Mass Exodus of IT Companies From Pakistan is Imminent, P@SHA Warns

Ali Ihsan, Senior Vice Chairman of Pakistan Software Houses Association (P@SHA), has unequivocally condemned the grave consequences of the hastily implemented national firewall.

“The booming IT industry is facing a disaster; grappling with unprecedented operational disruptions that threaten the very foundation of Pakistan’s burgeoned tech sector. We demand review and consultation with the IT industry,” he stated.

Ali Ihsan added that the imposition of the firewall has triggered enormous challenges; with prolonged internet disconnections and erratic VPN performance threatening a complete meltdown of business operations. These disruptions are not mere inconveniences; but, a direct, tangible and aggressive assault on the industry’s viability – inflicting estimated and devastating financial losses estimated to reach at $300 million, which can further increase exponentially.

P@SHA maintained that the government’s inexplicable opacity and ambiguity surrounding the firewall’s design and objectives have ignited a firestorm of distrust among global clients of Pakistan. They fear their proprietary data and privacy will be compromised; which only serves to erode the hard-earned trust and confidence in Pakistan’s IT capabilities.

Ihsan stressed that the scenario constitutes a blatant disregard for the industry’s reputation and a perilous gamble with the nation’s economic future. A mass exodus of IT companies is not just a possibility; but, an imminent reality if immediate and decisive action is not taken. The industry is at a critical crossroads and facing a stark choice: to persevere in a hostile environment or seek refuge in more conducive ecosystems. This is not a mere warning but an urgent and unavoidable consequence, he added.

“As per industry sources, clients are looking for reliable partners. Even if they want to give projects to us due to relationship development, they still prefer not to do so due to their perception of our unreliable connectivity,” he said.

P@SHA demanded an immediate and unconditional halt to this digital siege. “We insist on a comprehensive, transparent and collaborative approach to cybersecurity – one that does not destroy the IT industry due to misplaced priorities. The government must engage in genuine dialogue with industry stakeholders to develop a cybersecurity framework that safeguards national interests without stifling innovation and growth,” Ihsan said.

Ali Ihsan stated that the Pakistan Telecommunication Authority (PTA) and the Ministry of Information Technology and Telecom (MoITT) should take swift and decisive action to rectify this grave situation. Failure to do so will have far-reaching consequences for Pakistan’s economy and its standing as a global technology hub. The IT industry is a critical engine of growth – it is a lifeline for the nation’s future, he added.

P@SHA strongly urges the government to establish a joint committee – comprising representatives from all relevant stakeholders. This committee’s primary objective should be to collaboratively develop a detailed scope and implementation plan. By doing so, the goal is to ensure that any changes or initiatives are rolled out smoothly; thereby minimizing disruptions to business operations.

Ali Ihsan apprised that the economy of Pakistan is a national security priority. “Unfortunately, without consultation and considering damaging repercussions for the fastest-growing export sector; we see a careless and reckless implementation of the national firewall that threatens to strangle the IT industry before its maturity. The internet, its reliability, quality, and throughput are of national interest. Anyone acting against it should review their decisions,” he added.