Re: is it legal?
Why is it insane? The Pakistan Telecommunication Authority (PTA) gets a lot of its income from charging incoming and outgoing international phone calls. Since VOIP competes with this and the PTA own regulating internet traffic, it seems completely sane for the PTA to do whatever it can to make VOIP illegal so that it continues to maximise revenue.
Not trying to shut down your competition would be insane.