‘Creeping coup’: In Pakistan, lack of Internet access is costing livelihoods

‘Creeping coup’: In Pakistan, lack of Internet access is costing livelihoods
Riders check their mobile phones for online food orders from customers, while waiting outside an office in Karachi, Pakistan, on August 22, 2024. (REUTERS/File)
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Updated 07 December 2024
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‘Creeping coup’: In Pakistan, lack of Internet access is costing livelihoods

‘Creeping coup’: In Pakistan, lack of Internet access is costing livelihoods
  • Protest by thousands in Pakistan capital last month triggered Internet outages and slowdowns
  • Businesses relying on Internet say Pakistan could lose hundreds of millions of dollars in revenue

KARACHI: A protest by thousands in Pakistan’s capital last month demanding the release of jailed former Prime Minister Imran Khan triggered the arrest of hundreds, but also, digital rights campaigners say, nationwide Internet outages and slow-downs.
Pakistan has a record of curbing online access in response to political turmoil, banning social media sites or simply temporarily shutting down the Internet altogether.
The United States condemned Internet shutdowns in Pakistan following parliamentary elections in February in which Khan’s party won the most seats despite a crackdown on its activities.
Businesses that rely on the Internet have complained Pakistan could lose hundreds of millions of dollars of revenue as a result of the government’s imposition of a national firewall to monitor and regulate content and social media platforms and prolonged Internet disconnections.
The government denies any attempt at censorship.
“We’re seeing a loss of civilian control over basic IT and digital infrastructure, only made worse by a lack of transparency,” said Usama Khilji, a prominent digital rights activist. “It’s almost like a creeping coup.”
In Layyah, a small town in south-eastern Pakistan, getting steady Internet connection requires Sehrish Bano to hop from room to room balancing her laptop and toggling between the three different connections.
More often than not, she said, none of them work.
The 25-year-old said the poor, unreliable Internet connections hampered her ability to earn a living as a freelance video editor and complete her online graphic design course.
“I’m not able to take online classes because Zoom keeps freezing and I can’t understand what my teacher is saying,” she said. Compared to three months ago, “even simple things like sending an audio message via WhatsApp or downloading a picture or a PDF takes five times as long.”
Internet speeds have dropped by more than 30 percent in the last three months, Shahzad Arshad, chairman of the Wireless and Internet Providers Association of Pakistan, an advisory body of Internet service providers, told the Thomson Reuters Foundation.
Arshad attributed the decline to the government’s deployment of “a web management system or firewall.”
Farieha Aziz, co-founder of Bolo Bhi, a digital-rights and civil-liberties group, said there had been no acknowledgement of an official firewall and accused authorities of not coming clean on the issue.
“It seems sustained opacity is the official government policy,” Aziz said.
Rights group Amnesty International has also called on Pakistan to be transparent about Internet disruptions.
“The opacity of the Pakistani authorities regarding the use of monitoring and surveillance technologies that block content, slow down and control Internet speeds is an alarming concern,” Jurre Van Bergen, Amnesty technologist said in August.
“Time and again, the use of such technologies, including national firewalls, has proven to be incompatible with human rights,” Van Bergen said.

DIGITAL CHASM
Aziz said it was clear the government’s aim was to clamp down on free speech and dissent.
“Never before,” she said, has the government “been able to disrupt a whole function of an app; usually the entire website or application stops working. But here we are seeing that only media files are being disrupted.”
Aziz said the issue was compounded by the government’s attempts to restrict the use of Virtual Private Networks (VPNs), which encrypt data and mask IP addresses, allowing users to browse the Internet more securely.
The Pakistani government has said it would no longer pursue a ban on VPNs and denies any responsibility for slowing down of bandwidths nationwide.
The United Nations says Pakistan’s digital divide is vast — more than half the country does not have access to the Internet because of inadequate digital infrastructure and affordability challenges.
That divide could become a chasm, experts said.
“WhatsApp, sharing voice notes, links for education and work purposes, has become a way of life,” said Aziz. Government measures that slowed Internet speeds, or cut connections altogether, she said, were “creating digital haves and have-nots.”
The problem has become so bad that some whose livelihoods depend on Internet access are considering leaving the country.
Ehtesham Khan, a freelance photo editor and graphic designer, said he was contemplating moving to Dubai because frequent Internet disruptions had led to him losing clients.
And it is not just individuals who are thinking of leaving.
“Companies are already relocating to other places, Dubai, Singapore, where Internet access isn’t a problem,” Khilji said. “Our foreign income and Internet exports have reduced, and our IT industry’s potential is reducing by the day because of these issues.” 


Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO

Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO
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Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO

Internet shutdowns costing Pakistani businesses ‘hundreds of millions of dollars’ — Jazz CEO
  • Pakistan suffered total $1.62 billion losses due to Internet outages and social media shutdowns in 2024, global web monitor says
  • Jazz CEO Aamir Ibrahim urges government to address issue, citing role of IT-enabled infrastructure in propelling businesses in Pakistan

KARACHI: The blockade of social media platforms and intermittent Internet shutdowns in Pakistan were causing losses running into “hundreds of millions of dollars” to the telecommunications sector and others that relied on online connectivity to run businesses, the CEO of Pakistan’s largest telecom company said this month. 

Pakistan suffered a total $1.62 billion losses due to Internet outages and social media shutdowns in 2024, according to a report by global Internet monitor Top10VPN.com, surpassing losses in war-torn countries like Sudan and Myanmar. The report, released on Jan. 2, said Pakistan experienced 9,735 hours of Internet disruptions that affected 82.9 million users last year, with elections and protests cited as the primary causes.

In an interview with Arab News, Aamir Ibrahim, the CEO of Jazz, Pakistan’s leading digital service provider with around 71 million subscribers, said telecommunications had developed into a cross-sector enabler, so when Internet services were interrupted, it was not telcos alone that lost revenue.

“About 70% of the revenue that we generate comes from Internet or data services, so, there is a consequential revenue impact for us as telcos [telecommunication companies] but the real damage actually comes in terms of customer convenience,” Ibrahim told Arab News when asked about the effect of Internet closures.

“So it’s not just that the telcos lose revenue, it’s every other business that relies on the Internet, whether it’s freelancers, whether it is Careem or cab-hailing [services], or whether it is somebody like FoodPanda, or mobile banking, all of them rely on the Internet to be able to offer services to their customers.

“That is the real cost to the economy and that runs in hundreds of millions of dollars with all these Internet shutdowns.”

Aamir Ibrahim, the CEO of Jazz, Pakistan’s largest telecom company, speaks during an interview with Arab News in Karachi on February 14, 2025. (AN photo)

Pakistan, a country of over 240 million, has witnessed up to 40% drop in Internet speeds in the last few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP). The speed drop comes amid what activities and opposition parties widely describe as a state-led digital crackdown that has included a ban on X, the imposition of a national firewall and attempts to restrict VPN use. 

The government denies any of the moves are aimed at censorship but rather at protecting national interests and going after terrorists and others who spread misinformation or incite violence online. 

Ibrahim acknowledged that the government had to maintain “a hard balancing act.”

“We have to be cognizant of the fact that there is a lot of fake information, a lot of fake news, things that can be detrimental to the interests of the country and even consumers and citizens and for that, you need a policy framework,” the Jazz CEO said. 

He urged the government to come up with a “mechanism” to tackle “deliberate vilification or other institution-damaging narratives” spread online. 

“So from a digital operator company perspective, we certainly advocate unrestricted Internet but the government has to actually balance it with the security concerns and concerns where information can become detrimental to national causes.”


Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing
Updated 24 February 2025
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Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones has revealed plans for a 1.2 million sq. m aviation industry cluster at MODON Oasis in Jeddah.

