Pak Datacom (PDL) recently shifted the satellite connectivity of over 400 branches of the National Bank of Pakistan (NBP) to a UAE-based company, Yahsat. Previously, PDL used Pakistan’s domestic Paksat satellite to provide this backup connectivity. Consequently, this sudden transition raises severe national security questions.
The National Bank maintains highly sensitive government accounts, including defense funds. Former PDL CEO Brigadier (Retired) Syed Zulfiqar Ali highlighted these grave concerns in a formal complaint. Last month, on July 31, 2026, he wrote an email to the Ministry of IT & Telecommunications (MOITT) warning about the severe security risks.
A Compromise on National Security
For the last five years, PDL relied exclusively on Paksat for secure satellite backup. The VSAT hubs for this domestic network were safely located in Karachi and Islamabad. However, Yahsat’s satellite and its network hub are both physically located in the UAE. Moving from an indigenous satellite to a foreign network introduces major security challenges.
Although PDL claims to use a Virtual Private Network (VPN) on Yahsat, the risk of a security compromise remains incredibly high. Brigadier (Retd) Ali stressed that an indigenous network is a much safer choice in the current regional environment. Furthermore, he explicitly stated that this shift violates para 25 of SRO 60(I)/2024, issued by the National Command Authority.
Pak Datacom Shifted NBP Satellite Network at a Massive Cost
PDL is a listed company on the Pakistan Stock Exchange, and the Telecom Foundation owns 55% of its shares. The Telecom Foundation operates under the direct control of MOITT. Given its close association with sensitive public sector organizations like NADRA, OGDCL, AGPR, and NLC, PDL requires strict security clearances.
Allegedly, Acting CEO Mr. Ali Saleem Rana, Senior Manager VSAT Mr. Hassan Abbas Ghaznavi, and DGM North Mr. Qaisar Mehmood executed this controversial transition. Consequently, PDL spent USD 97,000 on imported equipment and PKR 10 million on customs duties. They also paid PKR 4 million on demurrage charges due to sheer negligence and delays.
Brigadier (Retd) Ali formally complained to the PTA, PSARB, DG (T), Pak Sat Intl, and MOITT. He strongly recommended shifting the NBP, OGDCL, and AGPR networks back to the dedicated Paksat network immediately. Moreover, he demanded a formal inquiry to determine the actual intent behind this massive security lapse and the unnecessary drain of foreign exchange.
