Corporates in trouble as financial crisis persists
Thai ambassador described Karachi as a “vibrant city” and highlighted a host of business opportunities in many sectors including tourism. PHOTO: FILE
German tech firm SAP has pressed the government to immediately address the challenges arising from the restrictions on opening Letters of Credit (LCs) as they have hurt its business in Pakistan.
Interacting with the media, SAP Managing Director for Pakistan, Iraq and Afghanistan Saquib Ahmad highlighted the collaborative efforts made by SAP and the government of Pakistan in digitally transforming public sector enterprises and departments, which enabled efficient delivery of services for the masses.
Responding to a question, Ahmad termed the government’s ban on opening LCs for imports the biggest issue, which was affecting SAP’s growth. He pointed out that the companies working in the private sector were facing difficulties owing to the economic and financial crisis in Pakistan, adding that everyone was waiting for positive news from the International Monetary Fund (IMF).
He aired hope that the uncertainty would vanish soon and Pakistan would return to the path of stability.
Ahmad was critical of the government’s recent decision to curtail internet services following political disturbances, saying “we are here talking about digital transformation and just recently internet services were limited and downgraded”.
“How come Pakistan’s IT sector meet its international commitments if such unscheduled disruptions occur without any substantial reasoning?” Highlighting the digital transformation of the Accountant General of Pakistan Revenue (AGPR), the MD said that SAP had facilitated a unified platform for the AGPR’s financial transactions through the micropayment gateway. “With this system, AGPR can now operate hassle-free with seamless payment procedures for pensioners, government vendors and contractors.”
Integration with the Central Directorate of National Savings, State Bank of Pakistan (SBP), Federal Board of Revenue, Pakistan Post and National Database and Registration Authority (NADRA) has helped create a unified system for all financial transactions, which ensures accurate data reporting for the AGPR.
The AGPR office is now fully automated and integrated with the SBP’s micropayment gateway, RAAST. Technological advancements through the SAP software have enabled the AGPR to automate pension disbursements to 1.2 million pensioners. It has been made possible after streamlining verification through NADRA’s Verisys system.
Answering questions about transforming public sector enterprises, Ahmad told the media that Pakistan Railways was transforming through automation and digitalisation, adding that its operations and profitability had improved with the introduction of technology.
In response to a question, he said that SAP Pakistan was working on a project to provide free training to students and professionals.
In this regard, training is being provided to young students and professionals through the Young Professionals Programme through SAP’s partners. Higher Education Commission and the universities of Pakistan have been taken on board. Beneficiaries of the programme get hands-on training and get employment in renowned world organisations.
Published in The Express Tribune, May 23rd, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.