Pakistan's Multi-Billion Dollar IT Industry
Pakistan's information technology industry is quite young. It is in very early stages of development compared to the much older and bigger Indian IT industry, which had a significant headstart of at least a decade over Pakistan. During the lost decade of the 1990s under Bhutto and Sharif governments, Pakistani economy stagnated and its IT industry did not make any headway. However, the industry has grown at 40% CAGR during the 2001-2007, and it is estimated at $2.8 billion as of last year, with about half of it coming from exports. This pales in comparison to over $5 billion revenue a year reported by India's Tata Consulting alone.
Here's some data on Pakistan's IT industry:
"The State Bank of Pakistan for 2007-08 reports the export figures of software and Information Technology-enabled services to be US$169 million which shows a consistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to report the IT exports revenue, which restricted the export figures to US$169 million only in 2007-08. In India, the Reserve Bank of India follows the BPM 6 (also called MSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6 includes sales to multinationals, earning of overseas offices & salaries of non-immigrant overseas workers to export revenue. Using the MSITS Reporting System, Pakistan IT Industry exports are estimated at US$ 1.4 billion while the industry size is estimated at US$ 2.8 billion. It is significant to note that Pakistan IT exports growth in each of the last few years has been more than 40%."
According to a report by the Pakistan Software Export Board (PSEB), the top five companies that have contributed the most to the IT sector are Netsol Technologies(NASDAQ: NTWK), Ovex Technologies, TRG Private Ltd, Systems Private Ltd, and Elixir Technologies.
The revenue per employee for the top Indian IT firms of Wipro, Infosys and TCS ranges between $40,000 and $50,000 per employee per year...about $20 t0 $25 per hour per employee, according to Gartner. The Indian revenue per employee is quite competitive relative to the US firms IBM Global Services, EDS, ans Accenture whose revenue per employee exceeds $150,000 per year, about $75 per hour. In comparison, the average figure of $28000 per employee per year (or $14 an hour) is extremely competitive for Pakistan's IT industry average. Probably the higher-end firms make more while others make less.
Pakistani colleges and universities produce almost 1.2 million skilled graduates annually. The Musharraf government announced a $1 billion spending plan over the next decade to build 6 additional state-of-the-art science and engineering universities. If the current government follows through on it, then the scheme would be overseen by the Higher Education Commission for completion in a few years time.
In terms of enrollment, the 2005 Pakistan Education Census reported 43,801 students enrolled in 4-yr engineering institutions, another 37,635 students in 3-year colleges offering Information Technology degrees, and 69,719 studying in three-year polytechnic institutes. 53% of the students out of the total 1.16 million enrolled in colleges are girls, according to the 2005 Census.
About 10,000 of the current 1.2 million graduates are engineers with 4-year degrees. In addition, Pakistan also produces at least 25,000 polytechnic inst graduates with three year diplomas (according to recent news in the Nation newspaper) who have less than 4 years of college.
A number of reports inflate the number of engineering graduates in India, as these numbers includes both 4 years and 2-3 years degrees. While it is claimed that India graduates over 200, 000 engineers a year, a Duke study concluded that half of these are 2 or 3-year degrees.
So, for apples to apples comparison, the number of India's engineering graduates is closer to the US's 70,000 engineering grads. And of course, the quality of US graduates is much much higher because they graduate from some of the best schools in the world. Other than about 5000 grads from IITs , the rest of Indian grads are from second and third tier schools that bear no comparison to engineering schools in the developed world in terms of quality. The cost advantage that India offers will still favor a continuing growth based on outsourcing of business and engineering services from the developed world.
Currently, Pakistan is struggling with a powerful insurgency and a stagnant economy that is taking a heavy toll on the nation. If, however, the political and military leadership succeed in creating a semblance of peace and stability in the nation of 170 million, then there can be an expectation of a bright future ahead for the IT industry in particular, and an innovation-based knowledge economy in general.
Related Links:
ICT: Hope or Hype
Haq's Musings
Truth About India's IT Revolution
Education in Pakistan
Musharraf's Legacy
Quality of Higher Education in India, Pakistan
Pakistan's IT Industry Takes Off
Pakistan Launches UAV Production Line
Pakistan's Defense Industry Going High-Tech
Pakistan's Software Successes
Pakistan's Industrial Sector
Pakistan's Financial Services Sector
Auto Sector in India and Pakistan
Pakistan Textile Industry Woes
Pakistan Software Houses Association
Here's some data on Pakistan's IT industry:
"The State Bank of Pakistan for 2007-08 reports the export figures of software and Information Technology-enabled services to be US$169 million which shows a consistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to report the IT exports revenue, which restricted the export figures to US$169 million only in 2007-08. In India, the Reserve Bank of India follows the BPM 6 (also called MSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6 includes sales to multinationals, earning of overseas offices & salaries of non-immigrant overseas workers to export revenue. Using the MSITS Reporting System, Pakistan IT Industry exports are estimated at US$ 1.4 billion while the industry size is estimated at US$ 2.8 billion. It is significant to note that Pakistan IT exports growth in each of the last few years has been more than 40%."
According to a report by the Pakistan Software Export Board (PSEB), the top five companies that have contributed the most to the IT sector are Netsol Technologies(NASDAQ: NTWK), Ovex Technologies, TRG Private Ltd, Systems Private Ltd, and Elixir Technologies.
The revenue per employee for the top Indian IT firms of Wipro, Infosys and TCS ranges between $40,000 and $50,000 per employee per year...about $20 t0 $25 per hour per employee, according to Gartner. The Indian revenue per employee is quite competitive relative to the US firms IBM Global Services, EDS, ans Accenture whose revenue per employee exceeds $150,000 per year, about $75 per hour. In comparison, the average figure of $28000 per employee per year (or $14 an hour) is extremely competitive for Pakistan's IT industry average. Probably the higher-end firms make more while others make less.
Pakistani colleges and universities produce almost 1.2 million skilled graduates annually. The Musharraf government announced a $1 billion spending plan over the next decade to build 6 additional state-of-the-art science and engineering universities. If the current government follows through on it, then the scheme would be overseen by the Higher Education Commission for completion in a few years time.
In terms of enrollment, the 2005 Pakistan Education Census reported 43,801 students enrolled in 4-yr engineering institutions, another 37,635 students in 3-year colleges offering Information Technology degrees, and 69,719 studying in three-year polytechnic institutes. 53% of the students out of the total 1.16 million enrolled in colleges are girls, according to the 2005 Census.
About 10,000 of the current 1.2 million graduates are engineers with 4-year degrees. In addition, Pakistan also produces at least 25,000 polytechnic inst graduates with three year diplomas (according to recent news in the Nation newspaper) who have less than 4 years of college.
A number of reports inflate the number of engineering graduates in India, as these numbers includes both 4 years and 2-3 years degrees. While it is claimed that India graduates over 200, 000 engineers a year, a Duke study concluded that half of these are 2 or 3-year degrees.
So, for apples to apples comparison, the number of India's engineering graduates is closer to the US's 70,000 engineering grads. And of course, the quality of US graduates is much much higher because they graduate from some of the best schools in the world. Other than about 5000 grads from IITs , the rest of Indian grads are from second and third tier schools that bear no comparison to engineering schools in the developed world in terms of quality. The cost advantage that India offers will still favor a continuing growth based on outsourcing of business and engineering services from the developed world.
Currently, Pakistan is struggling with a powerful insurgency and a stagnant economy that is taking a heavy toll on the nation. If, however, the political and military leadership succeed in creating a semblance of peace and stability in the nation of 170 million, then there can be an expectation of a bright future ahead for the IT industry in particular, and an innovation-based knowledge economy in general.
