P@SHA says internet slowdowns, VPN restrictions post “existential threat” to IT industry; WISPAP calls for balanced and collaborative approach
Pakistan’s IT and internet service providers have warned that the government’s recent move to block unregistered Virtual Private Networks (VPNs) could have dire consequences for the country’s economy, particularly its IT sector. The Pakistan Telecommunication Authority (PTA) has announced a November 30 deadline for VPN registration, after which unregistered VPNs will no longer function.
The Pakistan Software Houses Association (P@SHA), representing the country’s IT sector, has expressed alarm and said that internet slowdowns and restrictions to VPNs pose an “existential threat” to the industry. P@SHA Chairman Sajjad Mustafa Syed stated that the ban on unregistered VPNs could lead to irreparable financial losses and operational disruptions for IT companies, call centers, and freelancers. These challenges could force businesses to relocate overseas, incurring additional costs estimated at $100-150 million annually.
He added that IT exports, which reached $3.2 billion in FY24, could face losses of tens of millions of dollars in the short term and cautioned that the long-term impact could be “devastating.”
P@SHA further warned that freelancers and remote workers—who heavily depend on VPNs for operations—would face severe disruptions and may have to relocate overseas. The association emphasized that these policies could derail initiatives with the government such as collaborations with the Ministry of IT & Telecom (MoITT), the Special Investment Facilitation Council (SIFC) and the Prime Minister’s Office (PMO).
The Wireless and Internet Service Providers Association of Pakistan (WISPAP), representing ISPs, has called for a balanced and collaborative approach to regulating VPNs. In a statement, WISPAP Chairman Shahzad Arshad cautioned against blanket restrictions, warning that they could alienate legitimate users and stifle economic progress.
Arshad noted that while VPN technology can be misused, its primary functions include ensuring privacy, enabling secure communication, and providing access to critical online resources. He described VPNs as essential tools for IT exports, financial transactions, and academic research.
The association highlighted the neutrality of VPN technology, stating that the ethical and legal implications of such tools depend on how they are used.
Photo by: P@SHA
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