Shahzaib Mustafa from Okara in Punjab has been working as a freelancer on Fiverr, a multinational online marketplace for such services, for the past six years. During this time, the 24-year-old fulfilled the criteria for `top-rated` status, which requires, among other things, for a seller to have earned at least $10,000. He also became a `level two seller`, which factors in response rate, completion rate, met deadlines, complaints etc.

But frequent internet outages and slow internet connectivity over the last year has resulted in Mustafa losing not just his rank he was demoted to level one seller recently but also his work.

`Fiverr flagged my account, citing an unstable internet connection, which prevented me from securing new projects, Mustafa tells Eos. It has also affected his ability to meet deadlines, running into problems with over a dozen clients spread across the USA and Australia, he says.

`The missed deadlines led to dissatisfied clients, with some of them ceasing to work with me altogether.

AN ECOSYSTEM IN PERIL Pakistan`s internet issues crystallised on February 8, 2024, the day of the general elections, and escalated shortly after the election results were announced. In the wake of multiple allegations of rigging, the government took the drastic step of shutting down the social media app X (formerly Twitter) although it only acknowledged the same after more than two months and slowing down internet speeds nationwide.

Interestingly, a request under the Right of Access To Information (RTI) Act, 2017 was filed with the Pakistan Telecommunication Authority (PTA), inquiring about the internet shutdown and mobile services disruptions on election day itself.

The PTA responded by referring the matter to the Ministry of Information Technology and Telecommunication (MoITT) which, in turn, passed the responsibility on to the Ministry of Interior.

The interior ministry, however, declined to provide an explanation, stating that the decision was a `national security` issue.

A study for the assessment of Pakistan`s freelancing ecosystem, commissioned by the MoITT and carried out by an Islamabad-based consulting firm, in partnership with Boston-based Arthur D.

Little, reported that Pakistan was home to approximately 2.37 million active freelancers in 2022, with more than 550,000 full-time professionals.

The study, while extrapolating the 2020 data of the Online Labour Index, developed at the Oxford Internet Institute of the University of Oxford, estimated Pakistani freelancers to be around 12.5 percent of the global freelance workforce. Meanwhile, according to the Economic Survey of Pakistan, Pakistan freelancers earned $350 million in FY2023-24 (July-March).

The number and the percentages can be contested, as can the remittances generated by such freelancers. But one thing is certain: for these professionals, slow internet has severely impacted their performance and productivity. Freelancers who typically earn a significant portion of their income from international work, are now forced to spend extra money on high-speed internet or to rent co-working spaces as they struggle to meet deadlines, says Tufail Ahmed, who is the president of Pakistan Freelancers Association (PAFLA), which has more than 80,000 members.

`Many freelancers are now forced to work extended hours to ensure timely project deliveries,` he tells Eos. `Losing a foreign client not only results in financial losses for freelancers, but also reduces Pakistan`s inflow of foreign exchange,` he points out.

THE COSTS OF NOT DOING BUSINESS Such shutdowns are not only impacting freelancers, but also Pakistan`s start-up ecosystem which, in turn, has a profound economic impact on Pakistan`s already fragile economy.

A Pakistan Institute of Development Economics (PIDE) research, based on input provided by the industry in 2023, found that the country can lose Rs1.3 billion in a 24-hour internet shutdown. It highlights how key sectors are severely impacted by such disruptions.

For example, online cab services witness a 97 percent reduction in rides, amounting to daily losses between Rs29 million to Rs32 million, says the research.

Similarly, food delivery platforms suffer a 75 percent drop in orders, translating to a Rs135 million loss. Meanwhile, the telecommunications sector incurs a loss of Rs450 million for every 24-hour suspension of 3G/4G services.

The same PIDE research posits that the freelance community faces a $1.3 million revenue shortfall (approximately Rs390 million) per day due to denied orders. This is based on the assumption that freelancers earn Pakistan $500 million annually, which translates into a daily average revenue of $1.37 million.

