Pakistan can become a strong regional IT player

MUMBAI, INDIA: Pakistan's image as a safe business destination has taken a severe battering in recent times.  And one person who is working hard to transform country's image into an emerging IT destination is Jahan Ara, the President of Pakistan Software Houses Association for IT & ITES.

PASHA as the association is popularly known, has 360 members, and promotes and develops software and services industry in Pakistan.

Ara, who is in the city to attend the Nasscom Leadership Forum 2008, firmly believes that her country has the potential to become a strong regional IT player. "We clocked 50 per cent growth rate last year and our total IT exports have touched $3.5 billion and expected to touch $10 billion by 2010," says Ara.

Pakistan shares many similar advantages with India and it has substantial young IT population, English-speaking graduates, improving infrastructure and an IT-friendly government.

But isn't the political situation is country dangerous to attract companies?

"It certainly does come into the equation. But when your product is good, other issues take a back seat," says Ara. She points to a Pakistan-based product company called Scribe, which recently got major funding from Adobe.

"At the end of the day, in a globalised economy it's your product that matters, not where the product company is based," says Ara.

Ara adds that Microsoft, Oracle  and IBM have set up their offices in the country and Pakistani IT companies Systems Ltd and Netsol have established offices in Bangalore.

And how does PASHA stand to attract foreign clients when global IT giants India and China, standing tall?

"We obviously can't compete with India, so what we at PASHA are trying is to focus on high value work. We are focusing on are making IT solutions for financial, telecom and oil and gas sectors which give our companies better margins."

She however admits that Pakistan doesn't have enough manpower at present to invest in low-end BPO sector, so they have to look at these sectors.

Ara feels that rather than competing, PASHA sees India IT companies as collaborating partners to tap common markets.

"India can leverage our talent, which is 30 per cent cheaper than the talent available in India. Apart from that, Pakistan can serve as a gateway for Indian companies to reach out to Middle East economies like Saudi Arabia, with whom Pakistan share strong cultural ties," she says.

Besides, Ara adds, Indian companies can tap the domestic market of Pakistan and bag major contracts in the country. "Pakistani government has allocated huge budgets for IT implementation in the country. We don't have the resources and Indian companies can come up and tap this segment."

And how successful has been P@SHA to attract Indian companies to Pakistan? "Not very much. We have lots of visa restrictions with India, which act as a road block," she says, adding that it is time the visa restrictions were eased so the trade becomes easier for companies across border.

Asked about how business climate back home, she says the sector is accorded favourble climate, however doesn't enjoy benefits that Indian IT companies are accorded. "We don't have SEZs which we have been asking for a long time." 

Pressed further, Ara, though extremely apolitical, admits Pakistani IT companies do have an additional burden thrust on them to improve country image. "We obviously have an added responsibility of changing the image of our country. We ask government to take care of that. But you know how governments work."

But isn't IT growth completely oblivious to the political atmosphere in the country? "I don't know if the stock market being oblivious to political situation is good or bad, but we are going great," says an optimistic Ara.