Monday, December 9, 2024

PREDA Urges Government to Address Digital Disruptions Impacting Pakistan’s Economy

PREDA, Pakistan’s first membership-based PR, Event Management, Digital and Activations Association has called on the Government of Pakistan to address the detrimental effects of frequent digital disruptions on the country’s rapidly growing digital economy. In an open letter, PREDA emphasized the importance of fostering collaboration between the public and private sectors to ensure a resilient, inclusive, and thriving digital future for Pakistan.

The letter highlights the significant challenges posed by measures such as throttled internet speeds and social media bans, which undermine Pakistan’s global competitiveness and economic growth. As Pakistan’s digital economy continues to expand, an open and reliable internet is essential to sustaining this momentum. According to the State Bank of Pakistan, technology exports increased by 143% to $2.6 billion in 2023. However, recurrent internet disruptions jeopardize productivity, erode client trust, and result in considerable financial losses for businesses, freelancers and startups. A study by the Pakistan Institute of Development Economics estimates that a single 24-hour internet shutdown causes direct economic losses amounting to PKR 1.3 billion, equivalent to 0.57% of the country’s daily GDP.

“These disruptions disproportionately affect Pakistan’s youth, who rely heavily on digital and service-based industries for employment and economic stability,” the letter stated. Internet shutdowns and social media bans not only disrupt work but also negatively impact essential sectors such as education, healthcare, and financial services. The Pakistan Software Houses Association (P@SHA) has estimated that implementing a national firewall could cost the country up to $300 million in lost productivity.

PREDA underscored the importance of an open and consistent internet as a foundation for Pakistan’s digital future. “Social media platforms play a crucial role in connecting international clients with Pakistani service providers. Restrictive policies risk isolating Pakistan and discouraging foreign investment,” the letter reads.

The organization called for a balanced approach to addressing security concerns while safeguarding the digital and economic interests of the country. PREDA also expressed its support for recent statements by Finance Minister Senator Muhammad Aurangzeb, emphasizing the role of digitalization in driving economic growth. “If enabling policies for the digital economy are implemented, Pakistan has the potential to unlock trillions of dollars by 2030,” PREDA concluded, urging the government to engage with the private sector in developing forward-looking strategies that secure the country’s place in the global digital landscape.

PREDA members who signed the letter include Lotus Client Management & Public Relations, Nutshell Group, Catwalk, Talking Point Starlinks PR, JbNJaws, Body Beat Group, Savvy PR, Take lI, RAKA events, Walnut Communications, PH Solutions, Keys Productions, Evenement, Fakt Exhibitions and Ecommerce Gateway Pakistan.

PREDA is premised on the promotion, protection, enhancement, and development of the interests of all professionals directly or indirectly related to the fields of Public Relations, Digital work, Activations and Event Management. www.preda.com.pk

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