The Pakistan Business Council (PBC) has raised alarms regarding the potential relocation of multinational companies (MNCs) from Pakistan due to recent widespread internet disruptions caused by a newly implemented firewall.

“There are many MNCs planning to relocate their back offices and some have already done so. It is not too late,” the PBC said in a post on X.

Internet services across Pakistan have been severely disrupted amid the installation of a so-called ’firewall’, causing widespread inconvenience to users. The issue has persisted for several days, affecting all internet service providers.

On Thursday, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja confirmed that the government was upgrading its “web management system” to cope with cyber security threats. Such actions have been blamed for everything from slow browsing speeds, the arbitrary blocking of social media platforms and WhatsApp connectivity issues on mobile data.

The Pakistan Telecommunication Authority has refrained from commenting on the matter.

Earlier this week, sources told Aaj News that internet service issues may persist until August 30.

The organisation emphasised the negative impact of such disruptions on the burgeoning software sector, which could lead to job losses for thousands of freelance developers.

While acknowledging the security needs that the firewall addresses, the PBC argued that proper testing and implementation could have mitigated the adverse effects on employment and Pakistan’s reputation as a dependable source of IT services.

The council urged authorities to reevaluate the firewall strategy to prevent further harm to the economy, expressing the view that IT and IT-enabled services, alongside agriculture and tourism, are “crucial” for achieving the prime minister’s export targets over the next three years.

The PBC reiterated that reliable high-speed internet was essential for both domestic economic growth and international competitiveness.

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Ali Ihsan, a senior vice chairman of the Pakistan Software Houses Association (P@SHA), has described recent internet disruptions as a “severe threat” to the viability of the country’s IT sector.

Such disruptions were not just minor inconveniences, but rather a significant “assault” on the industry, potentially causing financial losses estimated at $300 million, he added.

The Overseas Investors Chamber of Commerce and Industry echoed such concerns, warning that ongoing internet issues could hinder Pakistan’s economic growth.