The Pakistan Software Houses Association (P@SHA) has issued a stark warning that the government’s decision to ban Virtual Private Networks (VPNs) could severely damage the country’s IT sector.
P@SHA Chairman Sajjad Mustafa Syed described the move as a “death blow” to the industry, predicting a potential loss of $1 billion within the first year alone. Syed emphasized that the ban would make IT operations nearly impossible, significantly affecting the sector’s business viability.
Syed highlighted that the restriction on VPNs would not only result in immediate financial losses but also lead to a long-term decline in the industry. “After one year, the IT industry’s business will shrink further,” he stated. While the government cites national security concerns, claiming that terrorists use VPNs, Syed acknowledged the need to address security threats but called for balanced solutions that do not harm the economy.
To address these concerns, P@SHA has proposed an alternative approach, suggesting the creation of an industry-led VPN service provider system. This system would allow for proper monitoring to prevent misuse by terrorists while ensuring the industry retains access to essential tools for international business. Syed also noted that white-listing VPNs could negatively impact the sector’s operations.
Pakistan’s IT industry, which contributes $3.2 billion in exports annually and employs over three million individuals, including 2.3 million freelancers, is experiencing rapid growth. Syed pointed out that the sector is growing at a rate of 40% annually and directly provides jobs to 700,000 people, many of whom are young professionals. He warned that a VPN ban would hinder the industry’s ability to serve international clients, jeopardizing its future growth and employment potential.
With a five-year export target of $15 billion, the IT industry holds significant potential for contributing to Pakistan’s economy. Syed urged the government to collaborate with stakeholders to find a solution that addresses security concerns without undermining the industry’s progress. He reiterated P@SHA’s willingness to work with authorities to develop a system that ensures both security and the sustainability of the industry.
