Pakistan’s plan to build a centralized internet firewall could cost the country’s economy up to $300 million per year, according to an industry association.

The Pakistan Software Houses Association for IT and ITES (P@SHA) said the proposed internet filtering system would severely impact the country’s tech sector and foreign investment.

The group called on the government to reconsider the plan.

Under the proposal, all internet traffic in Pakistan would be routed through a centralized monitoring and filtering system operated by the government.

Officials say this is necessary to combat online extremism and misinformation.

However, P@SHA warned the firewall would degrade internet speeds, increase costs for businesses, and make Pakistan less attractive to global tech companies.

The association estimates the economic impact could reach $300 million annually.

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“Pakistan’s tech industry has been a bright spot in the economy, but this firewall puts all of that progress at risk,” said P@SHA chairman Barkan Saeed. “We urge the government to work with the industry to find a better solution.”

The government has not yet provided details on the proposed firewall or a timeline for its implementation. Technology experts say such a system could be technically challenging and costly to maintain.