Pakistan’s internet is a paradox—widespread yet expensive, fast in some areas yet painfully slow in others. With over 140 million users, the country should have a well-functioning digital backbone, but instead, it faces high costs, slow speeds, and frequent disruptions. The reason? A near-duopoly controlling the nation’s internet gateways creates a bottleneck that limits competition, keeps prices high, and leaves millions struggling with subpar connectivity.
The Wireless and Internet Service Providers Association of Pakistan (WISPAP), under Chairman Shahzad Arshad, is sounding the alarm by unveiling that this isn’t just a technical glitch—it’s a structural crisis stifling the nation’s digital dreams. This article unpacks how Pakistan’s internet gateways work, why a tiny handful of players hold all the power, and how bold, original policy moves, drawing from global success stories could lead to low costs and unlock a truly connected Pakistan.
The Hidden Monopoly Behind Pakistan’s Internet Struggles
Picture the internet as a global river system. To join the flow, every country needs tap points where its local networks plug into the world’s data streams. In Pakistan, these taps are called internet gateways, anchored in Karachi, the country’s coastal nerve center. Here, two companies including the Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA) manage the connection to seven undersea fiber optic cables, massive data highways buried beneath the Arabian Sea, plus two smaller overland links from neighbors.
These cables, like PEACE or SEA-ME-WE-5, are engineering marvels, transporting terabits of data across continents. They land at Karachi’s cable stations, where PTCL and TWA take over. You can think of them as gatekeepers collecting tolls. From there, the data trickles inland through a patchwork of fiber lines and wireless towers, lighting up phones and laptops from Quetta to Gilgit. It’s a system that sounds seamless, but with only two gatekeepers for a nation of 240 million, it’s more like a choke point.
“The gateways are Pakistan’s digital umbilical cord,” says Shahzad Arshad, WISPAP Chairman. “But when two companies control the cord, they don’t just charge—they strangle.”
High Prices, Slow Speeds, and No Alternatives
PTCL and TWA form a near-duopoly in the market. PTCL has its fingers in most of the cables landing in Karachi, while TWA runs its own line, TW1. Together, they dictate the terms and the price for every byte of data entering or leaving Pakistan. Smaller ISPs, the ones serving homes and businesses, have no choice but to buy bandwidth from these two, often at rates pegged to the US dollar.
“When the rupee tanks, our costs explode,” Arshad explains. “In 2024 alone, ISPs saw margins shrink by 25% due to currency swings, yet PTCL and TWA keep hiking rates. It’s a rigged game.”
This situation contrasts sharply with countries like Singapore, where multiple operators compete, driving down costs. In Pakistan, PTCL and TWA lease international bandwidth from cable consortia such as AAE-1 at substantial costs, reportedly ranging from $15 million to $60 million annually per operator. These expenses, along with maintenance costs, are ultimately passed on to consumers.
The result? Pakistan has some of the most expensive internet rates in South Asia, yet average speeds remain low at 20-30 Mbps. In comparison, Bangladesh offers 50 Mbps connections at half the price.
“We are paying premium prices for substandard service,” Arshad remarks.
Beyond high costs, Pakistan’s internet is highly vulnerable. Since all international traffic is routed through Karachi, any disruption such as a cable fault can significantly impact nationwide connectivity. In 2023, one such failure caused a 40% drop in internet speeds across the country.
In contrast, Indonesia has multiple internet gateways in Jakarta, Surabaya, and Batam, ensuring network resilience. Pakistan’s reliance on two operators without alternative routes increases the risk of nationwide outages.
“A single technical fault can disrupt the entire country,” warns Arshad.
This lack of redundancy affects businesses and freelancers. Pakistan’s freelancing sector, which generated $1.2 billion in 2024, suffers when unreliable connectivity leads to missed opportunities. Similarly, startups face challenges as investors hesitate due to unstable digital infrastructure.
Global Best Practices: Potential Solutions for Pakistan
WISPAP has proposed several reforms to improve internet accessibility and affordability, drawing inspiration from international models.
- Diversifying Internet Gateways – Brazil reduced broadband costs by 30% in five years by establishing multiple entry points. Pakistan could consider Gwadar as an additional hub to create competition.
- Local Currency Agreements – Malaysia negotiates bandwidth payments in local currency, shielding ISPs from exchange rate fluctuations. A similar approach in Pakistan could reduce costs by up to 20%.
- Collective Bandwidth Purchasing – South Africa allows ISPs to pool resources and purchase bandwidth directly, bypassing intermediaries. Pakistan could adopt a similar model to increase efficiency.
- Strengthening Local Infrastructure – Japan has multiple Internet Exchange Points (IXPs) nationwide to keep domestic traffic within the country. Pakistan could develop IXPs in Lahore, Islamabad, and Peshawar to reduce dependence on international cables.
- Regulatory Oversight – The European Union enforces strict regulations to prevent anti-competitive behavior. Pakistan’s Competition Commission could investigate PTCL and TWA for potential market abuse and implement fair pricing policies.
The Need for Reform
Pakistan has an opportunity to reshape its digital future. The Africa-1 submarine cable, with an estimated $70 million local investment, could significantly expand bandwidth capacity. However, without regulatory changes, it may only strengthen the existing duopoly rather than improve competition.
If implemented effectively, reforms could double Pakistan’s freelancing revenue to $2.5 billion by 2030 and bring affordable internet to millions.
“We have the talent and ambition,” Arshad emphasizes. “What we need is an open and competitive internet ecosystem.”
Pakistan’s digital future depends on whether policymakers will challenge the status quo or let the country remain stuck in the slow lane.