RECORDER REPORT

FAISALABAD: Asian Development Bank (ADB) is negotiating and considering for providing loan of $200 million for “Integrated Information and Communications Technology Development Project” in Pakistan.

Update reports revealed that this proposed project outputs will be: (i) IT park set up as a benchmark model in Karachi; (ii) National IT parks strategy developed; (iii) smart city strategy developed and piloted; and (iv) ICT skills in higher education stream strengthened with technological readiness for knowledge-based economy.

These outputs will result in the strengthened holistic development of ICT sector in Pakistan. The project will be aligned with the following impact: ICT industry contribution to inclusive growth increased, as outlined in Pillar VI of Pakistan Vision 2025. The investment is also in line for the government’s mid-term IT development policy, the Digital Pakistan Policy 2017.

ADB’s value addition will be (i) introducing long-term strategy for ICT industry anchoring on efficient urban planning through activities like master planning and smart city pilot solutions, (ii) leveraging collaborative networks with international partners through twinning program, and (iii) mobilizing financial resources and creating skills development and institutional capacity building programs for sustaining the ICT sector interventions.

During negotiation, Pakistan Government envisaged the information and communications technology (ICT) industry as a key driver for innovation, economic competitiveness, and greater social inclusion. Through Pakistan Vision 2025, the government seeks to lay the foundation of a knowledge-based economy by promoting efficient, sustainable, and effective ICT initiatives through synergic development of industry and academic resources. Due to the large youth bulge in its demographic profile, Pakistan has strong digital potential to develop a knowledge-based industry fostering innovation and modern entrepreneurship. As per the draft Digital Pakistan Policy 2017, Pakistan currently has about 2,000 ICT companies and call centers and more than 300,000 English speaking information technology (IT) professionals. More than 20,000 IT graduates and engineers are being trained each year.

The ICT industry in Pakistan is constrained by the absence of a holistic system that operates in an end to end manner. The constraints can be attributed to: (i) inadequacies in policy frameworks, (ii) poor infrastructure and facilities, and (iii) weak institutional capacity. The national ICT policy needs further work to address fundamental issues in the ICT industry such as facilitating private sector participation through devising incentive schemes and creating enabling facilities such as IT Parks to address structural issues including security-related matters.

Developing appropriate engagement model to undertake ICT initiatives that benefits multiple sectors, and (iii) developing a long term prioritized investment framework. In parallel, the policy initiatives need to be supported with skills building, creation of an IT park, and master plans smart city solutions. Due to these constraints, the current demographic profile has not been effectively channelized, less jobs are created, and the potential for female workforce has not been effectively tapped.

Commenting over the problem tree details the core problem, causes, and effects, ADB updates mentioned that the current young population coupled with English-speaking workforce and a vibrant ICT industry environment would provide huge opportunities for Pakistan to increase exports in software product development and servicing. According to the Pakistan Software Export Board estimates in 2015, the ICT industry has recorded $560 million in export revenue. A study by Forester, sponsored by World Bank (2009), suggested that export revenues of $6 billion could be achieved by 2020, if the following areas of interventions are implemented: (i) infrastructure development, (ii) skills development, (iii) coordinated brand development, (iv) developing, financing, and (v) alleviating security issues for providing safe working environment. However, proper large-scale infrastructure must be established to provide the enabling platform. Female participation in the workforce through IT industry will greatly inspire the work potential of half of the country’s population. Proactive participation in the ICT-enabled global value chain will raise Pakistan’s prospect to leverage international investments in the China Pakistan Economic Corridor with ICT infrastructure as one of the key areas.

These interventions will be predominately located in urban centers of Pakistan. Pakistan’s cities contribute 78 percent to the country’s GDP, and the urban population is expected to grow from the current 40 percent to 50 percent by 2025. With increased urban expansion, there is an additional demand created for delivery of public services with effective urban planning and governance. The government is committed to address the issues through smart city solutions, which will enhance the delivery of integrated public services to citizens through innovative use of ICT solutions and platforms.

This requires a calibrated approach starting with development of a national master plan for smart cities. Further undertaking limited smart city pilots will provide insights to IT requirements applicable to the country’s context. It will also propel need for more ICT services and contribute to appropriate usage of facilities created by the project, report concluded.