This ambitious project, developed in partnership with the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation, aims to localize cutting-edge aviation technologies and strengthen the sector’s supply chains.

The announcement, made during the ongoing Aerospace Connect Forum, was attended by GACA President Abdulaziz Al-Duailej, Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, and MODON CEO Majed Al-Argoubi.

Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, the aviation cluster is poised to offer an attractive investment landscape for aerospace manufacturing. The site will feature ready-built factories of varying sizes, designed to accommodate companies in the aviation sector and drive the localization of this vital industry.

This initiative is in line with Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, which collectively aim to position the Kingdom as a leading global aviation hub. The broader goal is to transform Saudi Arabia into a center for air transport, handling 30 million passengers and 2 million tonnes of air cargo annually.

MODON, in its commitment to advancing the aviation sector, is participating as a “Gold Partner” in the inaugural Aerospace Connect Forum, which runs in Jeddah until Feb. 25. The event is bringing together prominent local and international aviation experts, fostering a platform for knowledge exchange and business collaboration.

In addition to its efforts in aviation, MODON has also recently launched a food industry cluster in Jeddah, spanning over 11 million sq. m in the city’s second and third industrial zones. According to the Saudi Press Agency, this project is the world’s largest food industry cluster by area, supporting Vision 2030’s goals to enhance food security and industrial growth.

The new aviation industry cluster marks a significant milestone in Saudi Arabia’s strategy to boost industrial competitiveness, drive economic growth, and localize critical technologies, reinforcing the Kingdom’s leadership in the global aviation sector.


Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses
Updated 24 February 2025
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Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses

RIYADH: Saudi Arabia has issued its first-ever industrial licenses for aircraft maintenance and overhaul at the Aerospace Connect Forum in Jeddah, marking a significant advancement in the nation’s aviation sector.

The announcement was made at the inaugural forum, hosted by the National Industrial Development Center and held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef.

The two companies receiving the first licenses are Middle East Propulsion Co. and Saudia Technic, a subsidiary of Saudia Group. This milestone represents a key step in Saudi Arabia’s efforts to establish a self-sufficient and globally competitive aviation industry, in line with the objectives of Vision 2030 and the National Industrial Strategy.

An official statement said that the newly introduced industrial licensing activities were developed in collaboration with the General Authority of Civil Aviation and the General Authority for Military Industries.

These licenses encompass a wide range of aviation services, including aircraft repair and overhaul, component refurbishment, avionics system maintenance, as well as calibration and repair of electronic systems, and servicing of both military and commercial aircraft.

This initiative, which enables domestic companies to operate in the aircraft maintenance and repair sector, is expected to reduce Saudi Arabia’s dependence on foreign maintenance facilities, enhance localization efforts, and drive investment in high-value aerospace manufacturing and services.

The forum, running from Feb. 24-25, brings together leading experts, policymakers, and investors to explore the latest advancements and investment opportunities in the aviation sector.

Organized by the NIDC in collaboration with the Ministry of Industry and Mineral Resources, GACA, and Saudia Group, the forum serves as a key platform for industry stakeholders to collaborate and shape the future of Saudi Arabia’s aviation ecosystem.

The event will feature discussions on investment opportunities in Saudi Arabia’s aviation sector, infrastructure development for aircraft manufacturing and maintenance, research and innovation in aviation technology, as well as training and workforce development to meet industry demands.

This initiative aligns with the Kingdom’s broader strategy to establish itself as a regional leader in aviation services, creating a competitive business environment for both global and local investors, while enhancing its industrial capabilities.

With the launch of these licenses, Saudi Arabia strengthens its position as a hub for aviation services in the Middle East, reinforcing its commitment to economic diversification and technological advancement.

The forum is poised to play a pivotal role in shaping the country’s aviation roadmap, paving the way for future collaborations, innovations, and sector expansions.


Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
Updated 24 February 2025
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Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
  • Rules apply to all businesses operating in Saudi Arabia, including foreign entities
  • Companies must disclose beneficial ownership details upon registration and confirm their accuracy annually

JEDDAH: Saudi Arabia has approved new beneficial ownership rules to enhance corporate transparency and align with global financial regulations. 

Set to take effect on April 3, the measures coincide with the enforcement of the updated Commercial Registry System and were developed in collaboration with experts to align with international best practices, according to the Commerce Ministry. 

The decision was issued by Minister of Commerce Majid Al-Qasabi as part of efforts to strengthen regulatory oversight. The regulations, developed in line with Financial Action Task Force guidelines, require companies to disclose individuals who ultimately control or benefit from their operations. 

The move is part of Saudi Arabia’s broader efforts to modernize its business environment under Vision 2030. The rules aim to enhance transparency by establishing a dedicated database to register and store beneficial ownership data. 

The new rules also reinforce the Kingdom’s adherence to international standards, particularly those set by FATF, which works to protect the global financial system from illicit activities through policy development and enforcement. 

Under the new rules, a beneficial owner is defined as anyone holding at least 25 percent of a company’s capital, controlling 25 percent or more of its voting rights, appointing or dismissing leadership, or exerting significant influence over its decisions. If no individual meets these criteria, the company’s director, board member, or chairman will be designated as the beneficial owner, the release added. 

The rules apply to all businesses operating in Saudi Arabia, including foreign entities, but exempt publicly listed firms, state-owned enterprises, and companies undergoing bankruptcy liquidation. 

The release said companies must disclose beneficial ownership details upon registration and confirm their accuracy annually. Existing firms have until their next annual data confirmation deadline to comply. 

Businesses are required to maintain a dedicated register of beneficial ownership data and provide updates to the Ministry of Commerce. Access to this information will be restricted to regulatory and competent authorities under strict confidentiality provisions. 

The ministry added that non-compliance could result in penalties of up to SR500,000 ($133,000) or other sanctions under the Companies Law. 

The move is part of Saudi Arabia’s broader push to strengthen corporate governance and align with international anti-money laundering and financial crime prevention standards. 


PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub
Updated 24 February 2025
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PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

RIYADH: A €160 million ($167 million) joint venture between the Public Investment Fund’s Alat and TK Elevator has been announced to advance mobility development in Saudi Arabia. 

The partnership will introduce products, end-to-end solutions, and manufacturing to the Kingdom, supported by a local development center. This marks the first elevator and escalator production operation in Saudi Arabia by a global firm, according to a statement.

This falls in line with PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth. 

It also aligns well with the fact that the Kingdom’s elevator and escalator market is anticipated to reach $1.84 billion by 2030, according to Markets and Data.

“Alat’s partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics,” CEO of Alat Amit Midha said. 

Under the new deal, Alat will also become a direct TK Elevator shareholder and member of the current investment consortium with a 15 percent stake. This move further cements the firm’s operational strength and its attractive value creation prospects.

CEO of TK Elevator Uday Yadav said the company is “privileged” to form a joint venture with Alat to support the Kingdom’s vision and power his firm’s future organic growth.

Yadav added: “This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator’s active participation in the upcoming development super cycle in the Kingdom of Saudi Arabia while reinforcing our capabilities in building smart cities of the future across the globe.” 

The CEO went on to say that the firm is pleased to welcome Alat as a direct shareholder and long-term investor in the company and that they are looking forward to benefiting from their engagement. 

The statement further revealed that the transaction is expected to close by the end of the third quarter of 2025, subject to customary statutory and regulatory approvals.

The new venture also reflects TK Elevator’s commitment to enhancing urban living through innovative mobility solutions and services. It will also help TK Elevator benefit from one of the fastest growing and most innovative new installation markets worldwide. 

The newly formed entity will also act as TKE’s sales and service hub in the Kingdom, leveraging the Middle East and North Africa network to drive regional business growth.