PCA expresses concerned over grim situation of computer industry
By Asad Cheema

ISLAMABAD—The unprecedented decline of Pakistani PC/Server market should be a matter of grave concern not only for computer industry in Pakistan but also for overall growth and development of the country as the IT is backbone of all other formal and informal sector of economy, said Munawar Iqbal, President of Pakistan Computer Association (PCA) while presiding over the meeting of executive body of Association here on the other day.
Referring to the grim situation of computer industry, he said that the recent report of reputed Springboard Research is self evident of dismal situation of the industry which says that the annual growth rate of PC/Sever market in Pakistan has declining to 9.6 pc in year 2007 from the 16.4 pc recorded during previous year.
Munawar Iqbal said that the Springboard’s data also indicated that the market slowdown was on account of increased political unrest and instability in the country along with the continuation of the government imposed 15% GST on IT goods and imports. He added further that the PCA had brought to the knowledge of previous government on various forums that impact of imposition of 15% GST on computers and its components would yield negative results on IT industry. He elaborated that as per latest reports published by reliable international researchers, during the year 2006-7, total imports of PCs/ Servers in the country was 630000 units which dropped significantly to 149000 as at the end of year 2007. Thus showing a decline of about 40%, which is of course a matter of grave concern.
The president of PCA further stated that had there not been imports under vigorous expansion, automation, strengthening of infrastructure and technological up gradation programmes by the banking, financial, telecom and education sectors and introduction of e-government these figures would have more depressing. Ever since the imposition of 15% GST on computers and computers accessories, he said, matter was raised with the then Prime Minister Shaukat Aziz , Awais Ahmad Leghari Minister of IT, Omer Ayub Khan Minister of State for Finance, Abdullah Riar caretaker M/O I.T but to no avail . It’s ironic that although assurances to provide immediate relief were extended by every one but nothing tangible was done, he added.
Munawar Iqbal said that Senate and previous National Assembly also took notice of the matter and Senator Babar Awan too raised the matter in the Senate. Moreover, Sherry Rehman, presently M/O of Information and Broadcasting, had assured her full support to IT Community. He said that Information Technology has been declared fourth pillar of the economy owing to its immense potential as an engine of economic growth, foreign exchange earner, provider of employment and capacity builder/enhancer in every sector of the economy.
I.T. being a nascent industry requires special incentives and concessions for its growth. While giving the comparative analysis of the region, he said that other countries of the region have granted host of tariff and non tariff concessions to this industry. Pakistan has 1.5% computer density whereas in neighboring countries it is far higher. Computer density plays important role in the economic development of the country, therefore present government ought to redress the policy concerning to this industry, which has a huge potential to contribute in national economy given conducive environment for its growth, he said.
Later, the executive body of Pakistan Computer Association appeal to the incumbent government to abolish the 15% GST imposed on the imports of computers and computer accessories during the forthcoming Federal Budget to provide immediate much needed relief to the common users in general and students community in particulars for whom possessing their own P.C. is a necessity rather than a luxury.