PTA is taking decisive steps to regulate VPNs in the country, introducing a new licensing category for companies offering VPN services. This move comes after previous efforts to ensure compliance with local regulations fell short, leaving a significant number of unregistered VPNs operating in Pakistan. With the new system, only VPNs provided by licensed service providers will be allowed to function, while unlicensed proxies will be blocked, in an effort to curb the anonymity that VPNs often provide to users.
PTA announced that it has resumed granting Class Licenses for Data services to providers, specifically for VPN and related services. PTA already issues licenses to internet service providers (ISPs) and mobile operators, and this new category will bring VPN providers under the same regulatory framework. By licensing VPN providers, the authorities hope to gain more control over the use of these networks, which have been a point of contention due to their ability to shield user identities and activities from surveillance.
PTA’s decision to create a legal framework for local VPN service providers is in line with a proposal from P@SHA, which represents IT companies in the country. P@SHA chairman Sajjad Syed emphasized the importance of regulated local VPN services to support Pakistan’s growing freelance community, which includes around 2.5 million freelancers, many of whom are women working on small-scale IT export projects. Syed suggested that local VPN providers could offer services similar to those provided by cellular companies or ISPs, allowing users to switch providers if they are dissatisfied with the service.
As part of the new system, companies will be required to pay a license fee to the PTA, with the cost set at Rs. 300,000 for nationwide services and Rs. 100,000 for provincial operations. These licenses will be valid for 15 years, with the option for a 15-year extension. By localizing VPN services, the government aims to address concerns related to online security and content monitoring, as licensed companies would be subject to the same regulations as other telecom providers in Pakistan.
However, the move has raised concerns among industry experts who argue that the plan may undermine the very purpose of VPNs—privacy and anonymity. Under the new licensing framework, VPN providers will be required to share detailed information about their users and service operations with the PTA. This includes the ability for authorities to monitor VPN traffic and enforce “Lawful Interception” (LI) by providing surveillance equipment to security agencies, a practice already in place with telecom companies. These provisions, critics argue, would effectively render VPNs ineffective in maintaining user anonymity, as they would be subject to government surveillance.
The licensing terms also state that VPN providers must comply with Pakistan’s telecom laws, including the Pakistan Telecommunication (Re-organization) Act of 1996. Any violations could result in legal actions, including penalties or the revocation of licenses. Moreover, service providers will be required to provide information related to the proliferation of technologies and services, which the PTA may request at any time to monitor regulatory compliance.
While some argue that the plan will help tackle security concerns and improve regulatory oversight, others believe it could stifle the use of VPNs in Pakistan. Shahzad Arshad, Chairman of the Wireless & Internet Service Providers Association of Pakistan (WISPAK), expressed skepticism, pointing out that the proposal would discourage foreign entities, such as international banks, from using local VPN services. He added that even if some VPN providers were blocked, users would likely find alternative methods to bypass restrictions, as multiple proxy networks are readily available online.
PTA’s new policy aims to balance security and user privacy, but it remains to be seen whether the crackdown on unregistered VPNs will be effective in curbing the growing use of these networks in Pakistan. While the initiative may bring VPN services under tighter control, it also raises questions about the potential erosion of privacy rights in the country. As Pakistan moves forward with this plan, it will likely continue to face debates over the need for stronger regulation versus the protection of individual freedoms and online anonymity.
Source: Dawn News
