Pakistan’s government is considering a Personal Data Protection Bill that may impose strict data localization requirements, potentially leading to a 14.7% decline in labor productivity and a $16.5 billion GDP loss by 2025. The bill’s data localization could result in significant job losses, estimated at 3.2 million.
The policy might also increase operational costs for businesses and impact cybersecurity, as local providers may not match the capabilities of international cloud services. The effectiveness and economic impact of these measures will largely depend on how the Pakistani government enforces and adapts the regulations.