Daniel Castro Warns Pakistan’s Internet Restrictions Could Harm Economy

Daniel Castro, Vice President of the US think tank Information Technology and Innovation Foundation (ITIF), expressed concerns about Pakistan’s internet restrictions. He warned that these measures might offer short-term political benefits but could lead to long-term economic instability. Castro described the internet shutdowns as a “puzzle” and “anomaly,” especially given Pakistan’s digitalization efforts. He emphasized that governments should prioritize long-term economic stability over short-term political gains.

During a discussion organized by the US Embassy in Pakistan, Castro highlighted the negative impact of internet censorship, including the recent ban on the social media platform X. He noted that such restrictions harm women entrepreneurs and small businesses that rely on these platforms. Castro pointed out that Pakistan, as a leading digital economy, is harming itself by taking people offline, which has significant economic costs.

He explained that better connectivity contributes to economic growth and that disruptions are particularly harmful to Pakistan’s freelance economy. Castro also noted concerns from students and young professionals about whether to stay in Pakistan or seek opportunities abroad due to internet access issues. He warned that restrictive internet policies could discourage investment in Pakistan, as companies seek regions with reliable connectivity.

Castro mentioned the growing use of Virtual Private Networks (VPNs) as people try to bypass restrictions, indicating the negative economic impact of the shutdowns. He suggested that the economic loss from these disruptions could amount to millions of dollars per day.