M. Tariq BadshaMember (IT)

Ministry of Information TechnologyGovernment of Pakistan

Dec 19, 2009

OutlineBackgroundStart-up PhaseConsolidation PhaseSustainability and ScalabilityChallenges and the Future

BackgroundIT Division Formed in 2000 - consolidating IT

& Telecom functions under M/o Science & Technology

IT Policy Approved by the Cabinet in August 2000

Mandate of the IT Division:IT Sector Development and use of IT for better

government servicesTelecom Sector Development

IT Ministry formed in 2002

Start-up Phase(Inception to 2002)Recruitment of IT and Telecom ProfessionalsSetting up Organizations:

Electronic Government Directorate (2002)Higher Education Commission (2002)Strengthening of Pakistan Software Export BoardVirtual University

Creating an Enabling EnvironmentPilot projects of a wide varietyMajor thrust on HR and Infrastructure

Development

Start-up Phase(PSDP allocations)

Achievements and LessonsAchievements:

Breaking the inertiaBuilding the teamCreating Basic OrganizationsDeveloping the Telecom InfrastructureTesting the waters in various sectorsLong lead activities (HR) put in motionKey policies and Legislation

Lessons:Bring FocusStrengthen Implementation

Consolidation Phase(2003-2007)With the formation of HEC a significant part of

the HR program was shifted to HECProgram was focused on:

Citizen ServicesIT for improving efficiency as a means to support

ServicesIT industry Development - increasing exports

and/or creating local employmentInfrastructure to meet specific needsTargeted HR DevelopmentTelecom Sector Deregulation and PrivatizationLegislation and Enabling Environment

IT Industry Development

Advisory and Information servicesInfrastructure Support (STPs)Exhibitions and EventsIndustrial AutomationQuality CertificationsCorporate Training ProgramsIT Industry Internship ProgramsOpen Source Resource Center (www.osrc.org.pk)Facilitate resolution of Industry’s Operational

Issues

Activities/Major Functions

E-Government Strategy Basic Infrastructure

Hardware, LAN at Ministries, Centralized Data Centre

Common ApplicationsE-Office comprises of Common processes (IC, HR, PM, Budget, Inventory)

Agency Specific ApplicationsExample: Hajj Applications. Online registration of companies with SECP,

Online recruitment at FPSC, Online Access to case laws, Court Automation, etc

E-ServicesDomicile, Driving Licenses, International Driving Permits, Arms License

Issuance, Food, Agriculture & Livestock Information Repository (FALIR), Land Record Revenue MIS etc

Replication and ReuseReplication of E-Office applications to 45 Divisions

HR DevelopmentNational ICT Scholarship Program (R&D Company)

Opportunities for students from remote areas to study in ten top universities of the country

Internships (PSEB)Match making between fresh IT graduates and IT companies by placing IT graduates in IT companies

IT Apprenticeship Program (R&D Company)Rs. 15,000 per student per month to groom young professionals

Corporate Training Program (PSEB)A program that brings in trainers from abroad to train and subsequently certify individuals nominated by their companies

Capacity Building Programs (PSEB)“Specialized Training” for local IT companies in and  “General Training” in the field of project management, network/security systems and business process modeling

Federal Govt. Employees Training Program (Computer Bureau)Training in basic IT to Federal Govt employees working in various Ministries/Divisions

Virtual University with enrollment of over 50,000

Telecom SectorGoverning Legislation

Pakistan Telecommunication (Re-Organization) Act 1996 (Amended 2006)

Sector PoliciesDe-Regulation Policy for the

Telecommunication Sector – 2003Mobile Cellular Policy – 2004Broadband Policy – 2004Universal Service Fund Policy – 2006

Formation of Companies to manage USF and R&D Funds

National ICT R&D Fund Company Independent Company . Activities funded by mandatory contribution

from Telecom Operators Goals:

Cultivate industry-academia partnershipEnhance the national ICT related human resource

development capacityMake Pakistan an attractive destination for high tech

jobsUse ICT as a tool for wealth creation Spread the ICT activities at the National level.

National ICT R&D Fund Company

Major ProgramsNational ICT Scholarship ProgramIT Apprenticeship ProgramTechnical R&D ProjectsInternational Publications

Category Proposals Amount(Rs. Mil)

1 VLSI Design 6 1042 4G Wireless Development 2 303 e-Health and e-Education 5 715 Social Networks 2 21

6Mobile Device Software Systems 7 86

7

Network Security/Multimedia and P2P Systems 9 108

8 Open Source Development 7 135

9University Excellence Program 1 16

10

Human Resource Development 7 121

11 Conferences 4 2

National ICT R&D Fund - Projects

Universal Service Fund Company Independent Company

Contributions by Licensed Telecom Service Providers

No Government Funding

Spent by Telecom Service Providers to provide services in un-served and under-served areas

Ministry acts like a “Trustee” of the Fund

Disbursed through open competitive bidding by USF Company (bidder requiring least subsidy wins)

Universal Service FundCurrently has three programs:

Rural Telecom and e-ServicesFiber backboneBroadband

Universal Service Fund26 “Lots” of Rural Telecom

Optic Fiber availability in Pak.

