ISLAMABAD: An industry association of leading technology companies in the world warned on Wednesday the Personal Data Protection Bill that is expected to be introduced in Pakistan’s parliament would raise the cost of doing business and negatively impact foreign investment in the country.
The Asia Internet Coalition (AIC) was established in 2010 and is headquartered in Singapore. It brings together major technology firms such as Google, Facebook, Twitter, Amazon, Apple, and others to collaborate on matters related to Internet regulations, data privacy, online content regulations, cybersecurity, and other policy areas that impact the digital economy.
It wrote a letter to the country’s information technology minister, Syed Amin ul Haque, in June, saying the bill mandated that critical personal data should only be processed in Pakistan.
It also raised other concerns and urged the government to set maximum fine payable for breaches of the bill while pointing out that it did not address a majority of the industry’s substantive concerns.
“The Asia Internet Coalition is alarmed that the Personal Data Protection Bill is expected to be introduced in Parliament despite concerns raised repeatedly by Industry about the Bill’s many problematic provisions,” said the AIC statement.
“In its current form, the Bill falls short of international standards for data protection and creates unnecessary complexities that will increase the cost of doing business and dampen foreign investment,” it added.
It maintained that by requiring unspecified “critical” data to be stored locally and through significantly restricting the cross-border transfer of all other personal data, the bill would limit Pakistan’s access to many global digital services.
“This Bill creates additional barriers to digital trade as a critical time when Pakistan’s economic growth demands paramount attention,” the statement continued. “For such an important piece of legislation that will profoundly impact Pakistani consumers, businesses, and, ultimately, the country’s economic growth, the Government should undertake transparent stakeholder consultations to develop balanced regulation that supports the country’s digital growth and fulfils the nation’s vision of a Digital Pakistan.”
The AIC statement comes at a time when the government is planning to strengthen the country’s information technology sector.
Earlier this month, Prime Minister Shehbaz Sharif vowed to boost Pakistan’s IT exports to $20 billion within the next two to three years, saying that the current export figure of $2.5 billion was not reflective of the actual potential of the country.
