Internet Shutdowns Across Pakistan Cost A Direct Loss Of Rs1.3bn: PIDE
PIDE, Pakistan Institute of Development Economics recently conducted a study. It was revealed that the shutdown of internet services for 24 hours resulted in a direct loss of Rs1.3 billion. It is almost equal to 0.57% of the daily GDP average for the nation. Reports claim that this study is part of PIDE’s research infographic titled “The Economic Cost of Internet Closure”. It underscores the consequences of internet shutdowns in the country.
PIDE Reveals Consequences of Internet Shutdowns in Pakistan
We all know that the internet has become a basic need in modern times. However, the internet infrastructure of Pakistan still lags behind in terms of both quality and coverage. The recent internet shutdown in different parts of the country has impacted multiple sectors. It even led to significant financial losses and operational challenges.
The study reveals that online cab services, online food delivery services, freelancers, transport companies, and postal services have all been influenced by the disruption of internet services. The PIDE Infographic displayed that online cab services, a cornerstone of modern transportation including Uber, Careem, Yango, and Indriver witnessed a 97% reduction in the number of rides on days when the internet was shut down. This noteworthy downturn is equal to a loss of Rs 29 to 32 million for the industry per day.
On the other hand, online food delivery services suffered a 75% reduction in orders, resulting in a considerable daily loss of Rs 135 million. The freelance community which contributes significantly to Pakistan’s economy also suffered a lot. Reports claim that the contradiction of orders to Pakistan-based freelance workers resulted in over $1.3 million loss of revenue. It is equal to Rs 390 million, affecting the livelihoods of many and the national economy as a whole. The suspension of 3G/4G internet services for a single day generated a loss of PKR 450 million to the telecommunication sector alone.
PIDE earlier estimated the economic costs of protests to be around 2.0% of the GDP. Hindrance in economic activity either through protests or due to the closure of internet services results in a significant loss of economic activity in Pakistan.
