Pakistan’s Troubled IT and Telecom Landscape

2024 was a defining year for Pakistan’s troubled IT and telecom industry, but not in the way one would hope. Instead of progress and milestones, the sector faced a slew of challenges stemming from governmental policies, systemic inefficiencies, and unprecedented disruptions. The dream of a “Digital Pakistan” turned into a dystopian reality, where internet freedom was curtailed, digital rights were trampled, and private-sector efforts to uphold the industry were thwarted by bureaucratic incompetence.

This article examines the government’s role in the IT and telecom sector, analyzing its impact and highlighting how the focus on control overshadowed the goal of progress.

Internet Disruptions: A Crippling Blow to the Digital Economy

2024 witnessed unprecedented disruptions in Pakistan’s internet infrastructure, exacerbating an already fragile digital ecosystem. Submarine cable faults caused severe outages, but the situation worsened with deliberate government measures.

Internet blackouts

The year saw at least five major shutdowns, including nationwide mobile internet suspension during the general elections in February 2024. These frequent internet shutdowns had far-reaching consequences for its economy, society, and democratic processes, reflecting a troubling pattern of prioritizing control over progress. These shutdowns, often enforced during politically sensitive periods, such as the general elections in February, caused significant disruptions. The election-day shutdown lasted 13 hours, affecting 97% of the country’s internet users who rely on mobile broadband. This hindered citizens’ ability to access polling stations and navigate voting processes while paralyzing app-based services and communication. The economic fallout was equally severe, impacting Pakistan’s thriving IT export sector, e-commerce platforms, and digital payments. Freelancers and SMEs faced financial losses due to missed deadlines, reduced sales, and stunted operational capabilities. Beyond the economy, internet blackouts created widespread anxiety, particularly during volatile periods, as families struggled to communicate and access real-time information.

These repeated disruptions further dented investor confidence, painting Pakistan as a risky environment for business operations dependent on stable digital infrastructure. While the government justified these shutdowns under the guise of maintaining law and order, the resulting damage underscored a flawed strategy that hindered progress in the IT and telecom sectors.

X Ban

The ban on X (formerly Twitter) in Pakistan, which began in February 2024, is a stark example of the government’s strategy to suppress dissent and control digital discourse. Initially, users experienced intermittent disruptions accessing the platform, with the government denying any official restrictions. However, a month later, authorities confirmed the ban, justifying it as necessary for national security and public order amidst the politically charged general elections of 2024.

The platform, widely used for political discourse and organizing protests, was targeted to stifle criticism of the government and curtail the spread of opposition narratives. The restriction remains in place, shows the government’s intent to silence, dissent and shield itself from accountability over its controversial electoral victory.

Firewall Trials

In 2024, the Pakistani government’s attempts to control digital discourse culminated in the deployment of a national firewall system, a tool ostensibly designed to monitor and regulate internet traffic. Initially, government officials and the PTA denied the existence of such a system, attributing internet slowdowns to technical issues and external factors. However, as reports and user experiences began to surface, it became increasingly evident that a firewall was actively restricting access to social media platforms, slowing mobile internet speeds, and implementing deep packet inspection (DPI) technologies.

The concept of a national firewall in Pakistan traces back to earlier measures such as the 2018 web monitoring system, reportedly procured from a Canadian firm. This system, used for tracking internet activity, set the stage for broader surveillance efforts. By 2024, the government expanded this infrastructure under the guise of enhancing cybersecurity and preventing the spread of unlawful content.

The firewall’s impact was far-reaching. It slowed down internet speeds across the board, significantly disrupting freelancers, IT professionals, and businesses reliant on digital tools for communication and operations. Moreover, by implementing DPI, the government gained the capability to analyze internet traffic at granular levels, raising serious privacy concerns. This not only alienated digital businesses but also alarmed civil society and international watchdogs, who criticized these measures as an assault on freedom of speech and a step toward authoritarian control of the internet.

While the government maintains that these measures are for the greater good, their lack of transparency and adverse impacts on the IT and telecom sectors suggest otherwise.

