Daniel Castro, Vice President of the Information Technology and Innovation Foundation (ITIF), warned on Thursday that while internet restrictions in Pakistan may provide short-term political gains, they could lead to long-term economic instability due to the substantial costs associated with such shutdowns.
Castro described Pakistan’s internet censorship as “an anomaly” amid the country’s push for digitalization, pointing out that these restrictions carry significant economic consequences, including the risk of businesses and citizens relocating. Speaking during an event organized by the U.S. Embassy in Pakistan, Castro emphasized the importance of internet freedom for economic stability. He noted that while countries may justify shutdowns for political stability, the long-term economic benefits of connectivity far outweigh short-term political advantages.
Castro also highlighted the negative impact on women, particularly small business owners, who rely on platforms like Twitter for their businesses. The shutdowns not only disrupt commerce but also hinder freelancers who depend on platforms like Zoom for global business opportunities. Furthermore, he warned that these restrictions could deter global companies looking to invest in talent hubs, particularly in fields like artificial intelligence.
Although Castro did not provide an exact figure for the economic loss, he noted that internet shutdowns often result in millions of dollars in lost economic activity each day. He also pointed out the rise in Virtual Private Network (VPN) subscriptions, indicating the value people are willing to pay to bypass restrictions.
