P@sha warns VPN ban, internet restrictions devastating for IT industry

Short-term losses caused by ongoing restrictions on VPN usage could be around tens of millions of dollars
An undated image. — iStock
An undated image. — iStock

Sajjad Mustafa Syed, chairperson of the Pakistan Software Houses Association (P@SHA) —a non-profit body representing Pakistan's IT sector— has warned that the internet slowdown and barred virtual private network (VPN) use puts Pakistan's IT industry at stake.

Such measures by the government of Pakistan could prove hotbed for irreversible financial losses, service disruptions and reputational damage in the export of IT and IT-enabled Services (ITeS), he noted.

Regarding the VPN ban in the country, the chairperson of the association said it distorts operations of IT firms, call centres and Business process outsourcing (BPO) organisations, which subsequently drives the major Fortune 500 clients towards losses.

Read more: ISP Association condemns ‘Blanket Restrictions’ on VPNs

“VPNs are a global standard for ensuring data protection and cybersecurity, which are critical to our clients. Any intrusion into these security protocols by public or private institutions is unacceptable to international companies,” stated Sajjad.

Although a total of $3.2 billion was recorded in IT exports in FY24, short-term losses caused by the ongoing limitations on VPN usage could be around tens of millions of dollars, let alone the long-term consequences that might prove lethal and unimaginable.

“This will deliver a severe blow to one of Pakistan’s fastest-growing industries, with ripple effects on other sectors of the economy, as IT is now integral to all industries,” he said.

If this situation remains intact and unaddressed, IT firms may be compelled to curtail or even pull back their operations in Pakistan.