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ANNEXURE TO PAPER NO.  158: 

PAKISTAN'S IT POLICY INITIATIVE AS UNVEILED ON AUGUST 22, 2000

Details of action already taken by the Government till August 22, 2000 

The cost of Internet bandwidth of PTCL (Pakistan Telecommunication Corporation Limited) was reduced by 53%, which has led to a reduction in Internet end user prices and improvement in the quality of service for the Internet users.

Free Internet connections are being extended to public sector Universities under an agreement with the private sector ISPs (Internet Service Providers) and PTCL.

To facilitate the private sector IT and telecom industry and to enhance the investor’s confidence in the Government, processing period for license applications in the deregulated sector by the PTA has been reduced to 7 days from several months.

In order to deliver efficient IT infrastructure, PTCL would now provide international bandwidth and Internet connectivity to the ISPs and other corporate customers within 4 to 8 weeks. Previously this connectivity used to take 4 to 12 months.

Training of thousands of blue collar IT workers for data entry and transcription services is being initiated and would be completed within 6 months.

As a first step towards Electronic Commerce, the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts within Pakistan. This was a major hindrance in start of E-commerce activities in the country.

To help the software export industry, SBP has instructed banks to accept the contracts as collateral for the software exporters to qualify them for Export Refinance Scheme. Previously this was only permitted against letters of credit, which do not exist in the software export business.

Software exporting companies have been allowed to retain 25% of their export earnings in foreign exchange accounts. Hitherto, the software exporters did not have any such facility

Internet delivery on Cable TV has been permitted which would result in substantial increase in the Internet usage.

The market is being opened up for the private sector participation in joint venture with PTCL in terms of tele-housing arrangements, voice over Internet, setting up international bandwidth gateways via satellite and cable etc.

Universal Access to the Internet even to non-connected areas at the cost of a local call using the unique ‘131’ Universal Internet Numbers of ISPs has been extended. This facility is not available in many advance countries.

Call Centers, which are an important potential source of foreign exchange earnings and employment creation, have been allowed in the private sector.

The minimum tax of 0.5% on remittances from software exports has been waived off.

Computer networking and majority of IT equipment have been exempted from custom duties.

Draft IT Ordinance 2000 has been formulated to provide legal recognition to electronic transactions and digital signatures and has been circulated to the concerned Ministries for comments.

Income tax holiday for the IT Training Institutions has been extended by another five years, i.e., till 2005.

As a first step towards Electronic Governance, applications for the recruitment of IT & Telecom professionals are being received online on the new web site of MOST.

A high level committee has been constituted to work out detailed proposals for increasing the Ph.D. allowance to Rs. 5,000.00 per month and propose a package of financial incentives for the researchers based on their productivity. The Committee would submit its report within two months for final approval of the Government.

Income tax on the salaries of professionals involved in full time teaching and research and development work in non-profit R&D Organizations and Universities would be charged @50% of the normal rate.

ACTION PROPOSED TO BE TAKEN IN 2000-2001

The following steps are proposed to be implemented during 2000-2001:

The present mechanism for funding S&T projects has been an important factor in delayed implementation. The antiquated procedures involved in the project approval need to be drastically changed in order to make it easier and quicker to obtain approval and funding for science projects from the Government and thereafter utilise and effectively absorb allocated funds. The accepted international norms for science funding invariably involve review by a Scientific Committee of experts in the relevant field, which approves projects, releases funds and thereafter monitors projects for implementation. The present system of project approval for S&T projects involves preparation of projects on standard PC-I proforma, which is then processed through a hierarchy of different governmental forums. This mechanism consumes a lot of time and energy, contributes to delayed approvals and generally discourages the scientific community from preparation and processing of projects. Further, Government bureaucratic structure is not adequately equipped to evaluate projects of scientific and technological nature.

Under the proposed mechanism, scrutiny of S&T projects through a National Committee of Experts and subsequent approval by the National Science Board comprising eminent scientists, technologists and representatives of other relevant Ministries, particularly the Ministry of Finance and Planning Division, would be carried out. The procedure does not aim at either avoidance of documentation or financial discipline. The fund envisages the approval of all R&D projects of a value of less than Rs. 100.00 million by the S&T Board headed by the Minister for Science & Technology while projects above Rs. 100.00 million will be approved by the National Science Board chaired by the Minister for Finance.

