1. Information Communication Technology in Pakistan
By Usamah Billah
(Submitted to Pakistan Telecommunication Authority on ‘World Telecom Day’ 2010)
Abstract
This essay gives an overview of Information communication technology in Pakistan, a look at
the current status of ICT indicators & an ICT segment wise analysis. It also gives significant
recommendations for each segment and how they can make a better life for the people of
Pakistan.
1. The ICT Sector in Pakistan
Pakistan is a country with tremendous business potential, abundant natural resources and an extra
ordinary talent base of human resources.
In the current scenario, one of the challenges the Government of Pakistan is facing is to rebuild
the economy and provide the people with a better level of education, health care, housing and
utilities.
While most sectors are slowly developing, there is one sector which has shown phenomenal
growth over the past few years. This is the Information communication technology (ICT) sector
which has been widely welcomed by the people of Pakistan and hence serves as an attractive
investment for local as well as foreign investors.
In the modern age of technological development, it is the ICT sector which can serve as a key to
providing a better life to the citizens of Pakistan. This is due to the inherent benefits it has to
offer; including swift, easy communication as well as free flow of data, knowledge, information
and expertise from both within and outside the country. It can serve as a tool to improve
education level of the public, provide better health facilities, increase flow of foreign exchange in
the country & develop a positive mind set in the people, in general.
2. Key ICT Indicators of Pakistan & selected countries
Following is an overview of ICT indicators of Pakistan in comparison with other countries in the
Asia Pacific region:
Table1. Key ICT Indicators for selected countries
Mobile Internet
Teledensity Subscribers TV Sets
Bangladesh 13.25 0.31 10.59
China 34.83 10.35 37.99
Hong Kong 131.45 64.9 48.79
India 14.83 5.44 7.8
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2. Indonesia 28.3 7.18 15.16
Japan 91.1 86.8 84.26
Malaysia 75.45 43.77 21.88
Nepal 3.76 0.9 1.05
Pakistan 40.09 3.5 9.1
Singapore 109.34 65 20.59
Sri Lanka 25.88 2.05 12.47
Thailand 63.02 13.07 28.46
Figure 1. Key ICT Indicators for selected countries
140 B anglad e s h
C hina
120
H o ng Ko ng
100
Ind ia
80
Units in Million
Ind o ne s ia
Japan
60
M alays ia
40
N e pal
20 P akis tan
S ingapo re
0
Mobile Teledensity Internet Subscribers TV Sets S ri Lank a
T hailand
ICT's
With respect to Mobile teledensity, Hong Kong and Singapore are the leading countries.
However, Japan has the highest number of internet subscribers as well as TV sets. Pakistan is
also showing encouraging results; being better than India, Indonesia and Sri Lanka with respect
to mobile teledensity. However, the number of Internet subscribers and TV sets shows that
Pakistan still possesses immense potential for further growth in these areas.
3. Pakistan Core ICT Indicators - At a Glance
A snapshot of core ICT indicators of Pakistan is given as follows:
Table 2. Core ICT Indicators for Pakistan
2004 2006- %age
-05 07 Growth
Cellular mobile subscribers per 100
1 inhabitants 8.3 40.09 383%
Fixed Line subscribers per 100
2 inhabitants 3.43 3.09 -10%
3 WLL subscribers per 100 inhabitants 0.17 1.19 600%
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3. Total teledensity - Number of people
having one of the three
telecommunications per 100
4 inhabitants 11.9 45.04 278%
Internet subscribers per 1000
5 inhabitants 14 23 64%
Broad band subscribers per 1000
6 inhabitants 0.01 0.51 5000%
7 Public call offices per 100 inhabitants 0.18 0.25 39%
8 Telecom revenue percentage of GDP 1.8 2 11%
Telecom revenue per Telecom
9 subscriber in Rupees 8031 2758 -66%
1 Total Telecom investment per
0 inhabitant in USD 4.8 25.63 434%
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1 PC's per 1000 inhabitants 6 15 150%
1 Internet International Bandwidth
2 (GBPS) 1.4 3.1 121%
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3 Internet bits per inhabitant 9.3 19.6 111%
1 Percentage of households with Radio
4 sets 35.3 31.7 -10%
1
5 Percentage of households with TV’s 54 NA -----
1
6 Cable TV subscribers (Million) 1.5 3.27 118%
1
7 Software houses 454 1105 143%
1 Percentage Coverage of population by
8 Cellular mobile service NA 89.45 -----
1 Percentage Television coverage of
9 population NA 84 -----
2 Percentage Radio coverage of
0 population NA 92 -----
*Point 8, 9 & 10 are from Year 2005-06
It can be seen from the table that almost all core ICT indicators are showing a healthy growth
trend. Radio sets is an exception but is acceptable as conventional radio is showing a worldwide
declining trend. The growth in the number of broad band, WLL & cellular mobile subscribers is
highly encouraging while the total investment in the Telecom sector per inhabitant has rapidly
increased by 434%. The number of software houses has also increased by 143%. These facts
imply that overall the ICT sector is on a healthy growth trend and can prove to be a key driver in
making a better city and better life for the people of Pakistan.
