Pakistan VPN ban could hike IT sector operational costs by $150 million annually — association

A view shows the technical support room where team members provide solutions to clients, at Connect Communication, provider of high bandwidth and data connectivity solutions to customers, in Karachi, Pakistan on August 22, 2024. (REUTERS/File)
Short Url
Updated 20 November 2024
Follow

Pakistan VPN ban could hike IT sector operational costs by $150 million annually — association

  • Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in fiscal year 2024
  • Business Council says many multinational firms considering relocating from Pakistan, some having “already done so” 

KARACHI: The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, has warned this week Internet slowdowns and the restriction of virtual private network (VPN) services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually. 

Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in FY24. 

Internet speeds in Pakistan have dropped by up to 30-40 percent over the past few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP) as the federal government moves to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Authorities have also announced a ban on the use of VPNs in the country.

Pakistan has already blocked access to social media platform X since the February general elections, with the government saying the blocking was to stop anti-state activities and due to a failure by X to adhere to local Pakistani laws. 

Rights activists say all these moves are designed to stifle critical voices and democratic accountability in the country, which the government denies. 

“Internet slowdown and blocking of virtual private network (VPN) services will certainly translate into an existential threat as it will result in unrecoverable financial loss, service disruptions, and reputational loss in the export of IT and IT-enabled Services (ITeS),” P@SHA Chairman Sajjad Mustafa Syed said in a statement released on Tuesday, putting “cautious estimates” of the increase in operational costs of the IT industry from VPN blockages at between $100-150 million each year.

In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” P@SHA also said that month Pakistan’s economy could lose up to $300 million a year due to Internet disruptions caused by the imposition of the firewall.

“Even by conservative estimates the IT industry will suffer losses in tens of millions of dollars in the short term; and the reputational and intangible loses will be huge and devastating for the industry in the longer run, especially with the global competitive landscape evolving in this space,” Syed said. 

He said the Internet slowdown and VPN blocks would deal a “huge blow” to one of the fastest-growing industries of Pakistan and create a “domino effect” on other sectors of the economy.

“Domestic and international IT companies will be forced to close or significantly restrict their operations in Pakistan – and it will be detrimental to the most flourishing industry of Pakistan vis-à-vis exports, skills development and employment generation,” Syed added.

“In addition to this, it will be extremely demoralizing and discouraging for our IT companies, their workforce, start-up entrepreneurs, freelancers, and everyone involved in the sector – who are working very hard to bring Pakistan at the forefront of global technology destinations.”

Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.

“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” Syed said. 

“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”

He said the estimated financial losses from the moves did not include the inevitable loss of livelihoods of remote workers and freelancers, urging authorities to engage with P@SHA, industry leaders, and relevant stakeholders to develop a “balanced and secure framework” that safeguarded national security without compromising the operational needs of the IT and other economic sectors of Pakistan.


Pakistan PM says encouraging to see women like Naila Kiani setting records in mountaineering

Updated 6 sec ago
Follow

Pakistan PM says encouraging to see women like Naila Kiani setting records in mountaineering

  • Kiani on Friday summitted Kanchenjunga to become first Pakistani woman to summit 12 ‘eight-thousanders’
  • She stands on the threshold of joining only 17 women who have conquered all 14 peaks above 8,000 meters

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday praised Pakistani mountaineer Naila Kiani for scaling 8,586-meter Kanchenjunga, the world’s third highest peak, saying it was encouraging to see Pakistani women making records in such difficult sport.

With the ascent of Kanchenjunga on Friday, Kiani became the first Pakistani woman to scale 12 of the world’s 14 peaks above the height of 8,000 meters, according to Alpine Club of Pakistan (ACP), which arranges various expeditions.

The Pakistani mountaineer stands on the threshold of joining a global elite of only 17 women who have conquered all 14 eight-thousanders, Imagine Nepal, her expedition organizer, said after Friday’s summit.

“Pakistanis are making their country proud in every field of sports,” Sharif said in a statement. “It is encouraging to see Pakistani women setting records in a difficult sport like mountaineering.”

Kiani has previously summited Mount Makalu (8,485m), Broad Peak (8,047 meters), Annapurna (8,091 meters), K2 (8,611 meters), Lhotse (8,516 meters), Gasherbrum 1 (8,068 meters), Gasherbrum II (8,035 meters), Nanga Parbat (8,125 meters), Mount Everest (8,849 meters), Manaslu (8,156 meters) and Cho Oyu (8,201 meters) mountains.

The ACP described Kiani’s feat as a “monumental milestone” in the history of Pakistani mountaineering and a moment of immense national pride.

“From the towering heights of Everest and K2 to the perilous slopes of Annapurna and Lhotse, her journey tells a powerful story of grit, resilience and an unshakable will,” it said on Friday.

