More than 30 data centres are currently operating in Pakistan. Several public sector institutions, including the State Bank and the PTA, as well as a number of private companies, have already established local data centres to provide digital infrastructure and hosting services. photo: REUTERS

KARACHI:

Pakistan is set to migrate public and private sector data currently hosted in foreign countries to local data centres, thanks to the US war on Iran, which is prompting a significant geopolitical shift in the south asian country. The move is part of a broader cybersecurity strategy aimed at protecting critical information from the growing threat of cyberattacks originating from abroad.

More than 90% of Pakistan's data is currently hosted overseas, primarily in countries such as the United States and Singapore, through web hosting providers, cloud platforms and mobile application services. Industry experts warn that storing sensitive data outside the country exposes government institutions and businesses to heightened cybersecurity and data sovereignty risks.

Over the past two decades, several public sector institutions and financial organisations have been targeted by cyberattacks, resulting in data breaches and financial losses.

According to Pakistan Computer Emergency Response Team (PKCERT) Director General Dr Haider Abbas, Pakistan recorded 253 cyberattacks in 2026, including a ransomware incident last week at a government entity that encrypted data and forced recovery from backups. In 2024-25, the country faced 927 attacks on critical infrastructure across the public and private sectors. Ransomware remains one of the most damaging threats.

Cybersecurity experts believe many of these attacks originated from outside the country, highlighting the importance of strengthening domestic digital infrastructure.

Industry experts believe that repatriating data to local data centres is essential to strengthening the security of citizens' data and safeguarding information held by public and private sector organisations. They say local data hosting will enhance national cybersecurity, reduce dependence on foreign infrastructure, lower foreign exchange outflows, minimise data management costs and improve disaster recovery capabilities.

The federal government has recently proposed a new cybersecurity framework that would require government organisations hosting their websites and digital applications abroad to migrate them to data centres located within Pakistan.

Mehwish Salman Ali, Chief Executive Officer of Data Vault Pakistan, said the government should prioritise migrating data related to strategic and defence institutions, followed by public sector organisations, banks and financial institutions, healthcare providers and the logistics sector.

She said the federal government is upgrading its ICT infrastructure to provide public sector entities with secure computing resources while ensuring that critical data remains protected within Pakistan and under Pakistani jurisdiction.

As part of this initiative, the National Telecommunication Corporation (NTC) has signed a three-year agreement with Data Vault Pakistan to facilitate the migration of data for more than 100 public sector organisations from overseas hosting facilities to local data centres while gradually upgrading their artificial intelligence infrastructure.

More than 30 data centres are currently operating in Pakistan. Several public sector institutions, including the State Bank of Pakistan (SBP) and the Pakistan Telecommunication Authority (PTA), as well as a number of private companies, have already established local data centres to provide digital infrastructure and hosting services.

Ashar Irshad, Director Marketing and Sales (South) at Sky47, said migrating government websites and digital platforms to locally hosted sovereign data centres is not merely an infrastructure decision but a strategic imperative for national security, data sovereignty, cyber resilience, regulatory compliance and improved public service delivery.

"The transition should be implemented through a phased national strategy. Critical government systems should be prioritised, supported by clear data residency policies, modern cloud adoption frameworks, robust cybersecurity standards and partnerships with local, carrier-neutral and hyperscaler-ready data centre operators," he said.

"This approach will strengthen Pakistan's digital infrastructure while fostering investment, innovation and long-term economic growth. Pakistan now has the opportunity to build a resilient sovereign digital ecosystem where government data remains within national borders while benefiting from world-class cloud and AI infrastructure. The focus should be on creating secure, scalable and future-ready digital platforms capable of supporting the country's growing digital economy," he added.

Experts believe that migrating critical data to local data centres will significantly reduce cybersecurity risks while encouraging investment in Pakistan's digital infrastructure. They also say the expansion of the country's data centre industry will attract both local and foreign investment, create high-skilled employment opportunities and facilitate the transfer of advanced technologies to Pakistan.