• The Asia Internet Coalition (AIC) expressed concerns about the Pakistan Draft Data Protection Bill 2023.
• The AIC represents global digital media giants such as Google, Facebook, and Twitter.
• The AIC believes that the bill falls short of international standards for data protection.

The Asia Internet Coalition (AIC), representing global digital media giants, has raised multiple concerns regarding the “Pakistan Draft Data Protection Bill 2023,” citing its failure to address significant industry issues like strict restrictions on cross-border data flow and mandatory data localization.

“In its current form, the Bill will have a negative impact on the ability of foreign internet companies to trade with and operate in Pakistan, hindering the country’s economic recovery and deterring foreign investment. Local Pakistani companies may lose access to cost-efficient global cloud services, making them less competitive as they incur substantial costs to operate and maintain servers.” Jeff Paine, Managing Director of the Asia Internet Coalition (AIC), conveyed these concerns in a letter addressed to Amin ul Haque, the Federal Minister for Information Technology and Telecommunication.

The Managing Director (MD) of AIC mentioned that they are submitting their recommendations on the Draft Personal Data Protection Bill 2023 on behalf of AIC and its members. The bill was published by the Ministry of Information Technology and Telecommunication (MoITT) on May 19, 2023.

Key Issu Raised

The latest Draft Personal Data Protection Bill 2023, released in May 2023, has four main issues:

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1. The Bill mandates that critical personal data must only be processed in Pakistan (the Data localization requirement), and the definition of critical personal data is broadly defined such that it may negatively impact private companies;
2. The Bill introduces a requirement to share sensitive personal data with the government.
3. The age of a child under the Bill should be thirteen, not eighteen, and
4. There should be a set maximum fine payable for breaches of the Bill.

“We find that the Draft Bill still does not address a majority of industry’s substantive concerns, such as stringent limitations on cross-border data flows and mandatory data localization, overbroad and vague definitions of key terms such as sensitive personal data and critical personal data, and globally divergent data subject rights, as well as the far-reaching powers of the Commission. These provisions fall short of international standards for data protection (such as GDPR) and will adversely impact Pakistani consumers and businesses”, he added.

He also emphasized the significance of safeguarding personal data as a crucial element of any privacy framework, and the AIC appreciates the chance to offer feedback on the Draft Bill. AIC and its members have collaborated closely with governments worldwide in the development of national personal data protection policies and legislation.

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“In doing so, we have witnessed firsthand the potential for such policies and legislation to effectively protect the privacy interests of citizens without hindering innovation and technological advancement. We recognize the ongoing efforts of the Government of Pakistan and the Ministry of Information Technology and Telecommunications (“MOITT”) in further fine-tuning the draft legislation, but we continue to have concerns, particularly on the cross-border transfer of “critical” and “sensitive” personal data”, the letter noted.

AIC requested a meeting with the industry to gain a clearer understanding of the perspectives and priorities related to the Bill. “We also propose to discuss potential areas of collaboration as well as opportunities for consultation that can further assist the Government’s review of the Personal Data Protection Bill 2023. As such, we welcome a video conference meeting with you or your team at a date and time of your convenience”, the letter noted.

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