State Bank: Pakistan IT Exports Surge Past Billion Dollars in 2018

Pakistan's information technology exports have bucked the nation's declining exports trend with double digit growth to reach $1,065 million in fiscal year 2018, according to the State Bank of Pakistan.  It is generally believed that Pakistan's central bank underestimates technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.

Source: State Bank of Pakistan

Pakistan IT exports surged 13.4% to $1.06 billion in fiscal year 2018 from $939 million in fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in fiscal year 2017.

Source: State Bank of Pakistan

About $320 million of IT exports revenue in fiscal 2018 came from software exports while the rest was made up of services such as consulting, telecom and call centers.

Double Digit CAGR in Pakistan IT-ITeS Exports in 2010-2018

Online Labour Index top 20 worker home countries, 1-6 July 2017

Freelancers in Pakistan are benefiting from the growing access to broadband connections which are now being used by over 50 million Pakistanis across the country. Pakistan is ranked 4th in the world by the freelancing industry report.  The country has rapidly increasing human capital of technologists.



Growth in IT exports is a good sign for Pakistan's export diversification beyond commodities such as textiles and food. In addition, air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.

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Riaz Haq on Pakistanis in Silicon Valley

Can Pakistan Avoid Recurring BoP Crises?

Pakistan Launches NUTECH to Prepare 21st Century Workforce

Comments

Riaz Haq said…
#Pakistan eyes boosting medicine exports. #Pharmaceutical #exports are currently earning $230 million with potential to expand up to $2 billion. The industry is the 6th largest sector contributing to the overall exports of Pakistan. https://tribune.com.pk/story/1813190/1-pakistan-eyes-boosting-medicine-exports-2b/

The Drug Regulatory Authority of Pakistan (Drap) has assured the pharma industry that in order to further facilitate exports, the authority will establish a separate desk where all concerns of exporters regarding issuance of necessary documentation will be addressed.

Pharma exports are currently earning $230 million with potential to expand up to $2billion.
A meeting was held on Thursday under the chairmanship of Federal Minister for Health Services Aamir Mehmood Kiani with pharmaceutical exporters. The purpose of this meeting was to discuss mechanisms to boost volume of pharmaceutical and alternative medicine exports.

The federal minister in response to concerns of the pharma industry, being represented by the Pakistan Pharmaceutical Manufacturing Association and top 20 pharma exporters of Pakistan, emphasised on the need of harmonisation and facilitation of pharma export by engaging customs and the Trade and Development Authority of Pakistan (TDAP) for resolution of their grievances.

He said the sector has huge potential and needs harvesting to benefit the country by earning money abroad through improved exports of pharmaceutical and alternative medicine. It was also apprised the industry could expand its volume of exports as the 6th largest sector contributing to the overall exports of Pakistan.

Kiani advised stakeholders to submit a working paper on how export volume can be improved. Following which, CEO DRAP, Dr Sheikh Akhter Hussain apprised the federal minister that DRAP has already taken initiative to facilitate local manufacturers who are exporting to other countries.
Riaz Haq said…
#Pakistan undergoing transformation towards #digital domains: experts. #technology https://tribune.com.pk/story/1820035/1-pakistan-undergoing-transformation-towards-digital-domains-experts/

Experts stressed the fact that Pakistan is currently going through a rapid transformation towards digital and technological domains which requires identifying current problems, upcoming challenges and proposing solutions.

These views were expressed at a panel discussion organised by PlanX Technology Accelerator, a project by the Punjab information Technology Board (PITB) on Saturday. The theme of the session was ‘The Future of Incubators and Accelerators in Pakistan’.

Panelists included PITB Entrepreneurship Director Atif Mumtaz, NSPIRE Technology Incubator Head Ayub Ghauri and UET Technology Incubator Programme Manager Farhan Riaz who proposed solutions to the challenges being faced by stakeholders.

Experts discussed the situation of entrepreneurs and relevant stakeholders including the future of incubators and accelerators in Pakistan.

PITB Entrepreneurship Director Atif Mumtaz, who is spearheading the board’s entrepreneurial projects, highlighted the past achievements of the board’s entrepreneurship wing.

He stated that Plan9 and Plan X have become common knowledge among university and college students. “Due to the fact that there is a lack of jobs in the market, students have started coming up with their own business ideas in the form of start-ups,” he said.

This is a big achievement and has helped to tackle unemployment in the country. It is encouraging to see investors supporting such ideas and playing a key role in promoting entrepreneurial activity, he added.

NSPIRE Technology Incubator Head Ayub Ghauri maintained that in addition with opening more institutions such as incubators and accelerators, it is also important for start-ups to think outside of the box particularly during the development stage.

“This out of the box thinking can help identify sustainable business ideas which can function in the long run,” he added.

Panelist also gave examples of successful start-ups which have gone through incubators and accelerators and highlighted the importance of learning from failures.

Mughees Tahir, from PlanX, highlighted that entrepreneurs were likeminded people with similar goals and even similar problems; Pakistani start-ups should help each other in order to grow.

The panel discussion was followed by a question and answer session from the audience.
Riaz Haq said…
Foreign #remittances sent by overseas #Pakistanis increase by $629 million, up 13% to $5.419 billion in first three months of current fiscal year https://nation.com.pk/11-Oct-2018/foreign-remittances-sent-by-overseas-pakistanis-increase-by-13

Foreign remittances sent by overseas Pakistanis have increased by 13 per cent, 5.4 billion US dollars, in the first quarter of the 2018-2019 fiscal year (July 1-June 30), in comparison to the previous year, according to figures released by the State Bank of Pakistan (SBP) on Thursday.

READ MORE: Police on high alert ahead of Indian temple opening to women
The SBP reported that overseas Pakistani workers remitted 5.419 billion dollars during the period from July 2017 to September 2018, up 629 million dollars.

Inflows from Saudi Arabia were the largest source of remittances. They amounted to 1.263 billion dollars in the first three months of the current fiscal year, up 2.9 percent as compared to 1.228 billion dollars in the corresponding period of last fiscal year.

The highest rise in remittances was seen from Britain, which climbed 32.3 percent to 828.4 million dollars against 626 million dollars in the same period of last fiscal year.

