Pakistan’s IT industry has sounded a clear warning about the draft National Data Governance Policy 2026. The Pakistan IT Industry Association (P@SHA) says unclear rules and strict data localization requirements could create serious problems for software exporters, freelancers, and tech companies that serve clients abroad.
The Ministry of IT and Telecommunication released the draft earlier. It aims to treat government data as a national asset. Public departments would act as custodians of citizens’ information. The policy promotes better data sharing through a central platform called WASL and introduces stronger privacy rights, AI safeguards, and cybersecurity standards. A National Chief Data Officer and the Pakistan Digital Authority would oversee the system.
P@SHA’s biggest worry is data localization. Sensitive personal and government data would generally need to stay inside Pakistan. Sending it overseas would require prior approval. For many IT firms and freelancers who rely on global cloud services and work with international teams, remote access to data could be treated as a cross-border transfer. This uncertainty risks raising costs, slowing projects, and making Pakistani companies less competitive.
The association also points out that the draft does not clearly separate public-sector data from private-sector data. This gap matters for companies that handle government-related information through partnerships. P@SHA further questions plans to license or price non-personal public data and notes the lack of strong financial penalties for violations.
Pakistan’s IT and ICT exports have grown strongly in recent years and form a key part of the services sector. Clear, practical rules are essential so the industry can keep expanding while protecting data properly.
The policy remains a draft and is still open to feedback. P@SHA supports a strong data framework for Pakistan’s digital future but urges clearer definitions, realistic localization rules, and better distinction between public and private data before the policy is finalized.