4. Segment Wise Analysis with Recommendations
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4. Here, we will take an in-depth view into few of the main ICT segments followed by segment
wise recommendations on how they can make a better city and better life for the people of
Pakistan.
4.1 Internet
Internet usage and connectivity has shown significant growth over the past many years. People
from all walks of life, especially the youth have developed the strong habit of using the internet
for information exchange, data transfer, academic research, information upgradation, general
web browsing, web chat, e-mail and visiting social networking sites. As per ICT indicators
report, in 1999-2000, the total subscribers to the Internet in Pakistan were only 0.5 Million but
grew to upto 3.5 million subscribers in 2006-07. Dial up service has been accessible in 2,389
cities of Pakistan while broad brand services have been made available to 79,040 subscribers
through DSL, optic fibre and wireless service.
Following are some recommendations on how this segment can further help to make a better city
and better life for the people of Pakistan.
4.1.1 Recommendation - Internet Stations in Semi urban & Rural areas
Internet stations or café’s should be set up in semi urban & rural areas so that people can
familiarize themselves with computer usage and internet applications. Further, exchange of
information through email will save them cost and time as compared to regular/postal mail. The
youth in these semi developed areas will get the opportunity to develop and update their
knowledge regarding worldwide economic & scientific developments and may also be able to
generate new business ideas for their local markets. These café’s can be operated by the
government. Private investors can also be invited to set up this project for mindset development
and progression. Keeping in mind the acceptability of internet in urban centers, this project is
expected to yield good returns in the long term for the investors.
4.1.2 Recommendation - Use of Video conferencing for Educational development and expertise
exchange
Video conferencing seminars can be conducted in order to provide students with comprehensive
knowledge about different subjects and spheres of life. All colleges and universities can be
linked with one another for a seminar, once a month. Students will attend the seminar in their
own particular institutions in their own cities. Top scholars & professors from different cities can
address these students on nationwide basis and share with them their pearls of wisdom,
knowledgeable ideas, motivational thoughts and expertise. Students can also ask questions,
discuss & debate on various issues through these video seminars.
These seminars should be sponsored by the telecom service providers whereby they can brand
the event, set up their stalls and show their TV commercials before & after the seminar.
Such initiatives will develop the educational acumen of students on a nationwide level, which
will definitely help to make a better city and better life for all.
Video conferencing seminars can also be conducted between doctors and medical researchers in
Pakistan and abroad in order to exchange better knowledge and expertise regarding latest
medical developments, equipment, medicines and cures.
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5. 4.2 Telecommunications
Telecom service providers and mobile phone manufacturers have helped to bridge the gap
between people both within and outside the country. Now people are enjoying a better life
through the benefits of easier & smooth communication and competitive call rates. They can
easily communicate with their loved ones in the hour of need or as & when required. The
corporate sector has also benefited greatly by creating a strong & close communication network
with employees, suppliers, agencies and business partners.
As per last available report on ICT’s indicators (2006-2007), telecom penetration in Pakistan has
risen upto 89% while total investment made by Telecom companies in infrastructure and
network development was Rs. 2.1 Billion.. This sector provided 212,000 jobs to people in
Pakistan during 2006-2007, Further, upto 35% of total foreign direct investment was from the
Telecom sector amounting to $ 1.8 Billion. The telecom operators earned a total amount of Rs.
193 Billion during the year making it an attractive and growing segment for new investors as
well.
Following are some recommendations on how this segment can further help to make a better city
and better life for the people of Pakistan.
4.2.1 Recommendation - ‘Healthy and Educated Pakistan’ Campaign
For 2 months each year, every telecom service provider (TSP) should contribute a small
percentage against every new connection to a worthy cause including free treatment of under
privileged in public hospitals or financial aid/scholarships to under privileged students at the
school and college level.
Communication of this promo on the media will also result in increased sales of new connections
in that particular time period, thus resulting in better business growth for the TSP. Only 1
telecom service provider should conduct this promotion at one time.
