Internet outages and economic development in Pakistan

The emergence of social media has changed the manner in which people express themselves and their opinions. In Pakistan, the virtual public square has become Facebook, X, and Instagram. These aren’t just privatized forums for conversation; they have public and political significance.

Individuals rally here for support and in defence of their causes. What is most significant in Pakistan is that citizens, living both at home and abroad, have embraced this new digital public square. And in this digital arena, the Pakistani youth have taken a leading role.

Pakistan’s internet outrage has been sparked by certain issues. These include government policies, corruption, and social injustices. The internet in Pakistan is, by the way, quite active. Incidents of high-profile nature are often seen in the following of a wave or waves of protests that take place online.

And these incidents can be tied quite closely to the idea of virtual law fair. They include the prosecution and at times persecution of a social media influencer with controversial actions of law enforcement.

Though positive social change can result from protests on the internet, their immediate economic effects can be troubling. Top10VPN.com recorded 18 instances of purposeful internet shutdown, all across three big buckets: elections, “information control”, and protest — as of 2024 with contingent system interruptions lasted 9,735 hours causing 82.9 million users’ impacts.

Based on the these estimate, the widely continuing shutdown of social media platform X since February 18 was the richest, with a total estimated impact of USD1.34 billion.

Even when people take “outrageous” action online, the consequences can affect a number of different entities in a number of different ways. Protests can result in mysterious drops in stock prices, for one thing. But protests can also lead to nervous companies doing or promising something to make the situation better.

Companies frequently find themselves amid internet outrage. A single tweet or viral post can drive a big enough portion of the population to a web browser that a business suddenly finds itself facing a public relations nightmare. The federal government’s recent Freedoms and Responsibilities of Whistleblowers programme suggests there’s a lot for business to worry about.

Besides, the outrage on the internet can be a deterrent for both foreign and domestic investors. They want a calm, predictable environment in which to park their money. With unrest in the climate, who knows what businesses will do or how the economy will perform?

Impressions of instability can lead to reconsideration of commitments and slow or even stalled growth and innovation. When potential investors see companies possibly postponing or scrapping expansion plans—because they don’t know how plans might pan out when the next internet outrage happens—that’s a bad sign.

When the public expresses outrage, it can prompt the government to impose stricter regulations on businesses that the public perceives to be acting unethically. Regulation is necessary to maintain standards and is not in itself a negative force.

Yet when a business sector becomes the focus of public concern, too much scrutiny can result in an atmosphere that is, at best, unfriendly and, at worst, hostile to innovation and entrepreneurs. And entrepreneurs unquestionably are critical to the economic future of any society.

Even though social media has the potential to and does in many ways allow voices to be amplified and movements to be facilitated, it is also a conduit for spreading false information and for narratives that are already divisive to become even more so.

For a country like Pakistan, with persistent and often acute political and sectarian tensions, the rapid spread of false information can and does create more conflict. That conflict can lead to violence in a country where the fault lines are already pretty well established and where the potential for unrest is always just underneath the surface is a fact.

Therefore, to reduce the financial damage from internet outrage, the Pakistan government must move from a reactive to a proactive strategy. Here are some suggested steps:

Firstly, increasing the number of people with digital literacy is potentially a powerful antidote to the societal problem of misinformation. A misinformed society simply cannot make good decisions, whether in relation to public health, environmental issues, foreign policy, or (as we’ve seen all too often in recent years) the electoral process.

Secondly, there is a need to induce businesses to embrace ways of doing things that are ethical and to take actions that are socially responsible, in what is often termed corporate social responsibility (CSR). When companies engage in such initiatives, the possibility of adverse consumer reactions—which some have taken to calling backlash—may be diminished.

Thirdly, the government must strive to establish a stable and predictable business environment. This means ensuring the rule of law, protecting property rights, and maintaining clear and transparent regulations. Even with social problems to solve, a stable business environment can attract investment and promote economic growth.

Last but not least, the government should actively engage with civil society organizations and social media influencers to address public concerns. By fostering dialogue and collaboration, authorities can better understand the issues driving people to express their discontent and can work toward more effective solutions that serve the public and the economy.

At the end, the internet outrage in Pakistan is a powerful force that reflects the aspirations and frustrations of the populace. While it drives a lot of social change, it also poses a big risk to the economy. If we think of internet outrage as akin to a natural resource — one that’s dangerously overexploited in our situation — there are definitely ways to funnel some of that wasted potential toward the constructive creation of a society.

Still, even if we really went for gold in internet outrage resource management and trawling by both parties of social contract for social change to their competitive advantage, there would remain the biggest risk factor of all: the economy.

Copyright Business Recorder, 2025