Egypt’s headline inflation slowed to 32.5% in April

Egypt’s headline inflation slowed to 32.5% in April
Month-on-month, prices rose by 1.1 percent in April, up from 1.0 percent in March. Food prices declined in April by 0.9 percent, though they were 40.5 percent higher than a year ago.  Shutterstock
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Updated 12 May 2024
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Egypt’s headline inflation slowed to 32.5% in April

Egypt’s headline inflation slowed to 32.5% in April

CAIRO: Egypt’s annual urban consumer price inflation rate decreased to 32.5 percent in April from 33.3 percent in March, slowing slightly more than analysts had expected, data from the country’s statistics agency CAPMAS showed on Thursday. 

Month-on-month, prices rose by 1.1 percent in April, up from 1.0 percent in March. Food prices declined in April by 0.9 percent, though they were 40.5 percent higher than a year ago.  

A poll of 17 analysts had expected annual inflation to dip to a median 32.8 percent, continuing a slowing trend that started in September when inflation reached a peak of 38.0 percent.  

The central bank has tightened its monetary policy, hiking interest rates by 600 basis on March 6, the same day it signed a $8 billion financial support package with the International Monetary Fund and let the currency plummet.  

Egypt promised the IMF in the March agreement it would resume tightening if necessary to prevent further erosion of the purchasing power of households.  

The government last month also increased the price of a range of petrol, diesel and other fuels, as part of a commitment made to the IMF.  

Inflation has been elevated for the past year, driven largely by rapid growth in the money supply.

Meanwhile, Egypt’s non-oil private sector continued its contraction in April, with the S&P Global Purchasing Managers’ Index for the country edging down to 47.4 from 47.6 in March. This marks the 41st consecutive month below the 50.0 threshold, which separates growth from contraction. 

The employment sub-index slipped to 49.7 in April from 50.8 in March, stated the rating agency. 

However, the output sub-index climbed to 44.8 in April from 44.5 in March and the new orders index improved to 45.5 from 45.0. Business sentiment also improved, with the future output expectations index climbing to 55.3 in April from 52.2 in March. 

Meanwhile, global ratings agency Fitch last week revised Egypt’s outlook to positive from stable. 

The agency affirmed Egypt’s rating at ‘B-,’ citing reduced external financing risks and stronger foreign direct investment. 

Foreign investors have poured billions of dollars into Egyptian treasury bills since the country announced the IMF loan program. After the investment in the country’s foreign portfolio and the support from the UAE, Egypt’s net foreign assets deficit shrank by $17.8 billion in March. 

Fitch said that initial steps to contain off-budget spending should help to reduce public debt sustainability risks. 


Saudi Arabia’s non-oil sector posts 4.8% growth in Q3: GASTAT 

Saudi Arabia’s non-oil sector posts 4.8% growth in Q3: GASTAT 
Updated 08 December 2024
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Saudi Arabia’s non-oil sector posts 4.8% growth in Q3: GASTAT 

Saudi Arabia’s non-oil sector posts 4.8% growth in Q3: GASTAT 
  • Saudi Arabia’s real gross domestic product grew by 2.8 percent year on year in the third quarter
  • At current prices, the Kingdom’s GDP reached SR1.00 trillion ($270 billion) in Q3

RIYADH: Saudi Arabia’s non-oil activities expanded by 4.8 percent year on year in the third quarter of 2024, fueled by growth in the wholesale and retail trade, and restaurant and hotel sectors, official data showed. 

According to the General Authority for Statistics, wholesale and retail trade, along with restaurant and hotel activities, grew by 5.8 percent in the third quarter compared to the same period in 2023. 

Additionally, activities in the financial, insurance, and business services sectors recorded a 5.7 percent increase year on year during the same period. 

Bolstering the non-oil sector is essential for Saudi Arabia as it pursues economic diversification in line with the objectives of Vision 2030. 

Last month, speaking at the World Investment Conference, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim noted that non-oil activities now contribute 52 percent to the Kingdom’s gross domestic product. 

The latest GASTAT report also highlighted that construction activities rose by 4.6 percent in the third quarter, while the transport, storage, and communication sector expanded by 4.5 percent during the same period. 

In quarter-on-quarter terms, non-oil activities grew by 0.7 percent in the third quarter. 

The report added that Saudi Arabia’s real gross domestic product grew by 2.8 percent year on year in the third quarter. Quarter-on-quarter, the GDP rose by 0.7 percent. 

At current prices, the Kingdom’s GDP reached SR1.00 trillion ($270 billion) during the period, according to GASTAT. 

