ICT and ITES for Pakistan
National ICT Policy Framework & Draft Recommendations for discussion
Version 1.3, 29th August 2011
Table of Content
Preamble
Prior work
State versus Private sector role
The State of the ICT & ITES Industry – a quick look
Two new sectors that did not exist 10 years ago have come to the forefront.
Registered and official exports stood at 600 million US$ for the year ending 30th June 2011
Comparison with Domestic IT spend of 1.5 billion US$ a year
National ICT Policy recommendations
A different orientation
Life Cycle Needs
Pillars of National ICT Policy
Reach
Scalability
Relevance
Legislation
Bringing it all together – National Themes
Education
Intervention model
Agriculture
Intervention model
Health
Intervention Model
Governance
Intervention Model
Entrepreneurship
Intervention Model
Empowerment
Intervention model
Industry specific themes and related recommendations
Marketing - recommendations
Financing - recommendations
A final word and next steps
Acknowledgements
Preamble
There are many ways to approach and develop a national ICT policy framework. Over the last eleven years a number of initiatives have been undertaken in this area by individuals and groups sponsored by our technology industry association (P@SHA), Ministry of IT (MOIT), by the state (the Planning Commission), local and expatriate Pakistanis. Within the list of above initiative policy documents have been developed keeping in view long term national goals, vision and outlook; by initiating and documenting stakeholders conversations; by surveying industry groups and their customers; by comparing our efforts with regional initiatives and finally by reviewing where we are and where we need to be in the future.
While at a broad policy level we have information as well as recommendations on using ICT for growth, development and employment creation it was felt that an updated national policy document with actionable milestones and fundable projects, reflecting the point of views of primary stake holders and the technology industry association was required. We needed a document that would reflect our assessment of gaps in the state of national ICT and the role we can play in plugging those gaps. A document that was specific enough to build a case for recommendation to ICT Taskforces yet deep enough to stand on its own in the policy conversations and debates we initiate.
As part of our efforts to prepare this document we reviewed the work done by a number of our predecessors, engaged members of civil society, the technology industry, the telecommunication community, the services sector, media and socio-political activists. The document was then selectively presented for initial feedback and reactions and the feedback was incorporated after discussion. As a final step the document will be presented at three forums in Karachi, Lahore and Islamabad to key stakeholders for a final round of discussion before its release to the policy community in Pakistan.
Prior work
In a national ICT policy workshop arranged in October 2008 a list of over arching principals were agreed upon by all ICT policy stakeholders. These principals included
Promote Accessibility
Preserve National Security, Confidentiality & Integrity
Promote Innovation
Proportionality
Conformity with international best practice
Transparency
Openness
Inclusive Policy Making
Promote market forces
Holistic stakeholder participation
Light regulation where necessary and possible
Gender Positive
Promote Youth
Multilingualism
In addition to this the P@SHA CIPE Business Agenda for Pakistan IT & ITES Sector recommendations for 2009 identified a number a gaps in the areas of:
a) Human Resources
b) Finance
c) Infrastructure and
d) Legislation
Internationally we can also look at the Diplo Foundation’s analysis of the Internet Governance Forum’s themes:
1.Data protection and privacy
2.Capacity Building
3.Awareness building on Open Standards
4.Internet Access and Connectivity
5.Human Rights
6.Multilingualism
7.Access to Knowledge
8.Freedom of Expression
9.Gender Issues in Access and Representation
10.Access Improvement for Persons with Disabilities
11.Legislative (Regulatory) Framework for Internet Access and Use
12.Child Online Safety
13.Awareness Building on Climate Change
14.Content Diversity on the Internet
15.Critical Internet Resources
16.Cyber Crime
17.Internet Governance
As well as the EU Digital Agenda it directly links economic policy with social policy[1]
Pillar 1: A vibrant digital single market
Pillar 2: Interoperability and standards
Pillar 3: Trust and security
Pillar 4: Fast and ultra-fast Internet access
Pillar 5: Research and innovation
Pillar 6: Enhancing digital literacy, skills and inclusion
Finally numerous P@SHA AGM, CEC and stakeholders meetings have highlighted challenges faced by local companies and partners.
The original national ICT policy paper presented and implemented between 2000 and 2011 was prepared with a yearlong coordinated national effort. From a structure, action plan and focus point of view did a great job of building consensus as well as setting national direction for technology industry and initiatives in Pakistan. At the end of the policy document was a list of 20 projects that together were expected to change the technological landscape of the country. While work was done on some of these initiatives, others couldn’t receive funding or failed in the execution and implementation stages.
