P@SHA and WISPAP Urge Government to Rethink VPN Restrictions to Protect IT Industry
The Pakistan Software Houses Association (P@SHA), the leading body representing the country’s IT sector, has issued a stark warning about the existential threat posed by ongoing internet disruptions and restrictions on virtual private network (VPN) usage.
In a statement reported by The News, P@SHA Chairman Sajjad Mustafa Syed cautioned that these measures could lead to significant financial losses, service disruptions, and reputational harm, particularly for IT exports and IT-enabled services (ITeS). He emphasized that VPNs are crucial for data protection and cybersecurity, which are non-negotiable for international clients. Restricting VPN use could result in IT companies losing Fortune 500 clients and other major contracts.
Sajjad highlighted the sector’s substantial contribution, with IT exports reaching $3.2 billion in FY24, and warned that short-term losses could amount to tens of millions of dollars, with long-term impacts being far more severe. He noted that such restrictions would undermine one of Pakistan’s fastest-growing industries, disrupt other sectors reliant on IT, and force companies to downsize or leave the country. Freelancers and remote workers, heavily dependent on VPNs, could also face significant disruptions, potentially leading to an estimated $100-150 million in additional operational costs annually if businesses relocate overseas.
While expressing P@SHA’s support for counter-terrorism efforts, Sajjad stressed that economic stability and export growth are equally vital for addressing Pakistan’s challenges. He urged the government to collaborate with industry stakeholders to address security concerns without implementing a blanket ban on VPNs.
Separately, the Wireless & Internet Service Providers Association of Pakistan (WISPAP) echoed P@SHA’s concerns, calling for a balanced approach to VPN regulation. WISPAP Chairman Shahzad Arshad noted the dual-purpose nature of VPNs, which serve critical functions like securing communication, protecting privacy, and enabling access to essential online resources. He cautioned that indiscriminate restrictions could harm legitimate users and hinder economic progress.
WISPAP emphasized that regulations should deter misuse while preserving the legitimate applications of VPNs, which are vital for IT exports, financial transactions, and academic research. The association urged policymakers to adopt a collaborative framework involving regulators, service providers, and industry representatives to ensure that national security measures do not impede the IT sector’s growth.
Both P@SHA and WISPAP have offered their support for discussions aimed at balancing security concerns with the operational needs of the IT industry, urging the government to act swiftly to protect the sector’s growth and contribution to the economy.
