“Internet outages cost the IT sector $910,000 per hour in losses.”

ISLAMABAD: Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA), has underscored the critical importance of uninterrupted internet services, citing their significant impact on Pakistan’s rapidly expanding IT sector.

“An hour of internet downtime results in a $910,000 loss for the IT industry,” Syed revealed, emphasizing the indispensable role of connectivity in maintaining the sector’s progress.

He disclosed that 99% of IT companies have experienced disruptions recently, hampering productivity and limiting the industry’s growth potential.

P@SHA, he noted, had raised these concerns with the Ministry of IT, prompting the Pakistan Telecommunication Authority (PTA) to establish a dedicated cell to address IT-related issues.

“Following P@SHA’s intervention, internet disruptions were resolved within hours,” Syed stated, while highlighting ongoing PTA infrastructure upgrades.

He called for internet disruptions only in cases of national security threats and clarified, “VPNs cannot be blocked under PECA laws.” However, social media platforms could face restrictions under the same framework.

Addressing the risks of free VPN services, Syed warned that their blockage had led some companies to consider relocating operations abroad. To counter this, P@SHA proposed developing local VPN service providers and registering VPNs domestically to enhance oversight and security. “Local providers will have the ability to filter specific content,” he explained.

Discussing the IT sector’s economic potential, Syed shared that every dollar invested in the industry generates $49 for the government.

He further highlighted the sector’s achievements, including $3.2 billion in IT exports and a 30% annual growth rate.

However, he expressed concerns over minimal government investment, remarking, “The government has only allocated a few million dollars to the IT sector in recent years.”

Praising recent initiatives, such as a Rs 7.9 billion IT skills development program and global branding efforts, Syed noted that Pakistan’s IT sector competes with leading global players but called for additional tax exemptions to boost investment.

He urged the government to tackle these challenges proactively, unlocking the IT industry’s potential to drive national economic growth.

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