Pakistan plans to become a technology powerhouse
HASHMI REVEALS HOW 14 TECH ZONES WILL CREATE THOUSANDS OF JOBS
Pakistan has unveiled the blueprint to build a knowledge-driven tech economy by investing in and empowering the youth of the country.
The world’s 5th largest country of 233-million people with more than 50 per cent Gen-Z population, traditionally known for its agrarian economy, has passed a milestone legislation that aims to create jobs in the tech sector, capitalise on youth dividends and enable technology-driven economic growth.
Amer Ahmad Hashmi, chairman of the Special Technology Zones Authority (STZA), Pakistan’s top organisation established this year to oversee the country’s ambitious plans to develop a high-tech economy for rapid economic growth, spoke exclusively to Gulf News.
“The STZA offers institutional and legislative support to Pakistan’s technology sector that the industry was lacking to unlock its full potential. This is the first time we have a government institution within the Prime Minister’s Office with one mission: To transform Pakistan into a tech-driven entrepreneurial nation spearheading the economic growth,” Hashmi said.
For the last 40 years, Pakistan’s export economy has remained limited to specific industries that have struggled to grow Pakistan’s exports significantly, requiring a new economic mix for GDP growth. Tech has been the key missing piece of the export puzzle that STZA is bringing to the system, Hashmi said.
Global experience
Pakistan made significant progress in the digital space as information technology exports crossed the $2 billion (Dh7.35 million) mark for the first time this year. Though encouraging, the numbers are significantly lower than India, which boasts a $190 billion IT industry.
Hashmi joined the STZA in February 2021 bringing over 25 years of global experience in business, technology, and academia in Pakistan, and other countries.
He strongly believes that young people are the “most valuable asset of Pakistan” and hence it is essential to invest in human capital. He said the organisation was structured based on best practices after studying the tech zone models in 55 countries in Europe, United States and Asia.
Outlining the strategy to make Pakistan a technology powerhouse, Hashmi told Gulf News that the organisation will set up 14 world-class tech zones across the country by June 2022. “These zones will create thousands of jobs for youth, attract foreign investors and global companies, boost tech and IT exports, generate highly skilled workforce, and develop Pakistan’s IT industry and entrepreneurship ecosystem.” Job creation, human capital development, technology transfer, increasing IT exports, and incentivise import substitution, foreign direct investment are some of the broad-based goals of the STZA.
The core elements of the zones centred on the startups are Venture Capital firms, top global tech companies, Pakistani firms, universities and research and development teams, small and medium enterprises. The focus of the tech zone focus would be based on the specialities of the region. For instance, a tech zone in Faisalabad might focus on agricultural technologies that can boost farming productivity, build indigenous tech-driven solutions to achieve self-reliance.
Triple helix model
The tech zones will be built on government land near universities and business hubs to create knowledge clusters. The authority will incorporate the “triple helix innovation model” integrating industry, government, and academia. The zones will offer office space, electrical power, internet and other facilities to start-ups and enterprises at subsidised prices.
Tax exemptions
But why would foreign investors come to Pakistan? Hashmi looked rather delighted when asked this question. “The investors are usually repelled by the cost and complexity of the system. So, we are cutting red tape, simplifying procedures, offering one-window facilitation to make it easier and friendlier for foreign investors to enter Pakistan,” he said.
The STZA is offering several tax concessions and incentives for local and foreign firms under zone enterprise and developer categories specifically 10-year tax and customs duty exemptions. “The response from foreign companies has been overwhelming so far,” he said.
Zones will create thousands of jobs for youth, attract foreign investors and global companies, boost tech and IT exports, generate high-skilled workforce, and develop Pakistan.”
Amer Ahmed Hashmi | Chairman, STZA
STZA at Dubai Expo 2020
Hashmi and his team are visiting the Dubai Expo 2020 this weekend to meet top global tech investors. Sharing some glimpses from the tour, Hashmi said: “The vibrant Pakistan Pavilion demonstrates the new drive from the government to invite global businesses, investors, tech start-ups, universities, young students to Pakistan.”
Hashmi says the Expo 2020 is a fantastic opportunity for Pakistan and the Gulf companies to exchange ideas and seize new opportunities. The visit is aimed at strengthening Pakistan’s technological collaboration with the Mena region.
Focus on workforce
Pakistan now has the world’s third-largest number of freelancers in IT and IT-enabled services and 42 per cent of them are software developers. Hashmi says the country must “move beyond low-hanging fruit of only billing labour hours. Pakistan must create new high-tech industries such as cyber security solutions, systems integration, data centre, strategic IT outsourcing, and cloud services.”