Pakistan Business Council warns of multinational firms exiting country due to Internet disruptions

People work at their stations at an incubation centre in Lahore, Pakistan, on May 24, 2019. (AFP/File)
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Updated 17 August 2024
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Pakistan Business Council warns of multinational firms exiting country due to Internet disruptions

  • Nearly 4,000 Pakistani companies registered at Dubai Chamber of Commerce between January and June this year
  • IT industry stakeholders say that poor Internet connectivity in Pakistan can negatively impact IT export revenue in 2024

ISLAMABAD: The Pakistan Business Council (PBC) has warned that frequent Internet disruptions and low speed of Internet, caused by poor implementation of a firewall, have led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.”
The PBC, established in 2005 by 14 leading corporations, multinationals and business groups, has went on to become a 96-member-strong body over the years and serves as an advocacy forum for improving the South Asian country’s business environment.
The PBC statement comes amid a 30-40 percent dop in Internet speed in Pakistan over the past few weeks, the Wireless and Internet Service Providers Association of Pakistan (WISPAP) said this week, amid the government’s move to install a nationwide firewall to block malicious content, protect government networks from cyberattacks, and allow it to identify IP addresses associated with what it calls “anti-state propaganda.”
A firewall is a network security mechanism that monitors and filters incoming and outgoing network traffic, based on predetermined security parameters. It acts as a barrier whose main purpose is to allow non-threatening traffic in and to keep dangerous and undesirable traffic out. Pakistan’s Internet regulatory body, the Pakistan Telecommunication Authority (PTA), has the ability to block unwanted content and prevent the access of local users to specific websites, but the installation of the firewall is expected to enhance its capability to filter and monitor content on a wider scale.
“There are many MNCs (multinational corporations) planning to relocate their offices and some have already done so,” the PBC said in a statement on Friday. “It is not too late as we should go back and get the right firewall or learn to apply it without creating unnecessary impact on employment and exports.”
The statement coincided with a report from the Dubai Chamber of Commerce, which said that 3,968 Pakistani companies registered in Dubai between January and June 2024, placing Pakistan second on the list. This represents a 17 percent increase, compared to the 3,395 firms registered during the same period in 2023. In total, the Dubai chamber registered 8,036 new Pakistani businesses last year.
The business council said that information technology (IT) and IT-enabled services, along with agriculture and tourism, offered valuable opportunities to achieve the prime minister’s export target over the next three years.
“High-speed connectivity is also vital for the domestic economy,” the council said, adding that while everyone struggled with the costs of idle capacity in power generation leading to unemployment and loss of exports and tax revenue, they now had to contend with the “threat” of idle capacity in the emerging software sector due to poor execution of a firewall.
“Even if a firewall is necessary for security, trials could have saved the livelihoods of thousands of freelance software developers and avoided damage to Pakistan’s credibility as a reliable supplier of IT/IT-enabled services.”
Pakistan’s State Minister for IT Shaza Fatima Khawaja has said that her ministry has been addressing complaints of “slow” Internet speed in the country.
“There have been complaints of slow Internet and I have asked the PTA to provide data of the last two weeks to look at the data traffic to know the speed issue,” Khawaja told reporters after attending a meeting of the Senate Standing Committee on Information Technology and Telecommunications on Thursday. “Internet should never be slow as the digital economy and digital governance depend on good Internet speed.”
Asked about the installation of a firewall, the minister said it was a cybersecurity matter and that countries around the world used the technology.
Pakistan’s Overseas Investors Chambers of Commerce and Industry (OICCI) on Thursday said “such disruptions could derail Pakistan’s economic progress, stifle innovation, and severely impact the prospects for much-needed foreign direct investment — a vital component for the nation’s economic revival.”
The OICCI said recurring Internet curbs exacerbate the challenges faced by the services sector and erode investor confidence.
“With Pakistan already struggling to attract FDI [foreign direct investment], these actions risk further isolating the country from the global digital economy,” it said in a statement.
This week, the Pakistan Software Houses Association (P@SHA) said the recent Internet disruptions were not mere inconveniences but a “direct, tangible, and aggressive assault” on the industry’s viability, inflicting devastating financial losses of up to $300 million that could further increase exponentially.
Nadeem Nasir, communications manager at the Ignite fund that supports startups in Pakistan, said Internet issues in Pakistan were indeed a significant challenge for startups, particularly those in the IT sector.
“When connectivity is unstable, it disrupts business continuity, leads to missed opportunities and increases operational costs,” he told Arab News.
Pakistani IT-related startups collectively generated an estimated annual revenue of around $500 million last year, according to Nasir.
“This figure reflects the growing potential of the tech ecosystem, but the current firewall and Internet speed issues are likely to negatively impact this year’s performance,” he said.
Nasir said startups relied heavily on cloud services, real-time communication tools and global market access – all of which were hindered by poor Internet connectivity in the country at present.
“If these challenges persist, we might see a decline in overall revenue and even a possible exodus of more companies seeking better infrastructure elsewhere,” he warned.


