Islamabad: Daniel Castro, vice president of the Information Technology and Innovation Foundation (ITIF), warned on Thursday that internet restrictions in Pakistan may provide short-term political advantages but could lead to long-term economic instability. Speaking to a group of journalists during a session organized by the US Embassy in Pakistan, Castro described the country’s approach to Internet censorship as a “puzzle” and “an anomaly,” especially in light of the ongoing digital transformation. He stressed that these closures carry enormous economic costs, including the potential loss of citizens and businesses in other countries.
Castro acknowledged Pakistan’s sovereignty but urged the government to weigh the long-term economic benefits of internet freedom against short-term political gains. “Most arguments for internet shutdowns point to short-term political stability or control. My argument is that maintaining economic stability by avoiding shutdowns outweighs these temporary benefits.”
He pointed to the growing contradiction of a country seeking to transition to a digital economy while simultaneously disrupting access to the Internet. “It is abnormal to see a leading digital economy taking actions that harm itself by cutting off communication between people,” he noted. Castro pointed to numerous studies that have shown how connectivity — including broadband and wireless Internet — promotes economic growth, trade, higher wages and improved job opportunities. He also highlighted the importance of the Internet in industries such as digital services, which Pakistan has positioned as a key growth area.
Castro’s concerns were further exacerbated by the impact of the internet shutdown on freelancers and online workers in Pakistan. “Freelancers, who have control over global rates, are finding it increasingly difficult to submit work or attend meetings due to disruptions to their internet service,” he said. For many, this has resulted in significant losses of income and professional opportunities. Castro added that students in Lahore have expressed concerns about their future, with some considering leaving the country for better opportunities elsewhere due to internet restrictions.
He also drew attention to the specific challenges faced by women entrepreneurs. “When platforms like Twitter are blocked, it directly impacts their ability to reach customers and generate revenue. This is a big issue that often goes unnoticed,” he explained.
Castro stressed that major global companies, including those focused on artificial intelligence, are looking for talent hubs, and that Pakistan’s internet restrictions could prevent potential investments. “Countries that fail to maintain connectivity risk losing international investment and becoming less attractive as centers of innovation,” he warned.
The economic impact of these Internet restrictions is already clear, according to Castro, who pointed to the increase in virtual private network (VPN) subscriptions as an indicator of the value people place on unfettered access. “When people are willing to pay for VPNs to bypass restrictions, it shows how expensive these lockdowns are for them,” he said.
Castro also acknowledged the indirect effects of Internet restrictions, such as companies’ reluctance to invest in a country due to concerns about connectivity. He pointed out that the cost of lost economic activity is significant but difficult to measure. However, it has been estimated that it could amount to millions of dollars per day in lost economic output.
In a related development, Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto also expressed concerns over the ongoing internet slowdown in Pakistan, criticizing the government for imposing restrictions without proper consultation with stakeholders. Bhutto expressed her regret at the disparity between 4G capabilities in Pakistan and the low Internet speeds that the public is currently experiencing, which she likened to the slow Internet speeds of the 1990s.
Castro’s comments highlight the broader economic and social costs of internet censorship, urging Pakistan to reconsider its approach in light of the long-term consequences for its digital economy and global competitiveness.