Islamabad, Dec 4: Pakistan’s IT sector is grappling with substantial financial losses and reputational damage due to persistent internet outages and disruptions, revealed Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA). Each hour of disruption costs the sector over $1 million, jeopardizing critical operations for export-driven businesses.
Impact on IT Exports and Operations
- Economic Losses:
NetBlocks estimates hourly internet outages cause losses of $2.21 million, while daily 3G/4G service shutdowns cost businesses Rs. 1.3 billion in direct losses, excluding broader economic repercussions. - Client Confidence:
Disruptions disrupt international sectors like stock markets, airports, and banks, leading foreign clients to seek alternatives, reducing trust in Pakistan’s IT services. - Relocation Threat:
Some IT firms are relocating to countries with reliable connectivity, threatening the sustainability of Pakistan’s IT export market.
Proposed Solutions and Industry Concerns
- Streamlining VPN Registration:
P@SHA suggests certified VPN providers to balance national security and business needs, turning challenges into opportunities. - Reliable Infrastructure:
Ensuring uninterrupted internet services is critical to maintaining Pakistan’s 55% export share to the US and 20% to Europe. - Adopting Robust IT Policies:
Mr. Syed recommends implementing advanced IT security systems, inspired by US and European models, instead of restrictive measures like VPN bans.
Call to Action
P@SHA urges the government to prioritize uninterrupted internet connectivity and address security concerns collaboratively. Failure to act could cause irreparable harm to Pakistan’s IT industry, undermining its role as a key driver of future economic growth.
