Tangled up: Red tape may cost Pakistan World Bank software project

Published: March 30, 2012
Excessive bureaucratic delays have put Pakistan at risk of losing this project to either Sri Lanka or India. PHOTO: FILE

Excessive bureaucratic delays have put Pakistan at risk of losing this project to either Sri Lanka or India. PHOTO: FILE


Red-tape and bureaucratic hurdles may end up costing the country a World Bank project for the setting up of a research lab for mobile software development. Sources familiar with the matter have said that the World Bank might withdraw its grant if the Pakistan Software Export Board (PSEB) fails to kick-off the project in time.

In January, a consortium of educational institutes and PSEB was supposed to execute a two-year project titled ‘mLab South Asia’; an initiative of InfoDev which is a global, fund-based division of the World Bank.

Sources familiar with the matter said that the World Bank has already released $240,000 out of the total entitlement of $380,000 to PSEB – which is the apex government body mandated to promote the IT industry. “The blue print is ready; courses have been designed and events planned,” sources said; “all PSEB needed was to allocate funds to the implementation partners and supervise.” However, bureaucratic hurdles have halted progress and annoyed the project’s sponsors.

“The implementation of the project has been delayed due to a variety of reasons, including leadership changes at PSEB,” infoDev Senior Communications Officer Angela Bekkers said. Bekkers neither denied nor confirmed if withdrawal of the project was on the cards. However, according to sources familiar with the matter InfoDev has hinted unofficially that it might do so.

“An InfoDev official raised serious questions during a conference call with one of the implementation partners as to what was going on with the project,” related a source. “InfoDev also talked about awarding the mLab contract to runner-up countries – India or Sri Lanka – in case the PSEB failed to execute the project,” the source revealed.

While speaking in PSEB’s defence on Wednesday, Joint Secretary of the Ministry of IT Rashid Bashir Mazari ruled out the possibility of the cancellation of the grant. Mazari – who holds the temporary charge of PSEB’s acting MD – said he is in talks with World Bank officials and there is no such possibility.

Explaining the causes of the delay, Mazari said that the former MD – a private sector officer – did not seek the board’s approval in forming the aforementioned consortium before sending its proposal to InfoDev. Secondly, the received grant money was deposited in a conventional bank account against government policy. No government institute can open an account for such programs without prior approval from the State Bank of Pakistan and the finance division, he said. PSEB needs to comply with these policies, he explained.

PSEB has resolved the bank account issue and is now seeking its board of directors’ approval for the consortium. “I am doing something now what the former MD should have done initially,” Mazari said.

Responding to a question, Mazari confirmed that InfoDev has given PSEB a six-week deadline to obtain such approval – contradicting his own statement that there was no possibility of withdrawal of the grant.

However, industry sources say that PSEB has made no progress under Mazari’s leadership.

“Since some joint secretary has taken temporary charge, the industry’s progress has come to a standstill,” said Jehan Ara, president of the Pakistan Software Houses Association ([email protected]) – a representative body of the IT industry. “No decision-making is taking place regarding prior projects,” she added.

[email protected] has a seat on PSEB’s board of directors,” the president said, “but we don’t know what’s happening there because we get no feedback. Even our chairman failed to get any response.”

PSEB is trying to obtain the board’s approval through a circular because it’s hard to reach the prime minister – who chairs of the board – said sources, on the condition of anonymity. But “even a circular should not have taken more than a week to get approval,” the sources added; complaining that priorities are different for bureaucrats and IT professionals. “These bureaucrats have no knowledge of the industry, which greatly affects us,” sources said.

InfoDev had planned to establish five mobile software development research labs around the world. While mLab South Asia, which was to be set up in Pakistan, has faced delays, the other four have already kicked off.

Mazari categorically denied that other mLabs were in the process of implementation and insisted that there were only two such projects: one in Nigeria and the other in Pakistan. By contrast, InfoDev’s website confirmed that there were five mLabs: mLab Southern Africa (South Africa), mLab East Africa (Kenya), mLab Europe and Central Asia (Armenia), mLab South Asia (Pakistan) and mLab East Asia (Vietnam).

Published in The Express Tribune, March 30th, 2012.

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Reader Comments (9)

  • Mar 30, 2012 - 7:13AM

    Very sad and disappointing !


  • ppp dont care
    Mar 30, 2012 - 8:28AM

    The current political setup dont cares. Simply reject them in the next election and vote for change.


  • Humayun
    Mar 30, 2012 - 9:00AM

    If the story is ture, this would be extremely unfortunate !!!


  • Businessman
    Mar 30, 2012 - 9:22AM

    So typicalRecommend

  • Raj - USA
    Mar 30, 2012 - 10:33AM

    Looks like someone in intentionally sabotaging.


  • Muhammad
    Mar 30, 2012 - 12:12PM

    i think it does not really matter.

    money will create artificial happiness and do no good anyway


  • zabaida
    Mar 30, 2012 - 7:53PM

    strange that despite teh company INFO devs discardment of the claim tribune still printed this. sounds like the sources should be bought to light. typical pakistani mentality to blame one person . as usual tribune continues its useless fabricated insubstantiated stories


  • SM
    Mar 30, 2012 - 8:05PM

    PPP is generally intentionally sabotaging Pakistan, whether it is Railways, PIA, electric, gas, you name it. All they care about it their cut of whatever activity is happening.


  • A. Khan
    Mar 30, 2012 - 8:47PM

    $300K is chump change in terms of a software project. Most of it will be spent on getting cars for the executives hired to manage this and on air conditioners etc. Its just as well to let it lapse. Private companies can do much more with fewer resources than a project where our government gets involved.


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