Ex-Pak Datacom CEO Raises Security Concerns Over NBP Satellite Network Shift to UAE-Based Yahsat

The former chief executive of Pak Datacom has raised national security concerns over the reported transfer of satellite backup connectivity for more than 400 National Bank of Pakistan branches from Pakistan’s PakSat system to UAE-based satellite operator Yahsat.

In a letter addressed to the Ministry of Information Technology and Telecommunication, former Pak Datacom CEO Brigadier (retd) Syed Zulfiqar Ali said the change involved moving NBP’s satellite connectivity from a domestic satellite infrastructure to a system whose satellite and associated hub are based in the United Arab Emirates.

The concerns outlined in the letter have not independently established that the new arrangement has resulted in any security breach. Rather, the former chief executive has urged the government to examine the move from a national security and data-protection perspective because of the sensitivity of the institutions involved.

According to the letter, Pak Datacom had been providing satellite backup connectivity to the National Bank for approximately five years. The network was previously supported through PakSat, with NBP branches connected to VSAT hubs located in Karachi and Islamabad.

The former CEO said Pak Datacom had recently shifted the satellite service to Yahsat, a UAE-based satellite operator, with both the satellite infrastructure and the relevant satellite hub located outside Pakistan.

He argued that the use of foreign-based satellite and hub infrastructure for a major state-linked financial institution could warrant closer scrutiny, particularly given the National Bank’s role in handling government accounts and other sensitive financial operations.

The letter also maintained that the use of a virtual private network, or VPN, does not by itself eliminate all potential security risks associated with routing communications through foreign satellite infrastructure.

In his communication, Brigadier (retd) Zulfiqar Ali suggested that, given the current regional security environment, a domestic satellite network could offer greater strategic control over critical communications.

He recommended that the National Bank’s satellite backup connectivity be moved back to PakSat and called for a broader review of connectivity arrangements involving other public-sector organizations.

The letter also proposed that satellite networks serving Oil and Gas Development Company Limited (OGDCL) and the Accountant General Pakistan Revenues (AGPR) be migrated to PakSat.

It further suggested establishing a dedicated domestic satellite network for NBP, OGDCL, and AGPR, supported by purpose-built satellite hubs in Karachi under Pak Datacom.

The concerns also carry an institutional dimension. Pak Datacom operates under the Telecom Foundation, which, according to the letter, holds a 55% stake in the company. The Telecom Foundation works under the administrative control of the Ministry of IT and Telecommunication.

The issue therefore raises a wider policy question over how Pakistan should handle satellite connectivity for strategically important financial and government institutions, particularly where overseas satellite infrastructure is involved.

No response from Pak Datacom, the National Bank of Pakistan, Yahsat, or the Ministry of IT was included in the material provided. Any assessment of the security implications would therefore require the relevant institutions to clarify the technical architecture, data-routing arrangements, and safeguards governing the network.

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