The Pakistan Institute of Development Economics (PIDE) has shed light on the economic repercussions of a 24-hour internet shutdown in the country. A study released by the institute shows that such disruptions lead to a direct financial loss of Rs1.3 billion, translating to a 0.57% dip in the daily GDP.
Major Sectors Affected
With the internet ingrained deeply in our daily lives, any disruption is bound to have cascading effects across various sectors. Recently, parts of the country experienced such a shutdown, resulting in significant operational and financial challenges. Notably, the service industry was heavily impacted. Online cab services witnessed a 97% plunge in ride numbers on days without internet, translating to daily losses ranging from Rs 29 to 32 million. Additionally, the online food delivery segment saw a 75% drop in orders, costing them around Rs 135 million daily.
The PIDE infographic further highlighted the challenges faced by the freelance community. Internet outages have led to order denials, resulting in a revenue shortfall of over $1.3 million or Rs 390 million. This not only jeopardizes individual incomes but also affects the broader national economy.
Moreover, the telecommunication sector isn’t immune either. The one-day suspension of 3G/4G services alone induces a loss of PKR 450 million.
A Broader Perspective
Notably, these internet-related losses are in addition to the economic costs of protests, which PIDE had previously estimated to be around 2.0% of the GDP. Such disruptions, whether from protests or internet outages, profoundly impact the nation’s economic activities.
The Importance of Internet Accessibility
Dr Nadeem ul Haque, Vice Chancellor of PIDE, accentuated the importance of high-quality internet. He believes it can level the playing field by providing opportunities to the youth, especially in remote areas. Internet accessibility, he argues, can bridge the gap between different socio-economic classes and allow individuals from marginalized regions to compete on national and international platforms, primarily through education and professional ventures.
