Islamabad: The Pakistan Software Houses Association (P@SHA) has raised alarms over the potential closure of IT companies due to internet slowdown and the blocking of virtual private network (VPN) services. These disruptions pose significant threats to the IT sector, which is crucial for Pakistan's economy, particularly in terms of exports, skills development, and employment generation.

According to Pakistan Software Houses Association, the IT industry, which recorded exports worth $3.2 billion in FY24, faces severe financial losses and service disruptions. Syed emphasized that the industry could suffer losses in the tens of millions of dollars in the short term, with long-term reputational damage potentially devastating the sector. The chairman highlighted the importance of the industry’s growth trajectory, which has been averaging a 30 percent increase per year, with projections to reach over $15 billion in the next five years, contingent on stable government policies.

Syed warned that blocking VPNs would severely impact IT companies, call centers, and BPO organizations, leading to the loss of major clients, including Fortune 500 companies, due to concerns over data protection and cybersecurity. He also noted the potential loss of livelihoods for remote workers and freelancers, with operational costs for IT companies potentially increasing by $100 to $150 million annually due to the need to establish overseas infrastructure.

The chairman called for the government to engage with P@SHA and other stakeholders to develop a balanced framework that ensures national security without hindering the operational needs of the IT industry. P@SHA has offered its support in organizing discussions to find solutions that protect both Pakistan's security interests and the growth of its IT exports.