The Pakistan Telecommunication Authority (PTA) is formulating a plan to regulate VPN usage in Pakistan by creating a whitelist of approved proxy networks and blocking all others, according to PTA Chairman Maj General (retd) Hafeezur Rehman. This announcement was made during a recent parliamentary committee meeting.
At the Senate Standing Committee on Cabinet Secretariat meeting, Rehman detailed that once the policy is implemented, only VPNs that are on the whitelist will be allowed to operate in Pakistan, with all others being blocked.
VPN usage surged significantly in 2024, primarily to access X (formerly Twitter), which has been banned in Pakistan since February 19. According to Top10VPN, an independent VPN review site, demand for proxy networks spiked by 131% on February 19, two days after X was banned.
This high VPN usage has called into question the effectiveness of the ban. Despite this, Rehman reported that the number of X users in Pakistan has dropped by 70%, with only 30% of users accessing the platform through VPNs.
X’s user base in Pakistan remains relatively small compared to other social media platforms, with DataReportal indicating 4.5 million users in early 2024. This implies that regulating VPNs could have broader consequences for the IT sector, which relies on them for various functions.
The PTA chairman also cautioned that a total VPN ban could jeopardize several IT businesses that depend on these services.
Previous attempts by the government to regulate VPN usage, such as requiring registration, have had limited success. In 2022, the PTA instructed public and private organizations, foreign missions, and freelancers to register their VPNs to prevent disruptions. The PTA had also implemented VPN regulations in 2010, but enforcement has been inconsistent.
Law Minister Azam Nazir Tarar, a member of the committee, noted that various social media platforms accused of breaching Pakistan’s security laws have agreed to set up offices in the country, including virtual ones. He pointed out that approximately 132 million Pakistanis use social media for business, yet these platforms are not taxed.
Minister Tarar proposed that social media revenues should be taxed in Pakistan, aligning with practices in other countries.
Senator Rana Mahmoodul Hasan expressed concerns about taxes on cellular advertisements. Senator Farooq H Naek recommended that committee members review both national and international legislation to propose measures that ensure public access to digital services.