FDI in Pak IT sector set to swell

Volume 2, Issue 2
MONITORING REPORT DUHAI: The potential and spark expressed by the Pakistani IT sector will attract more considerable foreign direct investment (FDI) as well as domestic investment.

“Both IT industry and cellular telephones are coming out of a three-year trough that was impacted by the global financial squeeze,” reveals a recent survey conducted on Pakistan’s IT and mobile sector.

At the same time, investment in telecomm sector totals $11 billion, the Pakistan Telecom Authority (PTA), the industry regulator, says.

"Another wave of FDI is expected after the launch of 3G services by Pakistan," said the PTA and added that already, the UAE is the top investor in the telecom sector.

The survey conducted by Technomics, the global research organisation, says, "Pakistan's IT industry is set to rebound this year, after suffering three years of global recession and political uncertainty."

In its first-ever study of the country’s market, the survey says, on the back of the global slowdown "many companies slipped their revenue targets and projections in 2007.

According to the details, by the end of 2010, the IT industry has fully overcome the decline, recovered from the recession, and return to its 2006 output and performance levels.

“The local telecoms attracted over $6.3 billion FDI in the last five years alone," PTA says. The UAE, Norway and US were the major sources of FDI in the five years. These investments included $2.0 billion plus from the UAE - or 32 per cent in the total FDI in telecoms. US share was $890 million and Norway $39 million.

http://www.technologytimes.pk/mag/2011/jan11/issue02/fdi_in_pak_it_sector.php