KARACHI: Pakistan is planning to launch 5G Internet services within a year to facilitate the country’s growing e-commerce industry that is expected to create 780,000 new employment opportunities through online sales, a top government official and experts told Arab News on Wednesday.
“The country’s first trial of 5G was successful and it will carry out the next one in June,” Federal Minister for Information Technology and Telecommunication Syed Amin ul Haque informed. “We will launch 5G mobile Internet services in Pakistan within a year
While no official figures have been compiled by the government, e-commerce has witnessed an upward trajectory in the country due to the growing number of broadband and mobile phone subscribers.
“We have taken an initiative with the help of PTCL and other telecommunication companies to reduce the cost of broadband services,” he added. “When the Internet cost will go down, people living in the remote areas of Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa will benefit and we will see improved connectivity in the country.”
The federal minister said the government was trying to introduce high-speed Internet facility to the remote areas of the country to bridge the digital gap between Pakistan’s rural and urban centers to enhance employment opportunities.
Chinese experts also claim that by emulating the online business model of China, Pakistan can create more than a million jobs amid the coronavirus pandemic.
“If Pakistan pursues the development of logistical and instant delivery services and reaches China’s level, it will create 780,000 employment opportunities for Pakistanis according to the proportion of its population. The number may grow to 1.56 million in the future,” Cheng Xizhong, visiting professor at the Southwest University of Political Science and Law in Chongqing, said on Tuesday in an article published in China Economic Net
In Pakistan, Xizhong added, e-commerce was developing rapidly, though he also pointed out that mobile communication and logistics could be a little behind in rural areas where some people still did not have cellphones.
However, the federal minister said the government was taking every possible measure to increase the mobile phone penetration and accessibility in remote areas, adding that it was in the process of introducing 3G and 4G services in Azad Kashmir and Gilgit-Baltistan
“We are in talks with the Federal Board of Revenue to reduce taxes so that consumers may benefit from these services,” Haque said.
Pakistan’s small and medium enterprises (SMEs) agree with Xizhong that online sales platforms provide new opportunities amid the pandemic.
“Unfortunately, many Pakistanis are likely to lose their jobs both in and outside the country due to the economic crisis triggered by the pandemic, but the situation has also created opportunities for 6 million SMEs that can resort to online trade activities,” Zulfikar Thaver, president of the Union of Small and Medium Enterprises, told Arab News. “We have sought government’s intervention to facilitate the SMEs in this regard.”
Recently, the provincial administration in Sindh allowed small businesses to run online trades, though their volume was not significant.
“People were more interested in offline shopping because they wanted to draw maximum satisfaction by physically visiting shops and selecting goods. The online shopping hardly constituted about five percent of the total sales,” Atiq Mir, chairman of Karachi Tajir Itehad, said.
However, Pakistani retailers anticipate a major shift in the focus of their business toward online trading and expect rapid growth in that area.
“There can be a rapid surge in online sales in Pakistan. This will also create opportunities for various service providers,” Rana Tariq Mehboob, who manages Chainstore Association of Pakistan, told Arab News.
However, he added that an upward trajectory in e-commerce also depended on the overall performance of the economy. “I don’t think that online trade will increase if the economy is shrinking,” he said.
Pakistan is also going to set up two IT Parks in Islamabad and Karachi.
“These parks will attract multinational IT companies to the country and create a large number of jobs in both cities,” said the federal minister for information technology.