“Pakistan, where majority of the end users are either students or from lower strata of the society find it too hard to buy expensive software after managing a cheaper hardware for them. It’s a welcoming development that industry in Pakistan, too, waking up to the realization that open source software is gaining popularity throughout the world. Open source technologies are not just another option for reducing costs, but they represent the only way to eliminate illegal copying of copyrighted software.”

By Munawar Iqbal

At Present, Pakistan stands at the crossroad in regard with advancement (or backwardness) in the field of Information Technology. Recently, we have observed raids on computer industry vendors by the FIA and arrests have been made on the charges of violation of copy rights. The action taken on the behest of monopolist international software companies has been resulted as a further blow for the already struggling IT industry in Pakistan. Of course no body favors violation of copy rights. However, its point to ponder that what viable alternative is available for the IT industry as well as end user of Pakistan and other parts of the world, especially, third world countries, where industries are unable to absorb expensive software.

Today, when monopolist international companies increasingly threaten to dominate computing as well as the internet, a seemingly motley collection of free software tools and operating systems - collectively dubbed "open source" software – has emerged as an alternative recipe. Open source technologies are now playing an important role in many developing countries, where governments and corporate entities are moving increasingly towards open standards in an effort to reduce costs or to increase revenues.

Pakistan, where majority of the end users are either students or from lower strata of the society find it too hard to buy expensive software after managing a cheaper hardware for them. It’s a welcoming development that industry in Pakistan, too, waking up to the realization that open source software are gaining popularity throughout the world. Open source technologies are not just another option for reducing costs, but they represent the only way to eliminate illegal copying of copyrighted software.

The industry in Pakistan has the realization that piracy has been a huge obstacle in the way of foreign investment in the sector. The government, on other hand, has also taken some initiatives to raise awareness in regard with elimination of piracy and the protection of intellectual property. However, conducting raids at various locations has proved a counter productive exercise and it will remain so until the level of awareness regarding alternate technology is not being raised. Perhaps, the government and private sector need to enhance level of cooperation on this particular front so that a shared vision may be achieved and to educate the people about the benefits of using open source software.

The experts of the industry are of opinion that Pakistan can attract a lot of foreign investment, if piracy is properly tackled. Open source, in this regard, has a great potential in Pakistan in terms of reducing costs for our private sector and to eliminate piracy. The stakeholders need to realize the importance of open source and should adopt free alternatives of copyrighted software in the form of OSS, to counter piracy."

If we take a closer look at the history of computing, many initiatives were launched to build an operating system that could be deployed on multiple hardware platforms. The most prominent example is UNIX, which was a product of AT&T Laboratories and was published back in 1969. Sharing the source code among developers and researchers was a common phenomenon, which brought about major developments in the field of internet and related technologies.

Since then, many open source projects have emerged. However, Linux is gaining in popularity simply because it is completely free of charge. No user or server licenses are required. Another advantage of using Open Source System is that it is developed by hundreds and thousands of people worldwide. Because of this, the system has evolved into a rock solid and stable entity.

Open Source came as a fresh breeze for all system administrators as it is much more secure and it also consumes less system resources to run the services on a highly complex network. However, the question still arises that with all the advantages and benefits of the system, is the open source community successful in attracting wider audiences towards the adoption of free software, especially in Pakistan? Except large corporations and

Multi-national firms, almost every single computer in Pakistan runs pirated Software. Hence, piracy is recognized as one of the biggest problems confronting the IT sector in the country.

It is now time that our IT professionals realized that we have the option of using software legally in the form of Free and Open Source Software (FOSS). The FOSS are liberally licensed to grant the rights to redistribute and study, change and improve its design through the availability of its source code, something that propriety software developers have always dreamed about.

Open Source has a very bright and sustainable future in Pakistan. Its encouraging that private sector spearheaded by Pakistan Computer Association (PCA) and Pakistan Software Exports Board (PSEB) have recently taken some valuable initiatives in this regard including free training to vendors and other stakeholders of the industry. These trainings are aimed at enhancement of the capacities of individuals, groups, institutions, organizations, societies, and government in Pakistan by using Open Source for their sustained economic and social development.

Though, the use of OSS as alternative has not been ascribed as encouraging so far as the number of OSS users still remains under one thousand. However, it is time that we should focus on efforts to change our attitude and realized that our country has long suffered due to software piracy. It would be unfortunate, if we assume that piracy cannot be controlled and curbed in Pakistan. The analysts and experts of the industry as well as from PSEB and other organizations busy in the promotion of OSS predicts a rapid development in the IT sector in the coming years as the free software technology would ease down the pressure on the end users, especially those who find the purchase of expensive software beyond their purchasing power.

