Local Software firms regret government’s attitude
KARACHI- Local software companies which were assured of full government support are feeling very dejected as the government prefers foreign firms to them.
An Information Technology expert said that the government has been vowing to support local software companies but “it is not interested in awarding us the contract.”
The expert said recently State Bank of Pakistan (SBP) has given a $22 million software contract to a Korean firm. “Our software exports are to the tune of $20-27 million and if this contract was given to the local companies it would not only help in saving of precious foreign exchange but would also help promote the local software industry,” he observed.
The Auditor General of Pakistan has also awarded a contract to a foreign firm that would develop and install the software by charging $6 million, he said.
“Only those companies can win government contract which have over five years experience in software exports. It is discouraging the local companies,” the expert said.
The local software industry is hardly two-year old and it needs more incentives.
Minister for Science and Technology Dr Ataur Rehman in a recent discussion on “National IT Policy and Action Plan: One year On” criticised the local software industry. Dr Ata had warned the software companies of withdrawing incentives if they fail to show the exact figures of their export earnings.
The minister had observed that the software companies were taking undue advantage of the benefits given to them by the government.
These incentives are given to boost the exports of the country but the companies were using them, he said.
Ata had chimed that the country’s software exports for the year 2000-1 were projected at $27 million. Actually the exports should have been to the tune of $80-$100 million.
Source: The News
Date:9/22/2001
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