4.2.2 Recommendation - Increasing Penetration through more Affordability
Better penetration of mobile phones in the masses has a direct effect on the betterment of the
society. The mobile phone connections and call rates can be made yet more affordable through
initiation of a yearly, bi-yearly or quarterly ‘contract system’ by virtue of which people can be
offered yet lower rates if they commit usage of only one telecom service provider for a minimum
agreed time. This initiative can accelerate usage of mobile phones, thus resulting in better
communication for all.
4.2.3 Recommendation - Increase TSP sales and offices in semi urban & rural areas
Telecom service offices and centers should be increased in semi urban and rural areas. It is
expected that masses in these areas will also welcome this tool, as seen in the case of major
urban cities and towns. Relevant investment should be made by all TSP’s in this regard. This will
result in increased sales for the TSP’s, healthy competition will increase and people in these
areas will also benefit from the facility of easy, smooth and swift communication with the rest of
the world.
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6. 4.3 Electronic media
Electronic media plays a very important role in development of socio-cultural values of the youth
and is the key medium for access to information, news and entertainment. The major services
include conventional TV, FM radio, Cable TV, direct to home & multi channel multi point
distribution system (MMDS).
The growth in this sector has been very high in Pakistan as there has been a boom in the number
of TV channels as well as FM radio stations. Healthy competition between these channels has led
to better content, more creativity in programs and faster news reporting. Further, there are 12.3
million TV owning households in Pakistan which means that 54 out of every 100 households in
Pakistan have a TV set.
Following are some recommendations on how this segment can further help to make a better city
and better life for the people of Pakistan.
4.3.1 Recommendation - Public Awareness Messages/Campaign
A campaign comprising of public awareness messages should be aired on all media channels as a
joint collaboration by the government and TV stations. These messages should educate people
about healthy living tips, honoring traffic rules, basic first aid rules, importance of equality,
mutual respect and brotherhood, etc. This will help to generate a feeling of unity and tolerance in
the people thus resulting in a more peaceful city and environment in the long term. The same
concept can also be applied to FM Radio channels.
4.3.2 Recommendation - News Channels should focus on ‘Positive role’ as opposed to
‘Sensational news’
News Channels can play a vital role in developing ‘Positive mind set’ rather than to play on
sensational news items. These channels have global viewership and one of their functions should
be to promote Pakistan as a fair, friendly and truly Islamic state on the world forum. New
channels should also advise people on how they can make their city better and how to act &
support one another in hours of crisis.
4.4 Information Technology
It is a very positive sign that the information technology segment of the ICT industry is also
improving swiftly. As per the ICT indicators report, in 2006-07, approximately 850,000 square
feet of IT enabled space has been leased to IT companies. Apart from 60 foreign IT companies in
major cities of Pakistan there are 1105 software houses and 110,000 IT experts in Pakistan. IT
imports have increased to $90 million in 2006-07 from $44 million in the preceding year.
However, IT exports have also increased by 61% - upto an attractive figure of $116 million from
$72 million in the same time period. These facts indicate that Pakistan has an enormous IT
resource pool and if channeled properly, it can show exponential growth in the coming years.
Following is a recommendation on how this segment can further help to make a better city and
better life for the people of Pakistan.
4.4.1 Recommendation - Generation of Increased Foreign exchange through IT
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7. In the current scenario in Pakistan, heavy inflow of useful foreign exchange can have a direct
effect on making a better city and better life. Through developments in the IT sector, information
from any part of the world can be exchanged within seconds. Further, Pakistan already has a
broad base of IT experts in the professional field and new comers are also rapidly joining this
field.
Foreign countries have a strong inclination to outsource many of their IT, software or service
requirements to countries like Pakistan in order to avail better cost efficiencies. Pakistan can thus
increase its foreign exchange earnings through such projects, eventually resulting in a better city
and better life for all citizens. Hence there must be investment by the government or private
sector for the large scale development of Software houses, Call centers, Medical & Legal
Transcription centers. However, a large portion of these projects would comprise of marketing
efforts in foreign countries in order to generate clientele from abroad with local production or
service centers in Pakistan. This initiative will also help create better job opportunities for
educated Pakistani’s and will also discourage brain drain from the country.
5. Conclusion
The ICT sector has tremendous potential for exponential growth and expansion. With proper
planning and concerted team efforts it can prove to be the key to economic prosperity, a better
city and better life, InshAllah.
References
1. Pakistan ICT Indicators report 2007 – Federal Bureau of Statistics
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