The writer is Central President of the Pakistan Computer Association (PCA) and can be reached at info@pakcomputerassociation.com

“The report of WEF must be an eye-opener for decision makers as it suggests that a coherent government vision on information and communication technologies, coupled with an early focus on education is keys to spur network readiness and to lay the foundations for sustainable growth. For a sustainable ICT sector, the people at the helm of affairs should have been working with close collaboration of the stake-holder. Thus, a balanced policy could have been envisaged. Unfortunately, it could not happen and this apathy has shaken the confidence of investors and destroyed the enabling environment of business as well.”

By Munawar Iqbal

The IT sector in Pakistan is facing its lowest growth rate and one is not able to predict where the bottom is as the declining is worsening consistently. A recent survey by the World Economic Forum (WEF) shows that Pakistan has further fallen nine points. The survey report is indicative of a weak Information and Communication Technology (ICT) base of Pakistan, which has not become a serious consideration of the people at the helm of affairs.

Pakistan was ranked as on 84 two years back and last year it declined to 89 out of 127 countries and now it’s placed on 98 out of 134 counteries. The said report gauges a country’s connectedness in the global environment through its information and communication technology infrastructure. The rankings are based on the Networked Readiness Index, which measures the likelihood that countries will exploit the opportunities offered by information and communication technology services.

The report tries to comprehend the impact of ICT on the competitiveness of nations. Basically, ICT has encouraged transparency in government processes and improved countries efficiency and services to citizens. It also suggests that, in order to improve its network connectedness, Pakistan should invest more in ICT infrastructure related services. On contrary, this important sector of economy is being disregarded continuously from last couple of years or so for the reasons unknown to anybody.

Our contemporary world and especially, the countries belongs to our region have developed this sector remarkably well and showing a steadfast growth. Pakistan, except an initial take up, never made any concrete effort to capitalize the emerging opportunities. However, the Private sector has shown a commendable resolve to lift the sector at par with global advancements. But inconsistency and apathy at official level are no badly hampering this progress and the sector has been left alone and neglected even to struggle for its very survival.

Personal Computer density in Pakistan is already 1.5, which compares unfavorably with other countries of Asia-Pacific Region. Now, due to sharp increase in prices of PC and other computer accessories, it’s being feared that the percentage would decline further as common man finding it hard to purchase new computer.

Several reports suggest that Pakistan's PC/Server market experiencing a non-stop slowdown and its annual growth rate declines alarmingly. The countries who have shown futuristic approach vis-à-vis growth of this highly important sector of the economy, are formulating the policies aiming at maximum facilitation to the industry i.e. Turkey has exempted its Computer industry from GST, import duty and corporate income tax while allowed personal income tax for 10 years. Vietnam has given the industry exemption of GST and import duty besides 4 years exemption of corporate income tax and relaxation in personal income tax ranging from 3 to 35 per cent. Thailand and Malaysia have also offered similar sort of incentives to their industry which is being translated into steady growth of this sector in above mention countries.

The report of WEF must be an eye-opener for decision makers as it suggests that a coherent government vision on information and communication technologies, coupled with an early focus on education are keys to spur network readiness and to lay the foundations for sustainable growth. For a sustainable ICT sector, the people at the helm of affairs should have been working with close collaboration of the stake-holder. Thus, a balanced policy could have been envisaged. Unfortunately, it could not happen and this apathy has shaken the confidence of investors and destroyed the enabling environment of business as well.

Increase in the price of computers due to irrational taxation mechanics, has not only discouraged common man and students but it has also added the cost of doing business. The average price of PC reported by local assemblers and retailers increased up to 20%. This is one of the factors which have negatively impacted the growth of the IT sector which could be checked by available relevant official data of exports. The government needs to revisit the IT policy approved by the Cabinet in the year 2000, which was comprised on various incentives to promote the IT Sector of the country. However, most of the recommendations of this policy could never take the practical shape.

It’s worth mentioning here that the initial boom in the IT industry in Pakistan was somehow result of those forward looking policies where the IT sector was envisaged as the backbone of the economy. Those initial steps have made a  positive impact on the domestic growth of the local IT and computer industry as well as its exports, but the derailing and reversing of the policy has resulted as huge damage for the industry as well as the interests computer literate community in the country, which needs to be strengthen instead of discouragement.

* The writer is the centeral president of Pakistan Computer Association (PCA), a representative body of computer industry in Pakistan.

" To achieve the target of enhancing our IT exports Pakistan needs to develop human resources, establishment of IT parks, bandwidth facilities, financing arrangements, enabling laws and then of course to explore new markets in this sector. We also need to work on improving the image of the country. We should also train our educated youth and we may provide funding to IT companies so that a trained human resource could be available for the industry. "

By Munawar Iqbal

Pakistan needs long term policies for the real promotion in Information Technology sector and these policies ought to be focused on enhancing knowledge based skills. It’s like investing in the quality education of children so that they become more productive individuals instead of employing them in the factories and reaping small dividend by their daily wages. It sector is no different in this regard and we need to decide now that wither we want to squeeze the sector for smaller revenue or we should invest in the sector for long term progress and development of the country. Of course, Pakistan has a huge potential in IT sector but it can not be tapped without setting the goals and targets. The first target in this regard would be enhancing IT based exports but the question is how to achieve this target?

