CAP expresses serious concerns over internet disruptions

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2024-08-20T04:56:21+05:00 PRESS RELEASE

LAHORE   -   The Chainstore Association of Pakistan (CAP) has raised serious concerns over the recent internet disruptions, primarily affecting mobile internet and Whatsapp, warning of significant impact to export-oriented and domestic commercial activity across the country. CAP Chairman Mr Tariq Mehboob, alongwith CAP Co-Founder and National E-Commerce Council Member Mr Asfandyar Farrukh, highlighted the far-reaching consequences of these disruptions, stressing the urgent need for permanent resolution.

Pakistani businesses are already grappling with multiple challenges, including high taxes, soaring electricity costs, and increasing liquidity challenges. Amidst these difficulties, inconsistent and unreliable internet services are creating additional hurdles, severely affecting revenue streams and service quality. “These internet disruptions not only impact large-scale businesses but also individuals running small enterprises who rely on stable connections to sustain their livelihoods,” said Mr. Tariq Mehboob, Chairman of CAP, adding, “When the internet slows down, businesses experience major disruptions in daily operations. Key functions such as communication, order processing, inventory management, and customer service are all hindered. Small businesses, in particular, are vulnerable as they often depend entirely on mobile internet and Whatsapp to attract and serve customers. Although the situation appears to have improved after several days of disruptions, repetitive outages can lead to diminished credibility and lost customers, directly hitting revenue.” Mr Asfandyar Farrukh, Co-Founder of CAP and a member of the National E-Commerce Council, echoed these concerns, underscoring the economic impact.

It has been reported that there has been much higher usage of VPNs by individuals and businesses due to which internet slowdowns are occurring. However, VPNs would not be needed if local disruptions to Whatsapp, a key communication tool, and other digital services was prevented in the first place. The repetitive internet slowdowns are causing substantial financial losses in both the IT and e-commerce sectors. With over $3.2 billion in annual IT and freelancing exports, and a $5 billion domestic e-commerce ecosystem at stake, the situation is critical. Freelancers, remote-workers, ride-hailing drivers and delivery riders who depend on stable mobile internet connections have been especially hard hit, facing missed deadlines, service delays, and loss of income.

Moreover, the image and credibility of Pakistani businesses serving foreign clients are being impacted, which could result in further financial damage if not permanently addressed. If any disruptions are imminent or occurring, the government and regulators must provide proactive information, complete transparency (including any changes to internet-related systems), and clear timelines for resolution so that individuals and businesses can plan accordingly and manage customer expectations.

The Chainstore Association of Pakistan strongly urges the government to take immediate and decisive action to protect the country’s digital economy. The recent disruptions have underscored the vital role that a stable and secure digital infrastructure plays in Pakistan’s economic stability and growth. Failure to address these issues promptly could result in lasting harm to individuals and businesses across the country.

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