Lahore (Newsman): The leading organization for Pakistan’s IT sector, the Pakistan Software Houses Association (P@SHA), has warned that the current internet slowdown and limitations on virtual private networks (VPNs) represent an existential threat to the business.
In a statement, P@SHA Chairman Sajjad Mustafa Syed warned that these measures could lead to irreparable financial losses, service disruptions, and reputational damage, particularly in the export of IT and IT-enabled services (ITeS).
He explained that disabling VPNs would cause large disruptions to the operations of call centers, BPO firms, and IT organizations, resulting in the loss of important Fortune 500 clients.
He stated, “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.”
Sajjad highlighted the industry’s importance by pointing out that in FY24, IT exports totaled $3.2 billion. He projected tens of millions of dollars in short-term losses, but the long-term effects, such as harm to one’s reputation and intangible losses, may be disastrous.
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He said, “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.”
Sajjad emphasized that if the current situation continues, both domestic and foreign IT companies may be forced to reduce or stop operations in Pakistan.
It would be disastrous for a sector of the economy essential to the country’s export expansion, skill development, and job generation.
This would also jeopardize important projects that P@SHA is working on with the Prime Minister’s Office (PMO), the Special Investment Facilitation Council (SIFC), and the Ministry of IT & Telecom (MoITT), he continued.
He was worried about the discouraging effect on IT firms, their employees, new businesses, independent contractors, and others trying to establish Pakistan as a major center for technology worldwide.
Sajjad reiterated P@SHA’s support for the government’s efforts to combat terrorism in all its manifestations, including cyber, financial, psychological, and physical, and suggested that export expansion and economic stability are essential to tackling Pakistan’s long-term socioeconomic and balance of payments (BoP) issues.
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Sajjad emphasized the impressive expansion of the IT sector, pointing out that exports of IT and ITeS are expected to reach $15 billion in the next five years, assuming the government maintains consistent policies that encourage exports, infrastructure, and financial incentives.
He also warned that distant workers and freelancers who mostly depend on VPNs will experience significant economic disruptions.
It is necessary for many freelancers and IT companies to move their activities abroad, which would result in operational expenses of between $100 and $150 million per year.
Sajjad advocated for an approach to security issues rather than a complete prohibition on VPNs, which would severely harm the IT sector and take years to recover.
He asked the government to collaborate with P@SHA, industry leaders, and stakeholders to create a fair framework that protects both national security and the IT industry’s operational requirements.
He concluded, “P@SHA is ready to offer full support and expertise to facilitate an immediate roundtable discussion. Together, we can develop actionable and effective measures that uphold Pakistan’s security interests while fostering the growth of its IT exports.”
WISPAP calls for ‘balanced’ approach regarding VPN
Separately, the Wireless & Internet Service Providers Association of Pakistan (WISPAP) has emphasized the necessity of a cooperative and equitable strategy for VPN regulation in Pakistan.
In his statement, WISPAP Chairman Shahzad Arshad emphasized the VPN technology’s multi functionality and warned against imposing sweeping limitations that may impede economic advancement and legal users.
Despite the possibility of misuse, he clarified, the main purposes of VPNs are to protect privacy, facilitate private communication, and grant access to vital web resources.
He stated, “These tools are foundational to economic growth, innovation, and the preservation of digital freedoms, especially in globalized economies where secure communication is paramount.”
The chairperson emphasized the neutrality of technological tools such as virtual private networks (VPNs), stressing that their conformity to legal and ethical norms depends on the purpose for which they are used.
He added, “Regulatory measures should focus on deterring harmful activities without impeding legitimate use cases that drive progress and safeguard data integrity.”
WISPAP advised politicians to make sure that rules do not jeopardize equal access to information, commerce, and security while expressing support for responsible technology use in accordance with national laws and community norms.
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The chairperson cautioned that broad prohibitions or unfavorable attitudes toward VPNs may drive out certain groups of people, especially those who depend on these technologies for legitimate reasons like academic research, financial transactions, and IT exports.
WISPAP promoted cooperation between regulators, service providers, and members of society as a representative organization of Pakistan’s internet ecosystem.
The chairperson concluded, “A cooperative approach can balance ethical societal imperatives with the technical realities of the digital era, ensuring that the internet remains a productive and secure platform for all.”
