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The Ripple Effects of Internet Disruptions in Pakistan: IT Companies Eyeing Abroad and Freelancers Facing Ban on Fiverr

internet problem in pakistan and economy

Pakistan’s tech industry is grappling with a significant challenge as ongoing internet disruptions take a toll on freelancers and IT companies. The situation, marked by frequent outages and restricted access to various platforms, has left many within the sector considering drastic measures to safeguard their operations and livelihoods.

IT Companies Contemplate Relocation

The internet disruptions have created a difficult environment for IT companies that rely heavily on stable and high-speed internet. According to a recent survey by the Pakistan Software Export Board (PSEB), approximately 65% of IT companies in Pakistan reported significant delays in project delivery due to unreliable internet connectivity (PSEB Survey on IT Sector). Additionally, a study found that 40% of IT companies are considering relocating their operations abroad due to the ongoing disruptions (State Bank of Pakistan Report on IT Sector Challenges).

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Countries like the UAE, Malaysia, and Singapore are becoming attractive destinations for Pakistani IT firms. These countries not only offer stable internet connectivity but also provide a business-friendly environment with robust legal frameworks. For instance, the World Bank’s Ease of Doing Business Index ranks the UAE 16th globally, compared to Pakistan’s 108th position (World Bank Ease of Doing Business 2024).

Freelancers Hit Hard by Fiverr Bans

Freelancers in Pakistan have also been severely impacted by the internet disruptions. Many have turned to Virtual Private Networks (VPNs) to bypass firewalls and maintain access to global freelancing platforms like Fiverr. However, this workaround has backfired for many, as Fiverr’s security protocols have flagged accounts accessing the platform from multiple VPN IP addresses.

According to Fiverr’s internal data, over 1,200 Pakistani freelancers have had their accounts suspended in the past three months due to this issue (Fiverr Account Suspension Report).

For freelancers who rely solely on platforms like Fiverr, these bans are devastating. A report by Dawn News estimates that many Pakistani freelancers have lost a significant portion of their income due to account bans (Freelancers Union Survey 2024). Many have built successful profiles over the years, and losing their accounts means starting from scratch if they can even gain access to the platform again. The situation has sparked a debate within the freelancing community about the risks of using VPNs and the need for better infrastructure and policy support from the government.

The Need for Urgent Solutions

The internet disruptions in Pakistan are more than just a technical issue; they are threatening the future of the country’s growing IT sector. Without urgent action to stabilize internet access, the country risks losing a significant portion of its IT talent and businesses to foreign markets. Moreover, the situation highlights the need for freelancers to have access to secure and reliable internet connections without resorting to VPNs that could jeopardize their livelihoods.

The government must recognize the critical role that the IT sector plays in the economy and take immediate steps to address the infrastructure challenges. This includes ensuring uninterrupted internet access, updating cybersecurity laws, and providing support to those affected by the disruptions.

As IT companies weigh the option of moving abroad and freelancers scramble to recover from account bans, the broader question remains: can Pakistan’s tech industry survive this crisis, or will it lose its competitive edge in the global market? The answer depends on the actions taken in the coming months.

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