USTR Flags Internet Censorship as Part of Digital Trade Barriers in Pakistan

The United States Trade Representative (USTR) has released its 2025 National Trade Estimate Report, outlining significant digital trade barriers and internet censorship in Pakistan. The annual report, submitted to the U.S. President and Congress, identifies ongoing issues affecting American businesses, with a focus on digital commerce, data regulations, and internet access challenges in Pakistan.

The report, obtained by TechJuice, raises concerns about digital trade barriers in Pakistan, emphasizing restrictive policies in data localization, internet censorship, and the digital economy.

In the electronic commerce and digital trade sector, Pakistan’s recently finalized Personal Data Protection Act (2025) enforces strict data localization rules. The law limits the transfer of personal data outside Pakistan and imposes compliance thresholds on foreign companies handling sensitive data. This has raised significant concerns among U.S. firms, who view these regulations as a costly burden that complicates cross-border digital commerce.

Moreover, the report criticizes Pakistan’s frequent internet service restrictions, where content deemed blasphemous or “undermining national security” is routinely blocked under the Prevention of Electronic Crimes Act (PECA). The government’s increasing efforts to regulate online speech, including the proposed e-Safety Bill and the Digital Rights Protection Authority, are viewed as growing barriers to free digital trade.

The USTR also cites frequent internet shutdowns in major cities during protests, significantly impacting business continuity and digital trade. Such actions harm cross-border economic engagement and undermine digital freedoms that are essential for international commerce.

Additionally, Pakistan’s push for increased regulation and oversight of digital platforms creates challenges for U.S. companies operating in the country. This regulatory environment poses risks for businesses relying on digital infrastructure for trade and investment.