A case for supporting the IT industry

The government has made many promises of support to the information technology (IT) industry, a backbone of the modern Pakistani economy, but most of these have turned out to be nothing more than hollow pledges.

Computer software and information technology was officially recognised as an industry on its own in 1997. Since then, there have been a plethora of policies, each one being different from the other, leading the IT industry on a rollercoaster a ride with little in terms of stability.

Information technology holds the potential of carrying the economy to great heights. With the global economic situation derailing most of the world’s economies, IT seems to be the industry key to helping lift Pakistan economically. However, we have lagged in exploiting the potential of this industry, in large part because of the lack of government support.

There has been tremendous growth in the IT sector in the last decade but this has occurred mainly because of private-sector entrepreneurs. The IT industry is currently valued at around $2 billion, and this figure is growing in spite of the little or no help from the government. It is quite frustrating for the industry to work so hard and yet get such little support from the government, especially considering its contribution to the revenue and economy of Pakistan.

For the last three to four years, Pakistan had no IT minister and then suddenly we saw several, one after another. Regrettably, no one was able to make any significant contribution.

If we look at our neighbours, who have clearly set the standard as well-renowned global IT destinations, we will see that we are not that different from them. Pakistan, too, has low-cost manpower, advanced technological infrastructure, a high-level skill set and an army of hardworking, committed youth. Our only shortcoming stems from our security threats and government apathy and lack of commitment, the latter of which I feel we can easily overcome.

An IT initiative in Pakistan means a strong partnership between the government and the private sector, with the government playing a role in nurturing and enabling the industry to flourish, and providing policies that help become the pillars upon which the industry can stand tall. Of late, there has been some activity in Sindh and Khyber-Pakhtunkhwa, but federal and other provincial governments have showed very little interest in the industry’s growth. In contrast to Sindh, there have been no developments in Punjab.

The IT industry is a service industry, generating over $1.4 billion in export revenue and employing 110,000 employees in Pakistan. It helps facilitate other sectors such as agriculture, health, banking, etc., yet the industry is still not being recognised and taken seriously. It has the potential to grow tremendously, if given the opportunity. For that, the government’s contribution in the form of policy and as an enabler needs to be properly formulated and implemented.

Published in The Express Tribune, April 29^th, 2011.