Internet services were disrupted across Pakistan on Wednesday, with users reporting significant connectivity issues. NetBlocks, an organization monitoring cybersecurity and internet governance, confirmed a nation-scale disruption.
“Metrics show national connectivity at 24% of ordinary levels, corroborating user reports of a widespread outage,” it stated on X. The Pakistan Telecommunication Authority (PTA) attributed the disruptions to a technical glitch in the international submarine cable affecting the Pakistan Telecommunication Company Limited (PTCL) network.
PTCL teams are working diligently to address the issue. A spokesperson for PTCL confirmed, “Currently, the PTCL network is facing data outages in various cities, affecting connectivity. Our teams are busy addressing and rectifying the issue at the earliest.” This disruption has hampered both personal and professional activities, with users facing difficulties accessing online services and social media platforms.
Economic Repercussions
The internet outage had notable economic repercussions, particularly impacting the Pakistan Stock Exchange (PSX). The KSE-100 index experienced a dramatic fall in the final 60 minutes of trading. Analysts attributed this to an inability to access real-time share prices, leading to panic selling. The index dropped from 78,529 to 77,810.16 within minutes, a fall of over 700 points. At close, the KSE-100 was at 77,886.98, a decline of 742 points or 0.94%.
A senior trader noted that slow connectivity hampered the ability to conduct trades, although a PSX official claimed there was no trading impact due to the outage. The disruption in internet services exacerbated the market’s reaction to other ongoing geopolitical events, including the recent increase in oil prices following the assassination of Hamas leader Ismail Haniyeh in Iran.
Global and Local Responses
The assassination of Ismail Haniyeh by an Israeli strike in Tehran has drawn international condemnation. Pakistan’s Foreign Ministry extended condolences to Haniyeh’s family and the people of Palestine. “Pakistan condemns terrorism in all its forms and manifestations, including extrajudicial and extraterritorial killings irrespective of the motives,” said the ministry. Islamabad expressed deep concern over the timing of the attack, coinciding with the inauguration of Iran’s President, an event attended by Pakistan’s Deputy Prime Minister Ishaq Dar.
Indonesia and Sri Lanka also condemned the assassination, emphasizing the potential for increased regional instability. Indonesia warned that the act could derail ongoing negotiations and exacerbate conflicts in Gaza. Australian Defense Minister Richard Marles expressed concern over potential escalations, highlighting the profound consequences of such developments.
Financial Market Updates
Amid the internet outage and geopolitical tensions, various financial market updates were announced. Indus Motor Company Limited (IMC) began exporting vehicles to other Toyota-affiliated companies. Pakistan Hotels Developers Limited (PHDL) transferred the title and possession of Regent Plaza to the Sindh Institute of Urology and Transplantation (SIUT) Trust after receiving the remaining 10% payment of the $5.2 million sale value.
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United Bank Limited (UBL) posted consolidated earnings of Rs15.27 billion for the quarter ending June 30, 2024, up 17% from the previous year. Earnings per share increased to Rs12.10 from Rs10.39. Despite these positive financial indicators, the Pakistani rupee registered a marginal decline, depreciating 0.03% against the US dollar to settle at 278.74.
Broader Market Trends
Globally, Asian stocks remained stable despite contrasting results from tech companies Microsoft and AMD. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.23% higher but on course for a 1.2% decline for the month, ending a five-month winning streak. Central banks, including the Federal Reserve and the Bank of Japan, dominated investor attention with their upcoming policy decisions.
The volume of shares traded on the all-share index increased to 382.6 million from 313.08 million in the previous session, while the value of shares declined to Rs14.64 billion from Rs17.61 billion. WorldCall Telecom led the volume with 81.16 million shares, followed by Kohinoor Spinning with 24.7 million shares, and TPL Properties with 19.7 million shares. Out of 442 companies traded, 118 registered an increase, 254 recorded a fall, and 70 remained unchanged.