TRADE & ECONOMY

Pakistan Leads Global Financial Losses from Internet Shutdowns

Pakistan suffers $1.62B in financial losses from internet and social media app outages in 2024, topping the global list. Outages linked to elections, protests, and information control.
2025-01-04
Pakistan Leads Global Financial Losses from Internet Shutdowns

Pakistan has recorded the highest financial losses globally due to internet and social media app outages in 2024, with an estimated impact of $1.62 billion, according to a report by Top 10 VPN. This places the country ahead of Sudan and Myanmar, both of which face significant disruptions due to ongoing civil conflicts.

The report highlights that global internet disruptions in 2024 lasted a combined 88,788 hours, resulting in financial losses amounting to $7.69 billion. Out of these, Pakistan alone experienced 18 deliberate internet shutdowns that lasted 9,735 hours, affecting 82.9 million users.

Major Reasons for Shutdowns
The report identified three primary reasons for internet disruptions in Pakistan:

  • Elections: Authorities implemented restrictions to maintain order during polling and counting processes.
  • Information Control: Attempts to curb the spread of politically or socially sensitive content.
  • Protests: Shutdowns were imposed during large-scale demonstrations to prevent communication among protestors and the dissemination of information.

Most Expensive Outage
The ongoing suspension of social media platform X (formerly Twitter) since February 18, 2024, has been the most financially damaging. The report estimates the cost of this particular outage at $1.34 billion, accounting for a significant portion of the total financial impact.

Cost of Shutdown Tool (COST)
The financial impact calculations were derived using the Cost of Shutdown Tool (COST), developed by NetBlocks, an independent monitor that tracks internet censorship and disruptions worldwide. The tool factors in the economic impact of internet and social media restrictions on a country's digital economy and its users.

Comparative Global Impact
Globally, internet disruptions caused a loss of $7.69 billion, with Pakistan's share being disproportionately high. Sudan and Myanmar, facing ongoing civil unrest, rank behind Pakistan.

Impact on Pakistan’s Digital Economy
The recurring internet outages in Pakistan have raised concerns about the long-term impact on the country’s growing digital economy. Analysts have warned that such disruptions could deter investment in the technology sector and harm businesses relying on digital platforms for operations and outreach.

Call for Policy Change
Digital rights activists and economic analysts have urged the government to adopt more targeted and proportionate measures rather than blanket shutdowns. They argue that such restrictions not only hurt the economy but also limit citizens' access to information and freedom of expression.