Special investment council greenlights establishing Pakistan’s largest IT Park in Islamabad

A general view taken from a hilltop shows the Pakistan's capital city Islamabad and its suburbs, on May 27, 2021.
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Updated 25 March 2024
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Special investment council greenlights establishing Pakistan’s largest IT Park in Islamabad

  • Park to be operated under public-private partnership, will be spread over 3.3 acres in G-10 sector of Islamabad 
  • Will comprise research center, library, software houses, conference and exhibition rooms, work spaces for freelancers, start ups

ISLAMABAD: The Special Investment Facilitation Council (SIFC) has given the go ahead to establish Pakistan’s largest IT Park on an area of 3.3 acres in the G-10 sector of the federal capital of Islamabad, state-run APP news agency said on Monday, in a bid to nurture an already thriving industry. 

Monthly IT exports from Pakistan were recorded at $257 million in February this year, 32 percent more than in the same month last year. Monthly IT exports in Feb. 2024 were higher than the last 12-month average of $233 million, according to central bank data released last week.

Pakistan’s IT exports in eight months of the current fiscal year, which began in July 2023, increased by 15 percent to $2 billion on an annual basis, compared to $1.7 billion recorded during the same period in the last fiscal year (8MFY23).

Pakistani exporters attribute the surge to supportive policies that have encouraged local companies to bring export proceeds back home and the formation of the Special Investment Facilitation Council, a civil-military hybrid forum, aimed at boosting foreign investment in the country. 

“This landmark decision [by the SIFC] marks a significant stride forward for Pakistan’s burgeoning tech landscape, promising unparalleled opportunities for innovation and progress,” APP reported, saying discussions were already being held between key stakeholders such as the Pakistan Software Export Board and the Ministry of Information Technology and Telecommunication to ensure the successful execution of the project.

“The envisioned IT Park is poised to become a nucleus of technological advancement, boasting a comprehensive array of facilities aimed at fostering creativity and entrepreneurship,” APP said.

“Among its features will be a state-of-the-art research center, a well-stocked library, software houses, conference rooms, dedicated work spaces for freelancers and start ups and an exhibition area for showcasing cutting-edge IT products.”

The IT Park project will be operated under a public-private partnership framework and benefit approximately 6,000 freelancers through access to top-notch facilities.

“Crucially, the construction of this pioneering IT hub will be financed through collaboration with private IT companies, which will also lease office spaces within the premises,” APP said. 

“This synergistic partnership model is anticipated to invigorate Pakistan’s tech ecosystem, driving economic growth and job creation in the digital sphere. With the impending realization of the IT Park in Islamabad’s G-10 sector, Pakistan stands on the cusp of a transformative era in its tech evolution, poised to harness the boundless potential of the digital age for the betterment of its people and economy.”

“$3.5 BILLION EXPORTS THIS YEAR”

Last week, Pakistani information technology exporters told Arab News they hoped to hit the $3.5 billion export milestone this year on the back of favorable policies at home and by successfully signing major deals with foreign, especially Saudi, firms.

“The increase in the retention limit by the central bank and formation of SIFC which gives confidence to the people that if they will have any problem, it would be resolved, have led to the export surge from Pakistan,” Zohaib Khan, chairman of the Pakistan Software Houses Association (P@SHA), said.

“This year, we will hit an export target of $3.15 billion to $3.5 billion and next year, we will take it up to $5 billion because with the convenience of cross-border payments, the money of our companies that i lying abroad will come to Pakistan.”

The jump in IT exports has occurred due to a relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), which increased it from 35 percent to 50 percent in the Exporters’ Specialized Foreign Currency Accounts, and stable currency which encouraged IT companies to repatriate their foreign income and deposit it in local accounts, according to a report by Karachi-based Topline Securities brokerage house.

Khan said the central bank was facilitating exporters with measures that would yield further results in the coming years. 

“The central bank has introduced corporate debit cards, these products have now started coming out,” he said. “These products will allow exporters to bring in the money they have parked in foreign accounts because it will ensure cross-border payments.”

Currently, the P@SHA chief said, exporters were unable to make direct payments from Pakistan to companies or individuals abroad, but if the central bank allowed cross-border payments there would be no reason to keep export proceeds abroad.

