The Pakistan Software Houses Association (P@SHA) has warned that Internet Disruptions due to the new national firewall could cost the economy up to $300 million. Reports indicate that Islamabad is implementing the firewall to monitor online content, though the government denies intentions of censorship.

P@SHA’s senior vice chairman, Ali Ihsan, highlighted that the firewall has already caused significant internet outages and unstable VPN connections, jeopardizing business operations. These disruptions pose a severe threat to the IT industry’s viability, potentially leading to financial losses of $300 million or more.

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The Pakistan Telecommunication Authority and the Minister of State for Information Technology, Shaza Fatima Khawaja, have yet to address these concerns. Earlier, Khawaja reassured that the firewall would not be used for censorship.

However, the country has already blocked access to social media platform X (formerly Twitter) since the February elections, citing national security reasons, while critics argue that the move stifles dissent.

P@SHA criticized the government’s lack of transparency on the firewall, leading to distrust among internet users and global IT clients worried about data security. They have called for an immediate halt to the firewall’s implementation and urged collaboration to develop a cybersecurity framework.

Despite these challenges, Pakistan’s IT exports saw significant growth, with $298 million recorded in June, marking a 33% increase from the previous year, and $3.2 billion for the fiscal year, up 24% from the previous period.