Pakistan has long been plagued with what we here like to call an 'image problem'. Many efforts have been made in the past (and continue to be made) to rectify this. Previous governments have even engaged international public relations agencies to try to project a 'soft image' of the country. Of course, in addition to being the brunt of many a negative story in the international media, this 'image problem' also contributes to a perceived reluctance to conduct business in Pakistan or with Pakistani companies.
But 'image' is not our only problem. In my opinion, the issue is far more complex than a mere perception issue. Yes, negative media perceptions have had an undeniable impact upon international companies looking to do business in or with Pakistan. Yet, even so, there are a variety of Pakistani companies across multiple sectors that continue to conduct business in international markets. In fact, upon closer examination, despite being victim to a host of disasters in recent times - both natural and man-made - Pakistan has nonetheless managed to maintain a sustainable GDP growth for the past six decades. Indeed, when one looks at the investment landscape in Pakistan - notwithstanding the continual threat of terrorism - the country remains an attractive prospect for potential businesses and investors. Pakistan's industrial sector makes up for about 24% of GDP; this 24% is not an amount to be taken lightly, as the slightest of profits earned by this sector can have a varying impact on the GDP, which is a representation of the economy in itself.
This begs the question: with such raw potential, why then is Pakistan currently undergoing one of the worst economic crises in the country's history. The economy is in major decline, and problems are rife: severe energy shortages, political instability, low foreign investment, and, of course, the ever-looming spectre of terrorism. All these factors are invariably dependent on each other - a domino effect in motion - one issue overlaps with the other, and the end result is little or no investment. Investors, who previously sought out Pakistan as a country with huge potential for profit, now opt to invest in other regional countries, such as Bangladesh and Malaysia. Meanwhile, the rising rate of inflation has caused the HDI (Human Development Index) to become lower than usual, in turn elevating the cost of living.
As I said earlier, while negative media perceptions have an undeniable impact, I believe that the issue is not about 'image' and is rather about focus - or should I say, lack of focus on sectors of the economy that are continuing to perform well. There is little or no investment in sectors that could be the backbone of our economy in the next 10, 15, 20 years. It doesn't take a rocket scientist to figure out that with a population of about 200 million we need to invest in areas of exportable services. We desperately need to identify areas of services where we can leverage this huge population, and focus on those.
Take, for instance, the Information Communications Technology (ICT) sector. During the 90s, Pakistan was considered one of the leading destinations for software and technology products. And while ripples from the dot.com bubble bust had definite impacts in Pakistan as well, the sector has picked up pace in the past few years and is now one of the few areas, which have so far managed to remain productive and continue to demonstrate growth. A vital component of the GDP, last year the Information Communications Technology (ICT) sector grossed over US $2.8 billion; and it is estimated to surpass the US $10 billion mark by 2018. A noticeable increase in software export figures is a signal of this flourishing industry's potential. With the growth of broadband and other communication technologies, including 3G/4G services, Pakistan is now ripe for the growth of the tech sector.
While there is no denying the importance of improving diplomatic relations and attempting to engage the international media in positive stories about Pakistan (focused around both culture and trade), I believe that information and communications technologies are an essential part of the solution. More than anything else, the ICT sector provides the world with a window into the real Pakistan and Pakistani culture. Social media and online journalism provide Pakistani businesses with the ability to 'broadcast' their specific expertise and the benefits of doing business with Pakistani companies in a manner far more direct and engaging than ever before. Commerce and trade is the mainstay of any nation's impression on the global comity of nations. Therefore, in order to address what we perceive as an 'image problem', it is essential that Pakistani businesses connect with their foreign counterparts.
Technology companies such as InfoTech have already been doing so for years. With projects undertaken across the globe, Pakistani technology companies are already fast emerging as globally competitive, efficient entities and the best ambassadors for trade with Pakistan. Moreover, the myriad problems we face internally have provided Pakistani businesses with a unique ability to think around corners and out of the box - we should be promoting this fact, rather than trying to play it down. E-commerce and information technology solutions are today more than just a perk; they are the backbone of 21st Century business practices. The need to adopt internet technologies for furthering the boundaries set by physical distances goes beyond the established rules. The information technology industry is a growing phenomenon and shows promising returns on investment as predicted and should not be overlooked. Moreover, the usage of information technology strategies incorporated into businesses not only projects businesses as successful, but also make them prime candidates for potential investment.
In order to help boost Pakistan's international business interactions - and perceptions - both the government and private sector need to look at this as more than just an 'image problem'. We in the IT sector have what it takes to deliver world-class products and services; it's just a matter of using the resources at our disposal and focusing on those areas and businesses that are already helping Pakistan shine. Let's not shy away from these challenges; rather, let's take the power of ICT and help catapult Pakistan into a new era of progress.
(The writer is the President and CEO of InfoTech Group, one of Pakistan's leading information technology integration companies; he was also the Chairman of P@SHA (Pakistan Software Houses Association)