'IT sector suffers losses worth $910,000 for every hour of internet outage'

ISLAMABAD: Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA), has emphasised the urgent need for uninterrupted internet services, highlighting the significant financial and operational impact on Pakistan's rapidly growing IT sector.

"An hour of internet disruption costs the IT industry $910,000," Syed revealed, stressing the critical role of connectivity in sustaining the sector’s momentum.

He further noted that 99% of IT companies have faced disruptions under the current circumstances, severely affecting productivity and hindering the industry's growth potential.

He revealed that P@SHA raised concerns about these disruptions with the Ministry of IT. The Pakistan Telecommunication Authority (PTA) had established a dedicated cell to address IT industry grievances.

“After P@SHA raised the issue, internet problems were resolved within hours,” Syed noted, while also mentioning ongoing infrastructure upgrades by PTA.

Syed stressed that internet services should only be disrupted in the event of a national security threat, and clarified, “Under PECA laws, VPNs cannot be blocked.”

"However, social media companies can be blocked under PECA laws," he added.

Highlighting data security risks associated with free VPNs, Syed warned that the decision to block VPNs had prompted some companies to consider relocating abroad.

P@SHA has proposed establishing local VPN service providers and registering VPNs domestically to enhance oversight and minimise risks. “VPN service providers will have the ability to block specific content,” he explained.

Discussing the economic potential of the IT sector, Syed remarked, “Investing one dollar in the IT industry generates $49 for the government.”

He further noted that IT exports have reached $3.2 billion, with the industry growing at a rate of 30%.

However, he expressed concerns about limited government investment, stating, “In recent years, the government has invested only a few million dollars in the IT industry.”

He praised recent efforts, such as a Rs 7.9 billion IT skills development programme and branding initiatives to position Pakistan as a global IT player.

“Pakistan’s IT sector competes with major global players,” Syed said, but stressed the need for further tax exemptions to attract investment.

Syed called on the government to address these challenges proactively and leverage the IT industry’s potential to drive economic growth.