The Pakistan Software Houses Association (P@SHA) has warned that Pakistan’s new internet firewall could cost the economy up to $300 million. The firewall, designed to monitor and regulate online content, has already led to significant disruptions including prolonged internet outages and unstable VPN performance, threatening business operations across the country. P@SHA describes these issues as a severe blow to the industry’s viability.

The government, which denies using the firewall for censorship, has faced criticism for its lack of transparency. This yhas sparked fears among internet users and international IT clients about data privacy and security. The firewall’s impact on the economy is exacerbated by existing restrictions, such as the blocking of the social media platform X.

P@SHA has called for an immediate halt to the firewall, urging the government to collaborate with the industry to establish a robust cybersecurity framework. IT sector of Pakistan, which recorded a significant increase in exports this year, stands to suffer considerable losses if the disruptions continue.