“Crude oil and natural gas activities achieved the highest contribution to the GDP at 22.8 percent, followed by government activities at 16.1 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” said GASTAT.  

Government activities saw a 3.1 percent year-on-year growth in the third quarter, though they contracted by 0.3 percent compared to the previous quarter. 

Saudi Arabia’s oil activities grew modestly, rising 0.5 percent year-on-year in the third quarter and 1.2 percent compared to the previous quarter. 

Meanwhile, government final consumption expenditure increased by 6.2 percent year on year but declined by 1.8 percent quarter-on-quarter. 

Gross fixed capital formation — a measure of investment in the economy — rose by 3.2 percent year on year in the third quarter and 0.9 percent compared to the previous quarter. 

Saudi Arabia’s economic diversification initiatives under Vision 2030 are increasingly reflected in the robust performance of non-oil sectors, positioning the Kingdom for sustainable long-term growth. 


Drones drive innovation and efficiency in Vision 2030

Drones drive innovation and efficiency in Vision 2030
Updated 07 December 2024
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Drones drive innovation and efficiency in Vision 2030

Drones drive innovation and efficiency in Vision 2030

JEDDAH: Drone technology is emerging as a central pillar of Saudi Arabia’s push toward economic diversification, as the Kingdom leverages its Vision 2030 initiative to foster innovation across key industries.

From construction and oil to logistics and agriculture, drones are not only enhancing operational efficiency but are also central to achieving sustainability goals.

With strong government backing, the drone market in Saudi Arabia is poised for significant growth. Strategic investments and regulatory reforms are providing a conducive environment for drone technology, positioning the Kingdom as a regional leader in aerial innovation.

Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones, a leader in Middle Eastern drone operations, emphasized that the unmanned aircraft are essential for Vision 2030, particularly in revitalizing industries, boosting operational efficiency and meeting sustainability objectives.

“The Saudi government’s commitment to technology adoption and strategic investments is facilitating drone integration across various sectors, creating new opportunities and innovations,” he said.

The drone sector is growing rapidly, supported by regulatory advancements and increasing demand from multiple industries. He cited a MarketsandMarkets report forecasting that the Middle East drone market would reach $5.54 billion by 2025, with Saudi Arabia driving much of this growth.

The report attributes this to sectors like construction, oil and gas, agriculture and logistics, which are leveraging drone technology to enhance productivity and reduce costs.

Drone impact on key sectors

In construction, drones are revolutionizing project management and site inspections. Bou Rached said the Saudi construction market, valued at $70.33 billion in 2024, was set to grow to $91.36 billion by 2029, with drones playing a key role in driving efficiency.

In the oil and gas sector, drones are used for inspection, monitoring and maintenance, helping reduce costs and improve safety by minimizing human intervention in hazardous environments.

Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones. (Supplied)

“According to a report by PwC, drones can reduce inspection costs by up to 85 percent and enhance safety by minimizing human intervention in hazardous environments. Drones provide an effective solution for inspecting gas flares, monitoring pipelines, and detecting leaks, ensuring operational continuity, and improving safety,” Bou Rached added.

Despite the rapid growth, regulatory challenges persist. Bou Rached pointed out that while Saudi Arabia has made significant strides in developing drone-friendly regulations, there are still areas for improvement.

The General Authority of Civil Aviation is revising regulations to balance safety and innovation, with new efforts to streamline licensing and create clearer guidelines for commercial drone operations.

“As with most of the Middle East though, there are focus areas for development. The existing regulations concerning operational limits, airspace usage, and licensing requirements are under scrutiny by the powers that be, to allow for improved usage and development,” he said.

He stressed regulatory clarity was essential for maximizing drone capabilities across sectors: “Recent efforts include streamlined licensing processes and clearer guidelines for commercial drone operations.”

Job creation and future prospects

The integration of drones is expected to spur job creation and skills development, particularly in fields such as manufacturing, maintenance and data analysis.

Bou Rached foresees increased educational opportunities as universities offer programs focused on drone technology, robotics and artificial intelligence: “This technology is poised to be a catalyst for job creation and skills development,” he said.

Alhussain Al-Hazmi, CEO of Riyadh-based Lensic Drone Solutions, echoed Bou Rached’s optimism and highlighted the rapid adoption of drones across various sectors in Saudi Arabia.

Alhussain Alhazmi, CEO of Lensic Drone Solutions. (Supplied)

“Drone technology is playing a vital role in helping Saudi Arabia achieve its Vision 2030 goals, particularly in driving economic diversification and enhancing efficiency across key sectors,” Al-Hazmi said.

He noted the success of drones in defense, particularly for real-time surveillance and reducing human risk in dangerous environments.

