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
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