PRIME Minister Shehbaz Sharif’s ambitious plan to increase Pakistan’s IT exports from $3.2bn to $25bn in the next five years lacks the commitment needed to ensure the availability of an enabling infrastructure for industry — high-speed internet and VPN services. Chairing a meeting on IT sector reforms recently, Mr Sharif hoped that the target would be met. However, this is unlikely to happen given the recent measures taken by his government to slow down the internet and force the registration of VPNs to curb political dissent on social media. The industry association P@SHA and digital rights activists have all along warned the authorities against executing these disruptive plans in the larger interest of IT exports if not democratic values. All these warnings have fallen on deaf ears.

The industry rightly considers the steps to block VPN services as an “existential threat” for itself as it would result in disruptions and large financial and reputational losses for Pakistan’s IT exports and IT-enabled services, which are growing at an average annual rate of 30pc. With these curbs, IT exporters now expect financial losses of tens of millions of dollars in the short term, and irreparable reputational and intangible losses in the longer run. Indeed, it will deal a big blow to one of Pakistan’s fastest-growing industries, and may result in forced closure or out-migration of IT companies and talent. The restrictions on VPNs would make most IT companies, call centres, and BPO (business process outsourcing) organisations lose Fortune 500 clients and others who attach maximum importance to data protection and cybersecurity. It is only recently that Pakistan has been able to attract international IT business, which has helped to push exports and generate thousands of well-paying jobs for young people, especially women, many of whom find it difficult to get out of home and go to work. It will do no good to anyone if the government’s own insecurities force foreign firms to turn away and take their business elsewhere. The industry is willing to engage with the authorities to discuss ways to avoid blanket censorship at the cost of jobs, exports and the economy. Developing a framework that safeguards national security without compromising the IT sector’s operational needs is essential to achieve the PM’s new IT and IT-enabled services’ export plan.

Published in Dawn, November 25th, 2024