VPN Ban Could Cost Pakistan’s IT Industry $1 Billion, Warns P@SHA

The Pakistan Software Houses Association (P@SHA) has raised alarms about the severe impact of the government’s decision to ban Virtual Private Networks (VPNs), warning that the move could cost Pakistan’s IT industry $1 billion in losses within the first year.

P@SHA Chairman Sajjad Mustafa Syed characterized the VPN prohibition as a “death blow” to the industry, emphasizing that it would render IT operations in Pakistan virtually impossible and threaten the viability of businesses. Syed predicted that the moratorium would not only cause an initial financial loss but also lead to a long-term contraction of the IT sector.

Syed acknowledged the government’s concerns regarding national security, particularly its assertions that VPNs are being employed by terrorists. However, he argued that the government must also identify a balanced solution that does not have a detrimental impact on the economy, despite the importance of addressing security concerns. “The VPN ban would harm Pakistan’s growing IT sector, which is crucial for economic development,” Syed added.

P@SHA has suggested the establishment of a VPN service provider system that is industry-led to reduce the potential harm. Syed proposed that this system could facilitate enhanced surveillance to prevent the exploitation of VPNs for illicit activities and to guarantee the IT sector’s uninterrupted operations. Additionally, he cautioned that the industry’s access to global tools would be further impeded by the white-listing of VPNs.

Pakistan’s IT sector, which generates $3.2 billion in annual exports and employs over three million people, including 2.3 million freelancers, is experiencing rapid growth. Syed asserted that the sector is expanding at a rate of forty percent annually and employs 700,000 individuals, with a significant number of them being youthful professionals, in response to the inquiries. He clarified that the industry’s ability to collaborate with international clients would be significantly diminished and its future development would be impeded by the prohibition of VPNs.

In the next five years, Pakistan’s IT industry is expected to generate a high value of $15 billion in exports. Syed urged the government to collaborate with industry stakeholders in the development of a security framework. P@SHA remains open to collaborating with authorities to create a solution that balances both security and the sustainability of Pakistan’s IT industry.Bottom of Form