Training of Blue Collar IT Workers

Under a short term programme, training of thousands of data entry operators in simple data entry operations and medical and legal transcription would be started across the country. The Government would subsidize the cost of training in the public and private sector institutions by 75% of the course cost.

Establishment of National Accreditation Council and Testing Service

The Council will be responsible for collecting data on educational institutions, rating the institutions and disseminating information on the institutions. The council will also establish curricula and testing guidelines for IT education and training. The council will consist of leading academics and IT experts and will be linked to provincial IT Boards through representation on the boards. A National IT Testing Service would also be managed by the Accreditation Council which would continuously monitor the performance of IT education and training by collecting data and placing these on websites. Standardized curricula following international standards would be rapidly developed for all levels of IT education and training including Masters, Bachelors, Diploma, Intermediate, and Certificate (short courses). The NAC would also undertake Nation-wide tests for scholarships and admissions and selected exit tests (by module) and professional certification. A standard curriculum could be recommended to all institutions having the Charter to offer Bachelors degrees. Provincial IT Boards will work closely with the Accreditation Council and Institutional Development Cell to ensure quality of IT education, strengthen IT educational institutions, develop databases and establish linkages with industry for jobs and internships.

Scholarships and Qarz-e-Hasna Scheme

The high cost of BCS education (Rs. 50,000 plus per year in private institutions) prevents many able students to enter the IT profession. National scholarship fund and Qarz-e-Hasna (loan) schemes for BS and MS students at accredited institutions would be established to support such students. Scholarships would be given based on a nation-wide test (which could also gradually become a standard component of entry testing). First 500 students would be offered scholarships whereas second batch of 500 students on the national merit list would be offered Qarz-e-Hasna.

Internet for Education

Free leased line Internet access to the public sector Universities would be provided under an agreement with the private sector Internet Service Providers and PTCL. Bandwidth would be provided by the ISPs and PTCL would provide local lead connectivity through digital cross connect network. PTCL would also offer the reduced rates for connectivity to the educational institutions.

Wide-band Intranet and Pakistan Educational Intranet (PEI), connecting all educational institutions (public and private), would be established with centralized data warehouse containing teaching and research material in order that resources may be shared (through video-conferencing and distance learning).

Faculty Training

Short refresher courses (5-10 days) in each of the core areas of the BS-CS and BS-CE curriculum would be arranged. A pool of experts (PhDs from academia and industry, both in Pakistan and abroad) would be invited (for short periods) to act as master trainers. Teacher training to develop teachers for short courses and PGD program would be arranged to retrain existing science teachers and fresh graduates. The IT professionals will be imparted training in teaching techniques to enable them to undertake teaching assignments on part time basis.

Establishment of Faculty Chairs

Faculty chairs to attract and retain qualified IT faculty and to encourage faculty to focus in their area of specialization would be established. Each Chair would be expected to conduct research in the area of specialization and present it during an annual conference, supervise Master's (and possibly PhD) thesis students, offer elective courses (in the area), develop teaching material and conduct short faculty refresher courses (for BS-CS faculty) in the area.

Public universities will be encouraged to collaborate with the private sector for conducting training programs during vacations and when facilities are not in use.

Hiring of Faculty from Abroad

.In order to meet the critical shortage of faculty, a crash programme would be launched under which faculty from abroad on market salaries would be appointed and deputed in public and private sector accredited Universities. Government would subsidize the cost incurred on account of salaries and travel charges to these faculty members.

Strengthening and Capacity Building at IT Institutes and Universities

Capacity at 15 institutions (public and private) to offer quality Masters and PhD education in areas including Computer Science (MS-CS), Computer Engineering (MS-CE), and MIS would be built. Each institution would be required to send in detailed proposals, action plans and performance targets. MS and PhD Programs (in the 15 partner institutions) would be immediately started by obtaining the services of international faculty for one or more semesters. The visiting faculty would also be responsible for conducting faculty refresher courses for BS (CS, CE) teachers.

One hundred institutions (public and private) would be selected to offer quality Bachelors education in Computer Science (BS-CS) and Computer Engineering (BS-CE). Capacity of 40 universities/colleges to offer a PGD in Computer Science and a PGD in MIS with a focus on Systems Analysis and Software Project management would be strengthened. This program would aim at re-training 2000 under-employed graduates.

