Digital economy stumbles on internet slowdown

Recurring internet slowdowns in Pakistan are increasingly disrupting the country’s digital economy, with Information Technology (IT), e-commerce, freelancing and other service-based sectors facing mounting operational challenges. Whilst internet service providers cite undersea cable faults and domestic backhaul constraints as primary causes, technology experts warn that poor network management and user-side practices are exacerbating the problem, adding pressure on businesses and professionals who rely on reliable connectivity for international operations.

Industries dependent on stable, low-latency internet, including e-commerce and retail platforms, fintech and payment gateways, BPOs and call centres, cloud-hosted SaaS and IT companies, freelancers working with overseas clients, banking institutions, and content and streaming providers, have been particularly affected.

Saad Shah, CEO of IT export firm Hexalyze, said persistent connectivity issues have severely hampered his company’s performance. “Many IT projects require high-speed internet for real-time deployments. However, due to ongoing disruptions, companies have been forced to adopt costly alternatives, such as relocating additional staff to offshore offices in Dubai,” he explained. Shah added that these disruptions have become the “new normal” and could jeopardise Pakistan’s IT export growth and its $5 billion target for the current fiscal year.

The slowdowns are most prominent between 7pm and 11pm, affecting professionals and businesses dealing with clients in the United States and Europe. High-bandwidth activities, including live streaming, online gaming, video conferencing, large downloads and banking transactions, have been particularly impacted. E-commerce entrepreneur Tariq Ghouri said traders operating on international platforms such as Amazon and eBay are experiencing significant losses, with some even forced to temporarily relocate operations abroad to maintain client relationships and business continuity.

Umair Sani, an IT professional with over a decade of market and academic exposure, stressed that Pakistan’s internet issues are not solely a matter of bandwidth shortages but are also linked to network stability and user-side practices. “For video calls and online meetings, you don’t necessarily need very high bandwidth; what matters is a stable and consistent connection,” he said. Sani likened a stable internet connection to a water pipe: “It doesn’t have to be very wide, but the flow must be continuous.” He noted that many stability issues could be addressed through better network tuning and management.

Sharing his personal experience, Sani revealed that he avoids Wi-Fi for work, opting for wired connections to ensure reliability. “In most work-from-home setups, Wi-Fi is shared amongst multiple users, affecting performance. Even when the main internet connection is stable, Wi-Fi routing can create additional problems,” he explained. He advised professionals and businesses with access to fixed-line connections to use Ethernet cables rather than Wi-Fi, as this often improves internet performance significantly.

Sani highlighted that live communication tasks, such as video conferencing and virtual meetings, are most vulnerable to instability. “Asynchronous services like WhatsApp or email are less affected because they can sync later. But during live sessions, even brief disruptions can break communication flow,” he said. He concluded that simple adjustments, including wired connections and optimised local networks, can substantially improve productivity, even amid broader infrastructural challenges.

Ibrahim Amin, Chairman of the Pakistan Freelancers Association, said the freelancing community and digital workers continue to face connectivity problems, which affect their income and the foreign exchange they generate for the country. Students enrolled in online training programmes are also experiencing significant productivity losses due to slow internet speeds.

Shahzad Arshad, Chairman of the Wireless and Internet Service Providers Association of Pakistan, explained that the recent disruptions are primarily due to undersea cable faults and maintenance work, compounded by domestic backhaul limitations. “Whilst temporary measures can restore partial capacity within a few days, full repair of the affected subsea systems may take weeks, requiring specialised cable ships and coordination with multiple cable owners,” he said.