Recent internet outages in Pakistan have sparked significant concern among businesses already grappling with a struggling economy. Industry leaders, executives, and investors are raising alarms about how these disruptions are adversely impacting business operations and unsettling investors.

 

This situation comes at a critical juncture when Pakistan’s growing IT sector is seen as a potential lifeline to help the country break free from its recurring economic crises. However, internet monitoring groups have noted a sharp decline in internet speeds and service interruptions, affecting widely used platforms like WhatsApp.

 

Nadeem Elahi, head of TRG, a major venture capital firm in Pakistan, has highlighted the deteriorating state of internet connectivity, describing it as the worst he has seen in the past year. Elahi estimates that the quality of internet connections has dropped by 30% to 40%, which poses a significant threat to attracting global clients for Pakistan’s business processing operations.

 

The IT sector, a rare bright spot in Pakistan’s troubled economy, is now facing a major hurdle due to unreliable internet services. The government has been relying on the country’s expanding IT workforce, including software developers and freelancers, to boost exports and draw in foreign investment. Despite these efforts, recent internet outages threaten to derail the progress made, with IT exports reaching a record $3.2 billion in the year ending in June—a 24% increase.