“This is not just a personal achievement— it is a symbol of empowerment for women in sports, a beacon of hope and inspiration for Pakistan, and a proud moment for every mountaineering enthusiast.”


Pakistan ranks seventh in civilian harm, second in IED casualties worldwide — report

Updated 24 May 2025
Follow

Pakistan ranks seventh in civilian harm, second in IED casualties worldwide — report

  • UK-based Action on Armed Violence monitor says Pakistan witnessed 790 civilian casualties in 248 incidents last years
  • The Baloch Liberation Army killed and injured 119 civilians, followed by Daesh (45 casualties) and Pakistan Taliban (10)

ISLAMABAD: Pakistan ranked seventh in the world for civilian casualties from explosive weapons and second most affected nation in terms of casualties from improvised explosive devices (IEDs) last year, UK-based monitor Action on Armed Violence (AOAV) said this week.

In its annual report, the AOAV said it had recorded 67,026 deaths and injuries as a result of the use of explosive weapons around the world, which was the highest since 2010.

The report said 89% of 59,524 civilians were either killed or wounded by explosive weapons in 2024, adding that 41% of them, or 24,147 individuals, were killed in incidents of explosive violence.

Pakistan was the seventh most affected country for civilians harmed by explosive weapons last year, with 790 civilian casualties (210 killed) in 248 incidents, a 9% decrease from 2023. However, there was a 11% increase in incidents compared to 218 in 2023.

“The majority of civilian harm was attributed to non-state actors, who were reportedly responsible for 76% (603) of civilian casualties. In particular, the Balochistan Liberation Army (BLA) killed and injured 119 civilians in Pakistan last year,” the report read.

“The Islamic State (Daesh) affiliate in the region, Islamic State – Khorasan Province (IS-KP), was the reported perpetrator of 45 civilian casualties in Pakistan last year, down from 194 recorded civilian casualties in 2023. The Tehreek-e-Taliban Pakistan (TTP) killed and injured 10 civilians last year, down from 32 in 2023.”

Unknown non-state actors accounted for 54% of civilian casualties (423), down from 541 recorded in 2023, in Pakistan. The BLA was the reported perpetrator of 15% (119) civilian casualties, marking a 440% increase from 22 in 2023.

Pakistan is currently battling twin insurgencies: one led my religiously motivated groups, including the TTP, mainly in its Khyber Pakhtunkhwa (KP) province and the other by ethno-nationalist Baloch separatist groups like the BLA in Balochistan.

Islamabad has frequently accused Afghanistan and India of supporting the TTP, BLA and other militant groups who have mounted their attacks in Pakistan in recent years. Kabul and New Delhi deny the accusations.

In terms of IEDs, Lebanon saw the highest level of harm globally, with 3,373 civilians killed and injured across only 16 incidents, accounting for 58% of civilian casualties from IED attacks globally, according to the report.

Pakistan saw the second highest level of civilian harm due to IED attacks, with AOAV recording 485 civilian casualties (139 fatalities) in 132 incidents.

“This is a 30% decrease in civilian casualties, but an 8 % increase in incidents,” the monitor said.

Other countries which saw elevated levels of civilian harm from IEDs in 2024 included Nigeria (385 civilian casualties), Iran (378), Somalia (270), Syria (253), Afghanistan (170), and Myanmar (84).


Authorities issue thunderstorm alert for Pakistan’s Punjab, Khyber Pakhtunkhwa provinces

Updated 24 May 2025
Follow

Authorities issue thunderstorm alert for Pakistan’s Punjab, Khyber Pakhtunkhwa provinces

  • Last week, a child was killed and 11 people were injured as a thunderstorm hit upper parts of the country
  • Pakistan has seen erratic changes in weather leading to frequent heatwaves, untimely rains in recent years

ISLAMABAD: The National Disaster Management Authority (NDMA) has issued an impact-based weather alert predicting isolated showers, thunderstorms, windstorms and dust storms over the next 24 hours in various parts of Punjab and Khyber Pakhtunkhwa provinces and the federal capital of Islamabad.

In Punjab, the areas that may be affected include Rawalpindi, Attock, Jhelum, Chakwal, Mianwali, Sialkot, Faisalabad, Sargodha, Gujranwala, Gujrat, Lahore, Narowal and adjoining regions, according to the NDMA.

In Khyber Pakhtunkhwa, isolated rainfall, windstorm, thunderstorm and dust storm are expected in Chitral, Battagram, Kohistan, Kohat, Kurram, Bannu, Mardan, Peshawar, Swabi, Charsadda, Nowshera, Mansehra, Abbottabad, Dera Ismail Khan, Bajaur, Mohmand and surrounding areas.