IT Labs would be established at major public and private sector universities, colleges, government training institutes and schools. Capacity at 200 government colleges would be built to offer the Computer Science paper at the Intermediate level (FSc - ISc). Capacity of selected educational institutions to introduce new technologies and provide training in skills needed by the market would be developed. Short courses will need to be developed to cater for data entry and other low-tech jobs.

Computer Literacy of Government Officers

Many efforts have been made in the field of computer literacy of government officers in grade 17 and above. The results have not been encouraging. In this respect all probationary officers under-going in-house training will be imparted in-depth computer knowledge and practice. At the end of the training the Federal Public Service Commission will conduct an examination to judge IT proficiency. No officer will be posted unless he passes IT related component of examination.

Computer Literacy for all University Graduates

IT usage in public as well as private sector is much below the desired scale/level. The younger generation, which will form the core of middle management and top management level in the next decade, has to be familiarized with IT at the graduation level of education. While the students going to IT profession will study the discipline in detail the other graduates (engineers, doctors, lawyers, business managers with commerce/science/arts degrees) should be made to study IT as a compulsory subject of 100 marks so that they become advocates of IT usage when they occupy their official seats after completion of their educational career. IT & TC Division will engage consultants to prepare a scheme for implementation, in phases, starting with degree colleges in district towns. The initial planning work will commence in FY 2000-01. The scheme will be launched in 2001-02 at selected places; and it will be replicated every year thereafter.

Training of Commercial Counselors

"IT sales promotion training" of commercial counselors will be made compulsory before their posting abroad. Secondly, a refresher course for existing commercial counselors may also be arranged in consultation with the Ministry of Commerce.

Telecommunications, Internet and Infrastructure

Universal Internet Access

To spread Internet to remote locations, PTCL will make the UIN (Universal Internet Number) into a local call (from the remote locations) to the nearest PoP of one or more ISPs. This will enable equitable access. In parallel, a drastic reduction in leased line charges will enable ISPs to go to smaller locations.

IT Parks

IT Parks are perched on the threshold of the 21st century ready to provide enhanced and enabling telecommunications and IT services to the new and emerging industrial entrepreneurs. The project is intended as a strategic road map for IT and telecommunications development in Pakistan. The Parks, primarily consisting of the building blocks, will offer reduced costs of delivering necessary and advanced public services and the creation of new opportunities for IT partnerships. The Parks would be characterized by broadband Internet connectivity via optic fiber cable, matchless incentives, equipped with most modern facilities, to provide a one-stop shop for the prospective investors in the IT industry. The Parks would serve as a technological model for future development and would provide an internationally recognized IT profile. Under the project, a series of IT Parks would be developed in major cities of Pakistan.

IT Investment

Venture Capital Fund

In order to seed the market, the Government will set up a venture capital fund. This fund is to be channeled initially into existing IT companies to boost their export marketing capability and software development effort. The main objective will be to make necessary changes in laws to encourage private VC funds to operate.

Micro Credit Facilities

Micro Credit would be provided for the purchase of computers and telecom equipment to help set up small software hatcheries and to develop computer education to the general public.

Participating in International Software Exhibitions/Shows

Government will fund the cost of stalls and general publicity. Stall space to be adequate for 10 to 12 software houses. (estimated cost is US$ 250,000 for each instance). Software houses will bear their own cost of travel, accommodation, marketing material, etc.

Road Shows

One Road Show each would be held in Dubai, London, New York, Los Angeles, Montreal and Singapore. Each road show would basically comprise a one-day seminar to which the main software consumers in the city/region would be invited. The software houses would address the seminar, highlighting the advantages of using Pakistani software capabilities. Specific, targeted effort would be made to invite prominent Pakistani owned business houses and consultants working in those countries, who in turn will be expected to propagate the message. Each road show is estimated to cost in the region of US$ 100,000.

Electronic Commerce

Awareness and Propagation

Disseminate to all the stakeholders benefits, urgency and challenge of e-commerce.

E-Commerce Training

Training 5000 e-commerce professionals in implementation, technology, Business Process Reengineering, regulations @ Rs. 10k per person

Trade Facilitation

Design of electronic forms, redesign of reporting and approval procedures for bill of Entry/Exports, I/E forms, registrations etc.

Legislation/regulation for e-commerce documents, procedures and payments

Setup EFT Network

Electronic inter bank transfer network connecting 1000 forex branches.

Establish Infrastructure for Research on Emerging Trends and Technologies

Setup EC-Pak Service provider connecting other specialized service providers for financial networks and trade facilitation networks.