Related Links:
ICT: Hope or Hype
Haq's Musings
Truth About India's IT Revolution
Education in Pakistan
Musharraf's Legacy
Quality of Higher Education in India, Pakistan
Pakistan's IT Industry Takes Off
Pakistan Launches UAV Production Line
Pakistan's Defense Industry Going High-Tech
Pakistan's Software Successes
Pakistan's Industrial Sector
Pakistan's Financial Services Sector
Auto Sector in India and Pakistan
Pakistan Textile Industry Woes
Pakistan Software Houses Association
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KARACHI: Pakistan could play host to an extreme growth spurt in the information technology industry in the next 10 years, according to a study quoted by IBM’s Country General Manager Hamayun Bashir.
Speaking at a ceremony held to celebrate a century of IBM’s existence on Thursday, Bashir informed Pakistan may have up to one million jobs in the information technology industry by 2020.
“IBA students are working on a study with assistance from the Overseas Investors Chamber of Commerce and Industry’s IT committee. The report, to be published in a few months, underlines that by 2020, Pakistan can easily have a million jobs and exports of $10 billion in the IT industry,” he asserted.
He expressed hope that the current figure of 0.15 million jobs in the industry could easily be increased. “I see a bright future for our industry, which is producing top-quality software,” said Bashir.
“We are meeting the IT ministry on behalf of Pasha – the chamber for IT in the country – to get officials to refocus on the sector,” said Bashir.
Commenting on the resignation of former IT minister Babar Awan, he said, “The minister was an important, focal point of the industry.”
“I have heard that the United States Agency for International Development (USAID) is providing funds and a data centre will be created in Islamabad,” he said while talking about the e-government programme.
Replying to a complaint that large organisations in the country, such as banks, did not give projects to local firms, he said that there were up to 60 large companies in Pakistan which needed tried and tested software.
He, however, explained that there were at least 10,000 small companies that would not be able to afford services of large international firms and would have to adopt local software solutions, which would help the economy grow.
This places Pakistan in 4th place on CII-Insead's Global innovation efficiency sub-index, 5 places ahead of India in 9th place, according to Economic Times of India:
India has improved its ranking in the global Innovation Efficiency Index to 9th position in 2011 from 101th last year on factors like political stability, R&D, market and business sophistication, according to a study.
Surprisingly, Pakistan was placed ahead of India at 4th position, the CII-INSEAD study said.
However, India has slipped on its ranking in the Global Innovation Index to 62nd position out of 125 countries in 2011 from 56th last year while Switzerland was at the top,
It said that a lot of Indian talent is returning home to the country and the youth in urban India are now more global than ever, "and they are quite in tune with new technologies, even ahead of the curve in many cases, as early adapters".
"Multinational corporations are making large investments in R&D outside of their headquarter countries, setting up R&D sites in low-cost emerging countries such as China and India to access global talent and take advantage of their proximity to target markets," the report said.
Indian major players such as Tata, Godrej, and Mahindras are shifting their focus towards the rapidly expanding middle-income group of customers by coming up with frugal innovations, keeping in mind the price sensitivity of Indian consumers, it said.
http://economictimes.indiatimes.com/news/economy/indicators/india-moves-up-to-no9-on-global-innovation-efficiency-index/articleshow/9085252.cms
http://www.globalinnovationindex.org/gii/GII%20COMPLETE_PRINTWEB.pdf
http://www.riazhaq.com/2009/12/intellectual-wealth-of-nations.html
http://www.riazhaq.com/2009/10/pakistans-28-billion-it-industry.html
It should be noted that Pakistan uses BPM5 balance of payments method for reporting software and IT exports, and BPM5 significantly understates the value relative to BPM6 (MSITS) method used by RBI India.
BPM 6 (MSITS) includes sales to multinationals operating within the country, earning of overseas offices & salaries of non-immigrant overseas workers to export revenue.
Various agreements and Memorandum of Understandings (MoUs) have been signed between Pakistani companies and foreign firms on the second day of 6th Expo Pakistan, which are aimed to create new trade opportunities for Pakistani industries.
Chromium and other industries from Information Technology sector signed over $300 million worth of trade deals with different international organisations during the 2nd day of this international event.
For the first time a Hong Kong based company Ormita Commerce Network, which operates as an international barter exchange platform and currently facilitating approximately $2.66 billion transaction per annum, has struck a strategic investment deal with Pakistani firm Alpha Dairies to launch Operation in Pakistan.
Under the agreement signed, the foreign firm plans to conduct more than $120 million of bilateral trade within 12 months of the finalisation of the deal, said Daniel Evans Chief Executive Officer of Ormita.
Talking to Profit, he said that for the first time the ‘barter business’ is being launched in Pakistan under which his company would play a third party role for imports, as government itself can acquire high-tech machineries and commodities from Ormita network participants across the globe and it can pay the dues by using its own under utilised resources or raw materials.
According to Daniel, all kinds of machineries, equipments and other goods could be imported through the barter business with the exchange of raw materials or other available products in Pakistan. Since Pakistan is currently facing several risks, including financial deficit, energy crisis and political instability, for any investment in Pakistan, the barter system is the only solution for any foreign investment in Pakistan. Currently barter system accounts for nearly 30 per cent of the world’s total business, and this is the best solution for a country to build trade relations with other countries in the absence of interest from foreign investments.
“Ormita is currently representing non-cash trading for more than 0.21 million traders across 54 different countries, and it is operating this huge amount of trade through 21 offices in different counties. Pakistan, rather than a cash payment, can exchange it’s under utilised resources or raw materials as a payment for the services or high-tech machineries imported from Ormita” he added.
The Trade Development Authority of Pakistan CEO met with CCPIT China Vice Chairman Huang Shan, Malaysia State Minister Haji Abdul Malik, and other importers. He said that fruitful discussions were made with the dignitaries from China, Japan, UK, USA, France, Brazil, Greece, Argentina, Madagascar, Belgium, South Africa, South Korea, Poland, Malaysia, Nigeria, New Zeeland, India, Panama and Colombia.
The foreign buyers, who met the concerned Pakistani companies’ representatives during the exhibitions have informed him that majority of them had good deals with the country’s exporters and also have placed orders worth millions of dollars.
Earlier, Tariq Rafi, Chief Executive of Siddiquesons Limited, claimed that his company has received import orders worth millions of dollars from buyers from Argentina, Brazil, Poland, Saudi Arabia, Japan and USA as they were interested in denim imports. Almost half of the visiting countries were new customers for this sector.
He said the exporters of denim and other textile items were satisfied with the developments and trade deals made during the 6th Expo as they had received a good response from the foreigners.
http://www.pakistantoday.com.pk/2011/10/pakistani-it-companies-sign-300m-worth-trade-deals/?thick=off&KeepThis=true&TB_iframe=true&height=540&width=962
The year 2011 saw a number of positive developments in Pakistan’s Information and Technology (IT) industry, from app development to global recognition and a series of awards.
HIGHLIGHTS
Pakistan Fast Growth 25
In a first for the IT industry, the Pakistan Fast Growth 25, a ranking of fast growth companies, listed 10 IT companies on its index. The Pakistan Fast Growth 25 is a program of the AllWorld Network in partnership with Harvard Business School Professor Michael Porter, launched in collaboration with JS Bank Limited.
Official Game for ICC 2011 Cricket World Cup
Local development company, Mindstorm Studios developed the official game for the ICC 2011 Cricket World Cup.The browser-based 3D game, “Cricket Power” features all 14 official teams along with players, stadiums and kits.