Served areas

Unserved areas

Universal Service Fund

• Previous efforts to improve failed

• Affordability a major issue

• Growth picking up but confined to large cities!

Universal Service FundBroadband status in Pakistan

Score Card – IT industry DevelopmentExports- SBP – From US $ 23 million in 2002-

03 to US $ 184 million in 2008-09IT Parks – 700,000 sq feet. Land earmarked at Karachi, Islamabad, and

Lahore for purpose-built technology parksISO 9001:2000 certification to 100+ IT

companies24 companies certified in CCM/CMMI levels

2 to 5

Score Card – e-GovernmentBasic IT infrastructure at all MinistriesElectronic File Movement and MIS (Common

Applications) implemented at the Ministry of IT Over 30 agency specific applications developed

for Health sector, Municipal services Recruitment, Law enforcement, District Courts, and federal government Ministries

Federal Government Data Center being established

Maintains Government of Pakistan Web Portal

Score Card - HRD600 apprentices through IT Apprenticeship

programOver 1,500 rural/non-metropolitan area students

currently studying, through National ICT Scholarship Program

Training of 5,000 Government Servants in ITDistance learning education to over 50,000

students through VUInternships- 4460 graduates from 220

universities/institutes placed in 250 IT companies

Score Card - TelecomParameters Current StatsFixed lines (teledensity) 3.526 Million (2.2)

Mobile lines (teledensity) 95.918 Million (58.6)

WLL lines (teledensity) 2.716 Million (1.6)

Total lines 102.16 Million

Combined teledensity 62.4%

FDI (2008 – 09) US$ 815 Million

Total Direct & Induced Jobs in Telecom Sector

1.36 Million

Telecom sector Revenue (2007 – 08)

Rs. 278.459 Billion

year ending 2008 statistics

Telecom Score Card (Cont..)

Parameters Current StatsTotal Internet Connections 3.7 Million

Total Internet Users 17 Million

Total Broadband Subscribers 350,000

Cellular Mobile Operators (No.) 06

Long Distance International (LDI) (No.)

12

Local Loop (Region wise) Operators (LL) (No.)

72

No. of under sea cables – International bandwidth

3

Domestic Fiber Backbone Networks 4Year ending 2008 statistics

Sustainability and Scaling Up2008 onwardsUpdate of policiesUSF and ICT R&D Fund Companies gaining

full momentumImpact analysis of completed IT ProjectsScaling up successful pilots:

e-office at M/o IT replicated to all Federal Ministries

Federal Government Data CenterAdjusting policies and regulatory

environment in light of changed telecom environment to maintain sector growth.

Challenges – e-GovernmentAcceptance of IT enabled processes by

government functionaries (cliché: Culture Change)

Ownership of IT projects and resources for sustainability:HR for operationsRecurring expenditureElectric power and other infrastructure

Security of NetworksHiring and retention of IT Professionals in

government

Challenges – IT IndustryHigh Quality HR to feed the industry –

technical as well as middle managementAffordable IT-enabled spaceCountry PerceptionIncreased global competitionAttrition of HR to lucrative marketsVenture Capital and FinancingExploiting niche markets

Challenges – Telecom SectorSector health in light of

higher saturation levelslower ARPU due to price warsShrinking margins

Introducing value-added servicesOptimal Frequency management

Management versus speed of processingFlexibility in terms and conditions of licensesdistribution (Defence, Public Sector, and

Commercial)

Challenges – Telecom SectorMaintaining Investors’ InterestLegislation and Policies to deal with possible

mergers and acquisitions – to maintain a fair competitive regime

Using ICT infrastructure for Socio-economic development

Increasing Broadband penetration – Supply side as well as demand (consumer appetite)

Convergence of media, telecom, and VAS

Challenges – ICT for DevelopmentCost of Access devicesBroadband service charges have come down

significantly but still above the price point for mass acceptance

Content for Broadband servicesMindset of service providersLiteracy and Capacity for absorbing

technologyBasic services (electrification, roads, drinking

water, etc.)

FutureTelecom Policies are being revised in consultation

with all the stakeholders to address the challenges of the current market dynamics.

Similarly, the IT Policy of 2000, is being updated. Targets would have to be set for government ministries

New legislation in the areas of Data Protection, Privacy, Consumer Protection, IPR

IT must be introduced in our SME sector more aggressively if they are to remain competitive

IT companies would have to scale up – partly through organic growth but mostly through mergers

FutureWork on affordable solutions

Using FOSS technologies where applicableLightweight software for extending the life of

hardwareLocalizationPublic access points – like telecentersGenerate viable business models for small

entrepreneurs around ICT