The Pakistan Software Houses Association (P@SHA) has sounded the alarm over the potential economic fallout from the government’s newly implemented internet firewall, warning that the disruptions caused by the system could cost the economy as much as $300 million, according to a Reuters report.
The firewall, which is allegedly intended to monitor and regulate content and social media platforms, has already led to significant internet outages and inconsistent performance of virtual private networks (VPNs), severely impacting the operations of the country’s IT sector.
In a press release issued on August 15, Ali Ihsan, Senior Vice Chairman of P@SHA, expressed deep concern over the firewall’s impact, describing the disruptions as “a direct, tangible, and aggressive assault on the industry’s viability.” He emphasized that the financial losses, currently estimated at $300 million, could rise even further if the issues persist. Ihsan stressed that these disruptions are not merely inconveniences but pose a grave threat to the continuity of business operations within the IT sector.
“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 $300m, which can further increase exponentially,” he said in the statement.
The implementation of the firewall has also sparked concerns over the transparency of the government’s actions. P@SHA highlighted that the lack of clarity surrounding the firewall’s design and objectives has led to a “firestorm of distrust” among internet users and international clients of Pakistan’s IT industry. This erosion of trust is particularly alarming, given the importance of data security and privacy in maintaining global partnerships.
In response to these challenges, P@SHA has called for an immediate halt to the firewall’s implementation. The association is urging the government to engage with industry stakeholders to develop a cybersecurity framework that safeguards national interests without jeopardizing the growth and innovation of the IT sector.
“The government must engage in genuine dialogue with industry stakeholders to develop a cybersecurity framework that safeguards national interests without stifling innovation and growth,” Ihsan said.
The concerns raised by P@SHA come at a time when Pakistan’s IT sector is experiencing significant growth. In June 2024, the country recorded $298 million in IT exports, marking a 33% increase from the previous year. For the fiscal year ending in June, IT exports totaled $3.2 billion, up 24% from $2.5 billion the previous year. This growth underscores the sector’s importance as a key driver of economic progress, making the disruptions caused by the firewall even more critical.
In addition to the economic implications, the firewall has also raised questions about the government’s intentions. Minister of State for Information Technology Shaza Fatima Khawaja has previously stated that the firewall is not intended to be used for censorship. However, the recent blocking of the social media platform X (formerly Twitter) since the February elections has fueled concerns that the firewall could be used to suppress dissent and limit democratic accountability.
P@SHA has warned that if the government does not address these issues promptly, the country could face a mass exodus of IT companies seeking more stable and reliable environments for their operations. “A mass exodus of IT companies is not just a possibility, but an imminent reality if immediate and decisive action is not taken,” Ihsan said.
The association has called for the establishment of a joint committee, including representatives from all relevant stakeholders, to develop a detailed plan for implementing cybersecurity measures that do not harm the industry.
In conclusion, Ihsan urged the government to reconsider its approach, emphasizing that the reliability and quality of internet services are of national importance. He warned that without proper consultation and consideration of the potential repercussions, the firewall could stifle the IT industry’s growth, jeopardizing Pakistan’s standing as a global technology hub.
“The internet, its reliability, quality, and throughput are of national interest. Anyone acting against it should review their decisions,” he said.