[ad_1]
Internet outages in Pakistan are causing alarm among businesses, particularly in the growing information technology sector, which is crucial for the country’s economic growth. Executives and investors warn that the disruptions are hurting business operations and making investors nervous, with some estimating a 30-40% drop in internet quality.
[ad_2]
Pakistan’s struggling economy is facing yet another challenge: widespread internet outages this month are causing alarm among businesses, investors, and tech industry leaders. The disruptions are hitting the country’s growing information technology sector hard, just as it’s being touted as a key driver of economic growth.
According to internet monitoring groups, Pakistan has seen a significant drop in internet speeds and service interruptions affecting popular platforms like WhatsApp. The issues are so severe that even experienced executives are sounding the alarm. Nadeem Elahi, who heads TRG, a major venture capital firm in Pakistan, estimates that internet connection quality has plummeted by 30% to 40%.
Reliable internet is essential for attracting global clients to Pakistan’s business processing operations, Elahi said. The country’s technology sector is facing a major obstacle: unreliable internet service. Pakistan’s government depends on its growing IT workforce to boost exports and attract foreign investment.
This is particularly crucial as Pakistan struggles with a chronic shortage of foreign currency, which has forced it to seek bailouts from the International Monetary Fund (IMF) multiple times. Despite these challenges, IT exports reached a record $3.2 billion in the year ending in June, a 24% increase according to the State Bank of Pakistan.
However, recent internet outages threaten to undermine this progress. Kalsoom Lakhani, co-founder of i2i Ventures, a venture capital firm focused on Pakistan, warns that the internet problems are damaging the country’s reputation among international investors.