During the period under review, inflows from the United States rose to 759.4 million dollars, depicting an increase of 18 percent. Among the three major corridors of home remittances, Saudi Arabia is still the largest contributor to remittances inflows into Pakistan, despite lower growth compared to Britain and the United States.

READ MORE: Amid global outcry, China defends internment camps of minorities in Xinjiang
Local economists believed that the rise in remittances in the first three months of current fiscal year is a positive sign for the incumbent government as it can play a key role in reducing the country's current account deficit.
Riaz Haq said…
This is what I tweeted this morning after watching Imran Khan's speech  ( https://youtu.be/d-f_KEtSKC0 )  at Davos in the Desert:

Disappointed in #ImranKhan's #Pakistan pitch at #DavosInTheDesert. #Saudis are big investors in #SiliconValley and #ImranKhan failed to mention Pakistan's #tech potential. It took an #Indian questioner in the audience to point to #Pakistan's #IT potential http://www.riazhaq.com/2018/08/state-bank-pakistan-it-exports-surge-to.html


I think Imran Khan needs a tailored pitch for investors that focuses on opportunities offered by Pakistan, not its problems. 

And the opportunities should be explained in a way to attract investments in sectors that export higher value manufactured products, not commodities. 

The IT exports are only a billion dollars now but these are growing in double digits and already account for the third largest export category after textiles and food items. 

IT exports are also the fastest growing segment of Pakistan's exports.  And the potential for IT exports goes far beyond the BPO business. 

Pakistan is already home to two tech made-in-Pakistan tech unicorns: Affiniti and Careem. Here's a blog post I wrote about it:

https://www.riazhaq.com/2017/05/afiniti-and-careem-tech-unicorns-made.html

Imran's investment pitch needs to be very different from his political campaign speeches designed for domestic audiences. 

I think Imran can be a very good and effective pitchman for Pakistan if he’s better briefed and prepared for such conferences. He’s personally very charismatic 
Riaz Haq said…
Technology Can Address Problems Plaguing Pakistan Economy By Henny Sender, Financial Times

#Technology can address problems plaguing #Pakistan #economy. #Investments by #China’s #Alibaba and promise of local start-ups highlight potential for innovation. #startups #ecommerce #fintech #exports #trade https://www.ft.com/content/6f2633d4-e7f9-11e8-8a85-04b8afea6ea3 via @financialtimes

In May Alibaba bought Daraz, the biggest local e-commerce platform in Pakistan, from Germany’s Rocket Internet for about $200m. By joining the platform, smaller manufacturers can reach new customers in China. Already the site has 6m registered buyers and thousands of sellers. Two months earlier, Alibaba’s Ant Financial paid $185m for a 45 per cent stake in Telenor Microfinance Bank — a deal that promises to improve financial inclusion and support small businesses in Pakistan......Shahid Mustafa, Telenor’s chief executive, says: “In five years we will be the largest tech company in Pakistan.”...... Already Telenor, which says it has 75,000 agents and 176 branches across the country, has recruited thousands of software engineers. At an incubator on the outskirts of Karachi, young companies are addressing even more daunting problems.......Muhammad Khurram founded Aqua Agro, which specialises in smart irrigation. Mr Khurram estimates that farmers who use his smart devices need half as much water, yet they increase yields of crops such as lemons by 30 per cent. He is also using crowdfunding to raise money.
At the same time, another member of the same incubator, Fatima Anisha, has devised a technique to treat organic waste and turn it into fertiliser which improves yields without using harmful chemicals......While the efforts of the country’s start-ups are in many cases modest, they offer a vision of how the country — often with help from bigger Chinese technology groups — could start to find solutions.
Riaz Haq said…
#Information #Technology — #Pakistan’s next ‘#textile’.“When you can earn $2,000 from a project you can finish in one week, why bother about a fulltime job,” Freelancer Nasir Hussain told Samaa Digital. #export http://www.samaa.tv/news/2018/11/ict-pakistans-next-textile/

Nasir Hussain, a resident of Landhi No. 6, worked in the banking sector for seven years before realising it wasn’t worth it. In 2014, he enrolled for a Master’s degree in computer science and taught part-time to run his kitchen.

Fast forward to 2018, his services are in high demand both locally and internationally. Hussain teaches software development and artificial intelligence at Karachi’s reputable private universities because more people are signing up for these courses. In the evenings, he works as a freelance developer for online platforms, such as freelancer.com, upwork.com and fiverr.com.

“When you can earn $2,000 from a project you can finish in one week, why bother about a fulltime job,” Hussain told Samaa Digital.

Three years ago, Hussain teamed up with some other freelancers to provide IT services, such as mobile apps, software and web development. The work has grown significantly since then and they have now set their eyes on earning at $5,000 per month for each member of their team.

Hussain’s team is part of a 200,000-strong nationwide network of freelance developers, who have been driving the country’s IT exports that have surpassed $1 billion just recently. Even that number is grossly understated because most of the payments to freelancers are recorded as remittances, not exports.

According to industry experts, IT has the potential to be the second largest export industry after textile and become a major player in the $200 billion global market for IT services. If supported with the right policy and incentives, the sector can generate employment at a mass level, boost our exports and ease pressure from our dwindling dollar reserves.

Pakistan is once again knocking the doors of the International Monetary Fund for a bailout since its dollar reserves have fallen sharply. The country’s imports are more than double its exports as for every dollar earned, it spends two. Fewer dollars means we may soon default on our foreign payments: import of oil, machinery for CPEC and repayment of foreign loans. The current level, $7.4 billion, of our foreign exchange reserves is barely enough for two months of imports.

Experts are unanimous that increasing our exports is the only way Pakistan can come out of this crisis where it seeks the IMF’s help every few years. Textile sector, which constitutes more than half of our total exports, is always seen as our saviour. The Pakistan Tehreek-e-Insaf has also supported this sector in its policies during the first 100 days of their government.

Textile sector’s contribution to the economy in terms of exports and employment can’t be ignored, but it is time the country took IT sector seriously because of its potential.

India went on to develop its IT sector and became the powerhouse for outsourcing and freelance services. Their IT exports have now surpassed $125 billion, nearly 40% of our GDP. The Philippines also adopted policies that supported its IT sector. The South Eastern nation now exports $30 billion worth of IT services—more than our entire exports.