The CEO also highlighted their growing use in logistics, citing a pilotless air taxi initiative during the 2024 Hajj to manage congestion and improve transport efficiency. “The logistics sector is also benefiting from drone technology. During the 2024 Hajj, the government successfully trialed pilotless air taxis to manage congestion and transport people more efficiently,” he said.

In the mining sector, Al-Hazmi’s company collaborates with Royal Road Arabia to enhance mineral exploration using advanced drones. These drones are equipped with hyperspectral scanners and other technologies to gather high-precision data, aiding in the exploration of copper and gold mines.

“These results demonstrate the power of drone technology in enhancing the discovery and exploration of valuable mineral resources,” he said.

Regulatory and infrastructure challenges

Despite the excitement surrounding drone technology, regulatory hurdles persist. Alhazmi pointed out that the approval process for drone operations, especially for advanced or heavy drones, can be cumbersome. The GACA restricts drones heavier than 24.99 kg, limiting their use to government projects, which restricts the private sector’s potential.

However, Al-Hazmi sees promise in the government’s ongoing efforts to streamline regulatory frameworks and foster collaboration with the private sector. “Clearer guidelines and faster approval processes are being developed to help companies operate more efficiently,” he said. “Collaboration between the government and the private sector is being actively encouraged to develop smoother, more efficient regulations that better meet industry needs.”

Both Bou Rached and Al-Hazmi agreed that drone technology holds immense potential in helping Saudi Arabia achieve its economic and technological goals.

As the industry matures, drones are expected to become integral to sectors such as public safety, urban planning, and energy. The integration of artificial intelligence and automation will further enhance the capabilities of drones, enabling them to handle data analysis, predictive maintenance, and autonomous operations.

“In the energy sector, drones inspect pipelines, power lines, and conduct environmental assessments, enhancing safety and efficiency,” said Al-Hazmi. “Drones assist farmers by monitoring crop health, optimizing water use, and promoting sustainable farming practices. Drones will also play a critical role in the development of Saudi Arabia’s smart cities, including NEOM, Qiddiya, and the Giga projects on the Red Sea.”

A bright future for drone technology

As Saudi Arabia moves toward its Vision 2030 objectives, drones are becoming a driving force for innovation and efficiency across key sectors. While challenges remain, the Kingdom’s commitment to developing a drone-friendly regulatory environment and fostering private-sector collaboration signals a promising future for the industry.

Both Bou Rached and Alhazmi are confident Saudi Arabia’s drone industry is poised for rapid growth, with the potential to lead not only in the Middle East but globally.

“The next decade could see drones becoming an integral part of key industries and economic evolution in Saudi Arabia,” Bou Rached said.

With continued regulatory reforms and strategic investments, Saudi Arabia is well-positioned to harness the full potential of drone technology as a key enabler of Vision 2030’s economic transformation. 


More funding needed for global land conservation, say experts at COP16

More funding needed for global land conservation, say experts at COP16
Updated 07 December 2024
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More funding needed for global land conservation, say experts at COP16

More funding needed for global land conservation, say experts at COP16
  • Princess Noura bint Turki Al-Saud argues that land restoration can yield immense economic, social returns
  • ‘Nature economy’ can create $10tn in business, 395m jobs by 2030, says economist Tillem Burlace

RIYADH: Experts attending COP16 here have emphasized the need to allocate more funds for sectors critical to land conservation and nature restoration because of the potential for greater global economic development and job creation.

Climate financing has nearly doubled over the past decade, with spending at about $1.3 trillion over the period 2021 to 2022, said Tillem Burlace, regional lead at 1t.org, World Economic Forum.

Burlace, who was speaking to Arab News on the sidelines of COP16, which began on Dec. 2 and ends Dec. 11, said that funds were not being allocated efficiently.

She said most of this financing flowed to energy (44 percent) and transport (29 percent), which remain “key” to reaching net-zero goals. However, investments in agriculture, forestry, and other land use have lagged, receiving just 4 percent.

Burlace stressed that this imbalance poses a significant challenge to achieving land degradation neutrality and drought resilience, two critical goals central to the UN Convention to Combat Desertification agenda at COP16 and beyond.

She said that research by the WEF indicates that transitioning to a sustainable “nature economy” could unlock $10 trillion in business opportunities and create 395 million jobs by 2030.

“Every dollar invested in restoring degraded lands brings between $7 to $30 in economic returns,” she said.

Burlace added that innovative financing models are needed to help aggregate capital while minimizing risks.

Princess Noura bint Turki Al-Saud said that the UNCCD often operates with limited political backing, insufficient financing, and fragmented implementation.