Pak-India ICT Firms to enhance trade up to $5b
Pakistani and Indian IT committees held bilateral talks separately on both sides of borders in March – aimed at enhancing trade ties in the field of IT. In the talks, both countries agreed to boost mutual trade in the IT sector by $5 billion through joint-ventures, investment and exchange of expertise.
Netsol deal in India
Local ICT company Netsol engaged with Indian companies to provide applications for financial services. It signed an agreement to sell its product “Netsol Financial Suite” to a global auto leasing company operating in India.
Google grants to social innovators
In another first for Pakistan, Google has granted seed money to a local association for social causes.
Google granted $250,000 to Pakistan Software Houses Association that launched Pasha Fund for distributing the amount to talented innovators. So far four individuals were selected to receive funds.
Pepper.pk mobile apps triumph
Local app developers, Pepper.pk hit the number one spot in Blackberry App World. Their application, LED Notifier Pro, has been immensely popular since its launch and ranked among the best selling Blackberry applications in the world. Additionally, their app, Photo Editor for BlackBerry has occupied the number one rank on App World twice in the past three months.
TenPearls wins Nokia contest twice
Pakistani IT firm TenPearls marked another record, beating out 800 entrants to bag second position and received a $50,000 cash prize at ‘Nokia & AT&T Innovators 2011 Contest’.
This is the second award TenPearls has received for its mobile app named “Animal 101” within a year. Their first award was first prize for their app uTrack mobile earlier in 2011 for the same platform in Pakistan.
Pakistan Shines at APICTA
Pakistan was declared the winner of two gold and five silver awards at the 11th annual Asia Pacific ICT Awards (APICTA) 2011 in Pattaya, Thailand. Pakistani firms secured two gold awards in the e-health and e-logistics and SCM categories and five silvers in the communication, financial, security, e-inclusion and e-community and e-government categories.
Pakistan’s team comprised of 18 products which competed against 162 different products from the Asia Pacific region.
http://tribune.com.pk/story/317436/2011-pakistan-it-industrys-golden-year/
..From business process outsourcing to developing smartphone apps, Pakistani IT professionals are seem to be going after every opportunity, especially in the online job market, to bring home valuable foreign exchange.
In high demand, Pakistani IT professionals are growing significantly on oDesk, a Silicon valley-based online marketplace, in terms of both revenues and subscriptions to the platform.
“Pakistan is one of our largest contractor bases, and it is growing steadily,” CEO Gary Swart said in reply to queries through email. Contractors in Pakistan earned almost $1.5 million on oDesk in January 2012 alone, he said. “That figure is more than double the $700,000 they earned in January 2011, which is really an impressive growth!”
In January 2012, Swart said, more than 4,500 contractors from Pakistan signed up for oDesk, which enables businesses to hire, manage and pay a flexible online workforce, representing significant growth over previous months.
The top five categories of oDesk that work in Pakistan, according to the CEO, are web programming, web design, search engine optimisation, software development and mobile apps.
“In these five categories alone, contractors from Pakistan earned $796,000 in January 2012.” The number of Pakistani professionals that sign up for oDesk is growing steadily at a rate of 11% month over month, he added.
As seen from the top five job categories for Pakistani contractors, Swart said, there is certainly a large demand for their IT skills on the oDesk marketplace – which was the seventh fastest-growing company of Silicon Valley in 2011, according to the Silicon Valley Business Journal.
oDesk, according to Swart, is world’s largest online marketplace – as measured by dollars earned by contractors each month – and has 1.6 million registered contractors where 120,000 new jobs are posted each month. Contractors earned more than $225 million on oDesk last year, he said.
IT services are definitely a sweet spot for the oDesk marketplace in general, Swart said. The top two job categories on oDesk overall – web development and software development – together make up more than half of the total earnings on the platform, and demand for IT skills continues to grow rapidly.
Pakistan’s IT industry, according to Pakistan Software Export Board, has seen steady growth over the last few years despite sluggish economic growth – thanks to the online job market.
IT and IT-enabled services exports stood between $560 million and $860 million last year, according to former managing director of PSEB Imran Zia. On a Y-o-Y basis, the IT sector has been growing at 15% to 20% for the last three years and the growth in 2011 was about 15%. The future outlook for Pakistani IT professionals looks promising as IT jobs are in high demand on oDesk, where subscription rate of Pakistani contractors is growing steadily.
“IT jobs are our most in-demand category – which means we have significantly more IT opportunities for contractors from all countries, Pakistan included,” Swart said. “So we believe that we have more Pakistani IT professionals than any other online work marketplace,” he added.
http://tribune.com.pk/story/338556/pakistani-it-professionals-in-high-demand/
The global B2B e-commerce transactions have crossed US$ 12.4 trillion milestone in 2012 which was just US$ 3.4 trillion in 2005. If Pakistani businesses explore the online business opportunities, Pakistan has enormous potential to increase its exports many fold within few years.
These views were expressed by Hafiz Saqif, head of global business expansion of TradeKey while addressing the MIT enterprise forum Pakistan, at IBA Campus. TradeKey, a Pakistani B2B online portal which is ranked 3rd largest business to business website in the world, facilitates over US$ 100 million import/export transactions every month through its website.
Tradekey claims that world over the online trade business is touching new heights but Pakistan doesn’t have any substantial share in online trade. Internet is the future of Pakistani economy and if we utilize the full potential of opportunities available on the internet, country can easily accelerate its exports many fold.
The senior TradeKey official emphasized on the need to utilize universities and academia in developing resources that can explore the true strength of online businesses. He also shared the next year plan of TradeKey in reviving Pakistani exports by laying a comprehensive corporate club program that smartly integrate resources from the manufacturing industry and teams them up with universities students having online exposure. This, Tradekey claims, will not only reduce the gap between the industry and the online world but will also develop a pool of skilled resources that can take Pakistani export to the next level.
TradeKey facilitates importers and exporters worldwide by providing them with the opportunity to interact with the businesses of their interest around the world through its website. TradeKey is Pakistan’s first and only Business to Business website and has its major clientele in US and China. Over US$ 100 million buying and selling that takes place through TradeKey website is mainly from US, China and Europe.
http://www.thenewstribe.com/2012/04/03/pakistan-crosses-global-b2b-e-commerce-transactions-of-12-4-trillion-in-2012/#.T3o298XnI14
http://www.tradekey.com/
You would never think that a company that was giving Alibaba.com – the world’s largest business-to-business portal – a run for its money around the world was based out of Karachi and yet there it is. Tucked away in an office suite on Sharae Faisal, the global headquarters of Tradekey.com look rather unremarkable, until you start asking the executives what they have achieved and what they plan on doing next.
“We want to be one of the world’s biggest companies,” says Junaid Mansoor, the founder and CEO of Tradekey, in a rather matter-of-fact tone of voice. “We want to be in businesses that affect the largest number of people.”
Tradekey.com, the world’s third largest B2B portal, is certainly an impressive beginning by the 32-year-old Mansoor, though by no means his first venture into the world of web-based start-ups. The serial entrepreneur created his first company when he was just 15 years old: a web-based e-mail service that promised to share its revenues with its users. (The site – moneywithmail.com – went bust when the dotcom bubble burst in 2001).
Tradekey.com has about 5.8 million members, of whom only about 5,000 have paid subscriptions, the source of the bulk of the company’s revenues, though the company also offers advertising services. While it does not release financial information about itself, based on the company’s fee for its two levels of premium services, Tradekey’s revenues are estimated to exceed $3 million a year.
Crucially from the company’s perspective, however, it has been growing at a rate of more than 86% a year (Tradekey did not offer a precise number). According to Mansoor, an analysis conducted by a third-party expert valued the company at around $700 million......
http://tribune.com.pk/story/275463/tradekey-a-pakistani-david-taking-on-a-chinese-goliath/
US company Escher Group has won a contract to provide its point-of-service software for post offices in Pakistan.