On the other hand, Pakistan lagged behind because of poor, IT infrastructure, negative perception, and the shortage of skilled IT workforce. However, all of this has changed. Unlike past when there was only one subsea cable, the country now has six gateway points connecting it with the cyber world. The security situation has improved significantly and our universities are producing 20,000 IT graduates every year.
Riaz Haq said…
#Pakistan graduates about 22,000 #computer-#science majors each year. Significant numbers of these graduates can be groomed into a small army of highly-skilled professionals to develop #AI products and earn billions of dollars in #tech #exports. https://www.thenews.com.pk/print/404748-gateway-to-knowledge

By Dr. Ata ur Rahman

The advantage of investing in areas such as artificial intelligence is that no major investments are needed in terms of infrastructure or heavy machinery and the results can become visible within a few years. There is now a huge international demand for well-trained professionals in this field. Most advanced countries are searching for young trained professionals so that they can benefit from development taking place across the globe. Visa restrictions have been relaxed for these professionals. Artificial intelligence will find applications in almost every sphere of activity, ranging from industrial automation to defence, from surgical robots to stock-market assessment, and from driverless cars to agricultural sensors controlling fertilisers and pesticide inputs.

Pakistan churns out about 22,000 computer-science graduates each year. With additional high-quality training, a significant portion of these graduates could be transformed into a small army of highly-skilled professionals who could develop a range of AI products and earn billions of dollars in exports.

Another important step in developing a knowledge economy is to uplift our technical and vocational training centres while being mindful of the needs of industrial hubs that are to be set up under CPEC. There are over a thousand such centres, but they are in a bad state. If some of these centres are converted into high-quality technical training institutes for teachers in collaboration with Germany, China or other advanced countries, well-trained teachers can then be absorbed in the thousand or so technical training centres. This could contribute to industrial development. The Fourth Industrial Revolution is upon us with all of its challenges. We live in a world where truth has become far stranger than fiction. Each day brings thousands of new discoveries. Many of these discoveries are transforming our lives in numerous ways. The blind can now see using their tongue. Molecular scissors have been developed that allow genes to be cut from one species and transferred to another, resulting in new plant and animal species. Genes have been transferred from deep-sea jelly fishes to orchids to make flowers that glow in the dark.

Nanotechnology is being employed to commercially purify water. Superfast gene-sequencing will allow the entire human genome to be sequenced in minutes. Objects can now be moved by thought control and driverless cars are being developed. We now have anti-ageing compounds that have been known to reduce the signs of ageing among mice. Children being born today are expected to live up to the age of 120 or more.

3D-printing is being used to produce parts of human livers and kidneys. Stem cells promise to cure damaged organs and may change the manner in which medicine will be practised in the future. Our own work on the molecular basis of thought processes has provided exciting insights into the functioning of the human brain – arguably the most complex object in our universe, with 100 billion neurons in a brain, each neuron communicating with some 10,000 other neurons. This work has led to new approaches to treat Parkinson’s disease. A knowledge economy requires a different approach to socioeconomic development than that adopted by Pakistan so far. It needs to rely on carefully crafted policies and the development of knowledge and skills in selected fields for inclusive sustainable socioeconomic development.

The formation of a taskforce to strengthen knowledge economy represents one of the most important developments in the history of Pakistan. The PMmust be congratulated for focusing on this critical area. The challenge now lies in the efficient implementation of the taskforce’s recommendations.
Riaz Haq said…
#Alibaba's #Alipay's entry to tap great potential of #Pakistan #ecommerce market. US$184 million investment to expedite mass adoption of digital #payments in Pakistan. #Internet penetration rising with estimated 60 million subscribers of 3G and 4G. https://on.china.cn/2EO9fAc

Alipay, a subsidiary of Hangzhou-based Ant Financial, has been cleared by the Competition Commission of Pakistan (CCP) to acquire a 45 percent stake in Pakistan's Telenor Microfinance Bank.

The investment of over US$184 million will expedite widespread adoption of digital payments in Pakistan. With internet penetration continuously on the rise, there are an estimated 60 million subscribers of 3G and 4G in the country that can become potential users of the service.

Several mobile payment services are presently operating in Pakistan. Primarily, these have been offered by telecom operators with a large number of cellular subscribers. However, limited international application has kept the penetration rate of the payment portals relatively low. Entry of Alipay, the world's largest mobile payment platform, will intensify competition higher, improve the quality of service and reinvigorate the entire landscape of the industry.

Pakistan's growing young population makes it suitable for embracing cashless payments on a large scale. People under the age of 30 form 64 percent of the population who are always the most likely to take up any new technology. On top of that, high cellular phone use will be a facilitative factor, since the mobile-first strategy for internet-based businesses is very valid in Pakistan.

Commencement of Alipay's operations in Pakistan will also provide a major push to e-commerce. eBay CEO Devin Wenig recently identified emerging economies like Pakistan as the fastest growing e-commerce hubs of the world. The trend is spreading like wildfire across the country with new online shops emerging constantly. A reliable e-payment gateway with worldwide collaborators is all that Pakistanis need to streamline their online transactions.

Alibaba had already acquired Pakistan's leading e-commerce platform Daraz. Utilizing the reach of Alibaba, Pakistani sellers will now be able to connect with global buyer.

The digital payment boom will be most beneficial for small and medium-sized enterprises that form the backbone of the national economy. Many of these businesses face difficulties in financial transactions due to being located in rural areas. Alipay might prefer to focus on them as the Pakistani government wants to reduce their business costs and difficulties.

Across the border in China, a new policy is on the cards to increase e-commerce purchases from overseas. Around 63 additional categories are being added to a product list of what can be imported duty-free through online platforms. Moreover, 22 cities, such as Beijing, Nanjing and Shenyang, are also being included in e-commerce pilot zones.

With several food items in the revised e-commerce import list, there is much potential for Pakistani farm produce. Fruits like mango and the mandarin hybrid kinnow can gain extended reach in the Chinese food market and the recent push to increase meat and poultry production could further boost Pakistan's exports.

The targeted online shoppers in China are increasingly focusing on foreign brands. Large businesses and premium brands from Pakistan can reach out to these buyers through Tmall Global – another Alibaba operated e-commerce platform allowing Chinese consumers to purchase products from abroad. Pakistan's small to medium businesses might not have the logistic prerequisites for this platform, but international-standard large companies certainly can.

