It is true that personal data is becoming a currency in today’s digital economy. With the rise of big data and advanced analytics technologies, businesses increasingly rely on personal data to gain insights into consumer behaviour and preferences and develop targeted marketing campaigns. This has led to a situation where personal data has significant economic value and is traded and exchanged like a commodity.

However, it’s important to note that personal data is not just any commodity. It is intimately linked to individuals’ privacy and autonomy, and the collection and use of personal data can have significant implications.

The digital economy has become an integral part of our daily lives. It refers to the economic activity that results from billions of everyday online connections among businesses, people, devices, data, and processes. It encompasses all aspects of economic activity that are enabled by digital technologies.

The digital economy has transformed how businesses operate and how society works, communicates, shops and learns. The online buying and selling of goods and the use of digital payment methods like mobile payments, digital wallets, and cryptocurrencies have created new business models and opened up new markets and opportunities for innovation and growth.

Assessed in terms of its commitment to cybersecurity, including data protection, Pakistan ranked 79th out of 194 countries on the Global Cybersecurity Index 2020

That being said, there are certainly challenges associated with it, including issues related to privacy, security and the concentration of economic power among a small number of dominant firms. Addressing these challenges will require combined efforts from policymakers, regulators, and industry leaders.

Since personal data has become the currency, there is a desperate need to protect it. Parallelly everyone has to be well aware of data privacy and its rights.

Giving consent before sharing personal data is crucial for protecting personal information. Personal data can include sensitive information such as names, contact numbers, CNIC numbers, financial data, location, and biometric data, among other things. If this information falls into the wrong hands, it can lead to identity theft, financial fraud, benaami type of accounts and other harms.

When an individual gives consent to share their data, they are making an informed decision about how their data will be used and who will have access to it and ensures that their data is only used for purposes they have agreed to.

In many countries, laws have been enacted to protect individuals’ personal data and require organisations to obtain consent before collecting, using, or sharing personal data. These laws, such as the General Data Protection Regulation (GDPR) in the EU, are designed to give individuals more control over their data and hold organisations accountable for how they handle it.

The legislation and implementation of the Personal Data Protection Bill will help build trust and promote economic growth

There have been several high-profile data breaches reported in Pakistan in recent years. In October 2018, one of Pakistan’s leading Islamic banks suffered a data breach that resulted in the loss of millions of rupees. The attackers used the stolen information to carry out fraudulent transactions at ATMs and point-of-sale machines.

In April 2019, a popular ride-hailing service in Pakistan suffered a data breach that affected over 14 million users. The breach exposed users’ names, email addresses, phone numbers, and trip data.

In December 2020, it was reported that Pakistan’s leading commercial bank had undergone a data breach that exposed the personal information of over 14,000 customers.

These data breaches highlight the need for stronger data protection measures in Pakistan and greater awareness among individuals and organisations of the importance of their data.

Data breaches can result in huge financial losses for organisations and legal consequences, including compensation payouts, as well as loss of trade secrets. It also disrupts business operations, leading to downtime and recovery. Eventually, it damages the company’s reputation and customer trust. It also impedes economic growth and international trust in countries.

The Global Privacy Index ranked Pakistan 96th out of 100 countries assessed. The United Nations/International Telecommunication Union Global Cybersecurity Index 2020 ranked Pakistan 79th out of 194 countries assessed in terms of its commitment to cybersecurity, including data protection. These rankings suggest that Pakistan has a lot of room for improvement in terms of data privacy.

It is important for Pakistan to complete the legislation of the Personal Data Protection Bill and implement and enforce strong data privacy laws in order to build trust with its citizens and the international community. This can help to promote economic growth and prevent the misuse of personal data.

The writer is a subject matter expert, trainer, and senior consultant — data privacy. He can be reached at hikmatturabi@hotmail.com

Published in Dawn, The Business and Finance Weekly, April 17th, 2023