Sajjad Mustafa Syed, Chairperson of the Pakistan Software Houses Association (P@SHA), has raised alarms over the ongoing internet slowdown and restrictions on virtual private networks (VPNs). He warned these measures could cause significant financial losses, disrupt IT services, and damage Pakistan’s reputation in global markets.

“Blocking VPNs will harm IT companies, call centers, and BPOs. It risks losing key Fortune 500 clients,” Sajjad explained. He emphasized that VPNs are essential for data protection and cybersecurity, which are critical for international clients.

The IT industry contributes significantly to Pakistan’s economy, with exports reaching $3.2 billion in FY24. Sajjad estimated short-term losses in the tens of millions of dollars. Long-term damages, including reputational harm, could devastate the sector.

“This will severely impact one of Pakistan’s fastest-growing industries,” he said, adding that IT’s integration across all sectors means the ripple effects will extend throughout the economy.

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Risk of Losing Key Players

Sajjad warned that continued restrictions might force domestic and international IT companies to scale back or shut down operations in Pakistan. Freelancers and startups, heavily reliant on VPNs, would also face significant disruptions. Many might relocate overseas, incurring operational costs of $100-150 million annually.

“This would undermine P@SHA’s collaborations with the Ministry of IT & Telecom, the Special Investment Facilitation Council, and the Prime Minister’s Office,” he noted.

Call for Strategic Solutions

While supporting efforts to combat terrorism, Sajjad stressed the importance of balancing national security with economic stability. He urged the government to avoid blanket bans and engage with industry leaders to create a framework that addresses security concerns without crippling the IT sector.

“P@SHA is ready to facilitate discussions to develop effective measures that protect security and foster IT export growth,” he concluded.

WISPAP Calls for Balanced VPN Regulation

The Wireless & Internet Service Providers Association of Pakistan (WISPAP) has urged policymakers to adopt a balanced approach to regulating VPNs. Chairperson Shahzad Arshad highlighted VPNs’ role in safeguarding privacy, enabling secure communication, and supporting access to critical online resources.

“These tools are essential for economic growth and innovation, particularly in globalized economies where secure communication is vital,” Shahzad stated.

Avoiding Blanket Restrictions

Shahzad cautioned against blanket restrictions, which could hinder legitimate use cases and harm Pakistan’s economic progress. “The intent behind technology use determines its alignment with ethical and legal standards,” he said.

He added that VPNs, while potentially misused, primarily support secure data management and commerce. “Regulations should deter harmful activities without impeding lawful users,” he emphasized.

WISPAP advocated for a cooperative approach among regulators, service providers, and other stakeholders. “Balanced policies can uphold societal values while addressing technical realities of the digital age,” Shahzad concluded.

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