Ant Financial is coming to Pakistan at a time when trade between Pakistan and China is touching new heights through the flagship project of Belt and Road Initiative (BRI) known as China Pakistan Economic Corridor (CPEC).
Riaz Haq said…
Can Pakistan Ride the New Tech Wave?
Feb 8, 2019 ASAD JAMAL

https://www.project-syndicate.org/commentary/pakistan-technology-startups-follow-china-s-lead-by-asad-jamal-2019-02

Technology, innovation, and entrepreneurship are the key ingredients for economic success in the twenty-first century, as the US and China are demonstrating. If Pakistan can also realize its huge untapped potential in these fields, the result could be a more dynamic country that is better placed to solve many of its other problems.

I soon learned that in the new Internet world, these obstacles were perfectly normal and surmountable by visionary, passionate entrepreneurs with big dreams and ideas. Consequently, my firm went ahead and invested in Robin’s vision. Within five years of that first meeting, Baidu went from little more than an idea to being the leader in China’s Internet search industry, leaving Google and Yahoo far behind. Today, it is one of China’s top three Internet companies, forming the so-called BAT triumvirate along with Alibaba and Tencent. Robin himself is now the Larry Page (or Bill Gates) of China, with a net worth of over $10 billion.

Baidu’s story is similar to that of many other successful tech firms. Like Alibaba, Apple, Google, and Facebook, the company was driven by young founders rather than older business tycoons. In addition, Baidu initially relied on venture capital for equity funding, avoiding the conventional bank debt that would have been a kiss of death for a young start-up. Like its successful US peers, Baidu posed a radical and disruptive challenge to incumbent market leaders. Finally, Baidu showed that good ideas can grow at an exponential pace, as its market share rose from zero to market leadership in five years.

Since then, the pace of technological innovation has accelerated further, with the computing and Internet revolution morphing into a new one powered by artificial intelligence, nanotech-biotech, and cyber-physical systems. Here, too, the opportunities for visionary entrepreneurs are huge. And here, too, the global leaders are the US and China, with the latter continuing its remarkable recent tech development.


At present, Pakistan’s economy is focused on traditional industrial sectors, agriculture, textiles, fertilizer, and cement, leaving it trapped somewhere between the first and second industrial revolutions. The combined market value of all 559 companies listed on the Pakistan Stock Exchange is about $60 billion, equivalent to that of a single top-100 technology company.

To break its cycle of poverty, Pakistan must create conditions enabling its broad participation in the technology revolution. Only through radical reform can the country leapfrog to the AI-led Fourth Industrial Revolution of today. To achieve this, Pakistan must recognize that its young people are its most precious resource. It should educate and empower them, and cultivate their success, particularly in science and technology. If they succeed, Pakistan succeeds.

The good news for Pakistan and other countries in a similar position is that tech start-ups require far fewer resources than traditional large-scale industrial firms. Whereas the latter typically need hundreds of millions of dollars in capital, plant and machinery, and bank loans, tech companies need only a small team of smart people, computers, modest funding, and mentorship. Young Pakistani entrepreneurs are just as well placed as their Chinese counterparts were two decades ago: they need big ideas and encouragement to build on them.

Here, of course, the provision of venture capital is essential. Pakistan should therefore establish a national venture capital fund to promote technology entrepreneurship. Moreover, China’s rise as an economic and technology leader gives Pakistan a unique opportunity to learn from its neighbor and collaborate with it in education, science, and technology. And Pakistan should leverage its historical ties with US and British universities in these areas.
Riaz Haq said…
Can Pakistan Ride the New Tech Wave?
Feb 8, 2019 ASAD JAMAL

https://www.project-syndicate.org/commentary/pakistan-technology-startups-follow-china-s-lead-by-asad-jamal-2019-02

Technology, innovation, and entrepreneurship are the key ingredients for economic success in the twenty-first century, as the US and China are demonstrating. If Pakistan can also realize its huge untapped potential in these fields, the result could be a more dynamic country that is better placed to solve many of its other problems.

I soon learned that in the new Internet world, these obstacles were perfectly normal and surmountable by visionary, passionate entrepreneurs with big dreams and ideas. Consequently, my firm went ahead and invested in Robin’s vision. Within five years of that first meeting, Baidu went from little more than an idea to being the leader in China’s Internet search industry, leaving Google and Yahoo far behind. Today, it is one of China’s top three Internet companies, forming the so-called BAT triumvirate along with Alibaba and Tencent. Robin himself is now the Larry Page (or Bill Gates) of China, with a net worth of over $10 billion.

Baidu’s story is similar to that of many other successful tech firms. Like Alibaba, Apple, Google, and Facebook, the company was driven by young founders rather than older business tycoons. In addition, Baidu initially relied on venture capital for equity funding, avoiding the conventional bank debt that would have been a kiss of death for a young start-up. Like its successful US peers, Baidu posed a radical and disruptive challenge to incumbent market leaders. Finally, Baidu showed that good ideas can grow at an exponential pace, as its market share rose from zero to market leadership in five years.

Since then, the pace of technological innovation has accelerated further, with the computing and Internet revolution morphing into a new one powered by artificial intelligence, nanotech-biotech, and cyber-physical systems. Here, too, the opportunities for visionary entrepreneurs are huge. And here, too, the global leaders are the US and China, with the latter continuing its remarkable recent tech development.


At present, Pakistan’s economy is focused on traditional industrial sectors, agriculture, textiles, fertilizer, and cement, leaving it trapped somewhere between the first and second industrial revolutions. The combined market value of all 559 companies listed on the Pakistan Stock Exchange is about $60 billion, equivalent to that of a single top-100 technology company.

To break its cycle of poverty, Pakistan must create conditions enabling its broad participation in the technology revolution. Only through radical reform can the country leapfrog to the AI-led Fourth Industrial Revolution of today. To achieve this, Pakistan must recognize that its young people are its most precious resource. It should educate and empower them, and cultivate their success, particularly in science and technology. If they succeed, Pakistan succeeds.

The good news for Pakistan and other countries in a similar position is that tech start-ups require far fewer resources than traditional large-scale industrial firms. Whereas the latter typically need hundreds of millions of dollars in capital, plant and machinery, and bank loans, tech companies need only a small team of smart people, computers, modest funding, and mentorship. Young Pakistani entrepreneurs are just as well placed as their Chinese counterparts were two decades ago: they need big ideas and encouragement to build on them.

