Pakistan’s digital policies must align with its ambitions

Pakistan stands at a critical juncture in its digital journey. Once celebrated for our IT expertise and highly regarded for collaboration, our professionals are now facing growing warnings and disclaimers from international partners. While each government has articulated ambitious goals to strengthen the country’s position in the global digital economy, recent policy decisions risk derailing these aspirations. Among these, the ban on X (formerly Twitter), the throttling of the Internet, complete Internet shut downs and now bans on Virtual Private Networks (VPNs) have caused significant concern. Ironically, this latest measure coincided with the Council of Islamic Ideology declaring VPNs “un-Islamic,” further complicating the narrative. At a time when Pakistan should be championing digital inclusivity and innovation, these policies are creating barriers to progress and growth.

In recent years, our country’s digital sector has demonstrated remarkable growth. Pakistan’s IT exports grew by 143 percent from $1 billion in 2018 to $2.6 billion in 2023, underscoring the potential of this sector to drive economic development. Yet, frequent disruptions in Internet services and the banning of social media platforms have jeopardized this momentum. According to the Pakistan Institute of Development Economics, a 24-hour Internet shutdown costs the economy PKR 1.3 billion— equivalent to 0.57 percent of the daily GDP. The cumulative losses from Internet restrictions in 2023 alone amounted to PKR 65 billion ($237.6 million), creating ripple effects that hurt businesses, freelancers and international client relationships.

Labelling VPNs ‘un-Islamic’ without understanding their critical role in modern technology not only damages Pakistan’s credibility but also undermines the confidence of international investors and partners.

Selina Rashid Khan

For Pakistan’s service-based industries, these restrictions are more than inconvenient— they are existential threats. Social media platforms, which connect Pakistani businesses to global markets, are vital for maintaining visibility, engaging clients and generating revenue. According to DataReportal, Pakistan was home to 71.70 million social media users as of January 2024. Kepios analysis indicates that Internet users in Pakistan increased by 24 million (+27.1 percent) between January 2023 and January 2024 with 45.7 percent Internet penetration. By imposing bans on platforms like X or enacting measures like a national firewall, Pakistan risks isolating itself from global conversations and opportunities. The Pakistan Software Houses Association (P@SHA) has warned that such policies could result in losses exceeding $300 million, further eroding our digital economy’s potential.

The ban on VPNs compounds these challenges. Far from being merely tools to bypass restrictions, VPNs protect data privacy and enable access to global markets. Labelling them ‘un-Islamic’ without understanding their critical role in modern technology not only damages Pakistan’s credibility but also undermines the confidence of international investors and partners. In an era when data security and digital transparency are paramount, this decision risks leaving Pakistan further behind in the global digital race.

Such bans also have implications on the future of digital diplomacy for Pakistan. What does it say for our leadership, who have banned X, yet continue to use it rather prolifically to congratulate and felicitate different world leaders, daily. To me, this is the government’s acceptance of the fact that X is an undeniable tool for digital diplomacy. So why cut off a tool that helps further Pakistan’s interests?

Indeed, as a founding member of the Kingdom of Saudi Arabia’s Digital Cooperation Organization (DCO), Pakistan has a unique opportunity to lead in fostering digital innovation and inclusivity. After all, the DCO was established to encourage cross-border collaboration and unlock the potential of the digital economy for member states. Yet, the restrictive measures being implemented at home are inconsistent with the goals of this initiative. By creating an environment of uncertainty, we also risk marginalizing ourselves within DCO and the greater ecosystem of digital diplomacy.

In response, a private sector association for PR, Events, Digital, and Activation (PREDA) recently issued a letter to the government of Pakistan. This letter, signed by leading companies in the communications, event management, activation and digital industries, is a clarion call for more progressive and inclusive policymaking. These are the businesses that have been at the forefront of shaping Pakistan’s modern identity, promoting its culture, and creating opportunities for thousands of young professionals. Their collective voice underscores the urgency of the situation and the private sector’s willingness to collaborate with the government to secure Pakistan’s digital future.

The issues raised in the letter are deeply rooted in the experiences of those working across Pakistan’s vibrant service economy. 

The private sector’s unity in addressing these issues reflects a broader commitment to Pakistan’s digital progress. These are industries that have weathered economic instability and demonstrated resilience in the face of challenges. They are among those driving Pakistan’s digital transformation, creating jobs and opening doors for the next generation. Their advocacy is a reminder that policy decisions do not exist in a vacuum— they affect real people, real businesses and the nation’s reputation on the global stage.

The government’s acknowledgment of digitalization as a cornerstone of economic growth is encouraging, but words must be matched with action. Pakistan needs clear, consistent, and forward-thinking policies that balance security concerns with the need for openness and innovation. Bans, firewalls and censorship will only hold us back— it’s time for policies that propel Pakistan forward.

– The writer is founder and CEO at Lotus Client Management & Public Relations, President of PREDA and a member of the Forbes Business Council. 

X: @selinarashid