- 99% of IT companies report bottlenecks affecting productivity.
- P@SHA chairman said that VPNs cannot be blocked under PECA rules.
- P@SHA demands uninterrupted internet access and tax exemption.
ISLAMABAD: Pakistan Software Houses Association (P@SHA) Chairman Sajjad Mustafa Syed highlighted the financial and operational losses on the country’s fast-growing sector, the urgent need to ensure uninterrupted connectivity and address systemic challenges. Emphasis on action.
Syed highlighted the severe financial impact of internet outages, saying: “One hour of internet disruption costs the IT industry $910,000.”
He added that 99% of IT companies face bottlenecks in the current environment, which hampers productivity and growth.
He revealed that P@SHA raised concerns about these hurdles with the IT Ministry. Pakistan Telecommunication Authority (PTA) had set up a dedicated cell to address the grievances of the IT industry.
“After the issue was raised by P@SHA, the internet issues were resolved within hours,” Syed noted, while also mentioning the ongoing infrastructure upgrades by the PTA.
Syed emphasized that internet services should only be blocked in the event of a national security threat, and clarified, “Under PECA rules, VPNs cannot be blocked.”
“However, social media companies can be blocked under PECA rules,” he added.
Highlighting the data security risks associated with free VPNs, Syed warned that the decision to block VPNs has prompted some companies to consider relocating overseas.
P@SHA has proposed establishing local VPN service providers and registering VPNs locally to increase monitoring and reduce risks. “VPN service providers will have the ability to block certain content,” he explained.
Talking about the economic potential of the IT sector, Syed said, “For one dollar invested in the IT industry, the government gets $49.”
He added that IT exports have reached $3.2 billion, with the industry growing at a rate of 30 percent.
However, he expressed concerns about limited government investment, saying, “In recent years, the government has invested only a few million dollars in the IT industry.”
He praised recent efforts, such as the Rs 7.9 billion IT Skills Development Program and branding initiatives to position Pakistan as a global IT player.
“Pakistan’s IT sector competes with big global players,” Syed said, but stressed the need for more tax breaks to attract investment.
Syed called on the government to proactively address these challenges and harness the potential of the IT industry to drive economic growth.