Here, of course, the provision of venture capital is essential. Pakistan should therefore establish a national venture capital fund to promote technology entrepreneurship. Moreover, China’s rise as an economic and technology leader gives Pakistan a unique opportunity to learn from its neighbor and collaborate with it in education, science, and technology. And Pakistan should leverage its historical ties with US and British universities in these areas.

Here's an Islamabad speech by Asad Jamal: https://youtu.be/OKmtptJyvEo
Riaz Haq said…
SBP quarterly report: ICT informal exports higher than formal exports

https://fp.brecorder.com/2019/01/20190131443658/

Pakistan's informal exports of Information and Communications Technologies (ICT) are probably much higher than formal exports. Official ICT exports of Pakistan touched $ 1 billion for the first time ever in FY18, however as per industry experts estimates the total size of Pakistan's ICT exports is around $ 2.5 billion. Of these exports, registered firms using formal banking channels to collect export receipts account for around $ 1 billion. However, roughly $ 1 billion is attributed to Small and Medium Enterprises (SME) exports in the grey market and the remaining $ 0.5 billion is accounted for by freelancers in the Information Technology (IT) and IT-enabled services (ITES) space that serve international clients.

State Bank of Pakistan (SBP), in its first quarterly report "The State of Pakistan's Economy" for FY19, has added an special section titled "Performance of ICT Exports of Pakistan". This section analyzes in detail the dynamics of ICT exports, and highlights the challenges faced by the firms and individuals in increasing their share in the growing business process management (BPM) and micro-works global market.

According to the report, while the major stakeholders including Pakistan Software Export Board (PSEB), associations, and industry analysts provide different estimated figures pertaining to the undocumented exports, a common narrative prevails when it comes to reasons behind the under-representation of receipts in the official statistics.

First, the absence of PayPal is a major concern. PayPal is the most widely used payment method across the globe, and relatively more convenient, cheap and safe. Therefore, a number of ICT and Business Process Outsourcing (BPO) firms prefer to receive their revenues using money transfer organizations like Western Union, with some even preferring to have their revenues deposited in banks outside Pakistan to avoid the associated transfer costs. In the case of former, the export receipts reflect as workers' remittances, whereas in case of latter, these earnings remain unrecorded altogether, the report mentioned.

Secondly, the report said that anecdotal evidence also suggests that some firms and individuals themselves bypass proper documentation in order to either stay under the radar of tax authorities, or avoid the hassle of filling out SBP's Form 'R' (considered both cumbersome and redundant). Furthermore, most firms simply opt out of negligence and lack of awareness about the proper export procedures.

The SBP said that while Pakistanis have begun to figure prominently in electronic freelancing lately, it was the sharp increase in consultancy services provided by the country's ICT firms that has dominated the export trend over the last couple of years. As per the official statistics, computer services have generated most of the export ($726 million in FY18) momentum in recent years. However, while software exports have displayed a more-or-less stagnant export performance over the previous 5 years, a steady growth has been observed in the export of consultancy services.

As for the sector's composition, export revenues of only 30 percent of the total 3,228 ICT exporting entities came from computer software during FY18; the rest had either limited or no product orientation, as they generated revenues only from low value added services e.g. call centers. However, from FX generation perspective, this dominance of low value-added services is not favorable.

Riaz Haq said…
Pakistan’s exports of telecommunication, computer and information services have increased to $708.93 million in the first eight months of the current fiscal year.

https://profit.pakistantoday.com.pk/2019/05/05/telecom-info-services-exports-reach-708-93mn/

The earning made through these exports during the corresponding period of fiscal year 2017-18 was $520.04 million, Pakistan Bureau of Statistics (PBS) reported.

According to data issued by the PBS, the telecommunication services exports were recorded at $65.596 million during the current year against $61.533 million last year, showing decline of 17.12 per cent.

Among the telecommunication services exports, the exports of call center services increased by 6.6 percent.
Riaz Haq said…
#Pakistan (8.5%) is the world's 4th largest supplier of #online #labor after #India (24%) , #Bangladesh (16%) and the #UnitedStates (12%). https://ilabour.oii.ox.ac.uk/where-are-online-workers-located-the-international-division-of-digital-gig-work/

https://twitter.com/haqsmusings/status/1141745036490498048

The Internet has created a global market for digitally delivered freelance work, which is currently growing rapidly. Our new Online Labour Index worker supplement reveals what skills different countries are bringing to the market. For instance, the top occupational category in the United States is writing and translation, while in the Indian subcontinent it is software development and technology. Europe’s various regions focus on different specialisms. The map is based on near-real time data from four of the largest platforms connecting buyers and sellers of online freelance work.

The largest overall supplier of online labour according to the data is the traditional outsourcing destination India, which is home to 24 percent of the workers observed. India is followed by Bangladesh (16 %) and United States (12 %). Different countries’ workers focus on different occupations. The software development and technology category is dominated by workers from the Indian subcontinent, who command a 55 percent market share. The professional services category, which consists of services such as accounting, legal services, and business consulting, is led by UK-based workers with a 22 percent market share.
Riaz Haq said…
#Pakistani Home Appliance Makers Begin #Exports to #EU and #African Countries

https://propakistani.pk/2019/08/27/pakistani-home-appliance-makers-begin-exports-to-eu-and-african-countries/

Pakistani electronics home appliances brand, Dawlance has become the first-ever company to begin exports of its products to European and African countries.

The company has upgraded its assembly plants with an investment of $60 million over the past three years to meet the high standards of different foreign markets.

This was stated by Dawlance Chief Executive Officer (CEO) Umar Ahsan Khan while talking to ProPakistani after the inauguration of a new assembly line at National Highway Karachi.

Umar Ashan Khan said that they have added two assembly lines of washing machines and water dispensers in its factory. The main objective is to export these appliances in different markets along with meeting the demand of the local market.

The company has obtained a special certification for manufacturing water dispensers to meet EU standards. These products are being exported to EU countries through Turkey. So far, the first consignment of 5,000 dispensers has been exported to Turkey and nearly 5,000 units will be sold in the international market by the end of this year. Whereas our other products, such as washing machines, are being exported to Africa and Middle Eastern Countries, he added.

