The Pakistan Business Council (PBC), the country’s leading corporate advocacy platform, warned on Friday that many multinational companies (MNCs) are either planning to relocate their back offices from Pakistan or have already done so, as the reported imposition of a firewall causes widespread internet disruptions across the country.
“While we struggle with the costs of idle capacity in power generation leading to unemployment and loss of exports and tax revenue, we now have to contend with the threat of idle capacity in the emerging software sector due to poor execution of a firewall,” the PBC said in a statement on social media platform X.
The PBC was of the view that even if a firewall is necessary for security, trials could have saved the livelihoods of thousands of freelance software developers and avoided damage to Pakistan’s credibility as a reliable supplier of IT/IT-enabled services.
“There are many MNCs planning to relocate their back offices and some have already done so. It is not too late,” it said.
The PBC urged the authorities to go back “and get the right firewall or learn to apply it without creating unnecessary impact on employment and exports”.
“IT and IT-enabled services, besides agriculture and tourism offer valuable opportunity to achieve the PM’s export target over the next three years. High speed connectivity is also vital for the domestic economy,” PBC maintained.
The statement comes amid ongoing nationwide internet disruptions, with the exact cause still unidentified. The tech industry has already raised alarms, warning that these disruptions could cost Pakistan’s economy up to $300 million.
“These disruptions are not mere inconveniences; but, a direct, tangible and aggressive assault on the industry’s viability – inflicting an estimated and devastating financial losses estimated to reach $300 million, which can further increase exponentially,” Ali Ihsan, senior vice chairman of Pakistan Software Houses Association (P@SHA), said in a statement.
The Overseas Investors Chamber of Commerce and Industry (OICCI) also warned that frequent internet disruptions in Pakistan “could derail” the country’s economic progress.
Pakistan recorded $298 million in IT exports in June, up 33% from the year before. During the fiscal year that ended in June, IT exports were worth $3.2 billion, up 24% from $2.5 billion in the fiscal year 2023.