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Economic Downtime: The real price of internet disruptions

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Pakistan’s authority is working to implement internet restrictions, bandwidth limitations, and social media platform bans in response to political unrest and security concerns, using firewalls and throttling.

While governments may implement restrictions citing national security or public order, the actual disadvantages often outweigh the perceived and limited benefits. Those disadvantages include an economic meltdown, educational barriers, stifling innovation and development, erosion of trust from global businesses, and the tsunami of disinformation harming democratic societies. Let’s focus on the major disadvantages often overlooked by governments while making such decisions.

  • E-commerce: Online products, services, and retailers lose significant revenue when customers cannot access their services. This impacts the income losses for delivery heroes, riders, and taxi drivers, creating a ripple effect throughout the supply chain.
  • Service-based Businesses: Freelancers, remote workers, service providers, call centres, and software houses rely on consistent internet connections. Without these connections, their productivity drops, leading to income losses.
  • Social Media Instagram’s firewalling and throttling directly jeopardize the growth of content creators, but most importantly, e-commerce and service-based businesses that use its tools for digital marketing through influencer marketing, brand partnerships, and shoutouts through reels, stories, and customer interactions.
  • Online Payments—Continuous internet disruptions halt online payments, ATMs, and payment gateways, causing inconvenience and leading to complaints of failed transactions and payment reversals.

These disruptions signal instability and harm global reputation, discouraging investors’ and foreign businesses’ confidence and leading to stifled growth and innovation. They also widen inequality, as small businesses and low-income workers dependent on digital platforms are disproportionately affected.

Internet disruptions affect everyone – businesses, individuals, and entire economies – leaving a ripple of challenges. For small business owners, it means lost sales and missed opportunities; for individuals, it can disrupt daily life and livelihoods. These actions can shake the foundation of economic stability, impacting growth and progress. Governments must take a thoughtful approach, balancing the need for security or political stability with the significant toll such disruptions take on people’s lives and the economy. Exploring alternative solutions can help address concerns without compromising economic well-being.

Sohaib Khan (The writer is the CTO at Hexalyze)

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