Pak Datacom has shifted satellite based connectivity for around 400 National Bank of Pakistan (NBP) branches, Oil and Gas Development Company Limited (OGDCL) and Auditor General of Pakistan Revenue (AGPR) from its dedicated Paksat based network to Yahsat, a satellite operator based in the United Arab Emirates. The change has prompted security, regulatory and compliance concerns in a complaint submitted by former Pak Datacom Chief Executive Officer Brigadier Syed Zulfiqar Ali, Retired, to the Ministry of IT and Telecommunication.
According to the complaint, Pak Datacom had been providing satellite based backup connectivity to approximately 400 NBP branches for the past five years. The previous network was based on VSAT hubs established by Pak Datacom in Karachi and Islamabad, with Paksat serving as the satellite platform. The former CEO described the earlier arrangement as a secure setup because the satellite and network infrastructure were connected to a domestic arrangement.
The complaint states that the new setup uses Yahsat, with both the satellite and hub located in the UAE. The former CEO has urged the Ministry of IT and Telecommunication to examine the change, particularly because of NBP’s role as a financial institution that handles government accounts. The complaint specifically raises concerns about the security implications of moving connectivity for NBP, which maintains government accounts, including defence related accounts.
The former CEO acknowledged that Pak Datacom is using a Virtual Private Network (VPN) over the Yahsat connection but maintained that security risks could still remain under the new arrangement. He has argued that an indigenous satellite network would be preferable, particularly given the prevailing regional environment and the availability of dedicated infrastructure within Pakistan.
The concerns extend beyond NBP. In correspondence addressed to the Secretary of the Ministry of IT and Telecommunication, the former CEO stated that Pak Datacom had also shifted VSAT services for OGDCL, AGPR, PIFFRA and other government organisations from its integral or autonomous network to Yahsat’s YahClick service. He described the movement of these services as a security concern and stressed the importance of protecting data associated with NBP.
The complaint also questions why international uplinking from the UAE was being preferred when dedicated and self owned network infrastructure was available in Pakistan. The former CEO has raised concerns about the regulatory implications of the change, potential security exposure and the foreign exchange implications associated with using an international satellite network.
According to the complaint, Pak Datacom spent $97,000 on importing equipment for the new arrangement. The company also reportedly paid around Rs10 million in customs duties and taxes and incurred approximately Rs4 million in demurrage charges. The former CEO has called for these expenditures to be examined in the context of national interest, security considerations and the interests of the company’s shareholders.
The complaint requests the Ministry of IT and Telecommunication to determine whether the required formal procedures under the relevant regulations were followed before the change was implemented. It also calls for the reasons behind the decision to be examined and for appropriate action to be taken if any regulatory or procedural issues are identified.
The former CEO has recommended that the satellite networks serving NBP, OGDCL and AGPR be moved back to a dedicated indigenous network based on Paksat. Under his proposal, hubs would again be established in Karachi and Islamabad, restoring the domestic network structure that was previously used for these services.
The complaint also draws attention to Pak Datacom’s ownership and institutional structure. According to the document, Pak Datacom is listed on the Pakistan Stock Exchange, with 55% of its shares owned by the Telecomm Foundation and the remaining 45% held by the general public. The Telecomm Foundation operates under the direct control of the Ministry of IT and Telecommunication, according to the complaint.
The document further states that Pak Datacom has close associations with defence and public sector organisations, including NBP, NADRA, OGDCL, AGPR and NLC, through the provision of satellite communications equipment and network services. This institutional connection has been cited in the complaint as an additional reason for reviewing the decision to move critical connectivity services to an overseas satellite and hub arrangement.
The concerns raised by the former CEO have placed Pak Datacom’s transition from its Paksat based VSAT network to Yahsat under scrutiny. The complaint calls for a regulatory review of the decision, an examination of the relevant procedures and expenditures, immediate remedial measures and an inquiry or investigation followed by appropriate action. The matter concerns the connectivity arrangements described in the complaint and the issues raised by the former CEO. Any further regulatory findings or official action would depend on the review by the Ministry of IT and Telecommunication and other relevant authorities.
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