The Pakistan Software Houses Association (P@SHA) has warned that the country’s economy could suffer losses of up to $300 million due to internet disruptions caused by the implementation of a national firewall.
According to local media reports, Islamabad is setting up an internet firewall to monitor and regulate online content and social media platforms. The government, however, denies that the firewall will be used for censorship purposes.
Ali Ihsan, P@SHA’s senior vice chairman, stated that the firewall’s imposition has already led to prolonged internet outages and inconsistent VPN performance, putting business operations at risk of a “complete meltdown.”
“These disruptions are not just inconveniences; they represent a direct, significant, and aggressive threat to the industry’s viability,” Ihsan said, noting that financial losses could reach $300 million, with the potential for even greater impacts.
The Pakistan Telecommunication Authority (PTA) and Minister of State for Information Technology Shaza Fatima Khawaja have not yet responded to these concerns.
Earlier this month, Khawaja assured local media that the government does not intend to use the firewall for censorship.
The country has already blocked access to the social media platform X (formerly known as Twitter) since the February elections, in which former prime minister Imran Khan’s party won the most seats despite a crackdown. The government claims the blocking was necessary to prevent anti-state activities and due to X’s failure to comply with local laws. However, rights activists argue that the move was aimed at silencing critical voices and undermining democratic accountability.
In its statement, P@SHA criticized the government’s lack of transparency regarding the firewall, saying it has “ignited a firestorm of distrust” among internet users and global IT clients concerned about the security of their 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 to create a cybersecurity framework.
Pakistan recorded $298 million in IT exports in June, a 33% increase from the previous year. For the fiscal year ending in June, IT exports reached $3.2 billion, up 24% from $2.5 billion in the previous fiscal year.
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