ISLAMABAD: The Pakistan Software Houses Association (P@SHA), the apex body representing the country’s IT sector, has raised alarms over the ongoing internet slowdown and restrictions on virtual private network (VPN) use, warning that these measures pose an existential threat to the industry.
In a statement, P@SHA Chairman Sajjad Mustafa Syed cautioned that such actions could result in severe financial losses, operational disruptions, and reputational damage, particularly affecting the export of IT and IT-enabled Services (ITeS).
Sajjad explained that VPNs are critical for IT operations, ensuring data protection and cybersecurity—both of which are non-negotiable for global clients, including Fortune 500 companies. “Blocking VPNs will disrupt call centers, BPO organizations, and IT firms, leading to the loss of major international clients,” he stated. “Any intrusion into these security protocols is unacceptable to foreign businesses.”
The chairman underscored the industry’s economic significance, noting that Pakistan’s IT exports reached $3.2 billion in FY24. He estimated short-term losses in the tens of millions of dollars and warned that long-term impacts, such as reputational harm, could be devastating. “This will severely damage one of Pakistan’s fastest-growing sectors, with ripple effects on other industries that increasingly rely on IT.”
Sajjad further warned that persistent restrictions could compel both domestic and international IT companies to scale back or completely cease operations in Pakistan. Such an outcome, he noted, would undermine key national priorities like export growth, job creation, and skill development, while dealing a blow to P@SHA-led initiatives in collaboration with the Ministry of IT & Telecom (MoITT), the Special Investment Facilitation Council (SIFC), and the Prime Minister’s Office.
He also highlighted the potential disruption to freelancers and remote workers, who depend heavily on VPNs. Many might relocate their operations abroad, resulting in annual operational costs of $100–150 million, further draining Pakistan’s economy.
While reiterating support for the state’s efforts to combat terrorism in all its forms, Sajjad emphasized that economic stability and export growth are essential to addressing Pakistan’s enduring balance of payments and socio-economic challenges.
He noted the remarkable growth of the IT industry, with IT and ITeS exports expanding at an annual rate of 30% and projected to exceed $15 billion within five years if the government maintains consistent policies and provides infrastructure and fiscal incentives.
Sajjad urged the government to adopt a strategic approach to address security concerns without resorting to blanket bans on VPNs, warning that such actions would cripple the IT industry and require years to recover.
