According to a study conducted by the Pakistan Institute of Development Economics (PIDE), the closure of internet services for 24 hours results in a direct loss of Rs1.3 billion, which equates to 0.57% of the nation’s daily GDP average.
Direct Loss of Rs1.3 billion
This study, according to a press release issued on Sunday, is part of PIDE’s research infographic titled “The Economic Cost of Internet Closure” and highlights the consequences of internet outages in the country.
It was stated that the internet has become a fundamental necessity in modern times, but the country’s internet infrastructure lags behind in terms of both quality and coverage.
PIDE’s Research
The recent internet outage in various parts of the country has had a wide-ranging impact, resulting in significant financial losses and operational challenges.
The disruption of internet services has impacted online cab services, online food delivery services, freelancers, transportation companies, and postal services, according to the report.
According to the PIDE Infographic, online cab services, a cornerstone of modern transportation, saw a 97% decrease in the number of rides on days when the internet was unavailable.
This significant downturn equates to an industry loss of Rs 29 to 32 million per day.
Similarly, online food delivery services saw a 75% drop in orders, resulting in a significant daily loss of Rs 135 million.
Meanwhile, the freelance community, which is important to Pakistan’s economy, has been hit hard by internet outages.
Daily Loss of Rs 135 Million
Denial of orders to Pakistan-based freelance workers resulted in a $1.3 million revenue loss, equaling Rs 390 million, affecting many people’s livelihoods as well as the national economy as a whole, according to the report.
Furthermore, the loss of 3G/4G services for a single day costs the telecommunications sector PKR 450 million.
Furthermore, PIDE previously estimated that the economic costs of protests would be around 2.0% of GDP.
Economic activity that is halted due to protests or the shutdown of internet services contributes to a significant loss of economic activity in the country.
Meanwhile, PIDE Vice Chancellor Dr Nadeem ul Haque stated that access to high-quality internet not only improves opportunities for youth, particularly in remote areas, but also plays an important role in bridging the gap between the privileged and the general public.
He added that using online tools for education and professional purposes can enable youth from rural areas to compete on a national and international level.
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