VPN Crackdowns

In 2024, PTA intensified its campaign against unregistered Virtual Private Networks (VPNs), citing security concerns and efforts to curb illegal activities. While the initiative aimed to regulate VPN usage, it disproportionately impacted on legitimate users, particularly freelancers and IT companies that rely on VPNs for secure communications and access to international clients and platforms like Upwork and Fiverr.

Small businesses also faced operational setbacks as the crackdown restricted access to essential cloud-based tools and communication platforms. The government’s focus on enforcing control over digital tools, rather than addressing core issues like internet disruptions and inadequate infrastructure, further eroded public trust in its digital governance. On the international stage, the move highlighted Pakistan as an increasingly restrictive environment for digital innovation, discouraging investment and collaboration.

Surveillance Over Privacy and Freedom of Expression

The government’s obsession with control extended to privacy-invading measures. In 2024, the government granted ISI broad powers to intercept calls and monitor digital communications, including WhatsApp messages. While framed as a national security measure, this raised serious concerns about unchecked surveillance and violations of citizens’ constitutional rights to privacy. Telecom operators were compelled to share private data of crime suspects with police under orders from the Islamabad High Court. Though tied to crime prevention, such actions blurred the lines between security and overreach, placing citizens’ personal information at risk.

The Punjab Assembly also passed a controversial Defamation Bill, 2024 that sparked widespread controversy and resistance, particularly from journalists and civil society organizations. Critics argue that the law’s provisions, such as Section 3 allowing defamation claims without proof, threaten freedom of expression and contravene constitutional protections like Article 10-A (right to a fair trial). Civil society leaders, media organizations, and opposition lawmakers have condemned the bill, asserting that it undermines judicial independence by establishing parallel tribunals with excessive powers. The bill has been challenged in the Lahore High Court, with petitioners arguing it is unconstitutional and hastily enacted without proper consultation.

As if all of this wasn’t enough, the government has now proposed amendments to the Prevention of Electronic Crimes Act (PECA) 2016, culminating in the draft Prevention of Electronic Crimes (Amendment) Act, 2024. This further fortifies government’s continued shift towards digital control and surveillance rather than fostering a free and open digital environment. While the amendments aim to address pressing issues like “fake news,” blasphemy, and sectarian hate speech, the vagueness of their provisions and the excessive powers granted to the newly proposed Digital Rights Protection Authority (DRPA) raise serious concerns about censorship, misuse of authority, and suppression of dissent.

One of the most controversial aspects is the DRPA’s sweeping power to block online content, prosecute individuals, and regulate social media platforms. The expanded definition of “social media platforms” to include tools like Virtual Private Networks (VPNs) further highlights the government’s intent to curtail access to the free internet. VPNs, previously shelved from regulation due to legal objections, are now indirectly included under the new provisions, threatening secure and uncensored access to the digital world. These moves risk isolating Pakistan further from global digital economies by eroding trust and stifling innovation.

Delays in Strategic Policies

Despite the IT sector’s potential, the government failed to deliver key policies:

Taxation and SIM Blocking

The Federal Board of Revenue (FBR) implemented a controversial policy of blocking SIMs belonging to non-filers. Cellular Mobile Operators (CMOs) criticized this move as unconstitutional and detrimental to consumer rights, arguing it created operational chaos while failing to achieve its intended goal of broadening the tax net. The government’s decision to burden the telecom sector and undermine consumer rights in a bid to compensate for its failure to develop a sound and effective tax collection policy reflects poorly on its competence and problem-solving approach.

National Artificial Intelligence Policy

Introduced in May 2023 as part of the Digital Pakistan vision, the Draft National AI Policy was designed to promote the digital economy, strengthen cybersecurity, and position the country as a leader in AI innovation. Among its objectives were deploying AI to detect and respond to cyber threats in real time, averting data breaches, and enabling Pakistan to compete globally in the digital era.

Despite its potential to transform the country into a “Digital Pakistan,” the policy remained in draft form for over a year. While it was expected to be presented to the federal cabinet for approval in August 2024, the Ministry of IT and Telecommunication has yet to finalize it or take meaningful steps to pass it into law.

5G Rollout Postponed

Efforts to initiate and launch 5G services in Pakistan had been underway during previous government tenures, but political instability and economic hurdles have delayed the process. Despite sufficient spectrum being available for a future spectrum auction for Next Generation Mobile Services (NGMS), CMOs have taken a cautious approach due to prevailing economic challenges and market uncertainty regarding the launch of 5G.