At a high level the 2000 national ICT policy effort focused on the following intervention areas:
- Human Resource Development
- Infrastructure Development
- Software Industry Development
- Hardware Industry Development
- Internet
- Incentives
- IT Promotion and Awareness
- IT usage
- Legislation
- Regulation
The biggest contribution of the National ICT Policy initiative was the generation of a decade of policy implementation experience. While in certain areas clear policy initiatives were taken (skill based training, access to new markets via participation in international industry exhibitions and events, establishment of the national ICT R&D fund, capacity building initiatives, national internship schemes, national scholarship scheme) in other areas policy level discussions continued for a number of years without any measurable or visible impact.
State versus Private sector role
The less than perfect implementation of the national ICT policy of 2000 despite the best of intentions, a very strong team and the allocation of resources raised an interesting debate during our stake holder sessions.
The State certainly has an enormous advantage over others in raising resources, allocating revenues and awareness. It also had an edge in the area of enforcement and legislation and there are certain gaps that only the State can fill.
However where the State fails and stumbles is execution and implementation. And this is not unique to us as a nation but is a widely recognized governance problem. The common implementation issues were:
a) Change in momentum with each initiative as faces changed at higher levels
b) Speed of implementation and execution once the case was made
c) The selection of the appropriate execution model for an initiative
d) The effectiveness of the execution effort
e) Absence of an effective feedback loop and proactive ownership from the industry
It wasn’t that the industry abstained from contributing; it was more that it wasn’t able to create an effective and sustainable channel of communication, direction or influence within the government at Federal and provincial level. Rather than creating a sustained thrust focused on crucial implementation issues, we reacted on a selective basis when a crisis unfolded (VOIP disconnects, submarine cable, import duties, sales tax, cyber crimes ordinance, etc).
After the experience with the previous ICT policy exercise and its implementation an interesting choice is now available.
While we will and can carry on making our recommendation for the State and even assist in the implementation of the same initiatives, it is necessary for the industry to take the initiative around directional and core intervention projects. Projects that include proof of concepts, model execution, setting direction and pilots need to be owned and initiated by the Industry. In other words the Industry needs to step in and drive the process rather than abdicate all responsibility to the State. It can play an active directional role by funding, managing and implementing critical pilot projects as a private sector participant and use that role to effectively harness the resource generation, enforcement and legislative capabilities of the State.
A note on Private sector and industry: The word private sector and industry is used very broadly here. It is assumed that it includes all non-state actors (for profit, not for profit, NGO, foundations, trusts, ect) interested in participating and contributing to the cause of using ICT for development in Pakistan. While P@SHA doesn’t expect to be the only body using ICT for development in Pakistan, it does plan on taking a leading and defining role in ensuring that at an industry level, keeping national interests in mind the right frameworks, controls and mechanism are suggested and proposed. P@SHA hopes that by taking the first steps it can encourage others to join in its effort for using ICT for development in Pakistan.
National ICT Policy recommendations
A different orientation
Earlier policy initiatives were primarily industry centric. In its early stage the ICT and ITES industry was external focused with a large number of companies targeting the software export market. Given the industry focus and the government initiative to increase the pace of exports, the primary intervention theme was to do the needful required grow software exports. From building a pool of skilled and trained human resources to providing internet connectivity, from reviewing curriculum to exhibiting internationally, almost all core policy initiatives focused on the external market.
However one of the lessons that we have learnt from the last decade of policy implementation experience is that a national ICT policy has to be national in its focus and emphasis. While software exports have grown at an impressive rate over the last decade the domestic technology consumption figure is now just as significant and almost half as large, if not more, than our total international contribution. More importantly both contribution figures (exports, domestic consumption) ignore the enabler impact of technology on other related sectors such as banking, insurance, government, manufacturing, media, education, defence and agriculture.
But beyond technology, ICT and ITES play a significant role in national development and GDP growth. Two projects that support this point of view are the Tameer Bank/Telenor easy paisa project and the NADRA national identification card database. Besides documenting the economy, both projects have created the potential to add another 2% – 3% to the national GDP and will consistently do so over the next many decades.
Imagine the impact similar projects could create in the area of education, literacy, agriculture, trade, market development manufacturing and media.
Hence the need to create a national orientation within the ICT Policy making process. The objective is to not drive the process by a sense of patriotism or philanthropy but recognition of the economic opportunity unsolved problems represent in the domestic market.
The opportunity comes in two dimensions. The first is solving a problem through technology and getting paid for it. The second is the reference sites and domain expertise the solution creates for the collection of firms solving that problem which can then be used to pitch for work globally.
