Pakistan moves to shift overseas-hosted data to local centres

ISLAMABAD: Pakistan is preparing to bring a large share of government and business data back home as officials and industry figures push for local hosting to reduce cyber risks and keep sensitive information under domestic jurisdiction.

More than 90% of Pakistan’s data is currently stored abroad, mainly through hosting providers, cloud services and mobile application platforms in countries including the United States and Singapore. The planned shift comes amid a wider cybersecurity push, with the US war on Iran contributing to a geopolitical realignment influencing policy in Pakistan.

Cybersecurity concerns drive policy shift

Industry experts say that keeping important data outside Pakistan increases exposure to security breaches and weakens data sovereignty. Over the past two decades, multiple public institutions and financial organisations have faced cyber incidents that led to data leaks and monetary damage.

Pakistan Computer Emergency Response Team Director General Dr Haider Abbas said the country recorded 253 cyberattacks in 2026. He also referred to a ransomware attack last week on a government entity in which data was encrypted and later restored from backups. For 2024-25, Pakistan faced 927 attacks targeting critical infrastructure across public and private sectors. Experts believe a substantial number of these intrusions originated outside the country.

Ransomware remains among the most harmful cyber threats facing organisations. Specialists argue that moving critical information into Pakistan-based facilities would help lower these risks while improving control over essential digital systems.

Government framework and migration plan

The federal government has proposed a cybersecurity framework under which public bodies that currently host websites and digital applications abroad would be required to transfer them to data centres located inside Pakistan.

Mehwish Salman Ali, chief executive officer of Data Vault Pakistan, said priority should go first to data linked to strategic and defence institutions, followed by public sector bodies, banks and financial institutions, healthcare providers and the logistics sector. She said the government is upgrading ICT infrastructure so state organisations can access secure computing resources while keeping critical information inside the country and within Pakistani legal jurisdiction.

As part of that effort, the National Telecommunication Corporation has entered into a three-year agreement with Data Vault Pakistan to support the migration of data for more than 100 public sector organisations from foreign hosting arrangements to domestic data centres. The same initiative also includes a gradual upgrade of artificial intelligence infrastructure.

Existing capacity and industry outlook

More than 30 data centres are already operating in Pakistan. Public sector institutions including the State Bank of Pakistan and the Pakistan Telecommunication Authority, along with several private firms, have established local facilities that provide hosting and digital infrastructure services.

Ashar Irshad, director marketing and sales (South) at Sky47, said the transfer of official websites and digital platforms to sovereign local data centres should be treated as more than a technical upgrade.

"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.

Local hosting could also cut foreign exchange outflows, lower data management costs and improve disaster recovery. Expanding Pakistan’s data centre industry may encourage local and foreign investment, generate skilled jobs and support the transfer of advanced technologies.