Internet Firewall Threatens Pakistan's Economic Stability

The implementation of a controversial firewall system by the Pakistani government has caused slow and erratic internet performance, leading to warnings from business and industry associations about a mass exodus of foreign businesses from the country. The move has questioned Pakistan’s investment climate, economic policies, and regulatory hurdles.

The implementation of a controversial firewall system by the Pakistani government has led to significantly slow and erratic internet performance. Business and industry associations, including the Pakistan Business Council (PBC) and the Pakistan Software Houses Association (PSHA), have warned of a mass exodus of foreign businesses from the country.

Warnings from these associations came months after some of the top multinational companies, such as Uber, Pfizer, and Shell, sold their holdings to local entities, indicating a substantial outflow of foreign investments. This raises serious questions about Pakistan's investment climate, economic policies, and regulatory hurdles.

The PBC disclosed that many multinational companies are planning to relocate their back offices due to widespread internet disruptions. A top financial analyst underscored the importance of a stable digital economy for growth, warning that current conditions may scare away potential investors. Recent reports highlight that nine multimillion-dollar companies have divested their assets over the past two years, pointing to a broader concern over internet freedom and business infrastructure in Pakistan.

(With inputs from agencies.)