The Boston-based firm said today it has secured the deal with Islamabad-based information and communications technology firm TelcoNet, a contractor for Pakistan Post.
The deal will mean initially trialling Escher’s RiposteEssential retail point-of-sale system in a number of branches, before potentially rolling the system out to the network of 13,000 Pakistan Post branches.
Escher said centralising Pakistan Post’s financial services would mean customers being able to access them easily and more conveniently.
The project is the first part of an “ambitious” effort by Pakistan Post to improve its entire network and automate a full range of services including mail, retail services and payment processes.
Escher said its RiposteEssential system is now in use in 32 countries worldwide.
The Riposte system is described by its producer as “middleware”, allowing different applications operating on different computers to communicate with each other and manage data centrally. RiposteEssential serves the mail and courier markets, linking postal facilities with utilities, financial services companies, banks and governments.
Liam Church, Escher’s chief executive, said the deal with TelcoNet was a significant development for his company in Asia.
“Pakistan Post is one of the largest postal operators in the region and Escher is looking forward to assisting the Post in its modernisation strategy,” he said.
Irfan Ali, the CEO at TelcoNet, said: “This partnership with Escher is testament to our commitment to work with world-leading technology providers that provide value-added solutions to clients such as Pakistan Post.”
http://postandparcel.info/46972/news/companies/escher-group-to-help-pakistan-post-modernise-network/
KARACHI, Pakistan, Nov. 1, 2012 /PRNewswire/ -- IBM (NYSE: IBM) today announced that Monet, one of Pakistan's leading mobile-commerce providers, has selected a customized IBM cloud-based solution that will enable the company to enhance service efficiency and expand its presence across the country.
Launched in 2012, Monet provides banks, mobile network operators and branchless banking agents in Pakistan with a technology platform that offers end-users a simple interface through which they can access a wide range of financial services on their mobile phones.
Mobile banking and financial services are expected to grow significantly in Pakistan in the coming years. Increased demand for affordable banking, a lack of traditional banking infrastructure and an aggressive branchless banking mandate from the State Bank of Pakistan (SBP) has driven quick uptake of mobile banking in the country.
With a population of 180 million, a mobile phone penetration of more than 70% and a banked ratio of only 22%, Pakistan offers a large potential market for Mobile Financial Services (MFS). According to an SBP recent branchless banking newsletter, the number of mobile banking accounts was at 1.45 million, showing a growth of 37% during the second quarter of 2012, with new level zero account openings registering a jump of 370%. The existing accounts activity level also improved substantially during the quarter as the number of active accounts increased by 66%.1
To capture this opportunity, Monet chose IBM to develop a unique IT environment allowing the company to offer reliable and efficient services to a growing customer base throughout the country.
"Mobile financial services have reached an inflection point where they have moved from niche to mainstream," said Ali Abbas Sikander, CEO, Monet. "We believe mobile can potentially become the strongest channel for the delivery of financial services. IBM's cloud solution will allow us to reach our clients easily, giving us access to a wider base of customers and ultimately extending the reach of financial services in the country."
IBM will develop a specialized solution based on IBM SmartCloud technology, to deploy Monet's mobile banking applications from Fundamo, a leading mobile financial services platform provider and an IBM partner. The private cloud will allow Monet to save on initial investments in IT and help the company offer more efficient services at a reduced cost.
IBM SmartCloud infrastructure is based on IBM servers, storage and software optimized to meet growing mobile demand. In addition, Monet has outsourced the entire networking, security, cryptographic solutions, and disaster recovery to IBM, in order to focus on its core business.
"Mobile and Cloud are a powerful combination to provide sustainable and affordable banking services to millions of people in Pakistan," said Adnan Siddiqui, CGM, IBM Pakistan and Afghanistan. "IBM has global experience in the financial services sector and a thorough understanding of the local market, and our engagement with Monet is expected to benefit banking customers across the country."..
Read more here: http://www.sacbee.com/2012/11/01/4953392/leading-pakistan-mobile-banking.html
http://www.monet-online.com/
Last year, the city of Lahore, Pakistan, was hit with the worst outbreak of dengue fever in its history. The mosquito-transmitted disease infected some 16,000 people and took 352 lives. This year was a completely different story. There were only 234 confirmed cases and no deaths. The magnitude of the disease varies year to year, but some of the turnaround could be credited to a new system of tracking and predicting outbreaks in the region.
Researchers working for the Pakistani government developed an early epidemic detection system for their region that looked for telltale signs of a serious outbreak in data gathered by government employees searching for dengue larvae and confirmed cases reported from hospitals. If the system’s algorithms spotted an impending outbreak, government employees would then go to the region to clear mosquito breeding grounds and kill larvae. “Getting early epidemic predictions this year helped us to identify outbreaks early,” says Umar Saif, a computer scientist at the Lahore University of Management Sciences, and a recipient of MIT Technology Review's Innovators Under 35 award in 2011.
“This year, because of the tracking system and the efforts of government employees on the ground, we could look at a map and tell if certain areas were going to develop into an epidemic,” says Saif, who has been working with the government during a sabbatical. “The key is to be able to localize and quarantine a disease like this and prevent it from developing into an epidemic,” he says.
The groundwork for the early detection system was another project headed by Saif: Flubreaks. This system processes data from Google Flu Trends, which estimates the spread of flu based on search terms related to the disease. “That whole idea of being able to scrape digital data has helped us find outbreaks faster,” says Mark Smolinski, director of Global Health Threats at Skoll Global Threats Fund, a nonprofit that recently helped launch a site called Flu Near You, which tracks flu based on a weekly electronic survey that asks people about their health and any flu symptoms.
Smolinski was part of the team at Google to develop Google Flu Trends, which he says can speed up outbreak identification. “You can gain a couple of weeks just by aggregating data of search terms on the Internet,” he says.
While Google Flu Trends identifies outbreaks as they occur, Flubreaks can see them before they start by teasing out global flu trends and making early epidemic predictions.
The results from Flubreaks closely matched actual outbreaks reported by the Centers for Disease Control, says Saif. “We found that idea very exciting,” says Saif. Countries like Pakistan typically do not have a well established disease surveillance network, he says. “We want one for dengue in Pakistan, but it’s a very expensive and difficult thing to manage.”
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The dengue monitoring system relies on real-world field testing of mosquito larvae and reports from hospitals to predict where dengue outbreaks are starting. If a certain neighborhood is suspected to be at the beginning of an outbreak, then government officials could search out mosquito-larvae reservoirs such as pools of water that are likely causing the problem.
The system was put to use this summer. Using 1,500 Android phones, government workers in the region tracked the location and timing of confirmed dengue cases and the mosquito larvae that carry the disease. Each case was tagged by time and location. “Because of the Android phones, we could localize the outbreak to a couple of hundred houses. Inevitably, we would find some water in or near these houses.” ....
http://www.technologyreview.com/news/506276/pakistan-uses-smartphone-data-to-head-off-dengue-outbreak/
“Broadband penetration and mobile telidensity is creating a bandwidth shortage in Pakistan, which will widen manifold as third generation mobile technology rolls out. That’s where we see the opportunity, as businesses will need to optimise their hardware, storage and software,” says Oracle Corporation’s Vice President of ASEAN Systems Sales Ron Goh.
Goh, in an interview with journalists, said that current data centre operations are unsustainable and often fail to meet the needs of growing businesses. “By optimising existing data centres,” he said, “organisations can significantly increase IT efficiency along with system performance, availability and security. By doing this, they can reduce their spending on systems operations and integration that eat up around 80% of the IT budget,” he added.
