ISLAMABAD: Daniel Castro, Vice President of the Information Technology and Innovation Foundation (ITIF), warned on Thursday that internet restrictions in Pakistan may offer short-term political advantages but could result in long-term economic instability. Castro, speaking to a group of journalists during a session organized by the US Embassy in Pakistan, described the country’s approach to internet censorship as a “puzzle” and “an anomaly,” especially amid its ongoing digital transformation. He emphasized that these shutdowns carry enormous economic costs, including the potential loss of citizens and businesses to other countries.
Castro acknowledged Pakistan’s sovereignty but urged the government to weigh the long-term economic benefits of internet freedom against the short-term political gains. “Most arguments for shutdowns cite political stability or control in the short term. My argument is that maintaining economic stability by avoiding shutdowns outweighs these temporary benefits,” he said.
He pointed out the growing contradiction of a nation striving to be a digital economy while simultaneously disrupting internet access. “It is an anomaly to see a leading digital economy take actions that harm itself by disconnecting people,” he noted. Castro referenced several studies that have shown how connectivity — including broadband and wireless internet — fosters economic growth, trade, higher wages, and better job opportunities. He also highlighted how the internet is central to industries such as digital services, which Pakistan has positioned as a key growth area.
Castro’s concerns were further exacerbated by the impact of internet shutdowns on freelancers and online workers in Pakistan. “Freelancers, who can command global rates, find it increasingly difficult to deliver work or attend meetings due to disruptions in their internet service,” he said. For many, this has resulted in significant losses of income and professional opportunities. Castro added that students in Lahore expressed concerns about their futures, with some considering leaving the country for better opportunities elsewhere due to internet restrictions.
He also drew attention to the specific challenges faced by women entrepreneurs. “When platforms like Twitter are banned, it directly impacts their ability to reach clients and generate revenue. This is a huge issue that often goes unnoticed,” he explained.
Castro underscored that major global companies, including those focused on artificial intelligence, are searching for talent hubs, and that Pakistan’s internet restrictions could deter potential investments. “Countries that fail to maintain connectivity risk losing out on international investment and becoming less attractive as innovation hubs,” he warned.
The economic impact of these internet restrictions is already evident, according to Castro, who pointed to the surge in Virtual Private Network (VPN) subscriptions as an indicator of the value individuals place on unrestricted access. “When people are willing to pay for VPNs to bypass restrictions, it shows just how high the cost of these shutdowns is for them,” he said.
Castro also acknowledged the indirect effects of internet restrictions, such as the reluctance of companies to invest in a country due to concerns over connectivity. He noted that the cost of lost economic activity is significant but difficult to quantify. However, he estimated that it could amount to millions of dollars per day in lost economic output.
In a related development, PPP Chairman Bilawal Bhutto also voiced his concerns about the ongoing internet slowdown in Pakistan, criticizing the government for imposing restrictions without proper consultation with stakeholders. Bhutto lamented the disparity between Pakistan’s 4G capabilities and the subpar internet speeds currently being experienced by the public, which he likened to the slow internet speeds of the 1990s.
Castro’s remarks highlight the broader economic and social costs of internet censorship, urging Pakistan to reconsider its approach in light of the long-term consequences for its digital economy and global competitiveness.