Mr. Khan continued that Dawlance washing machines are in high demand in Africa because they are more affordable and energy-efficient.

Low Voltage Appliances To Be Introduced
In order to meet the demands of the significant population living off-grid, Dawlance is the first company to start production of low voltage appliances including washing machines, refrigerators, and air-conditioners in the coming months.

CEO Dawlance said:

Dawlance has planned to introduce DC current washing machines which will be operated on solar panels. This will make a difference in the lives of people living in the rural areas of the country. Due to current economic conditions, the sales of home appliances is declining but we are optimistic that the documented economy will bounce back with certain tax measures. With the government’s tax measures now everyone is being registered in the tax system , which will provide us a level playing field.

Dawlance was established in 1980 by Bashir Dawood. Its first refrigerator assembly plant was established in Hyderabad Sindh. The brand captured a significant share in the local market and ultimately attracted foreign investors’ attention. In 2016, Dawood Bashir sold Dawlance to Istanbul based Arçelik.
Riaz Haq said…
Pakistan exporting tractors to Africa, seeking market access to other countries: Dawood


https://dunyanews.tv/en/Business/504421-Pakistan-export-tractors-Africa-seek-market-access-other-countries

Advisor to Prime Minister for Commerce, Investment, Industries and Production, and Textile, Abdul Razak Dawood said Pakistan was exporting tractors to Africa, while efforts were being made to find access to other European markets for introducing country’s products.

At least ten thousand tractors would be exported to African countries by the end of this year, he stated while talking to a private news channel programme.  

Riaz Haq said…
Talking to The Express Tribune, Millat Group of Companies Deputy General Manager Commercial Syed Aale Ali Zaidi revealed that his company turned to the export market four years ago in the wake of growing challenges faced by the tractor industry at home.

https://tribune.com.pk/story/1945121/2-crisis-hit-tractor-industry-shifts-focus-exports/


“Besides exporting tractors to African countries, Millat Tractors is supplying tractor engines and parts to Australia, Austria, Finland, Ireland and Britain,” Zaidi said.

Last year, Millat Tractors sold around 42,000 units, of which about 5,000 were exported.

He pointed out that African nations were emerging as a big market for Pakistani tractors, particularly Tanzania, Zambia, Zimbabwe, Sudan and South Africa. He was of the view that Germany’s Hannover fair and Turkey’s Automechanica were important events for deepening relations with old buyers and looking for new importers.

He called the Automechanica fair a hub for goods buyers of Europe, Asia, the Middle East and Africa.

“The response of buyers is encouraging; importers of many countries have expressed interest in buying Pakistani tractors and their engines,” he revealed.

Zaidi said Pakistan’s market had been under pressure and in December and January Millat Tractors stopped production at its plant. However, he added that Adviser to Prime Minister on Commerce Abdul Razak Dawood was taking keen interest in developing the tractor industry and increasing its exports.

He emphasised that in order to compete with other tractor exporters, Pakistan’s industry should embrace new technology and invest heavily in research and development work.
Riaz Haq said…
#Pakistan #Export Of #Engineering Goods Jumped 176.72% In July to $39.223 million, up from $14.174 million exports recorded during the same month of last year, according to the State Bank of Pakistan. - UrduPoint https://www.urdupoint.com/en/business/export-of-engineering-goods-increase-17672pc-701107.html#.XWmtA9QBLpY.twitter

The export of engineering goods from the country during the first month of current financial year 2019-20 increased by 176.72 percent against the corresponding month of last year.

During the month of July, 2019, the export of engineering goods were recorded at $39.223 million as against $14.174 million exports recorded during the same month of last year, showing growth of 176.72 percent, according to the data issued by the State Bank of Pakistan.

The engineering commodities that contributed positively in external trade included electric fans, export of which grew from $2.614 million last year to $3.428 million during the period under review, showing growth of 31.14 percent, the data revealed.

The exports of transport equipment grew by 5,874 percent from $0.415 million to $24.794 million while the exports of other electrical machinery also increase by 21.37 percent from $2.115 million to $2.567 million.

Moreover, the export of auto parts also increased by 45.93 percent from $1.365 million to $1.992 million.

Meanwhile, the engineering commodities that witnessed negative growth in external trade included export of machinery specialized dipped by 20.97 percent from $2.727million during the period under review to $3.451 million same month of last year, whereas the export of other machinery also decreased by 11.84 percent from $3.715 million to $4.214 million, the data revealed.
Riaz Haq said…
IT & IT enabled services (ITes) export remittances have surged to $550.503 million at a growth rate of 24.71 per cent during the first six months of FY 2019-20 (July-December), in comparison to $441.435 million during same period in FY 2018-19, according to performance report of Pakistan Software Export Board (PSEB), an organisation under Ministry of IT and Telecommunication.

https://www.gulftoday.ae/business/2020/03/05/united-states-china-uk-top-three-destinations-for-pakistani-exports

The number of PSEB registered IT & ITes companies has risen to 2163 as of Dec.30, 2019 compared to 1873 valid registrations as of December 2018 at growth rate of 15.5 per cent. PSEB facilitated 5 IT companies for attending Canada Pakistan ICT Forum, held in Toronto, Canada from Sept.23-27, 2019 besides facilitating participation of 20 IT companies in Pakistan Tech Summit 2019 in Norway on Sept.25 last year.

PSEB organised participation of Pakistan’s IT companies participation at China Hi-Tech Fair 2019 held at Shenzhen, China on Nov.14-17 2019. It also facilitated participation of Pakistan’s IT companies in Arabnet 2019, Riyadh, Saudi Arabia on December 10-11 last year.

PSEB organised participation of 20 IT companies in ITCN Asia 2019 held in Karachi in September PSEB also organised Commercial Counselors Training session at PITAD in October last year to apprise them about the facts and potential of Pakistan’s IT industry in order to solicit their efforts for projecting Pakistan’s IT industry as viable and feasible outsourcing destination in key international markets.

Last month the banking sector in Pakistan gets a new boost as one of the leading credit rating agencies in the world, Moody’s Investors Service, has announced a stable outlook for the Pakistani banking system for the next 12 to 18 months in a new report released on Thursday.

