Digital disruption

December 29, 2024

How Pakistan’s digital policies are undermining its economic future

Digital disruption


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n Pakistan’s complex socio-political tapestry, digital rights are no longer confined to conversations about internet freedoms or privacy; they are integral to the country’s economic survival and societal progress. Hampering digital rights is not merely a rights issue — it is an existential threat to Pakistan’s future as a viable, competitive and equitable society. In the global landscape, where access to internet has become synonymous with access to opportunity, the government’s failure to ensure a viable and conducive internet infrastructure is a glaring misstep.

Digital disruption

The debate around digital rights often focuses on free speech or privacy, and rightly so. However, one of the most important digital rights is the access to economic opportunities, including the freedom and ability to conduct business online. The most immediate casualty of a restricted digital landscape is economic potential. The right to do business online is a critical digital right that underpins livelihoods and offers a lifeline to millions. Yet, the government’s policy decisions — and actions like network shutdowns and arbitrary regulations — seem intent on constraining this potential rather than unleashing it. This can, ultimately, stifle innovation, entrepreneurship and growth.

The recent spate of internet shutdowns and arbitrary content regulation — such as unannounced restrictions on WhatsApp media content and VPN blockages — provide a stark example of how these restrictions hurt the economy. These actions have exacted a steep economic toll, with the Pakistan Software Houses Association estimating losses of over $1 million per hour for the IT sector alone. One can only imagine the damage caused to other small, medium and large enterprises that use internet as a tool for communication, including but not limited to home-based workers, freelancers and business owners.

The government needs to understand that such disruptions could massively erode consumer trust in the reliability of digital infrastructure. Businesses that rely on online platforms to reach customers are left stranded and consumers are increasingly hesitant to depend on digital services that can vanish without warning.

A particularly troubling form of disruption worth highlighting is the arbitrary content regulation, likely enforced through the installation of what is known as a “firewall” – a deep packet inspection toolkit ostensibly deployed to remove undesirable content. While information about its use remains contradictory at best, this tool appears to have allowed authorities to block access to various communication platforms, including, at times, media-sharing features on WhatsApp. This approach to content regulation comes with significant consequences. The PASHA has cautioned that the implementation of such a firewall could lead to economic losses estimated at up to $300 million.

A critical dimension of these arbitrary actions is the invocation of ‘national security’ as a blanket justification. In the absence of a clear and specific definition of what constitutes national security, it becomes evident that the significant economic losses resulting from these measures could themselves be considered a threat to national security, rather than the other way around. It is clear that the government is doing the economy and the prospect of growth in Pakistan a massive disservice.

The other side of the story is equally alarming. Disinformation in Pakistan’s digital space, much like in other countries, is rampant. Calls for violence are reaching unprecedented levels and information about journalists and their families is being maliciously exposed, effectively crowd-sourcing violence. Disinformation campaigns, such as the fabricated Punjab College ‘rape’ case or the claims of “thousands killed in the PTI protest in Islamabad,” are fuelling unrest and deepening societal fractures.

However, it is crucial to question whether the arbitrary actions taken by authorities are achieving anything meaningful in curbing hateful speech and disinformation. There is little to no evidence to suggest these measures have been effective. If, for instance, the much-touted “firewall” was genuinely capable of countering disinformation, it would have stopped the spread of the baseless claim about “hundreds of dead bodies in the streets of Islamabad.” That did not happen.

This raises a critical question: isn’t implementing superficial measures under the pretence of combating online disinformation, while inflicting significant economic damage to Pakistan’s economy, a bigger concern for national security?

Freedom to do business online is not merely an economic imperative; it is a question of survival. With a burgeoning youth population and limited traditional employment opportunities, digital entrepreneurship could have been Pakistan’s silver bullet. The government’s obsession with superficial actions to control Internet harms has sabotaged this opportunity. Small businesses, freelancers and innovators are forced to operate in a climate of uncertainty, where policies can change overnight and platforms can be banned without warning. This unpredictability deters investment and pushes talent to migrate, depriving the country of its most valuable resource — human capital.

Digital rights must be recognised as an essential pillar of Pakistan’s economic and social policy. Without safeguarding these rights, the country cannot aspire to compete on a global scale or tackle its entrenched inequalities. The government must shift its approach from restrictive measures that harm the digital economy to fostering an environment that promotes innovation, empowers the youth and expands access to economic opportunities for all.


The writer is the director and founder of Media Matters for Democracy. He writes on media and digital freedoms, media sustainability and countering misinformation

Digital disruption