Through Data Centre Optimisation (DCO), businesses can lower operation costs by 75%, according to Goh. “DCO is not a machine or software, but a combination of storage, servers, operating systems, engineered systems and software to simplify the IT infrastructure,” he explained.
“Pakistan is a fast growing country where demand for technology is increasing,” Goh observed, “even businesses that have Data Centre Optimisation technology want to upgrade the same to global standards.”
Explaining the need for upgrading database storage infrastructure, “These new challenges can’t be met with application silos [storage towers] running on aging hardware technologies,” he said.
Giving an example, Goh said organisations which have implemented more efficient technologies were not only able to lower operating costs, but also drove better productivity, which ultimately gives the organisation a quantifiable return on investment and a real competitive advantage within the industry.
Operating in Pakistan since 1997, Oracle’s clientele has grown to 1,100 customers.Through its local partners, the database giant helps businesses adopt integrated information technology infrastructures for higher work efficiency.
http://tribune.com.pk/story/469356/oracle-sees-growth-in-pakistani-tech-industry/
KARACHI: Stephen Brobst, Chief Technology Officer of Teradata, is impressed with talent base in Pakistan. In his recent visit to Pakistan, he said this was the only reason prompting the company to keep its operational base in Pakistan while extending its data warehousing services across Afghanistan, Bangladesh, and Gulf Cooperation Council. These services are essential for organisations that keep interacting with a number of customers and their queries on daily basis.
Data warehousing provides an enormous repository to not only store but also compare present and historical records to facilitate corporate decision making. A PhD from Massachusetts Institute of Technology and a member of Barack Obama’s ‘President’s Innovation and Technology Advisory Committee’, he looked quite eager to educate organisations—the targets are financial and telecom sectors—in Pakistan about the benefits of utilising data warehousing (a next step to enterprise resource planning) prior to devise pricing plan, marketing strategies, or funding decisions during an interview with The News. Following are the excerpts.
Why enterprise data warehousing is important?
All the sectors can take advantage of data warehousing. Health sector can utilise the technology to upgrade quality of services by decreasing costs. The Obama administration has asked the committee to formulate solutions to keep track on a number of patients, their diseases, health history, etc. On the basis of these data analytics, hospitals can reduce discrepancies existing in the data. Data warehousing enables, for example, hospitals to maintain health records and patients to keep away from frequent visitations to doctors
Given the low fund allocation to health sector in Pakistan, is data warehousing practical?
I can’t comment on the government’s funding. However, if the government of Pakistan asks us to work on the data, we are ready to extend our services.
Which organisations are Teradata catering to in Pakistan?
Pakistan International Airlines, Telenor Pakistan, and Nadra are few names that our company has served. Every organisation that deals with tonnes of data to perform its day-to-day jobs can benefit from our data warehousing (which transforms data into relevant information to formulate best pricing plan for instance). All top- and mid-tier companies and institutes can use our integrated data warehousing, data analytics, and business applications. ..
http://www.thenews.com.pk/Todays-News-3-151306-Teradata-to-keep-regional-operational-base-in-Pakistan
2013 will see the adoption of Cloud services continue to grow in Pakistan. Increasingly, customers – both individuals and companies – will seek to store their data ‘in the Cloud’ as opposed to physical data servers, as well as avail of software services on a ‘rental’ basis. Large MNCs, banks and other financial services companies have already moved into this domain some time ago. Looking forward, educational institutions are likely to take the next step, as digitisation of educational content takes place. Some progressive institutions have already adopted softwares such as Moodle and Learning Management Systems and incorporated their curriculum on them, thereby preparing their scholars for a digital future.
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Pakistan has over 100 million cellular subscribers; reportedly, around 10% of these use smart phones. Data usage has grown substantially, and there are an estimated 10 million mobile data users in Pakistan. However, it is important to note that 3G has been overhyped and may actually fall short of expectations, as it has in India.
Almost a year into its launch in India, only 2% of subscribers have opted for 3G services. 3G will require ubiquitous coverage for consumers to be satisfied with the services. WiMAX can play an important role here by offering a solution for data backhauling for telecom operators. Wateen has already deployed around 250 WiFi hotspots in Karachi, Lahore and Islamabad, and is ideally positioned to fulfill the data needs for mobile operators.
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Branchless banking and m-commerce services will be the biggest innovations for the year. New entrants (Zong and Askari Bank, and Mobilink and Waseela) have recently launched their offerings and promise to improve the take-up of this service. New payment solutions will also be a first in the country, as smart phones enable swipe magnetic card readers and pioneering companies such as Inov8 Ltd begin to deliver on their potential for the consumer market. Smart phone apps will also be big.
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In Pakistan, some companies have already started bringing Android-based devices for as low as Rs5,000. Indians have recently announced that they will be developing the world’s cheapest tablet for $35. These devices will play an exceptional role in transforming societies. The consumerisation of IT has already started taking place in Pakistan. Companies like QMobile will play an important role in the proliferation of low-cost handheld devices. This, in turn, will impact the use of mobile internet and broadband, open WiFi and WiMAX, as well as Cloud services, as consumers look to access data and media on their handheld devices.
http://tribune.com.pk/story/499410/notes-from-the-world-of-it-2013--looking-ahead-into-the-year/
KARACHI: With a self-employment boom and double-digit growth in internet subscriptions, Pakistan has become the third highest user of freelancer.com, the world’s biggest online marketplace in terms of user base, it was revealed at the launch of the website’s local version on Tuesday.
“Pakistan is the third largest country using the website [freelancer.com], closely following India and the United States,” said Adam Byrnes, International Director at freelancer who joined the ceremony through a video call from the company’s headquarters in Sydney, Australia.
“Pakistani freelancers have already earned more than $13 million from the platform,” he said.
Freelancer’s decision to launch the local website comes on the back of strong growth in subscriptions by Pakistani freelancers. The website presently has 240,000 Pakistani users.
According to a report prepared by freelancer, self-employed Pakistanis surged from 33.3% to 39.9% between 2009 and 2012. The report attributes this surge in subscriptions to the rise in internet use in Pakistan, which saw double-digit growth in the past five years. In terms of internet growth, Pakistan stands second in the Saarc region, the report said.
“I am excited about the launch of freelancer.pk because of the potential Pakistan represents for the platform,” said Byrnes who is responsible for expanding freelancer across the world. “This [Pakistan] is a high value market for employers abroad.”
With more than 30 million internet users, five million plus broadband users and a population approaching 200 million, according to Byrnes, it makes sense to have a presence in Pakistan.
“Going forward, we want to provide self-employment for a billion people, a significant portion of that is going to come from Pakistan,” he said.
Freelancer just hit seven million users globally and 4.2 million projects were facilitated by the website, Muhammad Umer Farooq, company director responsible for managing the freelancer website told The Express Tribune on the sidelines of the event.
“An amount of $150 million has been spent so far by users of freelancer.com,” he said, adding they make money by charging commission from both the employers and the freelancers who get projects.
Interestingly, Farooq pointed out, it is not only foreigners hiring Pakistani freelancers, but Pakistani companies are also giving contracts to Pakistani freelancers registered on the website. United States is the top country awarding 38% of total projects on freelancer while Pakistan stands fifth for it awards 4% of the projects.
The idea is to enable rupee transactions for Pakistani members for which the company is in talks with local banks, both Farooq and Byrnes said. “Secondly, we are soon going to have an Urdu version of the website,” Farooq said.
