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Pakistan’s internet firewall could potentially cost the economy $300 million, according to a trade association.

KARACHI

Aug 15 (Reuters) – Pakistan’s economy could face losses of up to $300 million due to internet disruptions caused by the implementation of a national firewall, according to a press release from the Pakistan Software Houses Association (P@SHA) on Thursday.

Islamabad

Islamabad is rolling out an internet firewall to monitor and regulate content and social media platforms, as reported by local media. However, the government denies that the firewall will be used for censorship. Ali Ihsan, senior vice chairman of P@SHA, expressed concern that the firewall is already causing extended internet outages and unreliable VPN performance, putting business operations at risk of a “complete meltdown.”

According to local media reports, Islamabad is implementing an internet firewall to oversee and control the content and social media platforms. Despite this, the government refutes any claims that the firewall will be employed for censorship purposes. Ali Ihsan, the senior vice chairman of P@SHA, has expressed apprehension regarding the firewall, as it is already leading to prolonged internet service disruptions and unreliable VPN performance, which could potentially jeopardize business operations and result in a complete meltdown.

Islamabad is currently introducing an internet firewall to monitor and regulate online content and social media platforms, as reported by local media sources. However, the government denies any intention to use the firewall for censorship. Ali Ihsan, the senior vice chairman of P@SHA, has voiced concerns about the firewall’s impact, citing prolonged internet service disruptions and unreliable VPN performance, which could potentially disrupt business operations and cause a complete breakdown.

“These disruptions are not just inconveniences but a direct, tangible, and aggressive threat to the industry’s viability,” Ihsan said in the statement. “The financial losses could reach an estimated $300 million, and may increase exponentially.”

Pakistan’s Telecommunication Authority and the Minister of State for Information Technology, Shaza Fatima Khawaja, did not immediately respond to the concerns. Earlier this month, Khawaja told local media that the government did not plan to use firewalls as a form of censorship.

The concerns were not immediately addressed by Pakistan’s Telecommunication Authority and the Minister of State for Information Technology, Shaza Fatima Khawaja. In a statement to local media earlier this month, Khawaja mentioned that the government had no intentions of utilizing firewalls for censorship purposes.

Pakistan has already blocked access to the social media platform X since the February elections, in which jailed former Prime Minister Imran Khan’s party won the most seats despite a crackdown. The government justified the blocking to prevent anti-state activities, accusing X of failing to comply with local laws. However, rights activists argue that the move is intended to suppress dissent and democratic accountability.

In its statement, P@SHA criticized the government’s lack of transparency around the firewall, stating that it has “ignited a firestorm of distrust” among internet users and global IT clients concerned about potential risks to proprietary data and privacy. P@SHA called for an “immediate and unconditional halt to this digital siege” and urged the government to collaborate with the industry on developing a cybersecurity framework.

P@SHA expressed its discontent with the government’s insufficient transparency regarding the firewall, asserting that it has caused a significant erosion of trust among internet users and global IT clients who are anxious about the potential hazards to their confidential information and privacy. P@SHA demanded an immediate cessation to this digital blockade and implored the government to actively cooperate with the industry in formulating a cybersecurity framework.

Pakistan recorded $298 million in IT exports in June, reflecting a 33% increase from the previous year. For the fiscal year ending in June, IT exports amounted to $3.2 billion, up 24% from $2.5 billion in the fiscal year 2023.

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