Data Closure’s Human and Financial Costs: Millions of Lost Wages for Families.

Following instructions from the Pakistani government’s Ministry of Interior, the Pakistan Telecommunication Authority (PTA) has cut off mobile internet access for the foreseeable future.
Key social media platforms such as Facebook, Twitter, and YouTube have been blocked in Pakistan. Former Prime Minister and current Chairman of Pakistan Tehreek-i-Insaf (PTI) Imran Khan’s arrest precipitated the change.

Internet in Pakistan
ProPakistani reports that the ban on mobile broadband has cost telecom companies in Pakistan an estimated Rs. 1.64 billion in lost revenue so far, and that the government has lost around Rs. 574 million in tax revenue, with losses expected to grow if the ban is not lifted.

Besides the heavy financial losses incurred as a result, this artificial hiatus of network and social media applications is a direct violation of human rights and an unnecessary and disproportionate response to socio-political issues. The shutdown has impacted businesses, schools, and individuals who rely on the internet and social media to stay in touch with friends and family or complete necessary daily tasks.

This data service shutdown is especially huge since the bulk of internet use in Pakistan is via mobile data. For instance, there are less than 2.5 million wired internet users as compared to 125 million 3G/4G users in Pakistan despite insufficient wired infrastructure.

Impact Breakdown
The suspension of mobile internet has hit ride-hailing services such as Careem, and InDrive, and delivery services like Foodpanda and Bykea the hardest. These platforms employ approximately 160,000 riders in addition to more than 12,000 restaurants and home chefs using these platforms, all connected digitally.

In summary, the nationwide internet shutdown has impacted:

Around 160,000 Bykea, InDrive, Careem, Uber captains, drivers and riders
Around 12,000 foodpanda home chefs, restaurants
Roughly 500,000 freelancers
Almost 90,000 POS vendors
Some 42,483,573 mobile wallets
6,000 e-commerce shops
Most of these drivers and passengers are from the lowest socioeconomic classes and depend on daily wages for subsistence. After the devasting floods last year took away the livelihoods of people across the country, a lot of people moved to cities to find work and ended up working for taxi hailing or food delivery services to be able to support their families. The recent internet restrictions have taken away their livelihood again.

Cashless Transactions
Digital payments are another important facility that has come to a standstill. The facility not only ushers in a lot of trouble for users but also impacts major percentages of sales at gas stations, convenience shops, etc.

There are more than 90,000 digital Points-of-Sale (PoS) machines across the country which provided a convenient digital shopping experience but now remain disconnected.
According to Reuters, POS transactions have fallen by nearly 50 percent after Imran Khan’s arrest which saw countrywide protests. Authorities opted to shut down mobile internet services to mitigate the damage, at least online.

No internet means users are unable to benefit from crucial digital facilities such as telehealth that benefit lots of patients particularly those who are immobile or are based in remote regions lacking basic healthcare facilities.

The necessity for emergency telehealth facilities rose in cities as well as all main highways were blocked and access to hospitals constrained. A reputable source in healthcare revealed that the shortage of mobile internet hindered caregivers who offered health services at home and communicated with their patients remotely.

Pakistan has a thriving startup and freelancing landscape that entirely depends on reliable connectivity. These businesses may never recover from the losses they experience during internet outages.

Fiverr, a renowned global freelancing platform turned off the accounts of Pakistani freelancers provisionally, in view of the unavailability of the internet in the country.

IT Minister Lauds GSMA’s Role in Promotion of Telecom Industry
Following COVID-19, online learning has become a common practice. A number of higher and secondary level educational institutions conduct online classes that have been disrupted by the ongoing internet blackout.