The Pakistan Telecommunication Authority (PTA) is gearing up to introduce a stringent policy regulating the use of Virtual Private Networks (VPNs) across the nation. The announcement, made by PTA Chairman Maj General (retd) Hafeezur Rehman during a recent Senate Standing Committee on Cabinet Secretariat meeting, has sparked significant debate among stakeholders about its potential impact on internet freedom and the IT industry.
Surge in VPN Usage
The proposed policy comes in response to a dramatic rise in VPN usage following the February 19 ban on X (formerly Twitter). According to a report by Top10VPN, the demand for VPNs surged by 131% just two days after the platform was blocked. Surfshark, a popular VPN provider, reported a staggering 300-400% increase in new user acquisitions in Pakistan post-ban. Despite these figures, Rehman noted that the number of X users in Pakistan has decreased by 70%, with only 30% now accessing the platform via VPNs.
Read More: Will uplift ban from X when the government will say: PTA
Whitelisting VPNs
Under the new policy, only approved VPNs will be allowed to operate within Pakistan. This move is intended to curb unauthorized access to banned platforms and enhance digital security. However, the high number of users bypassing the X ban using VPNs raises questions about the effectiveness of such restrictions. Past attempts to regulate VPN usage, including the 2010 VPN regulations and a 2022 registration drive, have met with limited success, casting doubt on the feasibility of the new policy.
Impact on the IT Industry
The potential implications of a blanket VPN ban on Pakistan’s IT sector are significant. Rehman cautioned that such a ban could lead to the collapse of several IT businesses that rely heavily on VPNs for their operations. The IT industry, which uses VPNs for secure communication, remote work, and accessing global markets, could face severe disruptions. The chairman emphasized that while VPNs can be blocked, the repercussions for the IT sector could be dire.
Taxation of Social Media Revenues
The committee meeting also touched on the broader issue of regulating digital platforms. Law Minister Azam Nazir Tarar suggested that social media revenues should be taxed in Pakistan, similar to practices in other countries. He highlighted that around 132 million Pakistanis use social media for business purposes, yet these platforms remain largely untaxed. The minister noted that several social media companies accused of violating Pakistan’s security laws have agreed to establish virtual offices in the country.
Balancing Security and Access
Senator Farooq H Naek urged committee members to study national and international legislation to propose measures that ensure public access to digital services while addressing security concerns. The debate over VPN regulation and social media taxation reflects ongoing efforts to balance the challenges posed by digital platforms with economic and security interests.
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This is not the first time the PTA has attempted to regulate VPNs. Previous efforts, such as the 2010 VPN regulations and the 2022 registration initiative, have seen inconsistent enforcement. The current push to whitelist VPNs represents a renewed effort to address the persistent issue of unauthorized digital access.