ISLAMABAD: The Chairman of the Pakistan Telecommunication Authority (PTA) said on Monday no Virtual Private Networks (VPNs) had been blocked in the country and neither had a deadline been finalized for such an action, adding that over 31,000 VPNs had officially registered with the authority in recent weeks. 

The government has been cracking down on VPN use for weeks, with the PTA announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs would be blocked in Pakistan after Nov. 30. The deadline was later withdrawn, and a new one has not been announced. 

Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online. The government is also moving to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks.

Digital rights activists, however, say the government’s move against VPNs is an attempt to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns. The use of VPNs has sharply risen in Pakistan since February this year when the government banned X soon after allegations of rigging in general elections surfaced. The election commission denies them. 

“No VPN has been blocked in the country so far,” PTA Chairman Major General (R) Hafeez Ur Rehman told Arab News on the sidelines of an event marking the launch of the authority’s annual performance report.

“No deadline has been set so far to block VPNs and we are working with the government to develop a solution that minimizes inconvenience to the public but nothing has been finalized yet,” he added, saying over 31,000 VPNs had been registered with the authority so far.

Rehman said the PTA had set up a dedicated help desk for IT companies and freelancers to facilitate VPN registration and other matters. All registration applications were processed within eight hours. 

“When Internet shutdowns occur, they can approach us to get whitelisted, ensuring that their connectivity remains unaffected,” Rehman said. 

“Once whitelisted, their Internet will continue to function even during government-imposed closures due to security threats or other reasons. This helps ensure that any closure of Internet due to national security measures do not disrupt their business operations as their Internet will keep working.”

Regarding frequent Internet closures, the official said the question should be addressed to the government, which passed its instructions to the PTA. 

Amid what activists widely say is a digital crackdown in Pakistan, Minister of State for Information Technology and Telecommunications, Shaza Fatima Khawaja, said on Monday the government was establishing a National Digital Commission (NDC) to advance the vision of a Digital Pakistan.

“The Commission, led by Prime Minister Shehbaz Sharif, will include all provincial chief ministers and representatives from key regulatory bodies such as the National Database & Registration Authority (NADRA) and PTA,” she said while addressing an event in Islamabad. 

Legislation in this regard would be introduced in the National Assembly later today, Monday, Khawaja added. 

She also said the government planned to establish a new digital authority, which would develop a comprehensive national framework and master plan for digitalization, focusing on three key areas: economy, governance, and society.  

To address Internet speed issues, the government would introduce new 4G and 5G spectrums, which would help resolve a major challenge faced by freelancers and IT professionals, she said.

According to the Wireless and Internet Service Providers Association of Pakistan (WISPAP), Internet speeds have dropped in the country by 30-40 percent in recent months. 

“5G spectrum auctions will be made in April next year,” Khawaja added, “which will significantly improve Internet services in the country.”

In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” 

The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned last month Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.

Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies, P@SHA says. 
 

KARACHI: Pakistan’s central bank cut its key policy rate by 200 basis points to 13% on Monday, it said in a statement, for a fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing.

Pakistan’s latest move makes this year’s cuts the most aggressive among emerging market central banks in the current easing cycle, barring outliers such as Argentina.

The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.

All 12 analysts surveyed by Reuters expected a 200 bps cut, after inflation fell sharply, slowing to 4.9% in November, largely due to a high base a year earlier, coming in below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May last year.

Monday’s move follows cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22%, set in June 2023 and left unchanged for a year.

It takes the total cuts to 900 bps since June.