Why Is Pakistan’s Internet Expensive and Slow? Here’s How New Gateways Can Fix It

Islamabad: Pakistan’s internet infrastructure faces growing criticism as industry experts and stakeholders raise concerns over the country’s limited gateway system, which is driving up costs and slowing down digital connectivity.

With almost 140 million internet users, the country depends on two operators, Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA), to handle data traffic via seven underwater fibre optic cables.  Industry experts blame insufficient competition for price and speed difficulties.

The Wireless and Internet Service Providers Association of Pakistan (WISPAP), led by Chairman Shahzad Arshad, has suggested potential reforms. “The gateways are Pakistan’s digital umbilical cord,” said Arshad. “Expanding access and competition could help improve service and costs.”

At present, PTCL and TWA operate Pakistan’s internet gateways, establishing tariffs for both smaller internet service providers (ISPs) and their customers.  Internet prices in Pakistan fluctuate in accordance with US dollar rates, therefore exchange rate variations have an impact on the country’s pricing system.  Industrial data show that internet service provider profits fell by 25% in 2024 due to currency changes as wholesale charges rose steadily.

Pakistan’s internet charges are the highest in South Asia, with typical speeds of 20-30 Mbps, which are comparable to Bangladesh’s faster 50 Mbps internet for a better pricing plan.

The vulnerability of Pakistan’s Internet system stems from Karachi’s role as the country’s primary gateway for undersea cables.  The system’s centralisation shows its flaws when a cable cut in 2023 results in a 40% fall in speed.  The Indonesian government created internet connectivity gateways in various cities to help preserve network reliability.

Proposed Measures

WISPAP has developed several proposals to enhance Pakistan’s internet infrastructure provisions. These include:

• Expanding Gateways: Establishing additional internet hubs, particularly in Gwadar, to promote competition and enhance service availability.
• Currency-Protected Contracts: Exploring agreements where bandwidth pricing is set in local currency to reduce exchange rate volatility.
• Collective Bandwidth Purchasing: Allowing smaller ISPs to pool resources to acquire bandwidth directly, potentially lowering costs.
• Developing Local Exchanges: Establishing more domestic internet exchanges to streamline local traffic management.
• Enhancing Regulatory Oversight: Encouraging the Competition Commission to examine pricing structures and market competition dynamics.

The Africa-1 cable upcoming launch presents new opportunities to increase bandwidth because it includes a $70 million investment from local sources. Market entities explore different methods to utilize the newly available capacity for enhanced service delivery.

 “If planned effectively, improvements in internet access could contribute to economic growth and expanded connectivity,” Arshad noted.

The government’s approach to these discussions will play a role in shaping the future of Pakistan’s digital landscape.