Internet Disruptions Cost $910,000 Per Hour: IT Industry Demands Stability

Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA), has raised concerns about the financial and operational toll internet disruptions and systemic challenges are imposing on Pakistan’s IT sector. Speaking at a recent event, Syed emphasized the need for immediate government intervention to ensure uninterrupted connectivity and unlock the industry’s economic potential.

Economic Impact of Internet Disruptions

Syed highlighted the financial cost of internet outages, stating, “An hour of internet disruption costs the IT industry $910,000.” He revealed that 99% of IT companies have faced connectivity issues, severely hampering productivity and growth.

Although P@SHA’s engagement with the Ministry of IT and the Pakistan Telecommunication Authority (PTA) has led to faster resolution of such issues, Syed stressed the need for long-term solutions. He noted that the PTA is working on infrastructure upgrades and has established a dedicated cell to address IT industry grievances.

VPN and Data Security Challenges

Syed discussed the implications of government actions under the Prevention of Electronic Crimes Act (PECA), clarifying that while VPNs cannot be legally blocked, social media platforms can be restricted. However, the decision to block VPNs has raised data security concerns and prompted some companies to consider relocating abroad.

To mitigate these risks, P@SHA has proposed establishing local VPN service providers and registering VPNs domestically to ensure better oversight and security. “VPN service providers will have the ability to block specific content,” Syed explained.

IT Industry’s Growth Potential

Despite challenges, Pakistan’s IT industry is showing remarkable growth, with exports reaching $3.2 billion and an annual growth rate of 30%. Syed pointed out that every dollar invested in the IT sector generates $49 in government revenue, underscoring the sector’s economic significance.

However, he criticized limited government investment in the industry, noting that only a few million dollars have been allocated in recent years. He urged the government to provide further tax exemptions to attract investment and maintain competitive momentum.

Government Initiatives and Future Outlook

Syed praised initiatives such as the Rs 7.9 billion IT skills development program and branding efforts to position Pakistan as a global IT hub. “Pakistan’s IT sector competes with major global players,” he said, while stressing the need for sustained support to harness the sector’s potential.

In conclusion, Syed called on the government to adopt a proactive approach to resolving internet disruptions, enhancing regulatory frameworks, and investing in infrastructure and talent development to drive the IT sector’s growth and contribute to Pakistan’s economic progress.