castro pointed out that Pakistan, as a leading digital economy, faces an unusual situation where it is harming itself by taking people offline.
"It is almost this anomaly here to see a more advanced digital economy doing that attack basically to itself, taking people offline...The reason it is such an anomaly is because we know that internet shutdowns, whether it's hours, minutes and days, are impacting specific services and have a significant economic cost,'' he added.
He explained that studies have shown that better connectivity and access to digital platforms contribute to economic growth, improved trade, and higher-paying jobs. These disruptions, Castro said, are particularly harmful to Pakistan's burgeoning freelance economy, which relies on platforms like Zoom for global communication and business, as reported by the Express Tribune.
The expert also noted concerns from students and young professionals in Pakistan who, facing internet access issues, are questioning whether to stay in the country or seek opportunities abroad.
"They have to ask, Where do I go next? Do I stay in Pakistan and help build the next generation of products and services, future startups that can scale and deliver massive value, or do I leave the country because I can't do this here because of various barriers that might hold it back?" Castro said.
As global companies look to expand in AI and tech, Castro warned that restrictive internet policies could discourage investment in Pakistan. He noted that companies are increasingly moving away from regions with strict regulations, and access to reliable connectivity is a key factor in their decisions, the Express Tribune reported.
"These companies are looking at the rest of the world and other places to invest; things like not having connectivity--that's a factor that will impact where they invest, and that could have just a tremendous impact in terms of if Pakistan basically wins, as this could be a hub of AI innovation for some of these multinationals, or it could not be, and some of these policies I think have these big impacts," Castro said.
Castro also highlighted the growing use of Virtual Private Networks (VPNs) as people seek to bypass restrictions, further signaling the negative economic impact of the shutdowns. While he did not provide an exact figure for the cost of these internet disruptions, he suggested that the economic loss could amount to millions of dollars per day.
"When someone's willing to spend USD 100 or USD 20 a month, or however much they're spending, that shows that whatever value they're getting out is higher than that. So whoever's being blocked, that's how much loss they're showing up there for them," he added. (ANI)