The Pakistan Software Houses Association (P@SHA) has warned that the country’s economy could suffer a loss of up to $300 million due to internet disruptions caused by the implementation of a national firewall. In a press release on Thursday, P@SHA highlighted the severe economic impact of the government’s move to monitor and regulate online content and social media platforms.
The government has defended the firewall, stating that it is not intended for censorship. However, Ali Ihsan, Senior Vice Chairman of P@SHA, expressed concerns that the firewall has already led to prolonged internet outages and unreliable performance of virtual private networks (VPNs), which are critical for business operations.
“These disruptions are not mere inconveniences but a direct, tangible, and aggressive assault on the industry’s viability, inflicting estimated and devastating financial losses of up to $300 million, which could potentially increase further,” Ihsan stated.
Read More: Widespread Internet Outages Cause Major Disruptions Across Pakistan
Minister of State for Information Technology Shaza Fatima Khawaja has yet to respond to the concerns. Earlier this month, she mentioned that the government had no intention of using the firewall for censorship.
The government has also blocked access to the social media platform X since the February elections, where the PTI won the most seats despite a crackdown. The government claims the blocking was necessary to prevent anti-state activities and due to X’s non-compliance with local laws. However, rights activists argue that the move is aimed at suppressing critical voices and undermining democratic accountability.
P@SHA’s statement criticized the government’s lack of transparency regarding the firewall, stating that it has “ignited a firestorm of distrust” among internet users and international IT clients concerned about the security of their proprietary data and privacy.
P@SHA has called for an “immediate and unconditional halt to this digital siege” and urged the government to collaborate with the industry to develop a more effective cybersecurity framework.
Despite these challenges, the country recorded $298 million in IT exports in June, marking a 33% increase from the previous year. The fiscal year ending in June saw IT exports reach $3.2 billion, a 24% rise from the $2.5 billion recorded in the fiscal year 2023.