PAK Datacom has shifted the satellite backup connectivity of more than 400 National Bank of Pakistan (NBP) branches to UAE-based satellite operator Yahsat, raising concerns over potential national security risks.
Former PAK Datacom CEO Brigadier (retd.) Syed Zulfiqar Ali has written to the Ministry of IT and Telecommunications, highlighting concerns over the transfer of NBP’s satellite connectivity from Pakistan’s PAKSAT system to a foreign satellite network.
According to the letter, PAK Datacom had been providing satellite backup connectivity to NBP for the past five years. The bank’s satellite connectivity was previously provided through PAKSAT, with its backup network connected to VSAT hubs located in Karachi and Islamabad.
The letter states that PAK Datacom has recently shifted NBP’s satellite connectivity to Yahsat, with both the satellite and satellite hub located in the United Arab Emirates.
The former CEO warned that transferring the connectivity of a major government-linked bank to a foreign satellite and hub could create security challenges, particularly given NBP’s role in maintaining government accounts.
The letter also raised concerns that the use of a VPN over Yahsat’s network may not completely eliminate potential security risks.
Given the current regional situation, the former PAK Datacom chief recommended moving NBP’s satellite connectivity back to PAKSAT, arguing that a domestic satellite network would provide greater control and security for critical communications.
He also recommended shifting the satellite networks of Oil and Gas Development Company Limited (OGDCL) and the Accountant General Pakistan Revenues (AGPR) to PAKSAT.
The letter proposed establishing a dedicated domestic satellite network for NBP, OGDCL, and AGPR to strengthen the security of communications used by critical public-sector institutions.
It also suggested establishing dedicated satellite hubs for PAK Datacom in Karachi to provide secure backup connectivity for these organizations.
The letter noted that PAK Datacom operates under the Telecom Foundation, which holds a 55% stake in the company. The Telecom Foundation operates under the direct control of the Ministry of IT and Telecommunications.
The former CEO has urged the ministry to review the transfer of NBP’s satellite connectivity in light of national security considerations and assess whether critical government-linked networks should continue relying on foreign satellite infrastructure.
