The Pakistan Software Houses Association (P@SHA) has raised alarms over the potential economic fallout from the government’s implementation of a national internet firewall, estimating that the country could face losses of up to $300 million. The firewall, intended to monitor and regulate content on social media platforms, has already caused significant disruptions, threatening the viability of the IT industry.
Ali Ihsan, Senior Vice Chairman of P@SHA, expressed grave concerns in a press release issued on Thursday. He described the situation as a “complete meltdown of business operations,” with prolonged internet disconnections and erratic performance of virtual private networks (VPNs) severely impacting the industry. “These disruptions are not mere inconveniences but a direct, tangible, and aggressive assault on the industry’s viability, inflicting estimated financial losses that could reach $300 million,” Ihsan stated, adding that the figure could rise further if the situation persists.
The government has denied that the firewall is intended for censorship, insisting it is a necessary measure for monitoring content. However, the Minister of State for Information Technology, Shaza Fatima Khawaja, has yet to respond to these claims. Earlier this month, she asserted that the government had no intention of using the firewall as a censorship tool.
Since February, the government has blocked access to the social media platform X (formerly Twitter), citing its failure to adhere to local laws and its involvement in what the government describes as anti-state activities. However, rights activists argue that the move is aimed at stifling critical voices and undermining democratic accountability.
In its statement, P@SHA criticized the government’s lack of transparency regarding the firewall, which it says has “ignited a firestorm of distrust” among both internet users and global IT clients. The association fears that this distrust could lead to concerns over the security of 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 in developing a cybersecurity framework that does not compromise the sector’s integrity.
The potential economic impact of the firewall comes at a critical time for Pakistan’s IT sector. In June, the country recorded IT exports worth $298 million, a 33 percent increase from the previous year. The fiscal year ending in June saw total IT exports reach $3.2 billion, up 24 percent from $2.5 billion in the previous fiscal year. These gains are now under threat as the industry grapples with the consequences of the government’s new internet regulations.