 Timeline

The timeline shown below is indicative of the perceived duration of the IT initiative, beginning with approval of this plan to completion and enactment of the National IT Policy and Action Plan Template STAP (stands for Short-Term Action Plan ):

Month

Component

1

2

3

4

5

6

7

8

9

10

11

12

13

I. STAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preparatory activities for STAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial STAP draft on Web

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Implement STAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-STAP review

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National IT Policy & Plan Template

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core planning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Establish Working Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Template formulation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Review template

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finalization of Policy & Plan Template

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GoP approval & enactment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Implementation & monitoring mechanism

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       

    1. Proposed Allocation of Funds 2000-2001

 

S#

Details

Amount

1

Ph.D./Masters/Bachelor/Intermediate programs

0.3

2.

Distance Learning and Distance Learning Centers

0.2

3

Retraining Centers of IT for unemployed or under-employed engineers/scientists/professional

0.2

4

Specialized Training Centers for training of Trainers

0.15

5

Internet and Intranet infrastructure for colleges and universities

0.55

6

A Scholarships/Qarz-e-hasna Scheme

0.1

7

Computer Literacy (Computers, Networks, Software, training) at school level

0.21

8

A National Testing Agency be established for standardized testing and certification of IT professionals.

0.1

9

Four Information Technology Institutes (ITTs) be set up one each in Punjab, Sindh, NWFP and Balochistan.

0.4

10

Introduction to other segments (Tele-medicine -Health, Large Data base creation, GIS projects for mapping)

0.25

11

Retrain of government employees, Software purchases, allowances

0.2

12

Software Technology Parks

0.5

13

Data Network Centers

0.075

14

Community Internet Centers

0.08

15

Series of IT awareness seminars

0.05

16

Participation in Major international IT trade fairs, conferences and trade shows

0.05

17

Overseas marketing offices in strategic locations like Singapore, Silicon Valley

0.15

18

Development of Urdu and regional software

0.1

19

Triggering off local data entry and Blue collar IT activity

0.3

20

Venture Capital Seed Fund with public-private partnership

0.2

21

Development and production of IT and communication products

0.15

22

E-commerce pilot, facilitation, training and core infrastructure

0.32

23

e-Government Pilot projects at two Ministries and the CE’s office

0.25

24

Legislation drafting for IT related issues,

0.01

Total Rs. Billion

4.895

The Proposed Utilization Plan for the FY 2000-2001

Summary sheet for Fund Flow utilization on account of different heads

Billion rupees

Total

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

1

Ph.D./ Masters/Bachelor/Intermediate programs:

0.3

0.005

0.035

0.055

0.056

0.0544

0.0189

0.0189

0.0189

0.0189

0.0189

2

Distance Learning and Distance Learning Centers:

0.2

0.001

0.03

0.03

0.03

0.03

0.015

0.0107

0.0107

0.0107

0.0107

0.0107

0.0107

3

Retraining Centers of IT for unemployed or under-employed engineers/scientists/professional

0.2

0.025

0.025

0.015

0.015

0.015

0.015

0.015

0.015

0.015

0.015

0.015

0.015

4

Specialized Training Centers for training of Trainers

0.15

0.002

0.031

0.032

0.031

0.015

0.005

0.0057

0.0057

0.0057

0.0057

0.0057

0.0057

5

Internet and Intranet infrastructure for colleges and universities

0.55

0.095

0.095

0.095

0.095

0.0255

0.0255

0.021

0.018

0.021

0.0197

0.0197

0.0197

6

A Scholarships/Qarz-e-hasna Scheme

0.1

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

0.0083

7

Computer Literacy (Computers, Networks, Software, training) at school level

0.21

0.0032

0.1

0.06

0.0035

0.0072

0.0072

0.0072

0.0072

0.0072

0.0072

8

A National Testing Agency be established for standardized testing and certification of IT professionals.

0.1

0.05

0.05

9

Four Information Technology Institutes (ITTs) be set up one each in Punjab, Sindh, NWFP and Balochistan.

0.4

0.0015

0.002

0.18

0.18

0

0

0

0

0

0

0

0.0365

10

Introduction to other segments (Tele-medicine -Health, Large Data base creation, GIS projects for mapping)

0.25

0.015

0.015

0.015

0.055

0.055

0.075

0.02

11

Retrain of government employees, Software purchases, allowances

0.2

0.05

0.05

0.05