Speaking during a panel session at COP16, Princess Noura, a founding partner at Aeon Strategy, emphasized the challenges facing the convention.

“To achieve the convention’s transformative potential, it must be elevated as a political priority, fully integrated into international development plans, and backed by substantial financial and technical commitments.”

Princess Noura highlighted the persistent challenges in quantifying financial and capacity gaps necessary to implement effective land-restoration measures.

“The financial-needs assessment reveals a significant gap (because) of the 63 National Drought Plans evaluated, only nine countries have quantified their financial needs,” she explained.

Princess Noura said that in terms of reporting resource needs under the UNCCD’s progress indicators, only 13 of 38 countries have expressed their requirements in financial terms.

This lack of financial data, she added, reflects broader difficulties in calculating the costs of restoration, capacity building, and governance measures.

Princess Noura argued that investing in land restoration yields immense returns. Research shows that every dollar spent on land restoration can generate up to $30 in returns, she said.

“This is driven by the critical role that healthy land ecosystems play in global development.”

Princess Noura pointed out that half of the world’s gross domestic product depends directly and indirectly on healthy soil ecosystems, which underpin agriculture, food systems, and economic stability.

“Investing in land restoration is not just an environmental imperative — it is an economic necessity,” she stressed.

Capacity building across the project cycle was crucial, but it should be accompanied by targeted financial and technical support, Princess Noura said.

Her remarks reflect the growing consensus at COP16 on the importance of integrating sustainability into global economic and development policies.

Nigel Topping, the UN Climate Change High-Level Champion from the COP26 Presidency, emphasized the importance of translating environmental and social needs into financial terms to mobilize meaningful action from key decision-makers.

“If we don’t translate hectares or people into financial numbers, then we will not get CEOs, ministers — particularly ministers of finance — and fund managers around the table,” Topping said.

He underscored the importance of broadening the scope of financial needs assessments. “In the climate space, we spent a very long time obsessing about a small part of the need — the multilateral finance need,” Topping said.

It turns out this is only about 4 percent of the total finance that needs to mobilize, he added.

“Having a needs assessment showing the whole amount is very important in terms of setting a normative target, which we can then go about problem-solving,” Topping said.

He said such assessments were not only important for setting clear targets but also aligning public and private sector efforts to address systemic challenges including land degradation, drought, and biodiversity loss.


Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity
Updated 07 December 2024
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Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

RIYADH: Saudi Arabia’s startup ecosystem continues to thrive, with significant investment across private equity, sportstech and digital platforms.

Jada Fund of Funds has announced an investment in Jadwa GCC Private Equity Fund I, managed by Jadwa Investment. The Riyadh-based fund is targeting SR1.5 billion ($399.2 million) in commitments, with a hard cap of SR2 billion.

The fund will invest in companies across the Gulf Cooperation Council, with a particular focus on Saudi Arabia. This marks Jadwa’s first regional blind pool fund, following a track record of 16 single-asset funds launched since 2007.

The agreement was signed in Riyadh by Bandr Al-Homaly, CEO of Jada Fund of Funds, and Tariq Al-Sudairy, CEO of Jadwa Investment. The partnership aims to further strengthen regional private equity investment activity.

CaptionJada Fund of Funds has announced an investment in Jadwa GCC Private Equity Fund I. (Supplied)

“Backing Jadwa’s first regional blind pool fund demonstrates our commitment to supporting the evolving private equity space led by pioneering investment firms, with the aim to broaden the Kingdom’s private equity ecosystem and contribute to its economic diversification,” Al-Homaly said.

“We are excited to partner with Jada Fund of Funds and to contribute to the development of the private equity ecosystem in Saudi Arabia through our blind pool fund, the GCC Private Equity Fund I. This investment will provide the capital necessary to grow businesses and enable their contribution to the Kingdom’s economic transformation,” Al-Sudairy said.

SVC backs Aliph Fund I

Saudi Venture Capital Co. has invested in Aliph Fund I, a growth-focused private equity fund managed by UAE-based Aliph Capital. The fund, founded in 2021, has a target size of $250 million.

Aliph Fund I focuses on mid-market companies across Saudi Arabia and the wider GCC. Its strategy emphasizes value creation through active ownership and enabling technology adoption to enhance business operations and growth potential.

“We are honored to welcome SVC as an investor in Aliph Fund I. The GCC’s SMEs represent fantastic opportunities to create investor value and drive economic growth, particularly when supported by active, hands-on management with a clear strategy of digitization and technology enablement,” Huda Al-Lawati, founder and CEO of Aliph Capital, said.