IT and graphic designing (logo design) are the top two categories at freelancer. Freelancers can bid for the projects posted by employers through a simple method, he said. Given that it is one of the top countries on the website, Pakistani freelancers can benefit from exposure to the international job markets – the UK, North America, Australia and Canada.
http://tribune.com.pk/story/516239/pakistan-3rd-highest-user-of-freelancer-as-self-employment-rises/
http://www.freelancer.com/work/paid-freelance-projects-pakistan/
It also shows US, Australia and the UK as the top hiring countries.
All of the above-mentioned websites work in a similar fashion: companies post job requirements on these sites. Next, freelancers or IT-companies offer their skills and price for the project listed on the website. Finally, the company chooses the best type of bid for its job requirements.
http://swproposal.com/Blog/Topic/How_to_work_with_Elance_oDesk_Freelancer_and_Guru
A shared mobile money network, built on Visa's Fundamo technology, that can be tapped by banks and telcos is preparing to launch in Pakistan.
Monet - which was set up by the massive Abu Dhabi Group last year - has now secured approval from the State Bank of Pakistan to build its network, which is being offered to local firms planning to launch mobile money services.
Built on Fundamo technology, Monet says its offering will provide a managed service platform, agent management services and bill aggregation services to new financial institutions and network operators interested in entering branchless banking services.
The first clients are Pakistan's sixth largest financial institution, Bank Alfalah, and Warid Telecom, who have teamed up to launch a new brand on the platform.
Monet says that its network will make it cheaper, easier and quicker for firms to tap into Pakistan's huge unbanked market. According to the Pakistan Access to Finance Survey, only 12% of the population has access to formal financial services, yet mobile penetration stands at nearly 70%, says the Pakistan Telecommunications Authority.
A recent study by the Boston Consulting Group estimates that 35% of the country's adult population will be using mobile financial services by 2020.
Ali Abbas Sikander, CEO, Monet, says: "We are building an open and collaborative eco-system which benefits all the stakeholders of the financial services ecosystem in Pakistan. Collaborative mobile financial services, as opposed to bank-led or telco-led deployment, is the paradigm shift which will assist in creating a bigger and less costly enabling environment for the issuers, acquirers and service providers."
Aletha Ling, COO, Fundamo, adds: "The platform allows service providers to think big, start small and scale fast. The result will be an ecosystem that that will support the long term and sustained growth of the Pakistani mobile financial services market."
http://www.finextra.com/News/FullStory.aspx?newsitemid=24626
...The central policy objectives of SBP are to ensure safety, soundness and efficiency of the banking system, and to protect the interest of consumers, he said, adding that since branchless banking is becoming a vital component of the national payment grid, it is prudent for all stakeholders to ensure that appropriate measures are in place to mitigate inherent risks associated with it like access by unauthorised persons or criminals such as hackers, money launderers, terrorist financiers etc.
He said being fully cognisant of the risk factors involved in such unconventional modes of banking, SBP has been proactively monitoring developments and associated risks both at system and entity level in order to take appropriate corrective measures in a timely manner.
The SBP governor said that branchless banking has also proved to be an effective instrument in channelising the government to persons (G2P) payments in trying times like serving internally displaced persons (IDPs), and devastating floods for the last two years. The Benazir Income Support Programme (BISP) beneficiaries are also being served effectively through the same mechanism, he said, adding that In the coming days, this channel is expected to continue playing an important role towards the promotion of financial inclusion and the management of G2P programmes like salaries disbursements, pensions, BISP, Watan Cards, Pakistan Cards and tax collections services, etc. The existing branchless banking deployments can cater to the needs of over 10 million potential beneficiaries of G2P payments in Pakistan, he added.
Anwar said that four branchless banking models including Easy Paisa, Omni, Mobile Cash and Time Pey are fully operational while two are running live pilots. He said that the branchless banking current growth trajectory is expected to get further steeper in the years ahead.
He said that the number of agent network servicing branchless banking customers has reached 42,000. Therefore, the basic financial services can now be accessed in the remotest parts of the country through any of these agents. Approximately 194 million transactions worth Rs 813 billion and more than 2.0 million m-wallets have been opened till date, he said, adding that numbers will improve significantly. The infrastructure of payment systems and branch network is also showing an increasing growth trend, he said adding that the ATMs network has increased to 6,232 whereas branch network has reached 11,600 while 94 percent of our branches are now real time on-line. Similarly, the number of plastic cards has increased to 20 million and the number of POS machines has increased to 34,000 units. This is a significant achievement, and this also demonstrates the opportunity to bring the benefits of this infrastructure to millions of the unbanked population, he added.
While acknowledging that branchless banking has gained critical mass in a short period of time, the SBP governor was of the view that the market has to start shifting transactions from first generational services (person-to-person/bills payments) to second generational services (account-to-account and inter-bank transfer). The players need to expand their product portfolio by offering new products and services for their target market. In my view, this is part of an inevitable evolution which will ensure the long-term sustainable development of the sector, encourage micro savings and help in meeting the demands for inclusive financial services of the target market, he added.
http://www.dailytimes.com.pk/default.asp?page=2013\03\15\story_15-3-2013_pg5_1
http://www.gao.gov/new.items/d06116.pdf
To make Pakistan a hub of open source technologies in Asia by 2020, Open Source Foundation of Pakistan (OSFP) was launched by a team of dedicated professionals from academia, IT industry and services sector. Speaking at a ceremony here, Founder of OSFP Babar Zahoor said the founding principles of the foundation has been set as “using and developing the local human resources for introducing IT based solutions for local markets, home users and industry”. It is believed that both public and private sector organizations are using billions of rupees to use imported close-ended software programs and technologies.
Many of them have to develop their activities around the imported softwares to save further billions because customization costs are used as traps by these foreign firms to lynch local firms of their valuable resources, he added.
Hence local industries lose the competitive edge not only in production but even in cyber security and data pilferage.
He said the OSFP will provide a platform to the private and public sector organizations and universities, it can help them save billions of rupees.
Babar Zahoor believes, “both private and public sectors can save these monies for human resource development in the country by spending a fraction of the cost they are bearing now by importing not-so-customized software from the monopolized close-ended sources.”
Thinking globally to give local solutions in the field of user friendly and customized IT sector, OSFP held its first elections in Islamabad to elect a five member executive council and a four office bearers.
Newly elected Executive Council Members are Saleem M. Rafik (Director General Operations NADRA), Dr Syed Iqbal Ahmad PhD (Adviser Education Oxfam Novib Pakistan, Ex Chief Scientist Pakistan Agri Research Center), Ms Asma Qadeer, Assistant Professor Linguistics (Vice President Women Wing Baluchistan Pakistan Tehrik-e-Insaf), Tahir Mahmood Chaudhary (President Computer Society of Pakistan, CEO of Pakistan Institute of Entrepreneurs, CEO of Falcon Engineering and Sarfaraz M. Khan Chief Technology Officer Path Finder, Ex Vice President Vectra Com Pvt. Ltd.
According to by laws, Executive Council Members will arrange first meeting to elect Foundation’s Chair and Vice Chair soon.
http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=271267&Itemid=2
According to recent data, Pakistan's software industry employs more than 24,000 people, including many startups like Mindstorm Studios by Ahmed, We R Play by Mohsin Ali Afzal and Waqar Azim, and the now famous Caramel Tech Studios in Lahore. Pakistan's developers have achieved new renown thanks to games like “Whacksy Taxi”, which has become one of the most downloaded App Store games in 25 different countries, and other projects like “Stick Cricket”. Firms hold regular “game jams” in Lahore to attract innovators with competitions between young would-be game developers. Jobs at these companies are highly coveted by young people: the workday ends around 4pm, and employees often hang out together afterwards, literally playing games!
Mariam Adil is one of the dynamic women leading this new era of entrepreneurialism in Pakistan, perhaps the country's best-kept secret. While most of the world probably thinks of all Pakistani women as oppressed and chained down by society, there are dozens of bright women entrepreneurs managing incubators and programs in Pakistan today.
