KARACHI: The Pakistan Software Houses Association (P@SHA) has warned that the ongoing internet slowdown and the 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 result in substantial, irreparable financial losses, operational disruptions, and significant damage to the country’s reputation in the global market.
P@SHA has also offered its full support and expertise in organizing an immediate roundtable discussion to devise actionable and effective measures that uphold both the security interests of Pakistan and the growth of its IT exports.
Sajjad Mustafa Syed, Chairman of P@SHA, on Tuesday emphasized that even under conservative estimates, the IT industry could face losses in the tens of millions of dollars in the short term. Beyond the immediate financial impact, the reputational damage will be far-reaching, severely affecting the industry’s ability to compete in the global market, where competition is becoming increasingly fierce, he added.
Syed further warned that both domestic and international IT companies operating in Pakistan would be forced to scale back or shut down operations altogether. “Such actions would not only hinder Pakistan’s export growth but also stunt skills development and job creation in the sector, undermining the country’s position as a hub for IT talent and innovation,” he added.
He said that it will be an irreparable setback to the enabling and fruitful initiatives P@SHA is driving with the support of Ministry of IT & Telecom, SIFC and PM office
Assuring the government full support, he said that the IT industry whole-heartedly stands with the state and the government against its fight with all forms of terrorism-be it physical, psychological, financial or cyber terrorism due to the misuse of internet. However, we believe, the economic well-being and the exports of the country is crucial to help to improve the external account and create employment, he added.
P@SHA Chairman apprised that Pakistan’s IT exports; which areheavily dependent on the use of internet and VPN; have been growing atan average of 30 percent per year to reach $3 billion and are on the way to achieve $15 billion USD in the next 5 years, provided the government ensures continuity in the export, fiscal, financial, SME, infrastructure and IT policies.
He explained that if the VPNs are blocked most of IT companies, Call Centers, BPO Organizations of Pakistan will lose all the major Fortune500 clients, as well as others as data protection and cyber security are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world.
Sajjad stressed that the estimated financial losses do not include the inevitable loss of livelihoods of Remote Workers and Freelancers who may lose their entire business or will be significantly hampered in their sustenance and growth.
He noted that IT companies and Pakistan’s young freelancers may be forced to establish offices and infrastructure abroad, leading to significant increases in operational costs. Cautious estimates suggest that VPN blockages could raise 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 an unplanned blanket ban on all VPNs, as this would irreparably damage the IT industry and exports, with recovery taking years. He strongly urged the government to engage 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 the IT and other economic sectors of Pakistan.
Copyright Business Recorder, 2024
Comments