Pakistan court directs government to engage with Imran Khan’s party over Nov. 24 protest

Updated 21 November 2024
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Pakistan court directs government to engage with Imran Khan’s party over Nov. 24 protest

  • Islamabad High Court says law and order remains government’s priority if there is no breakthrough
  • Chief Justice Aamer Farooq hopes PTI will have ‘meaningful communication’ with the administration

ISLAMABAD: The Islamabad High Court (IHC) on Thursday directed the government to form a committee to engage in talks with Pakistan Tehreek-e-Insaf (PTI) leadership regarding the party’s planned protest in Islamabad on Nov. 24, emphasizing the need to avoid disruptions during the visit of the Belarusian president.
IHC Chief Justice Aamer Farooq issued the directive while hearing a petition by local trade association, instructing the government to constitute the committee that is preferably headed by Interior Minister Mohsin Naqvi, with Islamabad Chief Commissioner Muhammad Ali Randhawa and other officials.
The committee is tasked with negotiating with PTI leaders to address the “sensitivity over the weekend due to the movement of the President of a foreign country.”
“It would be appropriate that respondent No. 1 (government) constitute the committee ... to engage with the leadership of respondent No. 5 (PTI party), informing them of the sensitivity over the weekend,” said the court.
“In case no breakthrough is made, the law and order is the responsibility of respondents No. 1,” it continued, adding: “In this regard, no protest or rally or for that matter sit-in shall be allowed.”
Chief Justice Farooq urged the government to maintain law and order in Islamabad with “minimum disruption to the life of ordinary citizens,” expressing hope that PTI would “engage in meaningful communication” with the committee.
The court also directed a report on the matter to be submitted at the next hearing, scheduled for Nov. 27.
The directive followed a petition filed by Jinnah Super Traders Association (JSTA) President Asad Aziz, who sought the court’s intervention to prevent the PTI protest, citing disruptions to daily life and financial losses for the business community.
“Islamabad is a very expensive city with high property and rent prices,” Aziz told Arab News. “If your business is shut on top business days, how can these businessmen survive?“
He highlighted the financial strain caused by protests, particularly for shopkeepers in areas like Super Market, Jinnah Super Market and Blue Area.
Aziz claimed that 20 percent of shopkeepers had shut their businesses in recent months due to recurring disruptions caused by political demonstrations.
Protests in Islamabad have frequently caused disruptions to their lives of it residents. In September, a similar PTI demonstration led the government to lock down the city with containers, creating significant inconvenience for people and business owners.
Earlier this year, Pakistan’s parliament passed a law regulating public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.
Pakistan’s interior ministry has already approved the deployment of paramilitary forces in Islamabad to manage the anticipated law and order situation during the protests.
The security situation has also become a paramount concern due to Belarusian President Aleksandr Lukashenko’s three-day visit to Islamabad starting Monday, during which several investment deals and memorandums of understanding are expected to be signed between the two countries.
 


