INP-WealthPk

IT experts urge govt to ease VPN curbs to avoid financial losses

December 13, 2024

Amir Saeed

The VPN registration policy poses significant risks to Pakistan’s IT sector, potentially driving talent abroad and leading to substantial financial losses and reputational damage in the global market.

Talking to WealthPK, Furqan Shakir, founder of Dot World, a software developer, said that the registration policy had ignited fears regarding surveillance and restricted access to essential tools for IT professionals. “Many rely on VPNs to maintain privacy and secure communication channels while accessing global platforms.” He highlighted that Pakistan Telecommunication Authority (PTA) had limited registration to companies, freelancers and certain organisations, sidelining ordinary users using VPNs for personal security. “This narrow scope raises concerns that general users may lose access entirely, undermining their ability to navigate the internet freely.”

“As a result of these restrictions, IT exporters anticipate immediate financial losses amounting to millions of dollars. The long-term repercussions could include irreparable damage to the country’s reputation in the global IT market, particularly affecting its ability to attract foreign investment and partnerships. The potential for forced closures or the out-migration of IT firms and talent looms large, threatening one of the country’s fastest-growing sectors,” he cautioned. Shakir lamented that the implications of this policy extended beyond individual privacy concerns as they posed a significant economic threat. “The IT sector has been a key driver of job creation, particularly for young professionals and women who often face barriers to traditional employment.”

Talking to WealthPK, Ghulam Rehman, President of Freelancers Association, Gilgit-Baltistan, said that with the rise in remote work facilitated by technology, many freelancers contributed substantially to the economy. “A crackdown on unregistered VPNs could jeopardise these livelihoods, pushing many towards unemployment amid rising economic pressures.” Pakistan Software Houses Association (P@SHA) has voiced strong opposition to the proposed VPN restrictions, emphasising that while regulatory measures are necessary for national security, they must not stifle economic growth or deter investment in the technology sector.The association argued that a blanket ban on VPNs could hinder operational capabilities for businesses reliant on dynamic IP addresses and secure connections for international transactions.

Rehman suggested the government mitigate these risks by adopting a transparent approach that includes clear exemptions for tech professionals and engages stakeholders in developing a balanced policy. “This would ensure that security measures do not come at the expense of privacy rights or economic stability.  The government must recognise that while curbing illegal activities is important, it should not target legitimate users who depend on VPNs for their work,” he emphasised. “By fostering an environment that prioritises security and privacy, the government can help sustain this vital sector while protecting the rights and livelihoods of its professionals,” Rehman stressed.

Credit: INP-WealthPk