“The sovereign credit profile has improved in recent months, benefiting the banks through their high exposure to government securities, which account for around 40 per cent of their assets,” said Constantinos Kypreos, Moody’s Senior Vice President, in a press release issued by the agency. The Moody’s report said that economic activity in the country will be supported by the ‘ongoing infrastructure projects and improvements in power generation and domestic security’. It further noted that the government’s decision to depreciate the rupee and trade gains may raise private investment from the current low levels in the country.
Riaz Haq said…
#Pakistan earns $652 million from Information #technology services’ #export in first 6 months of current fiscal year 2019-20, up 21.79% from $535.940 million earned in corresponding period of FY 2018-19, according to Pakistan Bureau of Statistics (PBS).

https://nation.com.pk/13-Mar-2020/pakistan-s-earns-dollar-652-million-from-it-services-export


Pakistan earned $652.720 million by providing different information technology (IT) services in various countries during the first six months of current financial year 2019-20.

This shows growth of 21.79 percent as compared to $535.940 million earned through provision of services during the corresponding period of fiscal year 2018-19, Pakistan Bureau of Statistics (PBS) reported.

During the period under review, the computer services grew by 25.35 percent, from $391.770 million last year to $491.090 million during July-December (2019-20).

Among the computer services, the exports of hardware consultancy services witnessed increase of 90.45 percent, from $0.880 million to $1.676 million while the export of software consultancy services also grew by 11.68 percent, from $173.972 million to $194.289 million.

The export and import of computer software related services increased by 9.32 percent, from $149.540 million to $163.482 million whereas the exports of maintenance and repair of computer services decreased by 62.06, from $3.297 million to $1.251 million.

Meanwhile, the export of information services during the period under review increased by 57.97 percent by going up from $0.690 million to $1.090 million.

Among the information services, the exports of news agency services increased by 106.90 percent, from $0.319 million to $0.660 million whereas the exports of other information services also increased by 15.90 percent, from $0.371 million to $0.430 million.

The export of telecommunication services increased by 11.89 percent, from $143.480 million to $ 160.540 million during current period, the data revealed.

Among the telecommunication services, the export of call centre services also increased by 19.63 percent during the period as its exports increased from $49.665 million to $59.413 million whereas the export of other services also increased by 7.79 percent, from $93.815 million to $101.127 million during current year, the PBS data revealed.
Riaz Haq said…
#Pakistan #informationtechnology (IT) #exports rise to $887 million in 8 months of current fiscal year 2019-20, strong 26.24% growth from $702.990 million during the same period last year. #tech - https://www.technologytimes.pk/2020/04/01/it-export-remittances-increased-887-million-pakistan/

PSEB Managing Director, Syed Ali Abbas Hasani, stated in his briefing that Pakistan’s IT & IT-enabled Services (ITeS) export remittances, including telecommunication, computer and information services, have surged to $887.470 million, showing a growth rate of 26.24 percent during the first eight months of the fiscal year 2019-2020 as compared to $702.990 million during the same period last year.

While the number of registered IT & ITeS companies have increased by a stellar 26.35%. He stated that Korean Exim Bank has principally agreed to give funding for the establishment of a state of the IT Park in Karachi and that training in emerging technologies of 2,000 fresh IT graduates and professionals working in the industry will start from May 2020.
Riaz Haq said…
#Pakistan’s #InfoTech #exports have been growing by double digits annually for a decade. #computers #software #technology #services

https://twitter.com/haqsmusings/status/1282179959205752833?s=20
Riaz Haq said…
Khyber-Pakhtunkhwa government’s flagship project, Pak-Austria Fachhochschule University completed in Haripur

https://pk.mashable.com/social-good/4983/khyber-pakhtunkhwa-governments-flagship-project-pak-austria-fachhochschule-university-completed-in-h

Pak-Austria Fachhochschule University, Haripur will offer specialised courses like artificial intelligence, railway engineering, mineral resource engineering and agriculture food technologies and others. It is pertinent to note that construction work on university was launched by the current government last year.

PAF-IAST said,” PAF-IAST is nestled in natural mountains that flank its campus from all sides, offering one even the ravishing view of snow-capped peaks of Nathiagali and natural winding trails. To its north-west is Tarbela Lake, a journey of only a few kilometers from the campus.”

“Set in middle of the campus is natural lake, fed by the springs of surrounding mountains. The campus is just a 3-kilometer drive from the Hazara Motorway,” PAF-IAST said.

The major cities like Islamabad and Abbottabad, are just an hour’s drive, while small towns like Wah, Hasanabadal, Taxila and Swabi can be reached in just half an hour from the campus.

PAF-IAST said the university wanted to contribute to the development of sound industrial economy in Pakistan and to strive and achieve the goals of effective higher education in engineering, science, and technology.

---------------------


Skilling Pakistan
A Vision for the National Skills Strategy, 2008-12” seeks to achieve three main objectives in the context of defining technical education at policy level: 1) providing relevant skills for industrial and economic development; 2) improving access, equity and employability; 3) assuring high standards in skills development. These objectives are consistent with the policy of government of Khyber Pakhtunkhwa towards poverty alleviation through skill training and human resource development. Underpinning these prime objectives is our prime focus on meeting workforce demands in key growth sectors such as industry, IT, information and communication technologies, medical technologies, electrical and mechanical as well as mineral resource development, extractive metallurgy and construction fields.
Riaz Haq said…

