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IT sector ‘loses $1m’ due to one hour of internet disruption

Pakistan’s IT industry faces a loss of more than $1 million due to the internet disruption for one hour, impacting exports and client confidence, according to Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@sha).

Speaking to the media, Chairman P@sha stated that the authorities in Pakistan have acknowledged that they cannot ban Virtual Private Networks (VPNs) as there is no law to do so.

He highlighted that consistent internet slowdowns and unplanned outages severely hinder IT service exports, creating long-term repercussions.

“An hour of poor connectivity may seem trivial locally, but it damages critical services for clients in stock markets, airports, and banks globally, eroding trust in Pakistan’s IT sector,” he explained.

READ: Internet disruptions cripple routine life in Karachi

P@sha’s internal survey revealed widespread financial losses among IT firms, with many foreign clients voicing concerns. The chairman also warned that some companies are relocating operations abroad due to unreliable connectivity.

“If these clients shift to any other country, bringing them back won’t be easy,” he warned.

NetBlocks’ Cost of Shutdown Tool estimates that a complete internet outage could cost Pakistan’s economy $2.21 million per hour, underscoring the urgency for reliable internet infrastructure to support the country’s digital economy.

Source: Dawn News

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