The Leasing Association of Pakistan (LAP) has offered to lease software of local houses to potential buyers, provided the State Bank of Pakistan (SBP) allows the facility with necessary amendments in the prudential regulations.
Experts from various financial bodies discussed this at a 'Business Policy Roundtable' on key challenges faced by information technology (IT) and 'Information Technology-Enabled Services' (ITeS) sector of the country here on Saturday.
The event was held under the auspices of 'Centre for International Private Enterprises' (CIPE) in collaboration with Pakistan Software Houses Association to focus on the IT sector and its member organisations to develop a strategy for creating solution to the issues facing by the local IT sector.
On the occasion, the Chairman, Export Promotion Bureau (EPB), Tariq Ikram urged the local software companies to provide computers to literate women, which is the large segment of country's population. These women could be used as the virtual workers and employees of local software houses that can help them to earn at their homes, he added.
He said that the software industry was an intellectual industry and its funding requirements should be adequately met to ensure growth. But the local software sector must know the psyche of the industry, he added.
Tariq said that intellectual property is an asset, but its evaluation cannot be done, as it is an intangible asset. Many of the solutions to this had been found internationally "and we should learn from such experiences", he added.
The venture capital is one thing and that the government's involvement in this would be necessary, he said, and suggested that there may be a collateral fund or an insurance scheme for such purpose.
The Deputy Governor of SBP, Mansoor ur Rehman, said several steps had been taken by the SBP for promotion of IT. The mode of payment through Credit card, ATM cards was increasing in the country, he added.
The President of P@SHA, Ms Jehan Ara, and Country Director of Centre for International Private Enterprise (CIPE) Moin Fudda also spoke on the occasion.
The experts' panel gave recommendations to be finalised in a week time by all stakeholders, that included:
-- IT products to be recognised as 'Assets' for the purpose of banking and leasing.
-- Improvement in intellectual property rights (IPR) legislation.
-- Income tax exemption (expiring on June 2007) on venture capital and PE companies and funds should be for 10 years from start-off fund.
-- Establishment of a government-initiated (Donor Agency Backed) venture capital and PE fund ($100 million) managed by the private sector.
-- The government should provide matching funds to every licensed venture fund (up to a ceiling).
-- Development of IT specialist to add as evaluators/surveyors accredited by the SBP, SECP and Pakistan Banks Association (PBA) to provide independent valuation of IT assets.
-- The Government may introduce scheme similar to LMM financing on subsidised rates directly or through financial institutions for venture capital/ IT companies.
-- SBP and PBC should set up a task force to look into the financial issues facing by the IT industry and to come up with solutions and policy recommendations.
Comments
Comments are closed.