Advertising Progress, Delivering Chaos: The State of Pakistan’s IT and Telecom Sector

In recent months, Pakistan’s digital landscape has revealed a significant gap between what the government claims and the reality faced by everyday citizens. On one side, government officials, including the former caretaker Minister for IT and Telecom Mr. Umar Saif , have been enthusiastically talking about the country’s readiness to launch 5G services, painting it as a significant step forward in Pakistan’s technological journey. However, this optimism is hard to reconcile with the recent decisions by major freelancing platforms like Fiverr and Upwork to suspend their operations in #Pakistan, citing poor internet quality. This move has left thousands of freelancers stranded, highlighting the stark contrast between the government’s ambitions and the actual struggles of millions of Pakistanis who often can’t even access reliable 2G services.

The allure of 5G technology is undeniable—faster speeds, lower latency, and the potential to transform various industries, from healthcare to education. For a country like Pakistan, where digital transformation could play a crucial role in economic development, the promise of 5G is particularly attractive. But this promise seems increasingly disconnected from the reality on the ground. Despite the government’s assurances, Pakistan’s telecommunications infrastructure is not ready to support such advanced technology.

To fully understand the problem, we need to consider the broader context of internet access and quality in Pakistan. The country was ranked 90th out of 100 in the Inclusive Internet Index 2023, which was developed by the Economist Intelligence: EIU and supported by Facebook by Meta . This index measures how accessible, affordable, and ready a country’s internet infrastructure is. Pakistan’s low ranking highlights widespread connectivity issues, from limited rural coverage to poor service quality even in urban areas.

In cities like Karachi, Lahore, and Islamabad, where you might expect better infrastructure, the situation isn’t much better. Slow speeds, frequent service interruptions, and high costs are common complaints. As of January 2024, Pakistan’s average mobile internet speed was just 17.96 Mbps, compared to the global average of 40.71 Mbps, according to Ookla ’s Speedtest Global Index. This puts Pakistan in the bottom tier globally, which severely limits the ability to support advanced digital services, including those that would depend on 5G.

A major issue that has exacerbated the poor quality of internet services in Pakistan is the lack of regulatory oversight, especially concerning the quality of service (QoS). The Pakistan Telecommunication Authority (PTA) , responsible for ensuring that telecom operators meet service standards, has faced criticism for not conducting regular QoS assessments. The last comprehensive audit by the PTA was back in 2017, and there has been little follow-up since then. This lack of oversight has allowed telecom operators to deliver subpar services with little accountability, directly contributing to the declining quality of internet services in the country.

The impact of these infrastructure deficiencies is wide-reaching. Pakistan’s freelance economy, which has grown rapidly and become a critical source of income for many, is particularly affected. Pakistan has been recognized as one of the fastest-growing markets for freelancing, with thousands of skilled professionals relying on platforms like Fiverr and Upwork . However, due to poor internet services, these platforms have now suspended operations in Pakistan, leaving many freelancers without a reliable way to earn a living.

This suspension isn’t just a minor inconvenience; it’s a significant blow to Pakistan’s digital economy. Freelancers, who need stable and fast internet connections to communicate with clients, complete projects, and manage transactions, are now cut off from the global marketplace. For a country trying to position itself as a hub for digital talent, this is a serious setback. Instead of enabling Pakistan’s digital workforce, the country’s inadequate infrastructure is holding it back.

Adding to the problem is the concerning trend of international telecom operators pulling out of Pakistan. Over the past few years, significant players like Warid Telecom and Telenor have either merged, downsized, or exited the market entirely. Warid Telecom merged with Jazz in 2016 and ceased to exist as a standalone brand, largely due to unsustainable operating conditions in Pakistan. Telenor , another major player, has been facing declining profits and operational challenges, leading to ongoing speculation about its potential exit from Pakistan, similar to its departure from other challenging markets like Myanmar. The exit or downsizing of these international companies reflects the increasingly difficult environment for telecom operators in Pakistan, driven by regulatory issues, high operational costs, and poor infrastructure.

One of the key challenges faced by telecom operators is the ongoing power crisis in Pakistan. Frequent power outages, combined with the rising cost of fuel for backup generators, have forced operators to compromise on service quality. Telecom towers, which are crucial for maintaining mobile networks, often rely on diesel generators during power cuts. The high cost of fuel and the strain on generators not only increase operational costs but also lead to service disruptions and reduced network reliability. This issue is especially problematic in rural areas, where infrastructure is already less developed and more vulnerable to these disruptions.

