The Pakistani government denies claims that it is building an internet firewall, which has led to painfully slow connections in recent weeks.
Instead, the widespread use of secure connections or VPNs (virtual private networks) was blamed for the slow speeds.
The statement comes after business associations warned that poor connectivity could lead to a “mass exodus” of IT companies.
Shutting down the internet to suppress dissent is a familiar move by regulators in Pakistan and other parts of Asia.
Since the unrest sparked by former Prime Minister Imran Khan last year, the government has blocked social media platforms and throttled connection speeds as the fight for public support spilled from the streets into the digital space.
The microblogging platform X has been blocked since the elections in February for reasons of “national security”.
Supporters of Mr Khan’s party are big users of X and he is the most popular Pakistani on the platform with nearly 21 million followers.
But Minister of State for Information Technology Shaza Fatima said on Sunday that the state was not responsible for the recent slowdown.
She said her team had worked “tirelessly” with internet service providers and telecommunications companies to resolve the issue.
Ms Fatima said that a “large number of people” had been using VPNs and that “this was putting a strain on the network and causing the internet to slow down”.
She said reports that the state was responsible for the slow connections were “completely false”.
However, Ms Fatima said the government had modernised its systems to improve cybersecurity.
“Given the cybersecurity attacks this country is facing, it is the government’s right to take such action,” she said.
Business leaders and associations warned that slow connections could jeopardize Pakistan’s business potential.
The Pakistan Software Houses Association said this could cost the IT sector up to $300 million, calling it a “direct, tangible and aggressive attack on the viability of the industry.”
“A mass exodus of IT companies is not just a possibility, but an immediate reality if immediate and decisive action is not taken,” it said.
Activists have filed a petition before the Supreme Court in Islamabad demanding that access to the Internet be declared a fundamental right in Pakistan’s constitution.
Additional coverage from BBC Urdu
