ICT Sector Opportunities in PAKISTAN

Ministry of IT & Telecom-Government of Pakistan

Agenda

• Pakistan ICT Market-Sector Brief Introduction

• Government Initiatives for Sectoral Uplift

• Pakistan-Strategic ICT Market & Hub

• Pakistan for Regional Sustainable Development

• Investment Opportunities of Pakistan

Pakistan ICT Market-Sector Performance Indicators Total Population 199 Million (40% Urbanization)-5th Largest

GDP Growth Rate 5.7%

GDP (PPP) US$ 1.06 Trillion (25th Largest)

% of Population between 15 & 65 Approaching 70%

Current ICT Trade Stats with Germany US$ 16.3M

Telco Sector

Tele-density 73.24% (152 Million)

Total Broadband Subscriptions

29.77% (62 Million)

Active Social Media Users 0f Total Broadband Subscribers

72.5% (45 Million)

Active Mobile Social Users 0f Total Broadband Subscribers

56.25% (63.7 Million)

Revenues (2016-2017) US$ 4.5 Billion

Investments (2015-2017) US$ 2.358 Billion

IT Sector

Free Lancing Hub 4th Largest (Globally)

Business Communication 3rd Largest (Globally)

IT Skilled Workers 3 Million+

IT Exports US$ 2.5 Billion+

Domestic IT Revenues US$ 700 Million+

Incubation & Innovation 1 National & 4 Provincial Incubation Centres Nationwide

Government Initiatives for Sectoral Uplift

Legislative & Policy Initiatives

Incubation & Innovation

Gender Equality

&

Women Empowerment

Exports & FDI

• Digital Pakistan Policy-2018

• Forward Looking Telecom Policy-2015

• Electronic Crime Act-2015

• Personal Data Protection Bill ()

• Establishment of National & Provincial Incubation Centres

• Planning & Development of IT Parks

• E-Governance & Smart Cities Initiatives

• ICT for Girls Program at Women Empowerment Centres Nationwide

• ICT for Girls Program at Islamabad Girls Schools

• Women Entrepreneurship

• 100% Equity Ownership for Foreign IT Companies

• 100% Repatriation of Capital & Dividends for IT Companies

• Tax Holiday for IT Companies

• Special assistance for International Outreach of IT Companies

1.335 Billion Market 462 Million Internet Users

1.385 Billion Market 731 Million Internet Users

Russia

Turkey

1.434 Billion Active Internet Users which is 35% of Global Internet Traffic

Pakistan – Strategic ICT Market & Hub

Pakistan for Regional Sustainable Development

Highest Rate of Return &

Profitability in the Region

Investment Opportunities in Pakistan

Manufacturing/IT Parks & Research

Centres

IT Enabled Services & BPO

Internet Centers & Content Hub

Smart Cities & E-Governance

Incubation & Innovation

E-Commerce

Manufacturing Parks & Research Centers

Imports

• US$ 1.3B ~ 1.5B/Annum

• Handsets: US$ 753M

• Up by 7%

• China, Vietnam, Korea, Taiwan

Refurbish

• US$ 0.95B ~ 1.2B/Annum

• Refurbish Goods

• UK, Dubai, US

Taxes & Duties

• High Import Duties

• High Tax Rate

Average Cost of New Smartphone to consumer US$ 80 ~ 100

Average Cost of Refurbish Smartphone to consumer US$ 80 ~ 100

Total Active Cell phone Connections: 151 Mil Vs MBB Connections: 57 Mil

Avg. Replacement Cycle Length of Smartphone-2017: 21 Months

Untapped Market Size in US$: 7.52B (On Import Basis) (80$)

Projected Market Size in US$: 4.7B (If Locally Manufactured) (50$)

IT Enabled Services & BPO

100% Foreign Ownership

100% Repatriation of Capital & Dividends

High Quality Services

Consultative Solution Development

Competitive & Competent Workforce

Use of Latest Tools & Dev Technologies

End to End Service Provisioning

Income Tax Holiday till 2025 to IT/ITES Co’s.

3 Years Tax Holiday for IT Startups

5% Sales Tax on domestic Revenues of IT/ITES Co’s. in ISB

National Pavilions in International Exhibitions

CMMI & ISO Certification Support

Domestic ICT Event Facilitation

Internet Centers & Content Hubs

1.335 Billion Market 462 Million Internet Users

1.385 Billion Market 731 Million Internet Users

Russia

Turkey

1.434 Billion Active Internet Users which is 35% of Global Internet Traffic

KHI

E-Governance & Smart Cities

Average Population of Top 6 Cities of Pakistan: 9~10M in 2018

Global Smart Cities Projected Revenues: US$ 60B+ by 2025

Global Smart Cities Projected Revenues in Pak: US$ 2B+ by 2025

Incubation & Innovation

TECHNICAL R&D PROJECTS

394 proposals worth 8828Mn received

43 Experts/Mentors added from Industry

EXTERNAL EVALUATORS

57 proposals worth 960Mn approved

50% reduction in evaluation time as compared to last year

NEW THEMATIC AREAS INTRODUCED 3D/4D Printing Augmented/Virtual Reality Artificial Intelligence, Big Data Blockchain Cloud Infrastructure

Neurotech Robotics Shared economy Internet of Things Wearable/Implantable

Funding Innovation in 4th Industrial Wave Tech

E-Commerce Current Market Size: US$ 1B+

Projected Growth: 40% ~ 50% CAGR

More than 20 midsize platforms

100+ Payment Gateways

Thank You