The recent lifting of the X (formly Twitter) ban in Pakistan, after being blocked through General Elections 2024, reveals how such bans severely damage its economy. A recent decision of the Pakistan Telecommunication Authority (PTA) to withdraw its ruling, as validated by Sindh High Court (SHC), suggests a broader point on how digital platforms represent an essential form of economic activity and growth in our increasingly connected world.
Dacoits of digital media — the social-mafiosos…. Social sharing, has become more than just a personal district and now exists to be an essential utilities when it comes commerce or marketing layer…. A ban as large and active in the ecosystem of businesses, particularly small to medium enterprises (SMEs), disrupt their consumer outreach thereby impacting their go-to-market strategy. In a country like Pakistan where the digital economy is taking its baby steps and SME’s are already doing mass marketing primarily on social media for being cost effective such restrictions become major road blockers. The suspension of X not just affected individual users through thousands of businesses that relied on social media for their branding, customer outreach, revenue streams.
In addition to this, digital marketing tuners, influencers and freelancers who are a big part of the gig economy in Pakistan were also adversely affected. Professionals in verticals like X count on platforms to engage clients locally and globally. The suspension would have created revenue losses, lost business opportunities and decreased forex inputs from freelance work. They also have a broader impact than just on social media, stretching deeply out there into the economy.
It likely pales in comparison to the impact it has on investor confidence. In a global economy such as today, we should take always-on digital availability for granted. Countries with stable and reliable digital infrastructures & freedoms will attract more investors especially in a tech / start-up heavy space. The unilateral shutdown of communication platforms sends a signal about instability and unpredictability, both key elements that are likely to drive local or foreign investments elsewhere.
The country is flexing its high-tech muscles and reaching a critical inflection point in its long history of economic struggles, service interruptions, corruption scandals and political upheaval. That said, with the continuous outages from major digital platforms threaten to destabilize what has already been built. If the technology, e-commerce and digital services — potential investors see regulatory stability or continuity disappearing from India they may rethink on account of changes to what seems like an arbitrary process.
This begs the question about what could be legally encouraged to be done regarding the matter by SHC. Court had earlier directed the Interior Ministry to withdraw its decision of suspending X, noting that such a move can only harm us. The PTA eventually reversing its decision due to lack of judicial oversight (checks and balances) as demonstrated in this case, it is an important moment of time for a more robust regime around digital regulation. Policy interventions that impact the digital economy, on such matters should be consultative in nature and grounded to long-run considerations balancing security with economic growth imperatives.
While it devises its way forward towards an increasingly digitalized economy, the treatment of platforms such as X is a crucial question for Pakistan. Yes, security concerns may necessitate temporarily restrictions by they should not come at the expense of economic growth. Economic sectors ranging from the private sector and freelancers to potential investors, stability in a digital environment is needed for continued economic growth.
Moving forward, the PTA must have a more enlightened perspective on digital governance of which significant economic considerations reside to ensure that abbreviated political action does not try to stifle or hinder vital long-term economy potential for this nation.
