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Pakistan’s IT industry: a fast growing sector |
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Monday, September 29, 2008 |
IT industry is emerging as one of the most promising sectors of Pakistan’s economy, bringing in substantial revenues, foreign direct investment and creating new job opportunities for the youth.
While some Japanese investors are planning to invest $100 million in Karachi’s IT Park, Pakistan’s IT exports standing at $175 million exceeded by $13 million the target of $162 million set for the financial year 2007-08. In the previous year, FY-2006-07, the country’s IT exports worth $116 million exceeded that year’s target of $108 million.
By registering 50 per cent annual growth in exports during the last five consecutive years, the country’s IT sector has displayed a tremendous potential for sustained growth. If nurtured fully, the IT industry could bring in voluminous economic and commercial benefits, according to Pakistan Software Export Board (PSEB).
Considering the pace of progress of the local IT sector and its ambitions, prospects of further growth in future is bright as this is the only industry in Pakistan that has registered a remarkable growth during the last five years. It is believed that Pakistan's annual IT exports could have crossed $220 million if it was not hit by the power crisis. Although the power outages have adversely affected productivity of many ICT companies, it is expected that despite some of the odds the country would be able to achieve the targeted volume of IT exports in the forthcoming years.
Meanwhile, Japan’s Ambassador to Pakistan, Seiji Kojima recently stated that some Japanese companies have shown interest in setting-up a massive database and a call centre, with capacity of 1,000 calls, at IT Park, Karachi. Pakistan has already introduced a package of incentives, including tax exemptions, until 2016, for IT sector, 100 per cent repatriation of foreign equity and earnings and low-rent facilities for IT companies.
Due to its export-oriented nature, the country’s IT sector has contributed significantly in enhancing Pakistan’s soft image as many local IT companies are winning huge contracts from domestic as well as international markets and various leading companies around the globe are deploying solutions developed by the local IT sector. For example, financial enterprise solutions developed by Pakistani IT companies, namely TPS, MIXIT, Autosoft Dynamics and Systems Limited, have been successfully deployed in leading banks/financial institutions around the globe.
As IT companies are growing and establishing contacts, many of them have succeeded in obtaining venture capital funds from foreign investors. Pakistani IT Company, Vopium has recently gained venture capital fund worth $6.75 million from Enex Group SA, Luxembourg. The company’s software allows saving of 40-90 per cent when making international calls or sending SMSs from mobile phones. Two leading US based Venture Capital (VC) firms, ePlanet Ventures and Draper Fisher Jurvetson (DFJ) are providing funds to Naseeb Networks and this speaks volumes of the trust placed in the potential of Pakistan’s IT industry by foreign investors.
NetSol, a local leading IT company, listed at NASDAQ, has recently been dual-listed for trading on the Dubai International Financial Exchange (DIFX). The presence of Pakistani IT companies on international stock exchanges is a positive sign for the foreign investments in Pakistani IT industry.
Pakistani IT companies are also fulfilling the needs of local industry and many leading telecom companies are utilising their services to automate and enhance their operations. For example, Mobilink has singed LMKR, a leading IT company of Pakistan and global provider of Geo technology and information technology services, to automate its warehouse processes. Similarly, Ufone signed Teradata to expand its Data warehouse with state-of-the-art 5550H nodes and to enhance its customer support services.
As an agency of the gover |
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Source : http://jang.com.pk/thenews/ |
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