KARACHI: Pakistan Software Houses Association (P@SHA) has warned that the ongoing internet slowdown and blocking of virtual private network (VPN) services pose an existential threat to Pakistan’s IT and IT-enabled Services (ITeS) sectors.

The association argues that these disruptions will lead to significant, irreparable financial losses, operational disruptions and serious damage to the country’s reputation in the global market.

P@SHA also offered its full support and expertise to convene an urgent roundtable to devise actionable and effective measures that support both Pakistan’s security interests and the growth of IT exports.

P@SHA Chairman Sajjad Mustafa Syed on Tuesday emphasized that even under conservative estimates, the IT sector could face losses of tens of millions of dollars in the short term. He added that beyond the immediate financial impact, the reputational damage would be far-reaching and would seriously impact the industry’s ability to compete in a global marketplace where competition is increasingly fierce.

Syed also warned that IT companies, both domestic and international, operating in Pakistan may be forced to scale back their operations or cease operations altogether. “Such actions will not only hinder Pakistan’s export growth but will also hamper skill development and job creation in the sector and undermine the country’s position as a hub for IT talent and innovation,” he added.

He said this would be an irreparable setback to the facilitating and efficient initiatives pursued by P@SHA with the support of Ministry of IT and Telecommunications, SIFC and PM office.

Assuring the full support of the government, he said that the IT industry wholeheartedly stands with the state and government against fighting all forms of terrorism whether IT physical, psychological, financial or cyber terrorism due to misuse of the internet. “But we believe that the country’s economic prosperity and exports are vital to help improve the external balance and create jobs,” he said.

President of P@SHA; Pakistan’s IT exports; heavily dependent on internet and VPN usage; We have grown by an average of 30 percent annually, reaching 3 billion dollars, and we are on track to reach 15 billion dollars in the next 5 years if the government ensures continuity in export, finance, finance, SME, infrastructure and informatics policies.

He explained that if VPNs are blocked most IT companies, Call Centers, BPO Organizations in Pakistan will lose all their major Fortune500 customers as well as others because data protection and cyber security are of great importance to our customers and connecting with the customer is very important. Deploying systems via VPN is a global norm and standard and a basic requirement and expectation of customers worldwide.

Sajjad emphasized that the estimated financial losses do not include the inevitable loss of livelihood of Remote Workers and Freelancers, who may lose their entire jobs or whose livelihoods and growth may be significantly hindered.

He noted that IT companies and young freelancers in Pakistan may be forced to set up offices and infrastructure abroad, leading to significant increases in operational costs. Careful estimates suggest that VPN blockages could increase the IT industry’s operational costs by $100-150 million annually.

In conclusion, he emphasized the urgent need to approach the situation with strategic foresight, rather than resorting to impromptu blanket bans on all VPNs; because this will cause irreparable damage to the IT industry and exports and recovery will take years. He strongly urged the government to collaborate with P@SHA, industry leaders and relevant stakeholders to develop a balanced and secure framework that safeguards national security without compromising the operational needs of Pakistan’s IT and other economic sectors.

Copyright Business Recorder, 2024