Adil is the founder of the Gaming Revolution for International Development (“GRID”), a game development startup that designs low-cost video games to simulate common issues in development fieldwork and teach development skills. Its game “Randomania” serves up scenarios that any development-sector professional can relate to and encourages policy decisions, showing the results of those decisions. Stereowiped, on the other hand, is a boundary-breaker when it comes to race and barriers of prejudice and is a great example of what social impact games can achieve.
Faisal Kapadia recently spoke to Adil about her work and much more.
Faisal Kapadia (FK): Why did you think of forming a company like the grid to solve issues when there is plenty of opportunity available for game developers commercially?
Mariam Adil (MA): Born out of pure inspiration, GRID hits at a niche market and gives me the flexibility to think creatively about pushing the boundaries of technology innovations for creating development solutions. It was less driven by a need to earn money and more by my passion for the idea.
FK: While developing Randomania did you do a lot of research on different situations faced by professionals in the development sector?
MA: My day job at the World Bank allows me to have my hand on the pulse. Having designed and implemented several Impact Evaluations, I am familiar with the challenges that practitioners face while designing randomized control trials. This perspective, put together with feedback from some very supportive colleagues at the World Bank allowed us to make sure Randomania could do justice to the challenges of rigorously evaluating development projects.
FK: What kind of impact do you think a game like Randomania can have? Does it lead to as a test case more cohesive thought or efficiency?
MA: In my opinion, there is a gap between the science of International Development taught to students and development practitioners, and the art of development practiced by professionals in the field. Until now, there have been few tools to bridge that gap – to provide the experiential learning required to practice complex decision-making, at a scale well beyond one to one interaction.
Games like Randomania offer a safe environment to simulate the effects of policies and understand the trade-offs involved in the decision-making process. With a push towards innovative use of technology in international development, and the effectiveness of games as learning tools, the stage is set for development games to be introduced as learning tools for development practitioners and students.
http://globalvoicesonline.org/2015/04/28/meet-the-woman-whos-revolutionizing-pakistans-gaming-industry/
Pakistan’s I.T. sector is carving a niche for itself as a favored place to go for freelance I.T. programmers, software coders and app designers. There are now 1,500 registered I.T. companies in Pakistan, and 10,000 I.T. grads enter the market every year. Energetic members of the middle class educated in Pakistan’s top universities, they have honed their skills at the many hackathons, start-up fairs and expos, digital summits and entrepreneurial events at campuses, software houses and I.T. associations across the country.
Next comes showcasing their skills to a global market in order to grow businesses. So Pakistani freelance programmers flock to global freelance hiring sites such as Upwork, or fiverr.com, where digital employers in the United States, Australia or Britain bid to hire programmers for small software and app projects. On these platforms, hiring someone from Pakistan becomes as easy as hiring someone from Ireland or India, because traditional concerns about security, corruption and invasive bureaucracy in Pakistan do not apply.
The formula is working: the Pakistani programmers market ranks as the No. 3 country for supplying — freelance programmers — behind only the United States and India, and up from No. 5 just two years ago. It ranks in the upper 10 to 25 percent on Upwork’s listing of growth rates for top-earning countries, alongside India, Canada and Ukraine. Pakistan’s freelance programmers already account for $850 million of the country’s software exports; that number could go up to $1 billion in the next several months, says Umar Saif, who heads the Punjab I.T. Board and previously taught and did research work at M.I.T.
The optimism one hears in Karachi and Lahore even withstood a scandal last May, when news broke that Axact, one of Pakistan’s largest I.T. companies, was operating as a fake degree mill. Members of the tight-knit I.T. community reacted at first with fears for Pakistan’s chances to become a major player on the world’s I.T. stage. Perhaps those fears acted as a spur to the authorities, who arrested Axact’s chief within weeks after the scheme was laid bare.
In any event, three days after investigators raided Axact’s offices, Naseeb Networks International, a Lahore-based company that runs the online job marketplace Rozee.pk, announced that it had won a third round of investments, worth $6.5 million, from the European investment firms Vostok Nafta and Piton Capital, bringing the company’s total venture capital funding to $8.5 million. It was the latest in a series of large venture capital investments in Pakistan over the last year and a half.
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It’s now also faster and easier for foreign companies to acquire the apps these programmers create, in contrast with negotiating traditional service contracts, and Mr. Saif anticipates that such start-ups will themselves become targets for acquisition by overseas companies.
According to him, venture capital is the one missing ingredient in an enabling environment that the government, universities and software associations are building. Per Brilioth, the managing director of Vostok Nafta Investment, agrees. “The macro indicators and demographics are very strong,” he said, “and the country doesn't seem to get a lot of investor attention, so valuations are reasonable."
Those factors — and the rapidity with which Pakistan’s 200 million people are embracing the Internet on sub-$50 Chinese 3G smartphones — are markers on which Pakistan’s entrepreneurial leaders pin their hopes for the future. They see problems like Axact as bumps in the road as Pakistan builds a haven for I.T. development.
http://www.nytimes.com/2015/08/11/opinion/bina-shah-pakistan-the-next-software-hub.html?_r=0
Pakistan’s tiny IT sector is carving out a niche for itself -- so much so that it has been the subject of several stories in international publications such as the New York Times, the Global Post, Al Jazeera, to name a few. Perhaps the interest is because of the obvious potential of the industry: There are now 1,500 registered IT companies in Pakistan, and 10,000 IT grads enter the market every year.
Perhaps even more significantly, the democratisation of demand as facilitated by the internet-era, has enabled Pakistan to climb up market ranks to become the No. 3 country for supplying freelance programmers, behind only the United States and India, and up from No. 5 just two years ago. This is because programmers in Pakistan can easily sign up to platforms such as Upwork or Fiverr, where the person hiring them is less interested in their location and more concerned with their skill. Because the programmer in Pakistan is using a third party platform, logistical, bureaucratic and other constraints that are typically associated with Pakistan, including corruption, do not apply.
As reported by The New York Times, Pakistan ranks in the upper 10 to 25 percent on Upwork’s listing of growth rates for top-earning countries, alongside India, Canada and Ukraine. Pakistan’s freelance programmers already account for $850 million of the country’s software exports; that number could go up to $1 billion in the next several months, says Umar Saif, who heads the Punjab IT Board and previously taught and did research work at M.I.T.
As reported by the Global Post, Pakistan’s software export industry employs some 24,000 people, according to government figures. Most companies in Pakistan’s IT sector — including mobile game studios — are growing at more than 30 percent a year, says Pakistan’s software industry trade body, P@SHA.
With success come challenges, and Pakistan’s nascent IT industry faced its first such challenge last May, when news broke that Axact, one of Pakistan’s largest IT companies, was operating as a fake degree mill. Authorities acted fast, arrested Axact’s chief within days, though the controversy did lead many to comment on whether the country’s IT industry stood a chance in the long-term.
That question was answered almost immediately, when just three days after the Axact controversy, Naseeb Networks International, a Lahore-based company that runs the online job marketplace Rozee.pk, announced that it had won a third round of investments worth $6.5 million, from the European investment firms Vostok Nafta and Piton Capital. The latest round of funding brought the company’s total venture capital funding to $8.5 million.
Or take the example of Caramel Tech Studios, a Pakistan-based mobile game startup that created the sensation “Fruit Ninja” for an Australian developer. Another such startup in Pakistan is Mindstorm Studios, maker of “Whacksy Taxi,” a racing game that topped Apple’s App Store in more than 25 countries.