Pakistani authorities are also focusing on harnessing the potential of IT exports and Finance Minister Muhammad Aurangzeb in a recent interview expressed hope that the country’s IT exports would likely increase to $3.5 billion this year.

Pakistan’s market for computer software has also seen steady growth for the past several years, with the total size of the software sector at approximately $3.2 billion.

The United States is Pakistan’s largest market for IT, accounting for 54.5 percent in FY 2023, according to the International Trade Administration (ITA). Pakistan’s IT sector consists primarily of software development and IT-enabled services (ITeS) for data centers, technical service/call centers, and telecom services, with 60 percent ITeS serving international customers. Much of the growth is driven by the work of freelancers and tech start-ups.

The export push also comes from Saudi Arabia where dozens of Pakistani IT firms this month presented their innovative ideas and products at the LEAP tech exhibition, according to Khan. 

“Projects ranging from $8 to $10 million have been spot-closed, and a pipeline for projects worth $70 to $80 million has been generated,” he said, adding that Pakistanis who recently attended tech events in Saudi Arabia, Kuwait and Dubai were registering their companies there.

Last year, LEAP 2023 generated a whopping $9 billion in IT business and Pakistani companies generated leads worth upwards of $100 million on the sidelines in business-to-business (B2B) matchmaking, according to P@SHA

Khan estimated that there had been an increase of up to $100 million IT exports to Saudi Arabia in the last two years.


Pakistan face New Zealand in 5th T20, aim to end series on positive note

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Pakistan face New Zealand in 5th T20, aim to end series on positive note

  • Two earlier defeats came as a jolt to full-strength Pakistan in their preparations for T20 World Cup
  • New Zealand, missing a host of players, are likely to draw confidence from the wins against Pakistan

ISLAMABAD: Pakistan will be facing New Zealand in Lahore today, Saturday, in the final Twenty20 of their five-match series, Pakistani state media reported.

Pakistan have already lost the chance of clinching the series as the Babar Azam-led side trail the series 1-2, with the first game washed away by rain.

The ‘Green Shirts’ are looking to level the series with a win today.

“The match will start at 7:30 in evening,” the state-run Radio Pakistan broadcaster reported.

The defeats came as a jolt to a full-strength Pakistan side in their preparations for the Twenty20 World Cup to be held in the United States and West Indies in June.

New Zealand, missing a host of players due to the Indian Premier League, injuries and unavailability, are likely to draw confidence from their strength in depth going into the World Cup.


Egypt takes key role in renewed diplomatic push for truce in Gaza

Updated 58 min 5 sec ago
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Egypt takes key role in renewed diplomatic push for truce in Gaza

  • Officials in Israel described latest moves as ‘an attempt by Egypt to restart the talks’ after Qatar mediation efforts broke down
  • Egyptian intelligence chief Abbas Kamel to make clear ‘will not tolerate’ Israel’s deployments of troops along Gaza-Egypt border

CAIRO: A high-level Egyptian delegation was in Israel for talks on Friday amid a new diplomatic push for a truce in the Gaza war and the release of Israeli hostages held by Hamas.

The visit followed a trip to Cairo on Thursday by Israeli army chief Lt. Gen. Herzi Halevi and Shin Bet domestic intelligence service head Ronen Bar.

Officials in Israel described the latest moves as “an attempt by Egypt to restart the talks” after previous mediation efforts led by Qatar broke down. They told the Egyptian delegation that Israel was ready to give hostage negotiations “one last chance” to reach a deal before moving forward with an invasion of the southern city of Rafah.

“Israel told Egypt that it is serious about preparations for the operation in Rafah and that it will not let Hamas drag its feet,” one official said.

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Palestinians have been killed in the Gaza Strip during more than six months of war between Israel and Hamas.

Egypt is concerned about a potential influx of Palestinian refugees from Gaza if the war continues with the long-threatened Israeli offensive into Rafah, and has taken an increasingly active role in the negotiations.

“The Egyptians are really picking up the mantle on this. Egypt wants to see progress, not least because it’s worried about a prospective Rafah operation,” the official said.