PIDE further notes that internet closures, compounded by protest-induced economic disruptions, cost the nation an estimated two percent of its GDP annually.

Meanwhile, Pakistan ranked second globally for internet shutdowns in 2024, according to a report by Top10VPN.com, an independent reviewer of virtual private network (VPN) services. These disruptions lasted 9,735 hours and impacted the country`s nearly 83 million internet users.

However, in terms of monetary cost, according to the report, Pakistan was the most affected nation, with the shutdowns costing the country $1.62 billion. In 2023, the same reviewer reported 96 hours of internet blackout and 163 hours of social media shutdown for Pakistan, with the total cost of internet restrictions estimated to be $237.6 million.

WhatsApp, one of the world`s most popular messaging platforms, has officially shifted its Content Delivery Network (CDN) operations out of Pakistan, following recent internet disruptions in the country. This relocation has caused significant service interruptions for local users, impacting their ability to send and receive messages reliably. PTA confirmed that the routing of WhatsApp`s session servers outside Pakistan has resulted in connection difficulties.

MISPLACED PRIORITIES Even as relevant government officials fail to provide any concrete explanation for or solution to the recurring internet shutdowns and slowdowns, the country`s leadership continues to sell the idea of digitisation as a saviour for Pakistan.

Punjab, it seems, has taken the lead on this front. Its chief minister, Maryam Nawaz, has pledged to turn the province into an IT hub and launched the `Digital Punjab` and the `Nawaz Sharif IT City Lahore` initiatives, while failing to address the issue of internet disruptions.

On August 13, 2024, a massive advertisement, featuring CM Maryam Nawaz and promoting the IT facility in Lahore, went on display at Times Square in New York, around the same time Fiverr suspended its services in Pakistan.

According to documents acquired by Eos following an RTI request, the Punjab government approved Rs442 million for the advertisement after it was unanimously approved.

Three months down the line, the Punjab CM launched the Youth Laptop Scheme, under which laptops are to be distributed to 20,000 university students, 14,000 college students, 4,000 students from technical and agricultural colleges and 2,000 medical and dental students. Approximately 32 percent of the recipients will be from south Punjab, with a total of 35,000 laptops to be distributed by February 20, 2025.

It is no surprise that the Punjab government and CM Maryam Nawaz have come under flak, with critics pointing out how launching seemingly high-tech initiatives when basic internet services remain unreliable highlights the disconnect between ambitious plans and ground realities.

In Ookla`s Speed test Global Index, Pakistan has routinely ranked poorly for mobile and internet broadband speed. Its November 2024 index ranks Pakistan 97th out of 111 countries for mobile internet speed, and 139th out of 155 countries for broadband speed, both much lower than the global average.

Tanveer Nandla, who runs a digital marketing institute based in Multan,tells Eos about how frequent internet shutdowns are devastating for freelancers and entrepreneurs trained by his platform. `Many clients require real-time communication, and internet outages undermine their confidence in consistent delivery,` he points out.

Nandla says that it has resulted in clients increasingly opting for competitors from countries with uninterrupted digital connectivity. `This shift not only affects freelancers` incomes but also poses a significant setback for Pakistan`s freelancing community, which relies heavily on foreign clients for sustainable growth,` he adds.GASLIGHTING CONCERNS At the same time, state minister for IT and Telecommunications Shaza Fatima Khawaja has, on multiple occasions, dismissed accusations that the government is deliberately throttling the internet.

This despite concerns raised about this on the assembly floor by her party`s own coalition partners. She attributes the nationwide slowdown to the frequent use of VPNs or virtual private networks, labelling it the primary cause behind the connectivity issues. VPNs can be used to bypass state-imposed restrictions, such as those on X.

