(Hira Tahir)
As global dynamics shift, many nations are now turning their attention to the information technology (IT) sector, recognizing its potential as a key driver of economic growth. Pakistan, in particular, stands out with its vibrant IT ecosystem, characterized by a talented workforce, increasing internet penetration, a flourishing freelance market, widespread smartphone adoption, and a growing demand for digitalization across various sectors. The expansion of information technology in the country is further supported by a youthful population, government initiatives aimed at promoting IT and entrepreneurship, and an increasing appetite for innovative digital solutions. These elements collectively position Pakistan’s IT sector for significant advancement in the coming years. As Pakistan looks to the future, the potential for the IT sector is immense.
The country has made significant strides, with the IT and IT-enabled services (ITeS) sector contributing approximately 1% to the national GDP, translating to around $3.5 billion. Recent statistics reveal a remarkable growth in export remittances, reaching $3.22 billion in 2023-24—a 24% year-on-year increase. Over the past four years, industry output has doubled, and projections indicate further growth of up to 100% in the next two to four years, potentially reaching $7 billion. The ambitious goal of hitting $25 billion in five years reflects a strong belief in the capabilities of the youth and a commitment to equipping them with the necessary tools for success in the IT field. With continued investment and innovation, Pakistan is well-positioned to emerge as a significant player in the global tech landscape.
Central to this growth is the Special Investment Facilitation Council (SIFC), which is spearheading an effective strategy to enhance Pakistan’s information technology sector through the establishment of Special Technology Zones (STZs) in seven key locations, including Lahore, Peshawar, Swat, Abbottabad, Haripur, Islamabad, and Karachi. This initiative aims to create a state-of-the-art cloud infrastructure that serves diverse industries, ensuring efficiency, security, and innovation. Additionally, the SIFC is fostering investment in the manufacturing of smart devices and spearheading a transformative Telecom Infrastructure Deployment project to improve digital connectivity. The establishment of fund-backed accelerators and incubators further bolsters the ecosystem. According to Microsoft Network, the diligent efforts of the SIFC and the robust networking facilitated by National Incubation Centers have restored foreign investors’ confidence in Pakistan’s IT sector and beyond.
However, recent events have tested this growing potential. Last month, Pakistan’s internet infrastructure faced significant disruptions, raising serious concerns about the government’s crisis management capabilities. Conflicting statements and delayed updates heightened anxieties among professionals who have increasingly turned to freelancing following the pandemic and dollar appreciation. Business associations and trade bodies criticized the government’s response, suggesting that the internet slowdown stemmed from government’s decision to install a firewall for enhanced scrutiny of online activities. In response to growing concerns, Fahd Haroon, Special Assistant to the Prime Minister on Digital Media and Minister of State, assured users that “100% speed will be restored soon,” aiming to alleviate the fears of a worried public.
Internet services in Pakistan experienced a slowdown due to technical issues, not the installation of a firewall. Out of seven submarine cables, two were down, and a major Internet Service Provider (ISP) faced a hardware issue requiring reconfiguration. The combination of these disruptions led to the service interruption. The hardware problem has been fixed, and one damaged cable has been repaired, improving connectivity. Experts noted that such outages are part of a global challenge, as cable repairs are handled by international consortiums. The government, in collaboration with local ISPs and military leadership, is working to enhance digital infrastructure and improve internet access nationwide.
Pakistan’s internet infrastructure, reliant on seven submarine cables and 38 Content Delivery Networks (CDNs) with a combined speed of 20 TB per second, is more vulnerable than India’s, which has over 20 cables and 138-140 TB per second bandwidth While cable disruptions in India have minimal impact, Pakistan faces significant service degradation from even minor issues. Fortunately, it has been confirmed that the current issues affecting internet speed will be resolved by October, allowing for a restoration of services.
Moreover, Web Monitoring System (WMS) is not responsible for recent internet slowdowns, as it functions independently to block illegal content like blasphemous material and disinformation. The government remains committed to supporting the IT sector and improving internet access across Pakistan. “We are a vibrant, forward-looking nation, and we will continue to take the necessary steps to secure our digital frontier and promote the growth of the IT sector,” stated Fahd Haroon. His remarks underscore the challenges and opportunities in Pakistan’s digital landscape. Despite recent internet slowdowns and social media restrictions, the government remains optimistic about the IT sector’s potential in shaping a digital future.
As Pakistan navigates these challenges, it is vital for the government and stakeholders to collaborate effectively, ensuring that technological advancements and internet accessibility are prioritized. By fostering a supportive environment for innovation, Pakistan can position itself as a key player in the global IT arena, ultimately driving economic growth and enhancing the quality of life for its citizens.
The writer is a freelance columnist and she can be contacted on hiraatahir7@gmail.com
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