For example, we have recently seen freelance cell phone developers morph into specialized mobile application developers morph into mobile animation shops, morph into mobile gaming companies within a span of 3 to 4 years. With the right set of incentives and mentoring a similar roadmap could be repeated for companies working with financial services, health, telecommunications industry, manufacturing and agricultural technology.
One way of achieving this objective is to create two themes in the policy initiative. The first is a national macro level theme that addresses the above objectives.
The national theme answers one simple question for each area of focus. What can technology, technology enabled services and telecommunication do to solve a big problem in an area of focus within the next five years. The question is asked for the following macro level sectors:
a) Education
b) Agriculture
c) Health
d) Governance
e) Entrepreneurship
f) Empowerment
The thinking behind this list is that solving a large problem in any of these areas creates a new domestic market for our companies and in case of success allows us to create real growth and prosperity using ICT and ITES as an enabling tool which in the long run will address related industry level micro issues.
The second is an industry specific theme that side by side with national elements focuses on issues critical to the long term development of the ICT and ITES enabled industry in Pakistan.
Of the list that follows only one deals with the hardware (Infrastructure) of development while the rest deal with software (resources, skills, environment) of development.
There is nothing new in the above list. At a broad level like all other industries of our nation we need affordable, functional space, competitively priced electricity and power, always on connectivity (without interruptions and disruptions), access to finance, a client, investor and business friendly legislative framework, a growing pool of talented professionals and a positive media image.
While some of these elements are not possible without government intervention (legislation and finance), direction for other can at least be set by pilot projects funded by private sector initiatives that can then become role models for later government intervention.
Life Cycle Needs
Where this policy document differs is with respect to two additional steps that we take in evaluating the needs of small businesses while identifying suitable intervention steps.
a) We first take a look at life cycle needs of companies based on their growth profile and employee head counts. The needs of our companies change as they grow from a two man startup to a 500 strong multinational trade, services and manufacturing groups. If we better understand what companies need as they mature within their life cycle we can do a better job of communicating these needs to policy makers.
b) Having said that, there are still certain common denominators that are shared by all players in the industry despite their size. We classify these as common industry specific needs that are not dependent on the size of companies but their profile as an externally oriented export focused product and services group.
The final element that is now missing is a credible road map and action plan that allows the industry association to take steps in addressing some of these needs – life cycle as well as industry specific needs. Historically in the areas of office space, international marketing, skill development, resource, talent development and marketing we had relied on a combination of industry efforts and State policy initiatives given the resource base the State controls. We revisit this topic again in our action plan and roadmap section.
Pillars of National ICT Policy
The second lesson that we have learnt from the last decade of implementation experience and the breakdown of law and order at the national level is that we cannot focus on micro industry issues and let national issues fester without any corrective action on our part.
If we were an industry that was helpless and could contribute nothing one would understand our status as an observer. However given the multiplier effect of technology enabled services, a true ICT policy document must focus on moving all of Pakistan to the next century, not just the ICT community.
For example imagine what we can do by combining grass root education initiatives with technology and cell phones. Simple tools that improve the ability to do basic mathematics, reading and writing and problem solving can go a long way in improving the quality of the national education and the resulting workforce pool. Combine this with hands on skill based training that you could view and run on your cell phone as a high school or undergraduate student. Courses and topics that encourage you to look at computer science (for e.g) as a career, polish your skill set, make you aware of real world industry challenges, skill that you must pick so that you hit the ground running before you start your first job.
It’s not philanthropy or corporate social responsibility. Education and professional development is a commercial, economically viable domestic market just like any other. Yes there are a number of barriers that need to be lowered before the above becomes feasible which is another theme that we have tried to address later in this document.
Combining the two macro and micro level themes suggest possible pillars for the national ICT and ITES policy document. While the list is significantly shorter than the original list proposed in early 2000 as part of the previous IT Policy drafts its expected impact is much broader and is driven by a combined national theme.
- Reach
- Scalability
- Relevance
- Legislation
One reason for using this broad brush approach rather than a specific skill oriented focus used in our earlier policy editions was our inability to accurately predict what would be the relevant technologies and platforms over the next 10 – 20 years. While we started off with an initial version of relevant technologies and areas of interests over the next decade we quickly realized after discussion with industry participants that in the current state of transition, any attempt at locking down the future would be futile. Will the device of the future be a handheld, a tablet, a wide screen cell phone, a laptop or an image projected on your drawing room wall? Will the platform used be a derivation of mobile development, browser based applications, distributed computing or something completely different?