|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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*yawn*. meanwhile India has 111 billion usd exports.
SBP only tracks the money transfers coming into IT company's bank accounts. All other channels of money transfers considered as remittances. Freelancers do not open company bank accounts.
Back in 2000 Pervez Musharraf with Dr. Attaurrehman established many universities to achieve a target ' Pakistani youth must be IT literate' the access to this education was nearly non existent in #Pakistan back then
Anon: " India has 111 billion usd exports."
True but India's IT exports are growing 3.8% while Pakistan's IT exports are growing 13.4% a year.
And the bulk of India's IT exports are made up of H1B worker wages that India counts as exports.
India's IT exports will come under pressure with increasing H1B denial rates
#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.
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.
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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.
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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.
The following export product groups represent the highest dollar value in Pakistani global shipments during 2017. Also shown is the percentage share each export category represents in terms of overall exports from Pakistan.
Miscellaneous textiles, worn clothing: US$4 billion (18.1% of total exports)
Cotton: $3.5 billion (16%)
Knit or crochet clothing, accessories: $2.5 billion (11.5%)
Clothing, accessories (not knit or crochet): $2.5 billion (11.3%)
Cereals: $1.8 billion (8%)
Leather/animal gut articles: $632 million (2.9%)
Sugar, sugar confectionery: $511.9 million (2.3%)
Optical, technical, medical apparatus: $410.6 million (1.9%)
Fish: $406.9 million (1.9%)
Salt, sulphur, stone, cement: $385.5 million (1.8%)
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:
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
#Pakistan #food #exports up 16.9%. In Q1 of FY 2018-19, foodstuff exports from Pakistan grew by 16.93% as compared to the corresponding period of last year. These exports were recorded at $885.8 million as against $740.5 million the year before http://www.freshplaza.com/article/9035122/export-of-pakistan-food-commodities-up-percent/#.W_IX8oVdSKI.twitter
On month-to-month basis, the exports increased by 31.25 percent in September 2018 as compared to the same month of last year.
During the period from July to September 2018, exports of fruit and vegetables increased by 49.34 percent and 19.17 percent respectively. In first quarter, 130,747 tons of fruit worth $101.9 million were exported as compared to exports of 83,073 tons (at $68.2 million) in the same period last year.
During the period under review, Pakistan also earned $16.1 million by exporting about 4,289 tons of spices, recorded at 3,558 tons and $13.4 million of same period of last year, registering an increase of 21.82 percent.
#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.
IT exports from Pakistan show slowed growth this year
According to a recent report, the product and services exports from the IT sector of Pakistan show less than expected growth this year.
The recent report which comprises of export data taken from the first four months of the current fiscal year shows that the IT exports from Pakistan weren’t able to meet the expected growth rate targets. The statistics as made available through State Bank of Pakistan show that the growth in the Telecommunications, Computer, and Information Services sector of Pakistan stood at 5.34%, a rate which is lesser than what was originally being anticipated by the industry veterans.
The export receipts from Pakistan stood at $355 million, during the first four months of the current financial year which started July. These receipts show a year-on-year increase in the IT-related exports standing at 5%. The exports value from the same period last year stood at $337 million. During the last year, the Pakistani IT exports had shown a growth of 13% during the whole financial year.
On a rather good note, the IT-related imports showed a decline as more reliance went towards indigenous produce of ICT-related services and products. The imports have decreased from $163m to $147 showing a decrease of 9.8%. It must be mentioned here that the facts presented in this report account for the trades with receipts and apart from this a lot of informal trade also happens between Pakistan and the rest of the world.
The lesser increase in the exports could be credited to decrease in the value of Pakistani rupee against the dollar. The rupee has depreciated greatly this year as the fiscal deficit in Pakistani reserves and trade increased as the financial year started. This means even if the amount of services/products from this category has increased, the, overall value of the exports didn’t progress much.
#Pakistan’s #digital revolution is happening faster than you think. Growth is being accelerated by other major investments in #power and #connectivity #infrastructure, technology and digital infrastructure. #technology #CPEC https://www.weforum.org/agenda/2018/11/pakistan-s-digital-revolution-is-happening-faster-than-you-think/ via @wef
The digital power of China’s Belt & Road Initiative (BRI) is slowly unfolding and shaping into a whole new area of opportunity.
When the BRI took global centre stage in 2013, most conversations revolved around traditional infrastructure: building roads, railways, power sources and linking borders. However, the digital awakening that BRI brings, and the associated development of human capital and innovation, is much more powerful.
The global map is being altered at a much faster rate than anticipated due to the disruption created by digital infrastructure, artificial intelligence, the Internet of Things, and blockchain. Further digital and technological disruption is now set to mend fractures in society – leading to improved living conditions and enhanced economic empowerment.
