The country's PC/server shipments have declined by at least 25 percent in the month of July as compared to previous month due to the 15 percent GST imposed in the federal budget 2006.
The shipments carrying PC/server and computer hardware accessories arriving in Pakistan in the first quarter of CY2006 were recorded at 128,729 with an estimated 20 percent increase in the second quarter.
A market analyst of an IT research company told Business Recorder that the imposition of 15 percent GST on the import of computer components and hardware accessories had hurt the sentiments of importers, which resulted in a considerable decline in their import.
"We noted around 45,000 shipments during the month of June 2006 and we expect that there would be no growth instead there would be a 20 to 25 percent decline in the shipments during July. The finalised statistics are not available at the moment, but tentatively such a decline is imperative," he added.
Pakistan is one of the biggest buyers of computers with a 22.4 percent share in the Q1CY06. The government continues to focus on increasing IT awareness and penetration in the country. Moreover, improved infrastructure, bandwidth connectivity and telecommunication have accelerated the momentum in the IT market.
The trend of increased PC purchases by households in smaller towns and cities as witnessed over the past several quarters continues to be steadfast, but the import shipments through fair channel have been reduced after the imposition of GST.
Abdul Ghafoor of Pakistan Office Products (POP), a leading importer of computers and hardware accessories, said that there had been a 25 percent decline in the import shipments during the month of July.
He said the GST imposed in the federal budget was applicable from June 5 and the import orders from the local buyers had been sharply declined almost to a halt immediately. But, orders placed earlier were arriving during the month of June.
Abdul Ghafoor said that although the demand of the market was duly met and there was no considerable increase in the prices, as the Khaipyas had become active.
Ali Raza of Scorpion Computers, another importer, said that Khaipyas had become active that had affected the import of hardware components but the shipments of accessories like monitors, casings, keyboards and full assembled computers were intact, as it was impossible to smuggle these things.
There are reports of some importers cancelling their orders and little more decline in the shipments is expected in coming days.
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