Germany's SAP says Middle East needs Pakistani IT professionals for its digital transformation

Saquib Ahmad, Country Managing Director of SAP Pakistan is speaking at an event in Karachi on January 25, 2023 - (AN Photo)
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Updated 26 January 2023
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Germany's SAP says Middle East needs Pakistani IT professionals for its digital transformation

  • Pakistan’s IT exports during first half of current fiscal increased by 2% to $1.3 billion, contributing 38% to overall services’ exports
  • Pakistan MD for SAP says Pakistan could tap the huge demand for software and services development across Middle East companies

KARACHI: Middle Eastern countries— especially Saudi Arabia— where digital transformation is gaining ground, want Pakistan’s IT professionals and software developers to aid them in the process, a leading German software company said on Wednesday.

SAP is a German IT solutions and enterprise application software provider. The company is already operating in Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Qatar, Pakistan, and Egypt. SAP also has a regional training and development institute located in Dubai.

Saquib Ahmad, country managing director of SAP Pakistan, said Pakistanis are “very hardworking people” who are well-versed in Islam and understand the educational system of Saudi Arabia and other gulf countries quite well. 

“Middle Eastern countries, especially Saudi Arabia, want Pakistani consultants for the SAP transformation of services,” Ahmad told Arab News at an event held to highlight the role of cloud migration and digital transformation. 

“We have got great consultants that are right now preforming and deploying these services overall in the Middle Eastern countries – we are pretty sure that with time, these IT services’ exports will increase,” he added. 

Pakistan’s IT exports during the first half of the current fiscal year (FY23), have increased by 2 percent to $1.3 billion, contributing 38 percent to the overall services’ export, according to research by Arif Habib, a leading Pakistani securities brokerage, investment banking, and research firm. 

Responding to a question on demand for products and services, Ahmad said there was a huge demand for software and services development across all companies. 

“They [companies] are looking for good software programmers who can help change the program according to the local needs,” he said. Ahmad said Pakistani IT consultants have the capability to provide their services in the best possible manner, adding that they were well-trained in their craft as well. 

“This is what we can do to help IT services boost exports to Middle Eastern countries and especially, to Saudi Arabia,” Ahmad explained. 

Speaking about cloud migration, the SAP official said it was essential to ensure digital transformation and manage applications and data in the most cost-effective, efficient, and secure IT environment. 

Pakistan is experiencing an increasing trend of cloud adoption due to its cost optimization and effective solutions for different sectors, he said. 

“The usage of technology by companies changed in the post-COVID-19 situation,” Ahmad explained. “It has now strengthened, making cloud computing the need of the hour.” 

He said the management of various companies have control over the cost and scope of work whenever such companies opt for a cloud solution. However, he pointed out that the change of management poses a great hurdle in the task. 

“Change of management is the biggest hurdle for digital transformation. Employees feel insecure about their jobs and, hence, are reluctant toward digital change,” he noted. “This needs to change as digital transformation is the future.”

Ahmad also announced free-of-cost training for students of several educational institutes as a means to digitally strengthen Pakistan’s economy.


Pakistan footwear sector flags used imports as barrier to export growth

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Pakistan footwear sector flags used imports as barrier to export growth

  • Industry says production capacity far exceeds domestic consumption, signaling export potential
  • Its delegation tells commerce minister up to 40 percent of domestic market met through used shoe imports

KARACHI: Pakistan’s leather and footwear industry has warned that rising imports of used shoes are distorting the domestic market and limiting export growth, according to a commerce ministry statement issued on Thursday after industry representatives met Commerce Minister Jam Kamal Khan.

The meeting focused on export potential, domestic market challenges and regulatory concerns linked to the import of second-hand footwear, which industry leaders say is undermining local manufacturers despite significant production capacity.

“Pakistan’s annual footwear consumption is estimated at around 550 million pairs, while the country has an installed production capacity of nearly 700 million pairs annually, indicating significant potential for both domestic supply and export expansion,” the delegation said, according to the commerce ministry statement.

“A considerable portion of this capacity remains underutilized due to market distortions created by the growing influx of used footwear imports,” it added.

Industry representatives told the minister that around 30-40 percent of Pakistan’s domestic footwear market is currently supplied through imports of used shoes, many of which enter the country under the broader customs category of used clothing and accessories.

They said branded footwear is often imported at very low declared values under this classification, creating what they described as unfair competition for domestic manufacturers.

To address the issue, the delegation proposed introducing a separate Harmonized System (HS) code for used footwear, which would allow regulators to better track imports, improve customs valuation and introduce sector-specific regulatory measures.

The commerce ministry said the proposal has been placed on the agenda of the Tariff Policy Board and could eventually be considered as part of the upcoming federal budget following consultations and approvals.

The commerce minister acknowledged the importance of the leather and footwear sector as a potential export driver and reiterated the government’s support for local manufacturing and export-led growth, the statement said.

He also encouraged industry stakeholders to expand exports while ensuring locally produced footwear remains affordable for domestic consumers.

Both sides agreed to maintain close coordination to help the sector boost employment, increase production and expand Pakistan’s presence in international footwear markets.