The country’s economy could lose up to $300 million due to internet disruptions caused by the imposition of a national firewall, the Pakistan Software Houses Association (P@SHA) said in a press release on Thursday.

The government is implementing an internet firewall to monitor and regulate content and social media platforms. The government denies the use of the firewall for censorship.

Ali Ihsan, senior vice chairman of P@SHA, said the imposition of the firewall has already caused prolonged internet disconnections and erratic performance of virtual private networks, 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 an estimated and devastating financial losses estimated to reach $300m, which can further increase exponentially,” he said in the statement.

Minister of State for Information Technology Shaza Fatima Khawaja did not immediately respond. Earlier this month, she said that the government did not plan to use firewalls as a form of censorship.

The government has already blocked access to social media platform X since the February elections in which the PTI won the most seats despite a crackdown and ban on it.

The government has said the blocking was to stop anti-state activities and a failure by X to adhere to local Pakistani laws. Rights activists say the blocking of X is designed to stifle critical voices and democratic accountability in the country.

In its statement, P@SHA said that the government’s lack of transparency around the firewall had “ignited a firestorm of distrust” among internet users and Pakistan’s global IT clients who fear their proprietary data and privacy will be compromised.

P@SHA demanded an “immediate and unconditional halt to this digital siege” and called on the government to engage with the industry to develop a cybersecurity framework.

The country recorded $298m in IT exports in June, up 33 per cent from the year before. During the fiscal year that ended in June, IT exports were worth $3.2 billion, up 24pc from $2.5bn in the fiscal year 2023.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

One year on

One year on

Governance by the ruling coalition has been underwhelming and marked by growing authoritarianism.

Editorial

Climate funding gap
Updated 17 Feb, 2025

Climate funding gap

Pakistan must boost its institutional capacity to develop bankable climate projects.
UN monitoring report
Updated 17 Feb, 2025

UN monitoring report

Pakistan must press Kabul diplomatically over its tolerance of TTP terrorism.
Tax policy reform
17 Feb, 2025

Tax policy reform

THE cabinet’s decision to create a Tax Policy Office at the finance ministry has raised hopes that tax policy is...
Maintaining balance
Updated 16 Feb, 2025

Maintaining balance

It must take a more proactive approach to establishing Pakistan’s bona fides.
Welcome return
16 Feb, 2025

Welcome return

IT is almost here; the moment Pakistan has long been waiting for — the first International Cricket Council...
Childhood trauma
16 Feb, 2025

Childhood trauma

BEING a child in this society should not be so hard. But recurrent reports of child abuse — from burying girl...