Firewalls: threat to digital ecosystem

Protests by dollar-earning freelancers a sign situation is dire

KARACHI:

Life is becoming increasingly difficult for ordinary Pakistanis, to the point where even typically silent segments of society are stepping into the fray. As I highlighted in my previous article about the salaried class's growing discontent with the regressive tax regime, the wave of unrest is now reaching those who normally enjoy a quieter existence. When digital freelancers—those dollar-earning, tax-advantaged workers—begin to raise their voices in protest on the streets, it's a clear sign that the situation is dire.

In an increasingly interconnected world, the internet serves as the backbone of the global economy, particularly in emerging markets like Pakistan. The digital economy has flourished due to the tech-savvy younger population having affordable and easy access to information, communication technologies, and global networks. However, the imposition of government firewalls and other measures to control information flow poses significant risks to this growth.

Pakistan's digital economy, though still in its nascent stages, has shown significant potential for growth. The country's internet penetration rate has increased rapidly, and the rise of mobile internet users has driven the adoption of e-commerce, digital payments, and online services. The government has also been promoting digitisation through initiatives like the "Digital Pakistan" vision, aimed at creating a more inclusive and efficient economy.

However, the implementation of firewalls and other restrictive measures, such as frequent clampdowns on social media and internet shutdowns to control the flow of information, can severely undermine these efforts. Firewalls often result in the throttling of internet speeds, blocking of websites, and disruption of online services. This can lead to a fragmented internet experience, where access to global platforms and services is either limited or entirely cut off.

The consequences of such measures are far-reaching. Businesses that rely on the internet for communication, marketing, and sales face significant challenges in reaching their customers. E-commerce platforms, which have been growing rapidly in Pakistan, may experience reduced traffic and sales due to slower internet speeds and restricted access. Additionally, the innovation ecosystem, which depends on the free exchange of ideas and information, could suffer as startups and tech companies face difficulties in fulfilling their commitments to their international clientele.

In the long term, these disruptions could deter foreign investors who are considering investing in Pakistan's burgeoning tech sector. Investors seek stable and predictable environments, and the imposition of firewalls creates uncertainty about the future of the digital economy in Pakistan. This could lead to a slowdown in investment, hampering the growth of the tech industry and limiting the country's ability to compete in the global digital economy.

Freelancer job prospects

Pakistan has emerged as a major player in the global freelancing market, with thousands of professionals offering services in fields such as software development, graphic design, content writing, and digital marketing. Freelancing has provided an alternative career path for many, especially in a country where traditional employment opportunities are limited. The ability to work for clients across the world, without geographical constraints, has been a key factor in the success of Pakistani freelancers.

However, the imposition of government restrictions on digital communication flow and the resultant slowdown in internet speeds pose a significant threat to the freelancing community. Freelancers rely heavily on high-speed internet to communicate with clients, submit work, and collaborate on projects. Slow or unreliable internet can lead to missed deadlines, poor communication, and ultimately, loss of clients. Recently, Pakistan has appeared as a black spot or inaccessible on the global freelancing horizon.

Moreover, firewalls often block access to popular freelancing platforms such as Upwork, Freelancer, and Fiverr. These platforms are essential for freelancers to find work, build portfolios, and receive payments. Restricted access to these platforms can severely limit the job prospects of freelancers, forcing them to seek alternative, often less lucrative, opportunities.

The impact on freelancers is not just economic but also social. For many freelancers, being the sole earner for the entire family, the consequences are devastating. The uncertainty created by these measures could also push skilled professionals to consider relocating to countries with more favourable digital environments, exacerbating the existing trend of brain drain that has reached an alarming level. The popular Nomad Visas offered by many countries are gaining traction among Pakistani freelancers frustrated with the daily outages and clampdowns.

Exporting services

The export of services, particularly IT and digital services, has become an increasingly important component of Pakistan's economy. The country has a growing reputation as a hub for IT outsourcing, with companies offering software development, data processing, and customer support services to clients around the world. This has been facilitated by a relatively low-cost workforce, proficiency in English, and a growing pool of skilled IT professionals.

However, the imposition of firewalls and the associated internet slowdowns can put Pakistan at a competitive disadvantage in the global market. Clients seeking outsourcing partners prioritize countries with reliable and fast internet connectivity, as this is crucial for efficient communication, project management, and service delivery. If Pakistan is perceived as having unreliable internet, potential clients may opt for competitors in countries like India, Bangladesh, or the Philippines, where internet infrastructure is more robust.

Furthermore, the ability to export digital services depends on access to global markets and platforms. Firewalls that block access to international platforms or restrict the flow of information can limit the ability of Pakistani companies to market their services, connect with clients, and stay updated with the latest industry trends. This could lead to a decline in service exports, reducing foreign exchange earnings and hindering economic growth.

In addition to direct economic impacts, there are broader implications for the country's image and reputation. Countries that impose strict controls on the internet are often viewed as repressive or lacking in innovation. This can damage Pakistan's brand as a destination for digital services, further exacerbating the challenges faced by the industry.

While governments may have legitimate concerns about national security, social stability, or combating misinformation, it is crucial to balance these concerns with the need to maintain a vibrant and open digital economy. Overly restrictive measures can stifle innovation, limit economic opportunities, and isolate a country from the global community.

To mitigate the negative impacts of firewalls, the Pakistani government should consider adopting a more nuanced approach. This could include targeted interventions that address specific security concerns without disrupting the entire internet infrastructure. For example, instead of imposing blanket bans on websites or platforms, the government could work with tech companies to develop content moderation policies that align with local laws and values.

Finally, engaging with stakeholders in the tech industry, including freelancers, entrepreneurs, and foreign investors, can help the government craft policies that support both security and economic growth. Transparent and inclusive policymaking can build trust and ensure that the digital economy remains a key driver of Pakistan's future prosperity.

THE WRITER IS A FINANCIAL MARKET ENTHUSIAST AND IS ATTACHED TO PAKISTAN'S STOCKS, COMMODITIES AND EMERGING TECHNOLOGY