An analysis of IT software and service exports from India


https://www.emerald.com/insight/content/doi/10.1108/ITPD-12-2019-0012/full/html


India is not an exception. The tremendous success of the IT sector after economic reforms, particularly in software and service exports, has influenced economic growth of the Indian economy. The importance of IT software and services has been increasing since the last decade, as reflected by its mounting shares in various macroeconomic parameters, like national income, total exports, employment and foreign exchange of the country. An abundant supply of labour force acts as a comparative advantage of the Indian software and services industry. Investments in the education industry in the form of Indian Institute of Technologies (IITs), Indian Institute of Management (IIMs) and engineering colleges over the years have significantly contributed to the growth of software and service industry. The country's abundant IT professionals have been absorbed by the software and services export sector, thus enjoying some sort of monopoly in supplying desired labour (Arora and Athreye, 2002). The benefit of the International Standard Organization (ISO) certification is also significant because it acts as a quality signal to potential customers. This certification has enabled to enjoy the firm’s enhanced income through higher level of price per unit of output besides increasing the quality of output (Arora and Asundi, 1999). Large changes in the locational division of labour brought more jobs to India. The real benefit to the industry comes through exports carried out on-site, which do not involve costs of hardware or software technology for the Indian firms.
Indian IT industry has recorded exceptional growth rate, particularly after the period of liberalization. It accomplished 51% compound annual growth rate, with it being the only nation to have this rate of growth during the period 1990 to 2002. The domestic software industry growth rate was even higher than that of the global industry (Kumar 2001). However, the IT industry witnessed a falling growth amid a worldwide change in innovation and business models since 2014. Its software and services exports are experiencing a skewed nature of slowdown in growth, essentially due to the reliance on North American and European markets. Furthermore, other developing nations, like China, Malaysia and the Philippines, are also entering into the world software market in meeting the global demands of software and services of the advanced nations by overcoming their earlier hurdles. Now, an important question that arises is how to deal with the global strategic paradigm shifts [1]. Answering this question requires an assessment of the direction and magnitude of the potential factors responsible for software and service exports. This article attempts to investigate the factors that influence software and service exports from India both positively and negatively. Such a study is important to understand in depth the impact of each determinant on software and service export, for formulation of policy measures for sustainability and competitiveness of the Indian IT industry.
Riaz Haq said…

An analysis of IT software and service exports from India


Manzoor Hassan Malik, Nirmala Velan
International Trade, Politics and Development

https://www.emerald.com/insight/content/doi/10.1108/ITPD-12-2019-0012/full/html


India is not an exception. The tremendous success of the IT sector after economic reforms, particularly in software and service exports, has influenced economic growth of the Indian economy. The importance of IT software and services has been increasing since the last decade, as reflected by its mounting shares in various macroeconomic parameters, like national income, total exports, employment and foreign exchange of the country. An abundant supply of labour force acts as a comparative advantage of the Indian software and services industry. Investments in the education industry in the form of Indian Institute of Technologies (IITs), Indian Institute of Management (IIMs) and engineering colleges over the years have significantly contributed to the growth of software and service industry. The country's abundant IT professionals have been absorbed by the software and services export sector, thus enjoying some sort of monopoly in supplying desired labour (Arora and Athreye, 2002). The benefit of the International Standard Organization (ISO) certification is also significant because it acts as a quality signal to potential customers. This certification has enabled to enjoy the firm’s enhanced income through higher level of price per unit of output besides increasing the quality of output (Arora and Asundi, 1999). Large changes in the locational division of labour brought more jobs to India. The real benefit to the industry comes through exports carried out on-site, which do not involve costs of hardware or software technology for the Indian firms.
Indian IT industry has recorded exceptional growth rate, particularly after the period of liberalization. It accomplished 51% compound annual growth rate, with it being the only nation to have this rate of growth during the period 1990 to 2002. The domestic software industry growth rate was even higher than that of the global industry (Kumar 2001). However, the IT industry witnessed a falling growth amid a worldwide change in innovation and business models since 2014. Its software and services exports are experiencing a skewed nature of slowdown in growth, essentially due to the reliance on North American and European markets. Furthermore, other developing nations, like China, Malaysia and the Philippines, are also entering into the world software market in meeting the global demands of software and services of the advanced nations by overcoming their earlier hurdles. Now, an important question that arises is how to deal with the global strategic paradigm shifts [1]. Answering this question requires an assessment of the direction and magnitude of the potential factors responsible for software and service exports. This article attempts to investigate the factors that influence software and service exports from India both positively and negatively. Such a study is important to understand in depth the impact of each determinant on software and service export, for formulation of policy measures for sustainability and competitiveness of the Indian IT industry.
Riaz Haq said…
Pakistan produces 20,000 IT graduates, engineers annually, says minister

https://www.thenews.com.pk/print/549580-pakistan-produces-20-000-it-graduates-engineers-annually-says-minister


LAHORE:Provincial Minister for Industries and Trade Mian Aslam Iqbal Friday said that government was moving towards right direction by adopting more business friendly policies.Addressing Lift Pakistan 2019 conference hosted by a business group here in a hotel, the minister said the government was fully committed to serve and facilitate its business community.He said Pakistan was ranked at number 4 for free lance development in the world and IT exports increased 70 percent during the last three years. Pakistan has more than 2,000 IT companies and call centres, and 300,000 English speaking IT professionals and 20,000 IT graduates and engineers being produced annually.At present, around 52 incubation and acceleration programmes exist in the country from each of which 7-15 startups are graduating every year. In addition to incubators and accelerators, the start-up of echo system has been strengthened by co-working spaces, business process outsourcing services, 11 fellowship programmes growing scale of angel investment and the launch of local chapter of global initiatives, he said.The minister appreciated the organisers for collaborative efforts in organising an excellent platform to bring together the creative young mind professionals, academicians, entrepreneurs and leading business personalities to explore new opportunities in the real potential of growth of our nation.The minister said the government was working aggressively towards creating a comprehensive start of ecosystem so as to channel the real potential of this growing market. He said that in the World Bank doing business report 2020, Pakistan improved by 28 points on the ease of doing business ranking from 136 to 108 out of 190 economies. He said in order to make national economy grow faster, it is utterly important to continue efforts to ensure a conducive business environment.The government has taken measures which will guarantee and ensure that the business community’s investments in Punjab are secured and their returns are assured. The Punjab government has recently launched e-pay, a mobile application for all business to government and public to government payments in order to facilitate the public and improve country’s revenue collection through easy payment solutions, he concluded.Kilns’ closure delayed: Environment Protection Secretary Salman Ijaz has said that brick-kilns will not be closed immediately in case of improving of air quality index. He stressed upon kiln owners to make their kilns environment friendly by converting the same on zigzag technology to get production throughout the year. This was stated by him while presiding over a meeting here Friday.Director General Environment Tanveer Ahmad Warraich, Director Environment Naseem-ur-Rehman, central and provincial presidents of All Pakistan Mines and Mineral Associations Mir Behroz and Khalid Pervaiz, Chairperson Hyderabad Mir Samad, other representatives, owners of kilns and coal agents were present on this occasion.

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