This investment aligns with SVC’s commitment to supporting private equity funds that drive growth across the GCC. Specific details about the investment amount were not disclosed.

“Our investment in the private equity fund by Aliph Capital is part of SVC’s Investment in Funds Program, in alignment with our strategy to support funds that invest in Saudi-based SMEs with growth potential,” Nabeel Koshak, CEO of SVC, said.

Saudi fintech Mala secures investment from Nuwa Capital

Saudi Arabia’s business-to-business buy now, pay later platform Mala has secured an undisclosed investment from venture capital firm Nuwa Capital.

Founded in 2024 by Musaab Al-Hakami, Mala offers business financing for the procurement landscape with its BNPL platform.

Khaled Talhouni, managing partner of Nuwa Capital, revealed that the market’s persistent problem and opportunity, as well as Al-Hakami’s experience, were the main reasons behind the investment.

Grintafy secures investment from Adaverse

Grintafy, a Saudi sportstech platform, has secured an undisclosed investment from Adaverse to accelerate its transformation to Web3. The company was founded in 2019 by Majdi Al-Lulu.

The platform connects football talent to opportunities with prominent teams in the Middle East and Europe. Grintafy is leveraging emerging technologies to enhance its talent discovery and recruitment processes.

This funding follows Grintafy’s previous financial support, including a $2.1 million bridge round in 2022 from Aramco’s Wa’ed. In March, the company also received backing from Chiliz to support its growth.

Koora Break secures funding from Rio Ferdinand’s TFG

Saudi sports platform Koora Break has received a multi-million-dollar investment from the Ferdinand Group, owned by former footballer Rio Ferdinand. TFG has acquired a minority stake in the company.

Founded in 2022 by Bader Al-Hammad, Koora Break is a sports network catering to the Middle East and North Africa region. The platform claims to attract 800 million visitors per month with its extensive football-related content.

Koora Break plans to use the investment to expand into European and Asian markets. Its multilingual content strategy will include offerings in both Arabic and English to broaden its global reach.

SpiderSilk inks MoU with stc Group’s Sirar

Saudi-based cyber artificial intelligence startup SpiderSilk inked a memorandum of understanding with stc Group’s Sirar.

The MoU will enable SpiderSilk to package its flagship product, Resonance, with some of Sirar’s services.

The agreement will also strengthen SpiderSilk’s Saudi market presence.

Aliph Capital invests in SANIPEX GROUP

UAE-based private equity firm Aliph Capital has acquired a 25 percent stake in SANIPEX GROUP, a lifestyle product supplier. The value of the transaction was not disclosed.

Founded in 1995 by Daryl Barker, SANIPEX GROUP provides premium bathroom, kitchen, lighting and outdoor solutions. Its customer base spans retail, corporate and trade clients across the GCC and international markets.

The investment follows Aliph Capital’s recent commitment from SVC to its Aliph Fund I. The deal underscores Aliph’s focus on mid-market companies in the region.

Playgama raises $3m for gametech innovation

UAE-based gametech startup Playgama has raised $3 million in a funding round led by The Open Platform and s16vc. Other investors include FJ Labs, The Games Fund, and TON Ventures.

Playgama, founded in 2023 by Dmitry Kachmar, operates an HTML5 games portal offering titles for all age groups. The platform simplifies monetization for developers and supports web gaming innovation.

The funding will enable Playgama to enhance its developer tools, introduce advanced analytics, and integrate fintech solutions. The company aims to drive growth in the web gaming sector.

Enakl raises $1.4m pre-seed funding

Morocco-based mobility startup Enakl has raised $1.4 million in a pre-seed funding round. The round was led by Catalyst Fund, with support from Renew Capital, Digital Africa, and Station F.

Enakl, founded in 2023 by Samir Bennani and Charles Pommarede, offers sustainable urban mobility solutions. The company is focused on collective transport tailored for emerging markets.

The funding will support Enakl’s expansion in Casablanca and further development of its AI-driven technology. Enakl aims to optimize transport routes and deepen its impact in underserved urban areas.

Abikhdmh expands with close to $800k funding

Saudi platform Abikhdmh has raised $798,545 to broaden its range of digital services. The app facilitates access to government services such as document issuance for businesses and citizens.

The funding will enable Abikhdmh to add new services, including flight reservations, business assistance, and employment solutions. The platform’s growth reflects increased demand for digital transformation in Saudi Arabia.

Abikhdmh’s expansion aligns with Saudi Vision 2030, which emphasizes digital innovation to enhance public and private sector services. The app is positioned to play a key role in modernizing service delivery in the Kingdom.


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

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