“These weather conditions are likely to bring temporary relief from the prevailing heatwave,” the NDMA said in a statement.

“However, strong winds and thunderstorms may uproot weak trees and cause temporary power outages. Dust storms may damage fragile structures, rooftops, vehicles, and electrical infrastructure. Reduced visibility during storms may increase the risk of road accidents.”

The authority advised the public to not go near trees, billboards and other unstable structures during storms.

“Park vehicles in secure, covered locations and minimize outdoor movement,” it said. “NDMA is closely monitoring the situation and coordinating with relevant departments to ensure timely response and public safety.”

Last week, a child was killed and 11 people were injured as a thunderstorm hit upper parts of Pakistan, rescue officials said. In April, an intense hailstorm battered Pakistan’s capital and its surrounding areas. Several vehicles were damaged and house windows smashed as hailstones rained down from the sky on April 16.

Pakistan has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, storms, cyclones and droughts in recent years. Scientists have blamed the events on human-driven climate change.

In 2022, devastating floods, blamed on human-driven climate change, killed more than 1,700 Pakistanis, affected another 33 million and caused the country over $30 billion in economic losses.


IMF team concludes Pakistan visit after talks on budget proposals, economic policy and reforms

Updated 24 May 2025
Follow

IMF team concludes Pakistan visit after talks on budget proposals, economic policy and reforms

  • The visit concluded hours after the Pakistani government announced it will now present Budget 2025-26 on June 10
  • Pakistan aims for 1.6% primary surplus of GDP in new budget as next IMF reviews expected in second half of 2025

ISLAMABAD: An International Monetary Fund (IMF) team has concluded its visit to Pakistan after discussions with authorities regarding the upcoming budget, broader economic policy and reforms under its ongoing $7 billion loan program, the lender said on Saturday.

The visit concluded hours after the Pakistani government announced it would now present the Budget 2025-26 on June 10, a delay from the earlier announced date of June 2, seen by many as a result of authorities’ struggle to finalize fiscal targets.

The Economic Survey 2024-25, which details performance of various sectors of the economy in the outgoing fiscal year, will be unveiled on June 9, a day before the budget presentation, according to the Pakistani finance ministry.

The discussions between Islamabad and the IMF team, led by Mission Chief Nathan Porter, began on May 19 and focused on recent economic developments, IMF program implementation, and the budget strategy for the next fiscal year.

“The authorities reaffirmed their commitment to fiscal consolidation while safeguarding social and priority expenditures, aiming for a primary surplus of 1.6 percent of GDP in FY2026,” Porter was quoted as saying by the IMF.

“Discussions focused on actions to enhance revenue — including by bolstering compliance and expanding the tax base — and prioritize expenditure. We will continue discussions toward agreeing over the authorities’ FY26 budget over the coming days.”

The IMF this month approved first review of Pakistan’s loan program, unlocking a $1 billion payment. A fresh $1.4 billion loan was also approved under the IMF’s climate resilience fund.

The IMF loan is vital for Pakistan which is trying to revive its debt-ridden economy that is expected to expand 2.68 percent by June, about one percent lower than the government’s earlier projection.

The IMF’s latest country report, issued last week, mentioned certain structural benchmarks for Pakistan’s economic reform program that officials said represented the natural progression of the measures already agreed upon, when Pakistan signed the Memorandum for Economic and Financial Policies (MEFP) in September.

“These benchmarks are not surprises. They are deliberate follow-ons to earlier milestones,” Khurram Schehzad, an adviser to Pakistan’s finance minister, told Arab News this week, citing Pakistan’s parliamentary approval of the next budget in line with the IMF staff agreement as a second step toward the country’s goal of achieving a primary surplus of 2 percent of GDP by FY27.

“The first step was the FY25 budget [presented in June last year], which targeted a 1.0 percent surplus.”

Discussions between Pakistan and the visiting IMF team also covered ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan’s power sector as well as other structural reforms which will help foster “sustainable growth and promote a more level playing field for business and investment,” according to the lender.

Pakistani authorities emphasized their commitment to ensuring sound macroeconomic policy-making and -building buffers.

“In this context, maintaining an appropriately tight and data-dependent monetary policy remains a priority to ensure inflation is anchored within the central bank’s medium-term target range of 5–7 percent,” the lender said.

“At the same time, rebuilding foreign exchange reserve buffers, preserving a fully functioning FX [foreign exchange] market, and allowing for greater exchange rate flexibility are critical to strengthening resilience to external shocks.”

The next IMF mission is expected to visit Pakistan in the second half of 2025 for next reviews its loan program and climate fund facility.


