PTBP Web Desk
The Chairman of the Pakistan Software Houses Association (P@SHA), Sajjad Mustafa Syed, has sounded the alarm over the mounting challenges faced by Pakistan’s IT industry. He emphasized the need for immediate measures to resolve connectivity issues and address systemic inefficiencies that threaten the sector’s growth and global competitiveness.
The Cost of Internet Disruptions
Syed highlighted the financial toll of frequent internet outages, stating, “An hour of internet disruption costs the IT industry $910,000.” He revealed that 99% of IT companies in Pakistan have experienced operational disruptions in the current environment, severely impacting productivity and growth.
To mitigate these issues, P@SHA engaged with the Ministry of IT, which prompted the Pakistan Telecommunication Authority (PTA) to establish a grievance cell for the IT industry. “After P@SHA raised the issue, internet problems were resolved within hours,” Syed noted. He also acknowledged PTA’s ongoing infrastructure upgrades but stressed the importance of uninterrupted internet access to sustain the sector’s progress.
National Security and Connectivity
Syed urged that internet disruptions should only occur in cases of national security threats. Addressing concerns about virtual private networks (VPNs), he clarified, “Under PECA laws, VPNs cannot be blocked. However, social media companies can be blocked under PECA laws.”
The Chairman also warned against the security risks posed by free VPN services, which lack proper oversight. He revealed that the decision to block VPNs has led some companies to consider relocating operations abroad. To counter this, P@SHA has proposed the establishment of local VPN service providers and a domestic VPN registration system to enhance oversight and minimize risks. “VPN service providers will have the ability to block specific content,” he explained.
The Economic Potential of Pakistan’s IT Sector
The IT sector in Pakistan has emerged as a key driver of economic growth, contributing $3.2 billion in exports and growing at a robust rate of 30%. Syed underlined the sector’s immense potential, noting that “investing one dollar in the IT industry generates $49 for the government.”
Despite this growth, he expressed concerns about the limited government investment in the sector. “In recent years, the government has invested only a few million dollars in the IT industry,” he said, calling for increased funding to sustain the sector’s upward trajectory.
Efforts to Strengthen the IT Industry
Syed praised recent initiatives such as a Rs 7.9 billion IT skills development program and branding campaigns aimed at positioning Pakistan as a competitive global IT player. These efforts, he said, are crucial for enhancing the country’s reputation in the international market. However, he stressed that further measures are needed, including tax exemptions, to attract domestic and foreign investment.
“Pakistan’s IT sector competes with major global players,” Syed said, emphasizing the importance of supportive policies to maintain this competitive edge. He called on the government to proactively address the challenges faced by the industry and leverage its potential to drive economic growth.
The Way Forward
The IT sector is poised to play a pivotal role in Pakistan’s economic development. However, recurring issues such as internet disruptions, limited government investment, and inadequate infrastructure pose significant barriers to its growth. P@SHA’s proposals for local VPN services, improved oversight, and increased government support represent actionable solutions to overcome these challenges.
By prioritizing the needs of the IT industry and fostering a conducive environment for growth, Pakistan can unlock the full potential of its fastest-growing sector, ensuring long-term economic benefits for the country.
