By Ariba Shahid
KARACHI (Reuters) – Pakistan’s economy could lose up to $300 million due to internet outages caused by the implementation of a national firewall, the Pakistan Software Houses Association (P@SHA) said in a statement on Thursday.
Islamabad is implementing an internet firewall to monitor and regulate content and social media platforms, according to local media reports. The government denies using the firewall for censorship.
According to Ali Ihsan, senior vice president of P@SHA, the implementation of the firewall has already led to prolonged internet outages and erratic VPN performance, threatening a “complete collapse of business operations.”
“These disruptions are not merely inconveniences, but a direct, tangible and aggressive attack on the viability of the industry, causing devastating financial losses estimated at $300 million and likely to grow exponentially,” the statement said.
The Pakistan Telecommunications Authority and Pakistan’s Minister of State for Information Technology Shaza Fatima Khawaja did not immediately respond.
Earlier this month, Khawaja told local media that the government has no plans to use firewalls as a form of censorship.
Pakistan has blocked access to the social media platform X since the February elections. Jailed former Prime Minister Imran Khan won the most seats despite strict measures and a ban on his party.
The government has said the blockade was aimed at stopping anti-state activities and a failure by X to abide by local Pakistani laws. Rights activists say the blockade of X is aimed at suppressing critical voices and democratic accountability in the country.
P@SHA said in a statement that the government’s lack of transparency around the firewall has created “a storm of distrust” among Pakistan’s internet users and global IT customers, who fear that their corporate data and privacy are at risk.
P@SHA demanded an “immediate and unconditional end to this digital siege” and called on the government to develop a cybersecurity framework together with the sector.
Pakistan recorded $298 million worth of IT exports in June, up 33% from the previous year. During the fiscal year ended June, IT exports were worth $3.2 billion, up 24% from $2.5 billion in fiscal year 2023.
(Reporting by Ariba Shahid in Karachi; Editing by Ros Russell)