VPNs have indeed skyrocketed in popularity, as Pakistanis try to navigate around a draconian firewall on the lines of China or the UAE, which many have blamed for the slowdown in internet speeds. A Forbes report revealed that, in the wake of last year`s ban on X in Pakistan, international VPN services recorded a 100 percent jump in demand for their services in the country.

But VPNs do not provide a solution to freelancers, says Hamid Javed, who is from Bahawalpur. `When we use VPNs, clients block us, because the VPN masks our location and shows it as another country, he tells Eos.

Nandla echoes Hamid`s concerns, pointing out that VPN registration policies and internet restrictions have created significant barriers for freelancers, including the additional cost of the service.

`Reputationally, these restrictions signal unreliability to international clients, making Pakistani freelancers seem less trustworthy,` he adds.

Farieha Aziz, a digital rights expert, tells Eos that even VPNs are now being restricted, further limiting access to vital information and platforms. She points out that monitoring systems, firewalls and surveillance tools are undermining the fundamental purpose of VPNs, which are meant to secure communications, encrypt data and mask users` IP addresses.

`These restrictions not only compromise individual privacy, but also expose users to cyber threats, such as hacking and communication interception,` she says.

Aziz underscores that marginalised groups and small businesses are particularly affected by such restrictions, especially in areas where internet access is already limited or frequently shut down. `While urban centers are starting to address these issues, small businesses without the resources to adapt are struggling,` she adds.

The requirement to register VPNs has added another layer of complexity and cost, excluding individuals who lack the resources or access to influential networks.

This creates a widening digital divide, leaving vulnerable groups, who depend on the internet for their livelihoods, at a severe disadvantage.

LEGAL LIMBO The future of Pakistan`s IT industry and online businesses is increasingly at risk due to restrictive internet control policies, which are driving both talent and capital out of the country. As losses from internet shutdowns in Pakistan become substantial, the country risks losing its competitive edge and limiting opportunities for its growing tech workforce.

According to an investigative report by the Organised Crime and Corruption Reporting Project (OCCRP), published in May 2024 as part of the Dubai Unlocked project, 17,000 Pakistanis own $11 billion worth of property in Dubai. Furthermore, the Dubai Chamber of Commerce reported that 3,968 Pakistani companies were registered in Dubai in the first half of 2024, a 71.2 percent increase from 2022.

Dubai`s favourable business environment, lower taxes, robust payment systems and streamlined processes make it a preferred destination for Pakistani businesses, especially in the IT sector.

In contrast, Pakistan`s weak payment infrastructure and restrictive policies undermine its potential, particularly its ambitious goal of increasing IT exports to $10 billion in the next two years.

In a recent Senate Standing Committee on Information Technology session, PTA defended its practice of internet shutdowns, citing government directives as the basis for these actions. PTA Chairman Maj Gen (retd) Hafeezur Rehman pointed to Supreme Court and high court directives to justify the frequent blackouts, although he failed to clarify the legal framework behind them.

When asked by a senator about the legal grounds for the shutdowns, Rehman responded that the decisions were made on instructions from the government and questioned the challenge to their legality by asking, `If this is illegal, why has the government been directing us to do so for nine years?` The committee also scrutinised the Prevention of Electronic Crimes Act (PECA), noting that it doesn`t explicitly authorise geographic internet blackouts.

The IT ministry representatives acknowledged the ambiguity, but argued that the interior ministry had the authority to issue such directives. This left the issue in legal limbo, with each party deflecting responsibility to the other.

Further complicating the situation, the PTA has been avoiding media inquiries, refusing to provide official responses on the ongoing internet shutdowns, creating a communication vacuum.

Both the PTA and the IT ministry appear to be passing the responsibility back and forth, with neither providing clear answers on the matter. This lack of transparency has left citizens, businesses and freelancers vulnerable to disruptions without proper justification or explanation, highlighting the confusion and uncertainty surrounding Pakistan`s digital governance.

The writer is an investigative journalist and R TI activist. X: @saddiamazhar