ISLAMABAD: Telecom operators in Pakistan are facing massive revenue losses as the government shut down mobile broadband services after the arrest of PTI Chairman Imran Khan on May 9, resulting in a deteriorating law and order situation.
According to data collected by MM News, the government has also lost millions of rupees in tax revenue due to the shutdown, with losses expected to increase if the restrictions are not lifted.
The Pakistan Telecommunication Authority (PTA) has disconnected mobile internet services indefinitely, following the Ministry of Interior’s orders, which have blocked key social media platforms such as Facebook, Twitter, and YouTube.
It is estimated that telecom operators in Pakistan have suffered an estimated revenue loss of Rs. 1.64 billion until now, while the government has lost around Rs. 574 million in tax revenue, and losses are expected to rise if the restrictions are not lifted.
Apart from the heavy financial losses, this suspension of network and social media applications is a violation of human rights and an unnecessary and disproportionate response to socio-political issues. The shutdown has affected businesses, students, and individual users, who use the internet and social media apps to connect with their loved ones or carry out life and work-related tasks.
The majority of internet usage in Pakistan is through mobile data, with less than 2.5 million wired internet users compared to 125 million 3G/4G users, despite insufficient wired infrastructure.
The suspension of mobile internet has hit ride-hailing services such as Careem and InDrive and delivery services like Foodpanda and Bykea the hardest, affecting approximately 160,000 riders in addition to more than 12,000 restaurants and home chefs using these platforms, all connected digitally.
As per various reports, most of these drivers and riders come from the lowest income groups and rely on daily incomes for sustenance.
The recent internet restrictions have taken away their livelihood again. Digital payments have also come to a standstill, which not only causes inconvenience for users but also affects large portions of sales at petrol stations and convenience stores.
There are more than 90,000 digital Points-of-Sale (PoS) machines across the country that provided a convenient digital shopping experience but now remain disconnected.
It is pertinent to mention here that according to Reuters, POS transactions have fallen by nearly 50 percent after Imran Khan’s arrest, which led to countrywide protests. To offset the impact, authorities decided to shut down mobile internet services at least online.