This disruption has given new life to e-commerce and the start-up scene in BRI countries. In light of the Global Competitiveness Index 4.0, it is extremely important that economies grow in all areas, overcoming challenges and making investment in human capital and innovation. Resilience and agility are key.
Looking at the South Asian region, some of the traditional deterrents to growth have been inadequate transport facilities, patchy power supplies and lack of financial inclusion. As we have seen in the past, industrial revolutions take their time to reach developing countries but the Fourth Industrial Revolution has been quick to reach all corners of the world.
Billions of dollars of investment are bridging the infrastructure and power supply gap while improving technology – the goal is to look past the problems that have hindered the road to progress in countries along the BRI.
The flagship project of the BRI, the China-Pakistan Economic Corridor (CPEC), which is a major collaboration between China and Pakistan, has been rapidly progressing and the impact of the project can be seen in the lives of Pakistani people, as reflected in an improving human development index.
Pakistan, which is emerging from many years of the war on terror, is now on a decent path to progress, with economic growth of 5.8% and improved investor confidence. At the World Economic Forum in 2017, Ebay’s chief executive, Devin Wenig, highlighted Pakistan as one of the fastest growing e-commerce markets in the world. In 2018, Alibaba bought Pakistan’s largest e-commerce platform, Daraz.pk.
..... Ant Financial Services, China’s biggest online payment service provider, recently bought a 45% stake in Telenor Microfinance Bank, in a deal that valued the Pakistani bank at $410 million.
Irfan Wahab, chief executive of Telenor Pakistan, called the deal a “game changer”; while Eric Jing, chief executive of Ant Financial, said it would provide “inclusive financial services in a transparent, safe, low-cost and efficient way to a largely unbanked and underbanked population in Pakistan”.
This kind of investment will benefit from the significant demographic dividend in Pakistan, targeting the largely unbanked young population, and providing not only financial inclusion but also a base on which to build digital businesses.
What the country needs now is to improve its position on the innovation and financial inclusion indices, currently at 89 and 75 respectively, on the World Economic Forum’s Competitiveness Index 2018.
The rapid completion of CPEC projects and the use of digital technology in the process is disrupting the economy and the lives of people at the same time. The question is whether Pakistan’s leadership will choose to embrace these technologies and take advantage of the biggest project on the road to progress. The future is full of opportunities and promise.
#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.
#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).
How Chinese companies are planning a global fintech coup
Jayadevan PK Shadma Shaikh December 11, 2018
A company document that FactorDaily reviewed lists eight major mobile wallet players in South and Southeast Asia among Ant Financial’s investee companies. These are Easypaisa in Pakistan, BCash in Bangladesh, TouchnGo in Malaysia, Kakaopay in South Korea, GCash in the Philippines, Ascend in Thailand and Emtek in Indonesia. And, of course, Paytm in India.
“Many of these people are either geographically remote, live in rural areas that are not served by banks, or that are not covered by branches and ATMs. The traditional banking services are not adequate or too expensive for these people,” says Konstantin Peric, Deputy Director, Level One Digital Payment Systems, Financial Services for the Poor (FSP) at the Bill & Melinda Gates Foundation.
To that end, Peric and a few other partner companies have built MojaLoop, an open-source software that can be used to build national digital payments platforms. In Swahili, Moja means One. Projects that use Moja Loop are underway in Kenya, Uganda, Tanzania, and Nigeria in Africa, and in Indonesia, India, Bangladesh and Pakistan in Asia.
urugan is the owner of a small cloud kitchen in Shanghai. He speaks fluent Tamil, passable Mandarin, and a bit of English. The 41-year-old small time entrepreneur supplies Indian food to universities and office establishments in the city.
“I do it all on WeChat,” says Murugan, explaining how he runs a WeChat group called Murugan’s Kitchen where he posts a daily menu, takes orders and receives payments. “Most of my expenses are managed through WeChat,” he says. He serves between 100 and 200 customers daily.
If you want to gallivant about the galaxy, the Hitchhiker’s Guide to the Galaxy recommends getting a towel. But if you ever go to Beijing, a smartphone will do just fine.
Besides the ability to help you with obvious things, what makes the smartphone truly powerful here is that you can pay for everything using the phone. Not just in China’s large cities like Shanghai or football field sized shopping destinations such as China Mall in capital Beijing, but also in small towns and villages and tiny establishments.
Millions of entrepreneurs like Murugan, do business on mega platforms run by Alibaba and WeChat. China’s fintech growth, on the back of these platforms, has been unprecedented. With a record $12.8 trillion in mobile payment transactions in the 10 months to October last year, China even surpassed the United States, at only $49.3 billion during that period.
Mainly two apps – WeChat and Alipay – make all this possible. These apps owned by Chinese internet giants Tencent and Alibaba, respectively, control 93% of the country’s mobile payments market. As China pursued an industrial policy that made it the factory of the world and millions of Chinese came out of poverty, these apps played a big role in making their lives easier in the mainland.
