KARACHI: Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA), has issued a grave warning about the potential fallout from internet slowdowns and the blocking of Virtual Private Network (VPN) services. He cautioned that such actions could lead to irreparable financial losses, operational disruptions, and damage to Pakistan’s reputation in the export of IT and IT-enabled Services (ITeS).
In FY24, Pakistan’s IT industry exports reached $3.2 billion. However, Sajjad emphasized that even conservative estimates predict short-term losses in the tens of millions of dollars if VPNs are blocked. The long-term implications could be catastrophic, with intangible losses undermining the industry’s global competitiveness. “The IT industry, one of Pakistan’s fastest-growing sectors, will face a significant blow that could ripple across the entire economy,” he warned.
Sajjad highlighted that the ban would force domestic and international IT companies to scale back or cease operations, undoing progress in exports, skill development, and employment generation. It would derail initiatives spearheaded by P@SHA in collaboration with the Ministry of IT & Telecom (MoITT), the Special Investment Facilitation Council (SIFC), and the Prime Minister’s Office.
While supporting the government’s fight against terrorism in all forms, Sajjad stressed the need to balance security measures with economic priorities. He noted that Pakistan’s IT and ITeS exports have grown by an average of 30% annually and are projected to reach over $15 billion within five years, provided stable policies remain in place.
Blocking VPNs would have disastrous consequences for Pakistan’s IT companies and freelancers, as Fortune 500 clients and other major firms rely on secure VPN connections to protect sensitive data. “Data protection and cybersecurity are paramount, and global clients expect secure VPN usage as a standard,” he explained.
Freelancers and remote workers would also bear the brunt, losing vital income streams. Additionally, operational costs for IT companies could rise by $100–150 million annually if they are forced to establish overseas offices and infrastructure.
Sajjad urged the government to avoid a blanket ban on VPNs and instead collaborate with industry stakeholders to create a balanced framework. He proposed a roundtable discussion to address national security concerns while safeguarding IT operations and export growth.
“The recovery from such a policy misstep would take years. Strategic foresight is crucial to ensure that Pakistan’s IT sector continues to thrive,” he concluded.
