Pakistan's Software Industry: A Long Way to Catch Up with India

Pakistan's software exports remain negligible, estimated at $15m-$25m in the past year, lagging far behind India's robust presence in the global market. The country's software development suffers from a shortage of skilled programmers and poor international marketing facilities, hindering its growth prospects. Despite recent tie-ups with global players like Oracle and Microsoft, Pakistan's software industry faces significant challenges, including a lack of skilled labor, poor marketing, and limited access to foreign investment. The industry's growth prospects have sparked hopes that it could provide jobs to thousands of unemployed engineers, but it remains to be seen whether Pakistan can overcome its bottlenecks and emerge as a major player in the global software market.

Key Takeaways:

• Pakistan's software exports are estimated to be in the $15m-$25m range, far below India's robust presence in the global market.
• The country suffers from a shortage of skilled programmers, with only about 2,000 produced annually, compared to India's 50,000 or so per year.
• The industry faces significant challenges, including poor international marketing facilities, limited budgets for establishing full-time offices abroad, and difficulties in accessing foreign investment.
• Recent tie-ups with Oracle and Microsoft are seen as a positive development, but may not be sufficient to tackle the industry's main problems.
• The growth of e-commerce has been hindered by Pakistan's decision to tighten its exchange controls last year, making it difficult for businesses to make online purchases.
• Domestic banks have stringent demands for collateral, making it difficult for new businesses to access loans and working capital.
• Despite these challenges, some companies have shown resilience and innovation, such as Enabling Technologies, which has gained international recognition for its CD-Rom production.

Statistics:

• Pakistan's software exports are estimated to be in the $15m-$25m range in the past year.
• India produces over 50,000 programmers annually, compared to Pakistan's 2,000.
• The Punjab government has signed a $13.7m contract with Oracle to train up to 1,000 Oracle-certified professionals a year.
• Domestic banks have demanded collateral worth at least Rs150 billion from loan defaulters.
• The prices of unbranded hardware have fallen by up to 30% in the past two years.
• There are only five to 10 large internet service providers in Pakistan.

Sources:

• [Pakistan's software exports estimated at $15m-$25m] Financial Times, 1999.
• [India produces over 50,000 programmers annually] N/A (reference only mentioned in the Financial Times article).
• [Punjab government signs $13.7m contract with Oracle] Financial Times, 1999.
• [Domestic banks demand collateral worth Rs150 billion] N/A (reference only mentioned in the Financial Times article).
• [Prices of unbranded hardware fall by up to 30%] N/A (reference only mentioned in the Financial Times article).