Based on the information provided, the Pakistan Business Council (PBC) has cautioned that several multinational companies are considering relocating their back offices from Pakistan. This concern arises amidst reports indicating a significant rise in the number of Pakistani companies registering in Dubai, suggesting a growing exodus from Pakistan. The report by the Dubai Chamber of Commerce highlights a surge in Dubai-based Pakistani businesses, potentially reflecting challenges faced by Pakistan such as unemployment and slow economic growth.
The PBC attributes the potential migration of multinational companies to internet disruptions reportedly caused by the implementation of a firewall in Pakistan. This lack of confidence in government economic policies is exacerbated by high business costs, political uncertainties, escalating electricity expenses, and deteriorating law and order.
In response to the recent internet slowdown, the tech industry has expressed worries, warning that these disruptions could result in significant financial losses of up to $300 million for Pakistan. Additionally, the Overseas Investors Chamber of Commerce and Industry (OICCI) has cautioned that frequent internet disruptions may impede the country’s economic progress.
Furthermore, the Pakistan Software Houses Association has conveyed that these disruptions are not merely inconveniences but direct and aggressive challenges to the industry’s viability, potentially resulting in financial losses amounting to $300 million.
The Pakistan government is reportedly implementing an Internet firewall to monitor and regulate content and social media platforms, although denying any intention of using it for censorship. Despite these reports, the Pakistan Telecommunication Authority and the Minister of State for Information Technology, Shaza Fatima Khawaja, have not yet responded.
In more positive news, Pakistan has recorded a notable increase in IT exports in June, reaching $298 million, marking a 33% growth from the previous year. The IT exports for the fiscal year that concluded in June totalled $3.2 billion, reflecting a 24% increase from the fiscal year 2023. This growth demonstrates the sector’s potential contribution to the economy and export targets set for the coming years.
Minister Addresses Slow Internet Concerns Linked to VPN Usage in Pakistan
Today, Federal Minister of State for Information Technology, Shaza Fatima Khawaja, recently addressed concerns surrounding the slowed internet service in Pakistan during a news conference held in Islamabad. The Minister highlighted the impact of VPN (Virtual Private Network) usage on internet speed, shedding light on the factors contributing to the sluggish connectivity experienced by users.
Explanation of the Issue:
The decline in internet service quality in Pakistan has been attributed to the widespread use of VPNs. VPNs enable users to bypass local internet services, leading to a surge in internet traffic that ultimately hampers connection speeds for the broader user base. The excessive reliance on VPNs has become a significant factor in the slowing down of internet services across the country.
Government’s Response:
In response to the challenges posed by VPN usage and its consequences on internet speeds, the government has initiated measures to enhance internet services in Pakistan. One notable step includes the establishment of a Digitization Commission aimed at facilitating the digitization of the economy and driving advancements in IT exports. These efforts underscore the government’s commitment to bolstering digital infrastructure and optimizing internet connectivity for all users.
Rejection of Claims:
Addressing speculations or reports suggesting intentional throttling of internet speeds by the government, Minister Shaza Fatima Khawaja dismissed such claims. She clarified that the slowdown observed is primarily due to the escalation in internet traffic caused by extensive VPN usage, rather than any deliberate action on the part of the authorities to impede internet services.
Conclusion:
Minister Shaza Fatima Khawaja reassured the public that the government is actively working towards improving internet services across Pakistan. Emphasizing the importance of resolving the issues stemming from VPN usage, the Minister expressed a forward-looking approach, affirming the government’s dedication to overcoming connectivity challenges and enhancing digital infrastructure to meet the evolving needs of the populace.
In her closing remarks, Minister Shaza Fatima Khawaja reiterated the government’s commitment to fostering a robust digital ecosystem that promotes innovation, efficiency, and seamless connectivity for all internet users in Pakistan.