Israel was increasingly looking past Qatar as a main broker, according to the official, after it failed to respond to Israeli demands to expel Hamas leaders from its territory or curb their finances.

“Qatar is still involved but in a lesser capacity,” the official said. “It’s clear to everyone they failed to deliver, even when it came to expelling Hamas or even shutting down their bank accounts.”

Hamas officials said they still considered Qatar a key mediator, alongside Egypt.

White House national security adviser Jake Sullivan said he saw fresh momentum in the talks.

“I believe that there is a renewed effort … to try to find a way forward,” he said “Do I think that there is … new life in these hostage talks? I believe there is.” 

No new proposals

An official, who spoke on condition of anonymity, said Israel had no new proposals to make, although it was willing to consider a limited truce in which 33 hostages would be released by Hamas, instead of the 40 previously under discussion.

“There are no current hostage talks between Israel and Hamas, nor is there a new Israeli offer in that regard,” the official said. “What there is, is an attempt by Egypt to restart the talks with an Egyptian proposal that would entail the release of 33 hostages — women, elderly and infirm.”

According to Israeli media reports, Israeli intelligence officials believe there are 33 female, elderly and sick hostages left alive in Gaza, out of a total of 133 still being held by Hamas and other Palestinian militant groups.

There was no decision on how long any truce would last but if such an exchange were agreed, the pause in fighting would be “definitely less than six weeks,” the official said.

The visit by the Egyptian delegation came a day after the United States and 17 other countries appealed to Hamas to release all of its hostages as a pathway to end the crisis in Gaza. Hamas vowed not to relent to international pressure.

Hamas said it was “open to any ideas or proposals that take into account the needs and rights of our people.” However it stuck to central demands Israel has rejected, and said it criticized the statement for not calling for a permanent ceasefire and the withdrawal of Israeli forces from Gaza.

 


Pakistan gears up for PM Sharif’s visit to China in May

Updated 27 April 2024
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Pakistan gears up for PM Sharif’s visit to China in May

  • Planning minister says China has invested $25 billion in infrastructure projects in Pakistan since 2013
  • However, the undertaking has been affected by Pakistan’s financial woes, attacks on Chinese in recent years

ISLAMABAD: Pakistan is preparing for a possible visit by Prime Minister Shehbaz Sharif to China next month and the 13th meeting of a joint cooperation committee (JCC) on the China-Pakistan Economic Corridor (CPEC), the Pakistani planning ministry said on Friday.

The statement came after Planning Minister Ahsan Iqbal presided over a meeting with regard to the prime minister’s visit and preparations for the 13th JCC meeting.

Sharif is expected to visit China in May to restore Beijing’s confidence in Islamabad with regard to various Chinese-funded projects, Pakistani state media reported this month, citing a senior official.

“The federal minister said that the prime minister’s visit to China will be of great importance and China wishes that the 13th JCC [meeting] is held before this visit,” the Pakistani planning ministry said in a statement.

“So that projects, including five new economic corridors, can be accelerated and the desired results can be obtained from the visit.”

Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of CPEC, a major segment of Beijing’s Belt and Road infrastructure initiative, which will connect China to the Arabian Sea and help Islamabad expand and modernize its economy through a network of roads, railways, pipelines and ports in Pakistan.

Since its initiation in 2013, CPEC has seen tens of billions of dollars funnelled into massive transport, energy and infrastructure projects. But the undertaking has also been hit by Pakistan struggling to keep up its financial obligations as well as militant attacks on Chinese nationals in Pakistan.

From 2013 to 2018, Iqbal said, China invested $25 billion in Pakistan under CPEC that improved economic condition of the country.

He said his government was currently taking steps to implement CPEC projects and was determined to soon complete them.


