Pakistan’s IT Industry Will Lose $1 Billion Due to VPN Ban: P@SHA

The Pakistan Software Houses Association (P@SHA) has warned that the government’s decision to ban Virtual Private Networks (VPNs) could devastate the country’s IT sector. In an exclusive interview with ProPakistani, P@SHA Chairman Sajjad Mustafa Syed described the move as a “death blow” to the industry, predicting a loss of $1 billion within the first year alone. According to Syed, the ban would render the IT industry’s operations nearly impossible, severely impacting its business viability. Syed stated that the restriction on VPNs would not only lead to immediate financial losses but would also trigger a long-term decline in the sector. “After one year, the IT industry’s business will shrink further,” he stated. While the government cites national security concerns and claims that terrorists use VPNs, Syed acknowledged the importance of addressing security threats but called for balanced solutions that do not harm the economy. P@SHA has proposed an alternative approach to resolve the issue, suggesting the establishment of an industry-led VPN service provider system. This, Syed argued, would allow for proper monitoring to ensure VPNs are not misused by terrorists while safeguarding the industry’s access to essential tools for international business. He highlighted that white-listing VPNs would also negatively impact the sector’s operations. Pakistan’s IT industry, which contributes $3.2 billion in exports annually and employs over three million individuals, including 2.3 million freelancers, is experiencing rapid growth. Syed noted that the sector is growing at a rate of 40% annually and directly provides jobs to 700,000 people, many of them young professionals. He warned that a VPN ban would make it impossible for the industry to serve international clients, risking its future growth and employment capacity. With a five-year export target of $15 billion, the IT industry has significant potential to contribute to Pakistan’s economy. Syed urged the government to collaborate with stakeholders to devise a solution that addresses security concerns without undermining the industry’s progress. He reiterated P@SHA’s willingness to work with authorities to develop a system that ensures both security and the industry’s sustainability.