Hajra Naz
Chairman of P@SHA, Sajjad Mustafa Syed, has voiced serious concerns about internet disruptions and VPN blockages. He warned these issues could threaten the survival of Pakistan’s IT and ITeS industry. The challenges may lead to financial losses, service interruptions, and reputational harm, impacting export potential.
IT Export Milestones and Potential Losses
Highlighting the industry’s achievements, Sajjad noted that Pakistan’s IT exports reached $3.2 billion in FY24. However, even conservative estimates predict losses in the tens of millions of dollars in the short term due to VPN restrictions. The longer-term consequences, including reputational harm, could be devastating, especially as global competition in the tech sector intensifies.
Domino Effect on Pakistan’s Economy
One of Pakistan’s fastest-growing industries, the IT sector is now essential to many other industries’ operations. Sajjad warned that a setback to the IT industry has a bad effect that can harm other economic sectors. Exports, skill development, and job creation may be hampered if numerous foreign and domestic IT companies are compelled to close or reduce their activities in Pakistan.
Undermining Key Initiatives
The P@SHA chairman emphasized that VPN blockages would derail critical initiatives supported by the Ministry of IT & Telecom (MoITT), the Special Investment Facilitation Council (SIFC), and the Prime Minister’s Office (PMO). He stressed that such measures would demoralize IT companies, freelancers, and start-up entrepreneurs, discouraging their efforts to elevate Pakistan as a leading global technology destination.
Balancing Security with Economic Growth
While acknowledging the importance of combating terrorism and misuse of the internet, Sajjad argued that economic growth and exports are essential for addressing Pakistan’s socio-economic challenges. He highlighted that the IT industry’s exports, which heavily rely on internet access and VPNs, have grown at an average of 30% annually and are projected to reach over $15 billion within the next five years if supported by consistent policies.
Critical Role of VPNs in IT Operations
VPNs ensure data protection and cybersecurity for Fortune 500 clients and other global businesses. Blocking VPNs would result in losing major clients for Pakistani IT companies, call centers, and BPO organizations. Sajjad warned that such actions could lead to unbearable operational costs, estimated to increase by $100–$150 million annually, forcing companies and freelancers to shift operations overseas.
Read More: VPN Crackdown Could Harm Pakistani Businesses
Impact on Freelancers and Remote Workers
Sajjad highlighted the severe consequences for Pakistan’s freelancers and remote workers, many of whom could lose their livelihoods or face significant obstacles to growth. Relocating operations overseas would further burden these professionals with increased costs and logistical challenges.
Urgent Need for Strategic Action
In his closing comments, Sajjad asked the government to take a calculated strategy that strikes a balance between national security and the IT industry’s operational requirements rather than enacting haphazard, all-out restrictions on VPNs. He urged P@SHA, business executives, and pertinent parties to work together to develop a safe framework that protects the sector without limiting its potential for expansion.
Pakistan can safeguard its flourishing IT industry and guarantee its continuous contribution to economic growth and global competitiveness by carefully addressing this issue.
