Short-Term Financial Losses Estimated in Tens of Millions of Dollars
- VPN Blockages and Internet Slowdown: A Looming Crisis for Pakistan’s IT Sector
- Short-Term Financial Losses Estimated in Tens of Millions of Dollars
- Impact on Fortune 500 Clients: VPN Access Critical for Secure Operations
- Freelancers and Startups Face Livelihood Threat from VPN Ban
- Operational Costs to Soar by $100–$150 Million Annually if VPNs Are Blocked
- Pakistan’s IT Growth Targets of $15 Billion Exports in Jeopardy
- Domino Effect: IT Slowdown Could Hamper Other Economic Sectors
- P@SHA Urges Strategic Policy to Balance Security and Economic Growth
- Government Must Engage IT Stakeholders for a Practical VPN Framework
- Unplanned Restrictions Could Take Years to Repair Damage to IT Industry
- National Security vs. Economic Well-being: A Call for Balanced Action
Karachi — Pakistan’s IT industry is under serious threat due to internet slowdown and the blocking of VPN (Virtual Private Network) services, warned Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA). He highlighted that these actions could cause financial losses, service disruptions, and reputational damage to the country’s thriving IT and IT-enabled Services (ITeS) exports, which reached $3.2 billion in FY24.
Syed cautioned that the IT industry may suffer short-term losses of tens of millions of dollars, while long-term impacts on Pakistan’s global competitiveness could be devastating. “This will be a huge setback to one of the fastest-growing industries in Pakistan,” he said, warning of a domino effect on other sectors reliant on IT solutions.
VPN Blockages Could Derail IT Operations
VPNs are crucial for secure connections to international clients, including major Fortune 500 companies, as they ensure data protection and cybersecurity compliance. Syed stated that blocking VPNs will force domestic and international IT companies to either close or shift operations abroad, leading to increased operational costs of $100–$150 million annually.
“If VPNs are blocked, Pakistan’s IT companies and freelancers will lose their global clients,” he said, adding that this would hinder exports, skills development, and employment generation. Many remote workers, freelancers, and startups will face significant challenges, risking their livelihoods.
Threat to IT Industry Growth
P@SHA’s chairman warned that the slowdown and VPN restrictions threaten to reverse years of progress in IT sector growth. Pakistan’s IT exports, growing at an average of 30% annually, are projected to exceed $15 billion in the next five years. However, this depends on stable export policies, uninterrupted internet, and access to tools like VPNs.
“This industry has been driving economic stability by addressing unemployment and poverty through skills development and technology exports,” Syed said. A blow to the IT sector would also harm initiatives led by P@SHA in collaboration with the Ministry of IT & Telecom (MoITT), the Special Investment Facilitation Council (SIFC), and the Prime Minister’s Office (PMO).
Call for Strategic Policy
Syed urged the government to avoid a blanket ban on VPNs and instead work with industry leaders to devise a secure and balanced framework. He emphasized the need for strategic foresight to protect national security and the IT industry’s operational needs.
P@SHA offered its support for an immediate roundtable discussion with stakeholders to address concerns while ensuring the continued growth of IT exports and Pakistan’s digital economy.
“Unplanned restrictions will irreparably damage Pakistan’s IT industry,” Syed concluded, stressing that a balanced approach is essential for sustaining economic growth and improving global competitiveness.
The stakes are high for a sector that has the potential to position Pakistan as a leading global tech destination.