Pakistan’s Information Technology (IT) sector is facing heavy losses, losing over $1 million every hour due to frequent internet disruptions, according to Sajjad Mustafa Syed, Chairman of the Pakistan Software Houses Association (P@SHA).
Speaking to the media on Tuesday, Syed emphasized that achieving the government’s $15 billion IT export target requires stable infrastructure, easy market access, favorable tax policies, and skilled professionals. “Every dollar spent on market access generates $49 in returns, as seen over the past three years,” Syed explained.
He noted the sector’s strong growth, with IT exports increasing by 40% to reach $3.2 billion. The United States accounts for 55% of these exports, followed by 20% to Europe. However, Syed stressed that better branding is crucial to unlock the industry’s full potential.
Syed shared concerning data about internet shutdowns, revealing that 99% of IT companies have faced disruptions, and 90% suffered financial losses. He cited a recent example where a call center incurred a $2 million penalty during an internet blackout.
Discussing taxation, Syed said revenue-based taxes place a heavy burden on the IT sector. He urged the government to introduce tax incentives to help the industry grow, attract foreign investments, and increase remittances.
He also raised concerns about data security, warning about the risks of free Virtual Private Networks (VPNs). Syed called for a secure and industry-friendly VPN model to address these risks.
Lastly, he highlighted P@SHA’s role in aligning policies, stressing that IT sector growth must integrate with broader policy frameworks for sustained success.