Another critical factor hampering Pakistan’s telecom infrastructure is the lack of a comprehensive fiber optic network, which is essential for supporting high-speed data transmission and modern telecom services. Fiber optics form the backbone of any robust telecommunications network, allowing for the rapid and reliable transfer of large amounts of data. Unfortunately, Pakistan has one of the lowest fiber optic penetrations in the region. According to 世界银行 , less than 10% of Pakistan’s telecom towers are connected to fiber optic networks, compared to the regional average of 30-40%. This lack of fiber connectivity severely limits the ability of telecom operators to provide high-speed internet services and hinders the rollout of advanced technologies like 5G.

The penetration of fiber optic networks in Pakistan is also limited when it comes to reaching the end-user. Fiber-to-the-home (FTTH) connections, which deliver high-speed internet directly to consumers, are still a rarity in most parts of the country. The majority of internet users rely on outdated copper lines, which cannot support the high-speed data required for modern digital services. The slow expansion of fiber networks, marred by regulatory hurdles, high costs, and bureaucratic inefficiencies, means that most households and businesses are stuck with inadequate internet connections. Without significant investment in expanding fiber-to-the-home infrastructure, the dream of a digitally connected Pakistan will remain out of reach.

Further adding to the frustration is the recent move by Maryam Nawaz Sharif , who is leading her Government of Punjab ’s campaign to advertise the proposed "Nawaz Sharif IT City” on Wall Street billboards in New York. These ads, funded by public money, have drawn criticism for their timing and the stark contrast they present to the deteriorating state of IT and telecom services back home. While billboards in one of the world’s financial hubs might project an image of progress and development, the reality in Pakistan is quite different. The government is spending significant public funds on international advertising, while the very sector these ads are supposed to promote is collapsing due to neglect and mismanagement.

This situation is not only frustrating for users but also severely undermines Pakistan’s economic potential. As the global economy becomes increasingly digital, countries that fail to provide reliable internet services risk being left behind. For Pakistan, which is already facing significant economic challenges, this is a risk it cannot afford to take. The suspension of freelancing platforms should serve as a wake-up call for policymakers, highlighting the urgent need to invest in and improve the country’s telecommunications infrastructure.

So, what can be done to address these issues? First and foremost, the government needs to prioritize the development of a robust and reliable Internet infrastructure. This means investing in the expansion of fiber optic networks, improving the reliability of the power grid, and ensuring that internet services are affordable and accessible to all. These investments are essential not just for launching 5G but for the overall development of Pakistan’s digital economy.

Additionally, there needs to be greater transparency and accountability in how the government and the PTA handle these issues. The PTA must resume regular and comprehensive quality-of-service audits to ensure that telecom operators are held accountable for the services they provide. Without these audits, operators have little incentive to improve, and the people of Pakistan will continue to suffer from subpar services. Moreover, the government should be upfront about the challenges it faces and work collaboratively with international organizations, the private sector, and civil society to address them. This includes listening to the concerns of the freelance community, who are among the most affected by the current state of internet services in Pakistan.

In conclusion, while the idea of 5G in Pakistan is exciting, it’s crucial to recognize that the country is not yet ready for such advanced technology. The suspension of freelancing platforms, the poor rankings in global internet indices, the exit of international telecom operators, and the challenges highlighted by international organizations all point to the need for a more grounded approach. Before Pakistan can fully embrace the future of digital technology, it must first address the fundamental issues that are holding it back. Only then can it ensure that all of its citizens, regardless of where they live or how much they earn, have access to the opportunities that the digital world offers.

Written by Kashif Ali Raza

Pakistan Telecommunication Company Limited Ministry of IT and Telecom Pakistan TAWAL Engro Technologies Wateen Telecom Limited Jazz EDOTCO Group Universal Service Fund Dawn.com The National News Tribune Publishing Company National Information Technology Board TechJuice Pakistan IT Industry Association (P@SHA) Pakistan Software Export Board (PSEB) Pakistan Software Testing Board (PSTB) Startup Pakistan Transworld Associates Transworld Home Multinet Pakistan (Private) Limited CYBERNET Nayatel Ufone 4G Zong CMPak Ltd PTCL.Official StormFiber Supernet Limited