Green glamor: Young Pakistani innovators transform electronic waste into fashionable jewelry

Updated 27 April 2024
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Green glamor: Young Pakistani innovators transform electronic waste into fashionable jewelry

  • Jewelry crafted from electronic scrap appeals to a young demographic that values innovation, ethical lifestyle choices
  • Sameer Asif began to pursue entrepreneurial dream by partnering with a classmate to launch ‘Wired Wonders’ in 2023

ISLAMABAD: In a room filled with discarded computer components and broken electronic items, 21-year-old Sameer Asif works under a bright fluorescent light, meticulously shaping an old motherboard into a heart-shaped pendant.
His project is more than a hobby; it’s the core of his entrepreneurial dream, “Wired Wonders,” a venture launched in 2023 to transform electronic waste into wearable art.
Jewelry crafted from electronic scrap aligns with a global trend in sustainable fashion, appealing to a young demographic that values innovation, individuality and ethical lifestyle choices.
Despite its niche market appeal, this form of jewelry reflects a growing interest in repurposing materials that would otherwise contribute to landfills, offering a creative solution to the challenge of electronic waste.
For Asif, however, the whole thing began as an accident.
“I was always into arts and crafts as a child,” he told Arab News in a conversation this week. “I enjoyed giving handmade things, and the first-ever necklace I made from a motherboard was also a gift for my friend.”
“She wore it to the university, and people started asking her about it,” he continued. “That’s when we thought this could actually become a business since people were interested in it.”
Asif said he was fascinated by electronics since childhood, using his tools to dismantle sophisticated gadgets to understand how they worked.
“When I was like five or six years old, on my birthday, someone gifted me a toy set of mechanical things,” he recalled. “It had nuts and screws, and it came with a screwdriver. I used that screwdriver to open my brother’s PlayStation 2 which he really loved.”
“I just opened it but couldn’t fit it back,” he recalled with a smile, saying his brother and parents were not pleased with him.
Asif partnered with his friend Maham Usman to launch Wired Wonders, asking her to manage the social media, sales and marketing.
Asked about the challenges of developing a small niche business, Usman said the biggest problem was procuring discarded motherboards that were not readily available.
“There are like one or two scrapyards in Rawalpindi where they sell discarded electronics in bulk,” she said. “To tackle this challenge, we have started a recycling initiative where we ask people to donate the electronic devices they want to dispense with. Not only will this help us with business, but it is also good for the environment.”
Making a single piece of jewelry can take about two hours. The process involves cutting and shaping motherboard pieces, removing the sharp edges and then pouring resin – a transparent, viscous liquid – over it for shine and preservation. Thereafter, the piece is left to dry for 24 hours.
Asked about the prices of their products, the Wired Wonders’ team informed that they ranged from $1.40 to $7.
“The gold and copper in motherboards add unique value to our jewelry,” Usman said.


China unveils first Hangor-class submarine developed for Pakistan

Updated 27 April 2024
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China unveils first Hangor-class submarine developed for Pakistan

  • Islamabad signed agreement for the acquisition of eight submarines during President Xi’s visit to Pakistan
  • Under the contract, four submarines will be built in China, while other four will be built at Karachi Shipyard

ISLAMABAD: China on Friday unveiled the first Hangor-class submarine that it has developed for Pakistan, the Pakistani military said.

The Pakistani government had signed an agreement with Beijing for the acquisition of eight Hangor-class submarines during the visit of Chinese President Xi Jinping to Pakistan.

The first of these submarines was launched at a ceremony held at Shuangliu Base in China’s Wuhan, which was attended by Pakistan’s Chief of the Naval Staff Admiral Naveed Ashraf as the chief guest, according to the Inter-Services Public Relations, the Pakistani military’s media wing.

“Under the contract, four submarines will be built in China while the other four will be built at Karachi Shipyard and Engineering Works Limited in Pakistan,” the ISPR said in a statement.

“These submarines will be equipped with advanced weapons and sensors to target long-range targets.”

The ISPR said the project would add a new dimension to Pakistan-China friendship. China has been one of Pakistan’s most trusted friends and both countries have worked on a number of joint projects in the field of defense in recent years.

Besides, Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of China-Pakistan Economic Corridor (CPEC), a major segment of its Belt and Road Initiative designed to give China a shorter, more secure trading route to the Middle East and beyond, while also boosting Pakistan’s economy.

Since its initiation in 2013, CPEC has seen tens of billions of dollars funnelled into massive transport, energy and infrastructure projects. Beijing has also often provided financial assistance to bail out its often-struggling neighbor in times of a financial crunch.