To achieve the target of enhancing our IT exports Pakistan needs to develop human resources, establishment of IT parks, bandwidth facilities, financing arrangements, enabling laws and then of course to explore new markets in this sector. We also need to work on improving the image of the country. We should also train our educated youth and we may provide funding to IT companies so that a trained human resource could be available for the industry.

Another area that needs our immediate attention as a prerequisite for the promotion of this sector is higher education. Though, we have made some progress in this area during past few years but still there is a lot to be done. India has a clear edge in higher education and its being resulted as its phenomenon progress in the sector. We need to promote higher education as topmost priority. Besides, we ought to learn from our neighboring country that how business community is being honored in that society but we are fail to give the same respect to our businessmen. The private sector has played key role in the promotion of IT sector in India and same could be done here provided an enabling environment is ensured for this purpose.

While we make comparison with the growth of IT and computer industry in the other countries of the region, a serious question arises that why we are not at par with them when the private sector is striving hard to promote this vital sector of the economy and government has also declared the promotion of the sector as one of its top most priority.  To answer this question we need to have a comparative look at the state of affairs and the actual role and incentives provided by concerned governments to their IT industry. Turkey has exempted its Computer industry from GST, import duty and corporate income tax while allowed personal income tax for 10 years. Vietnam has given the industry exemption of GST and import duty besides 4 years exemption of corporate income tax and relaxation in personal income tax ranging from 3 to 35 per cent. Thailand and Malaysia have also offered similar sort of incentives to their industry which is being translated into steady growth of this sector in above mention countries.

Despite the poor computer density in Pakistan, the private sector has made huge efforts to streamline the sector which is a backbone of the national economy as well all other sectors of the economy. As a result of this hard work Pakistan has achieved a certain level of success over the years but the sudden slowdown has created a panic in the market which needs to be addressed any further delay and government ought to come forward and rescue this ailing sector and to reinitiate the progress and growth of the sector.

The imposition of the 15% GST in June 2006, Pakistan's PC/Server market was a "diamond in the rough", but since then, a downward trend in the IT market has been noticed. The decision has weakened the growing IT market in the country, as well as decreased the confidence of the private investor. Moreover, it has been resulted as increased prices of computers which have enhanced the cost of doing business. The average price of PC reported by local assemblers and retailers increased up to 20%. This is one of the factors which have negatively impacted the growth of the IT sector as evident by export figures during last two years.

As far as the role of foreign missions in regard with exploring new markets for Pakistan, it would be highly advisable to send experts from the relevant field abroad as special expertise is required to negotiate for new markets in this highly specialized sector. As the present government has taken some significant steps for the strengthening of democracy and greater reconciliation in the country, one expect that sanity will finally prevail in regard with at decision-making in vital IT sector as well and this important sector of economy will be thriving as a result.

* The writer is the central president of Pakistan Computer Association (PCA), a representative body of computer industry in Pakistan.

While a long and chaotic era of Gen (R) Pervez Musharraf is over finally, business and trade community of the country have termed it a new opportunity to revive shattered economy of the country but the real test of the coalition government has also started right after the departure of former president. The people of Pakistan heard some good news after stepping down of Pervez Musharraf as the stock exchange and value of Pak rupees significantly appreciated. Of course it can be ascribed as a good omen for national economy but the real sustainability can not be achieved without redressing the other factors that may lead us toward political instability.

I T Policy and the Prospects of Growth

“Yes, Pakistan has cost advantages but this factor alone cannot be considered in view of other important factors. Pakistan needs to exploit its geographic advantage which in the future shall pay a big role as compared to labor arbitrage. Hence, Pakistan has to address other issues like availability of skilled resources, advance Global Delivery Mechanism Business Process, infra structure, political and security stability.�

By Munawar Iqbal

"The reports and data available suggest that the introduction of the 15% Sale Tax in the financial year 2006-07 increased the price of computers which increased the cost of doing business. The average price of PC reported by local assemblers and retailers increased up to 20%. This is one of the factors which have negatively impacted the growth of the IT sector as evident by export figures for the first six months of the financial year 2007-08."

The unprecedented decline of Pakistani PC/Server market should be a matter of grave concern not only for computer industry in Pakistan but also for overall growth and development of the country as the IT is backbone of all other formal and informal sector of economy, said Munawar Iqbal, President of Pakistan Computer Association (PCA) while presiding over the meeting of executive body of Association here on last day.

COMPUTER INDUSTRY IS EXPECTED TO FLOURISH UNDER THE MINISTERSHIP OF MR. QAMAR ZAMAN KAIRA.

It's believed that for any international call center operations, the nerve is telecom link and in Pakistan the weakest support one has is which is being provided by PTCL. The cost of utility is so high that the more you use the more you pay, the process of import is very cumbersome, and expensive and visa constraints on international employees and investors