Just like every new government, the current government also made tall claims about bringing 5G in the country but did little to create a favorable environment for the telcos. Several factors contribute to the impediments to launching 5G services in Pakistan. These include low handset penetration, limited optic fibre cable (OFC) infrastructure, low average revenue per user (ARPU), rising operating expenses (OPEX), and high taxation.

Personal Data Protection Bill, 2023

The Personal Data Protection Bill of 2023 aims to safeguard personal data through provisions for consent, security, and business obligations. However, its delay reflects the government’s inability to prioritize data privacy amid rapid digitization. Locally, the absence of a clear legal framework exposes citizens to data breaches and misuse, as evidenced by incidents like the 2018 banking cyberattack and alleged NADRA leaks. Internationally, Pakistan’s failure to pass the bill puts its businesses at a disadvantage, particularly in complying with global standards like the EU’s GDPR, which hampers trade opportunities.

However, while the bill is necessary, it must not become another instrument for surveillance. Privacy advocates caution against the misuse of such laws to suppress dissent or infringe upon fundamental rights. For the bill to succeed, the concerns of all stakeholders including civil society, businesses, and lawmakers must be addressed.

Internet Infrastructure

Recurring submarine cable failures have exposed the fragility of Pakistan’s internet infrastructure. With over 90% of the country’s connectivity dependent on international undersea cables, the lack of redundancy or serious investment in alternative routes has made the network highly susceptible to disruptions. Throughout 2024, multiple cable outages caused nationwide slowdowns, crippling businesses, freelancers, and digital services. Despite the Pakistan Telecommunication Authority (PTA)’s introduction of quality of service (QoS) regulations, there has been limited enforcement or tangible improvement. Additionally, the Universal Service Fund (USF), intended to expand internet access and improve connectivity in underserved areas, has faced criticism for its inefficiency and lack of impactful outcomes.

This underinvestment not only affects economic productivity but also places Pakistan at a disadvantage in the global digital economy. Neighboring countries have made significant strides in developing resilient, high-speed networks to attract investment and enhance digital services, leaving Pakistan lagging.

Progress Amidst Chaos

The PTA’s finalization of the Mobile Virtual Network Operator (MVNO) framework represents a rare example of forward movement in an otherwise tumultuous year for the IT and telecom sectors. This framework allows smaller companies to enter the market under their own brand names without building costly network infrastructure, creating opportunities for innovation and personalized services. By significantly reducing the MVNO license fee from $5 million to $140,000, the PTA has lowered entry barriers, potentially driving increased investment, fostering competition, and delivering improved services at more affordable rates for consumers. The 15-year license structure provides stability, enabling MVNOs to plan long-term growth.  The framework, developed after extensive stakeholder consultations and industry feedback, is expected to be presented to the federal government for approval soon.

A few other isolated efforts include the State Bank of Pakistan’s amendment to its Foreign Exchange Manual to enable IT companies to establish entities abroad and expand their operations. These changes were welcomed by the industry but remained overshadowed by broader systemic issues.

The National Assembly’s approval of “The Establishment of Telecommunication Appellate Tribunal Bill, 2024” in July was also critical development for Pakistan’s telecom sector. This bill facilitated the creation of a specialized tribunal aimed at resolving telecom-related disputes that were delayed in the High Courts. It helped in expediting legal processes, providing quicker resolutions for industry conflicts and regulatory challenges. This initiative is expected to reduce delays in legal proceedings, fostering a more predictable and efficient regulatory environment. This efficiency can help companies focus on innovation and service delivery rather than prolonged litigation.

Control vs. Progress: A Flawed Approach

The overarching theme of 2024 was the government’s emphasis on control at the expense of progress. Policies aimed at curbing freedom of expression, increasing surveillance, and enforcing taxation compliance disproportionately targeted consumers and businesses. Meanwhile, critical areas like infrastructure development, regulatory reform, and fostering innovation were neglected.

To transform Pakistan into a true digital economy, the government must reframe its approach. Otherwise, the dream of a “Digital Pakistan” will remain just a dream overshadowed by a reality of control and stagnation.