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The Software Houses Association has warned that implementing an internet firewall might cost the economy $300 million.

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KARACHI: The Pakistan Software Houses Association (P@SHA) warned on Thursday that the implementation of a national internet firewall could cost the country’s economy up to $300 million.

The firewall, intended to monitor and regulate online content and social media platforms, has already led to significant internet disruptions, including prolonged outages and inconsistent VPN performance. P@SHA’s senior vice chairman, Ali Ihsan, described these issues as more than just minor inconveniences, calling them a serious threat to business operations that could result in substantial financial losses.

The Pakistan Telecommunication Authority (PTA) and Minister of State for Information Technology Shaza Fatima Khawaja have not yet responded to the concerns. Khawaja previously stated that the government does not intend to use the firewall for censorship.

The government has also blocked access to the social media platform X since February, following elections in which former prime minister Imran Khan’s party faced a crackdown. The government cited anti-state activities and non-compliance with local laws as reasons for the block, while rights activists argue it aims to suppress critical voices and democratic oversight.

P@SHA criticized the lack of transparency surrounding the firewall, which has led to growing distrust among internet users and international IT clients concerned about data security and privacy. The association has called for an immediate cessation of the firewall and urged the government to collaborate with the industry to create a cybersecurity framework.

In June, Pakistan recorded $298 million in IT exports, a 33% increase from the previous year, with total IT exports for the fiscal year reaching $3.2 billion, a 24% rise from $2.5 billion in the 2023 fiscal year.

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