Both Tencent and Alibaba, have reaped economic benefits of this growth. Tencent, which became China’s first company to cross $500 billion in market cap, is now valued at $374 billion. Alibaba has a market cap of $377 billion. Founders of these companies have also become immensely wealthy. Pony Ma, the founder of Tencent, is the world’s 14th richest person with a net worth of over $50 billion. Jack Ma is worth over $34.7 billion. Both are also members of the Communist party in China.
Next, they, along with dozens of hyper-funded upstarts, have designs on the world. They are quietly taking over the global fintech market at a scale that’s unheard of before. “If you said in 2010 that software is eating the world, in 2018, you should say Chinese software is eating the world,” says Nikhil Kumar, a volunteer with Indian software products think-tank iSpirt who was recently in China to learn more about the fintech ecosystem there.
Can Pakistan Ride the New Tech Wave?
Feb 8, 2019 ASAD JAMAL
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
IT exports fetch $540m in six months
An increase of $20 million when compared to export figures of the same period last year
ISLAMABAD: The information technology (IT) and telecommunication industry of the country has contributed $540 million foreign exchange to the national kitty through exports during the first two quarters of this fiscal year 2018-2019.
The telecommunication, computer and information services managed to export IT and IT-enabled services worth $540 million, seeing an increase of $20 million as compared to exports figures of the same period last year, statistics of State Bank of Pakistan (SBP) revealed on Monday.
The year-on-year increase of just 3.8pc in the export value of IT industry is lower than expected and is likely because of the impact of rupee depreciation against the dollar.
It is pertinent to mention that Pakistan’s IT industry achieved a benchmark of $1.065 billion of exports in the last fiscal year 2017-18.
Pakistan Software Exports Board (PSEB) had chalked out a plan to boost exports to over $6 billion by 2020 and $10 billion by 2025.
The present government has also emphasized digitisation of the economy and the IT sector. It has formed a special task force on IT, comprising big names of the industry, to create jobs and facilitate exports.
The targets set for IT exports are ambitious but can be achieved if opportunities in the fields of cloud computing, mobile apps, artificial intelligence, blockchain etc. are availed by national companies.
According to Pakistan Software Export Board (PSEB), Pakistan’s IT & ITES-BPO industry comprises more than 2,500 companies, and this number is growing each year. The industry employs over 300,000 English-speaking professionals with many world-class experts in current and emerging IT products and technologies.
Pakistan is ranked 4th as the most popular country for freelancing in Online Labor Index published in 2017 by Oxford Internet Institute (OII). It is also listed as the 4th most financially attractive country in the world for outsourcing services, as per AT Kearney’s Global Services Location Index 2016.
SBP quarterly report: ICT informal exports higher than formal exports
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.
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.
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.
#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/
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.
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.
“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.
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.
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.
#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).
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.
#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.
#Pakistan’s #InfoTech #exports have been growing by double digits annually for a decade. #computers #software #technology #services
An analysis of IT software and service exports from India
Manzoor Hassan Malik, Nirmala Velan
International Trade, Politics and Development
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 . 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.
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Khyber-Pakhtunkhwa government’s flagship project, Pak-Austria Fachhochschule University completed in Haripur
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.
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.
Netsol Announces to Establish Its Own IT University
Posted 8 hours ago by ProPK Staff
This is encouraging news from the industry for software houses, professionals, and students alike. A university to be set up based on industry and academic coordination could serve the entire IT sector, which is always looking for graduates having skills in advanced fields of IT sector.
Presently, a majority of local universities except a few institutions do not produce graduates that meet the requirement of the local and foreign markets. Hence, a serious shortage of human resources always prevails in the sector.
According to industry estimates, as many as 25,000 graduates graduate from various universities per year in Pakistan. However, merely 5,000 graduates can meet the requirements of the industry regarding the needed skill sets and other practical qualifications.
Ministry of Information Technology and Telecommunication (MoITT) had previously planned to set up an authority on IT education last year under the then minister. However, there is no update on the continuity of the plan under the present minister.
Stakeholders of the IT industry said that professionals of various software houses could impart their knowledge at various institutions to bring reforms in IT education. However, they said that the universities are not willing to pay them competitive salaries.
Therefore, inexperienced teachers continue to teach various subjects of computer science to students through an outdated curriculum and obsolete methodologies.
Some big names in the IT industry usually set up their in-house training departments to meet the demand for human resources. However, this is not a long-term solution as far as the entire industry is concerned.
At present, the demand for the IT industry is exceeding 15,000 professionals every year, with over 5,000 highly-skilled professionals required in the latest technologies.
Companies have no choice but to pick up professionals from competing companies at higher offers of salary packages.
It is hoped that setting up an IT industry by a reputed IT company could make a difference in meeting the demand of the country’s IT companies in the future rather than money-making and degree-printing institutions.
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