In rare message, Imran Khan’s wife says he won’t seek revenge if back in power

Updated 21 November 2024
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In rare message, Imran Khan’s wife says he won’t seek revenge if back in power

  • Bushra Bibi says the protest date will only change from Nov. 24 if Khan shares another public course of action
  • Her message marks a rare foray into the public eye, underscoring her emerging role as a central PTI figure

ISLAMABAD: In a rare public message on Thursday, Bushra Bibi, the wife of Pakistan’s jailed ex-prime minister Imran Khan, assured state institutions he harbors no plans for revenge upon returning to power, as she rallied support for a protest planned by Pakistan Tehreek-e-Insaf (PTI) next week.
The PTI is organizing the rally in Islamabad on November 24, demanding Khan’s release, who has been in prison since August last year following his arrest on corruption charges.
The protest also aims to highlight the party’s allegations of electoral rigging in the February 8 general elections. The planned demonstration reflects the deepening political polarization in Pakistan, with Khan’s supporters and other political factions locked in an increasingly bitter political conflict.
Khan’s combative rhetoric against state institutions, including the powerful military— whom he has accused of orchestrating his ouster in an April 2022 no-confidence vote— has further entrenched divisions.
Despite his incarceration, Khan has remained defiant, which many interpret as evidence of his determination to seek retribution against rivals if he regains power. In her video message, however, Bibi dismissed the perceptions, emphasizing Khan’s commitment to forgiveness and unity.
“I want to tell the [state] institutions that it is completely wrong to think that Khan will take revenge on anyone,” she said in the video. “Khan says taking revenge on people after coming into power is akin to inviting God’s displeasure.”
“He has said that the time he has spent in jail has brought him closer to God,” she continued. “He has also said that he has learned that when you come into power, you should open the door to forgiveness, not the door to oppression.”
Bibi’s appeal marked a rare foray into the public eye, underscoring her emerging role as a central figure in the PTI’s efforts to build momentum for Khan’s release. She remained in the same jail with Khan in a case involving the illegal sale of state gifts before her release on bail in October.
Bibi called on party supporters to participate in the November 24 rally, saying there was no plan to change the protest date.
“The date can only be changed on one condition that Khan comes out and himself announces the next course of action to the public,” she said. “Otherwise, under no circumstances can the date of Nov. 24 be changed.”
Khan’s arrest and imprisonment have become a flashpoint for political tensions in Pakistan. The PTI alleges that the cases against Khan are politically motivated, aimed at sidelining the former premier and dismantling his party.
Meanwhile, the coalition government has taken measures to suppress PTI’s rallies, citing concerns over public safety and order, particularly in light of the planned protest in Islamabad.
Bibi asked people to come out and protest in her message, calling it their duty to fighter for the rule of law in the country.
 


Pakistan government open to talks with Imran Khan’s party, refuses to allow Nov. 24 protest

Updated 21 November 2024
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Pakistan government open to talks with Imran Khan’s party, refuses to allow Nov. 24 protest

  • Interior Minister Mohsin Naqvi says negotiations cannot take place amid ‘threats’ from PTI
  • He says it is not possible to allow a rally in Islamabad ahead of a Belarusian delegation visit

ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Thursday suggested the government was open to talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party but ruled out allowing its planned protest in Islamabad on November 24, ahead of a high-level visit by a Belarusian delegation.
The PTI has announced a “long march” to Islamabad on November 24, primarily demanding the release of Khan, who has been imprisoned since August last year on charges the party contends are politically motivated.
Additionally, the party’s protest is also meant to raise its voice against alleged rigging in the February 8 general elections while calling for measures to ensure judicial independence, which it believes has been undermined by the 26th constitutional amendment.
On Monday, Islamabad’s district magistrate imposed a two-month-long ban on gatherings of more than five people in the capital, invoking Section 144 of the Code of Criminal Procedure. This provision allows the government to prohibit political assemblies, rallies, demonstrations, sit-ins and other activities for a specified period.
Addressing the media in Islamabad, the interior minister said the government was fully prepared to stop the protest, with Punjab police, Rangers and Frontier Constabulary (FC) troops assisting the Islamabad police in operational duties.
“Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur and Barrister Gohar Khan met Imran Khan twice in the past two days,” Naqvi said, amid speculation that the PTI leaders discussed the option of negotiating with the government. “If they wish to initiate talks [with the government], they should do it. If they want to hold talks, they should tell us.”
The minister added, however, that no talks were possible if the PTI headed to Islamabad and “wielded sticks against us” on November 24.
“Let me tell you one thing: negotiations don’t take place with threats, though I personally feel talks should take place between everyone,” he said.
In response to a question, Naqvi clarified that no talks were currently underway with Khan, who is facing a new case related to violence at a PTI rally that took place in September while the ex-premier was in jail.
Highlighting the upcoming visit of Belarus President Alexander Lukashenko and his 10 cabinet ministers to Pakistan on a three-day visit next week, Naqvi said no permission could be granted for any rally or protest in the federal capital.
He added that a decision on whether to suspend mobile signals in Islamabad ahead of the protest would be finalized by Friday night.
Just a day earlier, it emerged that Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and FC forces in Islamabad since November 7 to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.
 


