The tech business lobby group has issued a grim warning that government policies are leading to business closures, financial losses among its members, and damage to the nation's IT exports.
PASHA's concern centres around slowing internet access speeds and government-imposed service outages. Pakistan experienced significant internet disruptions in May 2022, coinciding with mass political protests, and these blackouts have continued. As a result, freelance gig platforms like Fiverr have cautioned clients that hiring members from Pakistan could result in potential service disruptions.
Pakistan had a policy of encouraging freelancers to sell their services online to boost tech services exports. The government even considered providing freelancers with tax holidays, subsidised broadband, and health insurance to support the online labour force.
However, in August 2024, Pakistan decided to use its firewall to limit access to content it deems inappropriate. The firewall aimed to assist this effort. Unfortunately, it has significantly slowed internet access, making it challenging for freelancers and other online businesses.
PASHA previously urged Pakistan's government not to allow the IT industry to be "sacrificed at the altar of misplaced priorities."
The government is also planning to ban VPNs, partly on religious grounds. The basis of this was a government document where the Council of Islamic Ideology was quoted as saying: “Using VPNs to access blocked or illegal content is against Islamic and social norms. Therefore, their use is not acceptable under Islamic law.”
However, that statement was later retracted (the CII claimed it was just a typo), although the ban is still being worked on.
PASHA chairman Sajjad Mustafa Syed warned that such a ban would harm Pakistan's IT companies, call centres, and business process outsourcing organisations, potentially costing them significant clients.
Syed described the situation as an "irreparable setback." He claimed it would have a "domino effect" on other sectors of the economy, possibly threatening services exports, which he estimated brought in $3.2 billion in fiscal 2024.