And while constraints such as bureaucracy, shortage of land/space for offices, power shortages, et cetera remain a challenge, they are offset by positives, most importantly cost. “If we have a million dollars in the bank ... in the US we might only be able to make one and a half games, whereas here we might be able to make 10 games,” Saad Zaeem of Caramel Tech Studios told The Global Post, adding that graduates here are as qualified as Western ones and cost a lot less to employ, giving software startups a competitive advantage over high-wage Western countries.
Further, the rise of the mobile software market has been a huge gamechanger. “Prior to the iPhone …
Pakistan’s IT exports have hit an all-time high in the outgoing financial year of 2016-2017.
The country is witnessing a growth boom in the IT industry like never before and the government is also taking steps to support the IT infrastructure. And the numbers prove that the positive activity in the IT industry is delivering good results. According to ProPakistani, figures provided by the State Bank of Pakistan(SBP) indicate that the IT industry’s exports – which includes telecom, and computer and information services – in the outgoing financial year were of $938.640 million. The exports made in the previous financial year of 2015-2016 were worth $788.640 million. This indicates a year-on-year growth of 19%.
The Pakistan Software Exchange Board(PSEB), on the other hand, has reported figures that are three times greater than those reported by the SBP. According to the PSEB, the IT exports stand at a whopping $2.8 billion. There is a huge disparity in the numbers that have been reported by the SBP and the PSEB. However, it should be noted here that the SBP and the PSEB calculate the final figure of IT exports in a different manner. The PSEB reports in different sectors such as financial services, healthcare sector, e-commerce, e-health, but to estimate the final figure of total exports it takes into consideration all the exports done by local software houses to international clients.
If Pakistan’s IT industry keeps thriving at this rate, it certainly rings good news for the country’s economy. Could Pakistan hit the target of $6 billion software exports by 2020 or the target of $10 billion IT exports by 2025? We’ll have to wait and see. But the present certainly does look good.
According to the statistics provided by the State Bank of Pakistan, exports of IT industry classified as telecommunication, computer and information services surged to the level of $938.640 million in the last financial year.
The exports earning of the IT industry registered a double digit growth of 19 percent or $ 150 million from the financial year 2015-16 which stood at $788.640 million.
Exports of IT or ICT services – in broad terms – are largely delivered to countries and regions such as USA, Middle East and South African countries.
https://propakistani.pk/2017/08/15/pakistans-exports-cross-1-billion-fy16-17-sbp/?utm_source=all_users&utm_medium=notif
PSEB Stats
Pakistan Software Export Board (PSEB), on the other hand, reported 3 times higher exports as compared to SBP’s numbers ($2.81 billion) through the input of companies/software houses.
PSEB’s estimation is based on the services various IT companies and software houses rendered to different countries but their reporting is done in different sectors such as financial services, healthcare sector and etc, as well as e-commerce, e-health and e-education.
Besides, the reporting of the freelance work is usually reported through overseas remittances. It should be mentioned that Pakistan is considered as the fourth largest freelance market in the world. The estimation of PSEB suggested that exports of freelancer of IT sector stands at more than $200 million per year.
Hence, the foreign exchange inflows in IT sector is not reported as its original potential.
Breakup of IT industry Exports of Services and Products
Source: State Bank of Pakistan
IT and Telecommunication is counted as a single industry in Pakistan either under one ministry, or by reporting the inflows of this sector.
SBP Is Working To Streamline IT Forex Inflows
State Bank of Pakistan has taken a series of concrete steps to streamline exports income of the IT industry through the banking sector, which could reduce the under-reporting foreign exchange earning of IT and its enabled services.
The implementation of the instructions of the central banks to commercial banks and software houses will lead to identify the nearest figure of IT exports values on monthly and annually basis, which will also help all stakeholders to realize the potential and status of IT sector in the country.
6-Year Exports at a Glance
Source: State Bank of Pakistan
IT industry has the biggest potential in Pakistan with a capacity to expand itself domestically and internationally for exports of services when it comes to support of the government through policies and tax incentives.
Government’s Incentives for IT Sector
The government realizes that it has an important role in providing a conducive environment for the growth of the IT industry through infrastructure and HR development. The government has set a vision to enhance the exports of this sector to $5 billion per annum by 2020, which is not an impossible target.
https://www.techjuice.pk/it-industry-has-contributed-98-to-pakistans-economy-by-foreign-exchange-earnings-anusha-rehman/
Minister of State for Information Technology and Telecom Anusha Rehman on Monday lead the 36th meeting of the Boards of Directors of Pakistan Software Export Board (PSEB) to assess the work being done on various IT initiatives taken by PSEB including Prime Minister’s Internship Programme and Capability Maturity Model Integration (CMMI).
PSEB Acting Managing Director Syed Iftikhar Hussain Shah updated the board with achievemts of PSB over the last four years. The board was briefed that PSEB has showcased their work at 11 international trade fairs alongside over 65 IT companies, which are making above two thousand leads. This exhibition enhanced the perception of Pakistan as an important destination in terms of outsourcing and investment. According to him, exhibiting at the trade fairs also helped improve the image of Pakistan as a viable destination for outsourcing and investment, because PSEB’s participation in the exhibitions have increased Pakistan’s exports in all the countries that hosted the exhibitions.
According to him, because of the active PSEB technical and financial assistance throughout the past four years, over 30 selected IT professionals and 28 IT companies have been given certificates in Capability Maturity Model Integration (CMMi) platform. Apart from this, 134 companies have gotten certifications in ISO 9001, ISO27001 and ISO 20001 as PSEB empowered them to acquire exports from the developed markets.
The minister agreed and added that the great work done by Pakistan’s IT sector is evident from the fact that IT Industry exports have contributed 98% to Pakistan’s economy by foreign exchange earnings and job creation through growth in the past 4 years. She also said, “Due recognition must be extended to our freelancers who have catapulted Pakistan on the 4th spot on the largest freelancing website in the world.”
Anusha felt pride in the fact that Pakistan has a huge number of extremely talented youth, and the government is striving to provide them with the best resources and opportunities.
Anusha said that PSEB in partnership with National ICT R&D Fund (IGNITE) has recruited over 1,700 IT graduates as interns this year for having hands on experience with IT companies, as well as IT departments at Telcos/CMOs, banks, and also educational institutes. Among these interns, more than 60 percent received job offers after the completion of their training tenure.
According to her, the government is going to announce a national level digital skills training program to empower 1 million freelancers of the country who have an experience of over 5 years with the skills that are needed to increase their productivity.
Later, the minister also lead one more meeting and gave her approval for “DigiSkills”— an initiative to mentor 1 million youth with a focus to use technology in the best way by bringing excellence in technology, introducing innovation and respecting work ethics, alongside the vision of building a workforce for a future of the 4th Industrial Revolution.
She commented, “Our educational institutes are producing huge number of graduates every year. More than 20,000 IT graduates and engineers are being produced annually and it’s time that we prepare our workforce for new technologies in line with fast growing trends of freelancing and entrepreneurship.”
https://www.thenews.com.pk/print/236087-Anusha-highlights-IT-sectors-performance
Mrs. Anusha Rehman said that the performance of Pakistan’s IT sector could be gauged from the fact that IT industry exports have registered a 98% growth over the past four years resulting in substantial contribution to Pakistan’s economy through foreign exchange earnings and job creation. She said that due recognition must be extended to our freelancers who have catapulted Pakistan on the 4th spot on the largest freelancing website in the world, Upwork and that it is the goal of the present government to achieve at least $5 billion in export earnings by 2020 and $10 billion by 2025.
https://twitter.com/haqsmusings/status/1034492236279345152
https://www.techjuice.pk/pakistans-it-export-crossed-1-billion-mark-for-the-first-time-in-history/