Pakistani stocks surge past 97,000 as investor confidence grows on economic reforms

Updated 21 November 2024
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Pakistani stocks surge past 97,000 as investor confidence grows on economic reforms

  • Analysts attribute rally to strong economic data, rising optimism over government reforms
  • Stock market has remained bullish since the government slashed policy rate in November

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Thursday gained 1,700 points, surging past the 97,000 mark during intra-day trading for the first time, with analysts attributing the rally to strong economic data and rising investor optimism over government reforms.
The benchmark KSE-100 index rose by 1,781.94 points, or 1.86 percent, to close at 97,328.39. It touched an unprecedented peak of 97,437.15 during intra-day trading.
Analyst Ahsan Mehanti of Arif Habib Corporation said surging foreign exchange reserves and speculations over the government’s decisions on economic reforms and privatization “played a catalyst role in the record surge at the PSX.”
“Stocks are bullish, led by scrips across the board as investors weigh a drop in government bond yields and robust economic data for current account surplus, remittances, exports and foreign direct investments,” Mehanti told Arab News.
In October, Pakistan’s external current account recorded a surplus of $349 million, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed in the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. Economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
In the past, the country faced a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation. Last year, Pakistan narrowly avoided a sovereign default by clinching a last-minute $3 billion IMF bailout deal.


Saudi mission in Pakistan condemns militant attack that killed 12 soldiers this week

Updated 21 November 2024
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Saudi mission in Pakistan condemns militant attack that killed 12 soldiers this week

  • The embassy extends condolences to victims’ families and the Pakistani people in a statement
  • The statement reiterates the kingdom’s position ‘rejecting all forms of violence and terrorism’

ISLAMABAD: The Saudi embassy in Pakistan on Thursday condemned a militant attack on a joint security checkpoint in the northwestern Khyber Pakhtunkhwa province that killed 10 army soldiers and two Frontier Constabulary (FC) personnel, extending condolences to the victims’ families and the Pakistani people.
The attack, which occurred on Tuesday, targeted a joint army and paramilitary check post in the Mali Khel area of Bannu District, where militants detonated an explosive-laden vehicle after troops repelled their attempt to storm the post, according to the Pakistan military. Six militants were killed during the exchange of gunfire that followed.
“The Embassy expresses the Kingdom of Saudi Arabia’s condemnation of the attack on a joint checkpoint in the city of Bannu in the Khyber Pakhtunkhwa province of Pakistan, which resulted in the death and injury of a number of people,” the Saudi diplomatic mission in Islamabad said in a statement.
“The Embassy reiterates the Kingdom’s position rejecting all forms of violence and terrorism,” it added. “The Embassy extends its deepest condolences and sincere sympathy to the families of the victims, the government and the people of Pakistan, and wishes the injured a speedy recovery.”
Pakistan’s northwestern Khyber Pakhtunkhwa province has experienced a resurgence of militant violence in recent months, with a growing number of attacks on security forces and infrastructure despite the country’s efforts to combat militancy.
The region has long been a hotspot for insurgent activity, with militants frequently targeting military and paramilitary personnel.
Saudi Arabia has consistently expressed its support for Pakistan’s fight against extremist violence, emphasizing the importance of international cooperation to tackle militancy and ensure regional stability.