VPN Bans Could Lead to Huge Economic Losses – P@SHA

The Pakistan Software Houses Association (P@SHA) has said that a proposed ban on Virtual Private Networks (VPNs) would have dangerous consequences for the country’s economy. The Board also said that the ban would also tarnish the country’s growing reputation as a tech and innovation hub. It would affect business operations, along with companies and individuals depending on dynamic IPs for their work.

Moreover, the banking sector specifically faces severe financial repercussions because of the restricted access to VPNs, restricting their ability to manage international transactions effectively. Consequently, the restriction will affect the government’s vision of achieving the $15 billion export target and undermine the comprehensive efforts of SIFC to facilitate the ease of doing business. It may threaten economic stability in the long term, potentially leading to massive losses and deterring foreign and domestic investments that are essential for achieving Pakistan’s ambitious IT export goals.

Apart from this, P@SHA actively engages with regulatory authorities and industry stakeholders to offer viable alternatives that both meet regulatory requirements and business needs. Moreover, the association proposed the establishment of a joint working group with the PTA to address regulatory concerns while ensuring the uninterrupted operation of Internet services.

In this regard, P@SHA said,

“We must ensure that the companies reliant on whitelisted IPs do not face undue operational hurdles. P@SHA is dedicated to advocating for a system that not only addresses regulatory concerns but also supports the dynamic needs of Pakistan’s IT industry.”

As a solution, the board also recommended the adoption of high-tech login tracking mechanisms by the PTA as opposed to a blanket ban. This approach enables effective monitoring of source and destination IPs, fulfilling regulatory objectives while preserving the essential functions of VPN services. “We remain steadfast in our commitment to advocating for the interests of the IT sector and promoting its sustainable growth and development in the country’s tech ecosystem,” P@sha added.