Nationwide Internet Slowdown Devastates Freelance Industry in Pakistan

Freelancers and online workers across Pakistan are facing an unprecedented crisis due to persistent internet connectivity issues. Reports indicate a 70% drop in freelance work opportunities as slow internet speeds wreak havoc on productivity, digital marketing efforts, and client relationships.

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The Crisis Unfolds

Freelancers, who form a significant part of Pakistan’s gig economy, are reporting severe challenges:

• Missed Deadlines: Sluggish internet speeds are causing delays, resulting in account closures for many freelancers.
• Client Migration: Experts warn that if these issues persist, international clients may shift to freelancers in Bangladesh or India, further impacting Pakistan’s global competitiveness.
• Digital Marketing Paralysis: Businesses relying on online marketing face significant setbacks, further reducing revenue streams.

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VPN Ban and Its Implications

The Pakistan Telecommunication Authority (PTA) recently banned VPN usage but has allowed freelancers to register their VPNs with phone numbers. While this measure may offer some relief, concerns remain about its overall effectiveness and accessibility for all online workers.

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Impact on the IT Sector

The Information Technology (IT) sector, a critical contributor to Pakistan’s economy, is also reeling from the internet crisis. According to Sajjad Mustafa Syed, chairman of the Pakistan Software Houses Association (P@SHA):

• The sector loses over $1 million per hour during internet shutdowns.
• 99% of IT companies report service interruptions, with 90% facing financial losses.
• A single internet outage recently cost a call center $2 million in penalties.

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Call for Government Action

The IT sector is further strained by heavy taxes on revenue, which restrict growth and discourage investment. Industry leaders urge the government to:

• Introduce tax incentives to support the sector.
• Implement measures to improve internet infrastructure and provide consistent, high-speed connectivity.
• Ensure better policies to safeguard the interests of freelancers and online businesses.

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A Plea from Freelancers

Freelancers are calling for urgent action to address these challenges. Pakistan has a thriving freelance community contributing significantly to the economy through remittances. However, without reliable internet, their livelihood is at risk.