Pakistan Internet Exchange to be Established Soon

In a recent development, Pakistan has signed a strategic agreement with China for digital connectivity. In this regard, the Caretaker Federal Minister for IT and Telecommunication, Dr. Umar Saif, announced four important milestones achieved in partnership with key industry players. The main purpose of this agreement is the establishment of the ‘Pakistan Internet Exchange (PIE) powered by DE-CIX,’ Pakistan’s first carrier-neutral Internet Exchange (IX) in Islamabad.

This partnership with DE-CIX (the world’s leading IX operator) sets Pakistan up to become a central point for regional connectivity, potentially generating significant revenue from internet transit traffic.

One of the key achievements is the agreement with China, which enables Pakistan to route web traffic through the country. Talking about the significant impact of the partnership, Dr. Umar Saif said, “Pakistan is a massive digital market, with an internet user base larger than the population of Italy.” The partnership seeks to make Pakistan a hub for regional digital connectivity, delivering low-latency interconnection and the localization of global content.

The agreement also includes the setting up of the country’s first carrier-neutral Internet Exchange Point (IXP) and data center by Etisalat. PTCL, in partnership with DE CIX, will be operating this new data center, facilitating the provision of super-scaling cloud services like AWS, Google Cloud, and Azure within the country. In addition, this data center will operate as a local content hub for famous social media platforms such as YouTube, TikTok, and Netflix.

Zarrar Hasham Khan, Group Chief Business Solutions Officer at PTCL and Ufone 4G, expressed enthusiasm about the partnership and said,

As the largest integrated ICT company in Pakistan, we are committed to advancing the country’s digital infrastructure to support widespread digitalization.

The PIE is expected to contribute significantly to Pakistan’s digital economy, with the potential to generate annual revenues ranging from $200 million to $400 million through transit traffic.

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