This does nothing to stop people who are intent on communicating privately (SSL, SSH, public key encrypted messages, etc.) and everything to hamper internet progress in Pakistan.
Why would a tech company even consider spreading/outsourcing to Pakistan after this?
For the same reason that they spread, for example, to China? If they think there is money to be made, you can't underestimate the concessions that a company will make to the local government.
Why would a tech company even consider spreading/outsourcing to Pakistan after this?