Beyond ceasefire, India and Pakistan battle on in digital trenches

Updated 24 May 2025
Follow

Beyond ceasefire, India and Pakistan battle on in digital trenches

  • Both states continue to push competing narratives after the four-day military standoff, which ended on May 10 with a US-brokered truce
  • Digital rights experts note how it is often laced with hate, targeting vulnerable communities like Muslims in India and Hindus in Pakistan

ISLAMABAD: As Indian and Pakistani guns fell silent after trading fire for days this month, the war over facts and fiction is far from over and fierce battle rages on social media as to who won, who distorted the truth, and which version of events should be trusted.

As both states continue to push competing narratives, experts warn that misinformation, censorship and AI-generated propaganda have turned digital platforms into battlegrounds, with real-world consequences for peace, truth and regional stability.

The four-day military standoff, which ended on May 10 with a US-brokered ceasefire, resulted from an attack in Indian-administered Kashmir that killed 26 people last month. India accused Pakistan of backing the assault, a charge Islamabad has consistently denied.

While the truce between the nuclear-armed archfoes has since held, digital rights experts have sounded alarm over the parallel information war, which continues based on disinformation, censorship and propaganda on both sides, threatening the ceasefire between both nations.

Asad Baig, who heads the Media Matters for Democracy not-for-profit that works on media literacy and digital democracy, noted that broadcast media played a central role in spreading falsehoods during the India-Pakistan standoff to cater to an online audience hungry for “sensational content.”

“Disinformation was overwhelmingly spread from the Indian side,” Baig told Arab News. “Media was playing to a polarized, online audience. Conflict became content, and content became currency in the monetization game.”

A man clicks a picture of a billboard featuring Pakistan's Army Chief General Syed Asim Munir (C), Naval Chief Admiral Naveed Ashraf (R), and Air Chief Marshal Zaheer Ahmed Babar Sidhu, along a road in Peshawar on May 15, 2025. (AFP/File)

Several mainstream media outlets, mostly in India, flooded the public with fake news, doctored visuals and sensationalist coverage, fueling mass anxiety and misinformation, according to fact-checkers and experts, who say the role of media at this critical geopolitical juncture undermined journalistic integrity and misled citizens.

“I think this is a perfect example of the media becoming a tool of propaganda in the hands of a state,” said prominent digital rights activist Usama Khilji, calling on those at the helm of television and digital media outlets to independently verify state claims using tools like satellite imagery or on-ground sources.

In Pakistan, X, previously known as Twitter, had been banned since February 2024, with digital rights groups and global organizations calling the blockade a “blatant violation” of civic liberties and a threat to democratic freedoms.

But on May 7, as Pakistan’s responded to India’s missile strikes on its territory that began the conflict, the platform was suddenly restored, allowing users to access it without a VPN that allows them to bypass such restrictions by masking their location. The platform has remained accessible since.

“We were [previously] told that X is banned because of national security threats,” Khilji told Arab News, praising the government’s “strategic move” to let the world hear Pakistan’s side of the story during this month’s conflict.

“But when we actually got a major national security threat in terms of literal war, X was unblocked.”

Indian authorities meanwhile blocked more than 8,000 X, YouTube and Instagram accounts belonging to news outlets as well as Pakistani celebrities, journalists and influencers.

“When only one narrative is allowed to dominate, it creates echo chambers that breed confusion, fuel conflict, and dangerously suppress the truth,” Khilji explained.

VIRTUAL WAR

Minutes after India attacked Pakistan with missiles on May 7, Pakistan released a video to journalists via WhatsApp that showed multiple blasts hitting an unknown location purportedly in Pakistan. However, the video later turned out to be of Israeli bombardment of Gaza and was retracted.

A woman wearing a T-shirt featuring ‘OPERATION SINDOOR’ checks her mobile phone near a market area in Ludhiana on May 17, 2025. (AFP/File)

On May 8, Indian news outlets played a video in which a Pakistani military spokesperson admitted to the downing of two of their Chinese-made JF-17 fighter jets. X users later pointed out that the video was AI-generated.

Throughout the standoff both mainstream and digital media outlets found themselves in the eye of the storm, with many official and verified accounts sharing and then retracting false information. The use of AI-generated videos and even video game simulations misrepresented battlefield scenarios in real time and amplified confusion at a critical moment.

Insights from experts paint a disturbing picture of how information warfare is becoming inseparable from conventional conflict. From deliberate state narratives to irresponsible media and rampant misinformation on social platforms, the truth itself is becoming a casualty of war.

AFP Digital Verification Correspondent Rimal Farrukh describes how false information was often laced with hate speech, targeting vulnerable communities like Muslims in India and Hindus in Pakistan.

“We saw dehumanizing language, misleading visuals, and recycled war footage, often from unrelated conflicts like Russia-Ukraine or Israel-Gaza, used to stoke fear and deepen biases,” she told Arab News.