Information Technology (IT) has assumed unprecedented importance in the Global Economic Arena. In Pakistan, the present government is according a very high priority to this sector. One of the prerequisites for ensuring sustained growth of the Industry, maybe the Economy, is the provision of a definite framework consisting of Policy, Legislative, Financial, and Operational Guidelines, which can provide a stable umbrella for growth.

Thus, the Government, as the main facilitator, enabler, and promoter of the IT Sector, has evolved an effective National IT Policy and Action Plan that clearly caters to the needs of nurturing the Industry and is responsive to the dynamic forces of change that can affect its future growth. The Private Sector is being brought into the mainstream as the main driver for growth. The guiding theme for the Policy is that 'The Government shall be the facilitator and enabler to encourage the Private Sector to drive the development in IT and Telecommunications'. This one single element has galvanized the entire Pakistani IT Community to participate wholeheartedly in the process and over 200 Professionals mainly from the Private Sector participated in various dialogues and eleven working groups meetings over the last four months to devise a comprehensive Policy and Action Plan Document.

The vision of the policy is to harness the potential of Information Technology as a key contributor to the development of Pakistan and the broad-based involvement of the key stakeholders is a must for its sustainable development. Core IT Policy Strategies have been proposed under several focus areas and some of the lead recommendations in each area are as follows:

Human Resource Development:

Human Resource (HR) development is imperative for the local IT Industry to position the country as an important player in the international IT Market. Under the Hr Action Plan, a large pool of academically as well as technically skilled IT manpower would be developed to meet the local and export needs. The policy accordingly envisages the establishment of four new IT Universities, Virtual IT University, National Testing and Accreditation Services and Educational Intranet, strengthening of existing IT Institutes and hiring of faculty from abroad. A major portion of the funds under the IT action plan would be dedicated towards hr development initiatives.

Infrastructure Development:

The local IT Industry requires a world class enabling infrastructure. An exercise for deployment of this infrastructure would be undertaken and a series of IT Parks and Incubators across the country would be established. These parks will be equipped with modern facilities and matchless incentives, to provide a one-stop shop for prospective investors in the IT Industry. Telecom infrastructure would be modernized to carry broadband access in the backbone and local loops. Other steps include the establishment of IT boards in Provinces (except Punjab where it exists already), increasing tele density and the introduction of new technologies such as Wireless Local Loop for data and cable internet.

Software Industry Development:

Software development is a high growth industry and forms a major segment of the vast IT market and will continue to do so in the future. Integrated efforts to develop software industry with focus on exports (in addition to the local market) would be undertaken. this would include encouragement of local software houses to participate in government projects, local content development, Urdu and regional language software development, promotion of software exports through establishment of international marketing network, special bandwidth rates for software exporters, encouraging joint ventures, hiring of international consultants for global business development and fiscal and regulatory incentives for software exporters through the state bank of Pakistan.

Hardware Industry Development:

The Policy recommendations in the area of hardware industry development do not seek to initiate aggressive competition with the developed countries. Rather, they focus on developing the areas that are within Pakistan’s reach, in terms of technology and resources and in which the country could have a competitive advantage. Major recommendations include the waiver of duties and taxes on the hardware, incentives to reduce the cost of raw material and inputs, encourage and fund research and development in the universities and engineering colleges through faculty chairs, matching grants and focused joint projects.

Internet Policy:

The internet is likely to continue to revolutionize the way people communicate and access information. The basic principles adopted for the Internet growth in the country would be to encourage competition, avoidance of un-necessary regulations, provision of low cost, reliable and broadband Internet access, universal internet access in the areas connected with the telecom network, free internet access for public sector universities and support for the development of national internet content.

Government Incentives:

The government has invested in various fiscal and non-fiscal incentives to nurture, develop, and promote the use of IT in organizations, to increase their efficiency and productivity. The strategies focus on promotion of venture capital industry through incentives, recognition of software development as a priority industry for financing by the banks and DFIs, creation of investment friendly environment, building investors' confidence and changes in rules to allow the technology companies to belisted on stock exchanges of Pakistan.

Tax and Regulatory Incentives:

The government of Pakistan guarantee to facilitate profitability, and efficiency for investors in information technology every step of the way.

* 15 year corporate tax exemption for information technology
companies.
* 100% repatriation of profits allowed to IT sector companies.
* 100% foreign equity allowed in IT sector.
* 0% custom duties and tariffs on import of all IT related
equipment.
* 7 year tax holiday for venture capital funds.
* 0% income tax liability for software development firms.
* 0% sales tax liability on sales of computer software and
hardware.

A superior Telecom Infrastructure:

Pakistan's telecom is among the world's widest covering and most sophisticated. Fiber optic infrastructure, initially laid in the early 1990s, now accounts for well over 85% of the backbone that supports international and national exchange of data.

The government has proactively worked with the national telecom giant, PTCL, to reduce rates, improve access, and increase the level of quality that is delivered. Voice-over-IP and other related auxiliary services are being integrated into the core of the telecom industry.

Perhaps most importantly, the telecom sector is to be fully de-regulated in January 2003.

Powering IT Growth Through Pro-active Telecom policy:

* Bandwidth costs reduced, from $60,000 to $6,000 a month for E1
circuits.
* Rapid response delivery mechanism in place-
leased lines delivered in 8 weeks or earlier.
* Internet access expansion from 29 cities in August
2000 to over 1000 cities and towns by December
2003.
* Activation of 155 Mbits IP connectivity.
* De-regulation of internet delivery on cable TV full permission
granted.
* DSL deployment in local loop for broadband internet access.
* Introduction of calling party pays (CPP) regime to boost wireless
telecom resulting in explosive growth.
* License processing time period for telecom services reduced to 7
days.
* Enhancement of infrastructure for IT/ISPs (PRIs and Digital Cross
Connect).

Islamabad- The New Software Capital of the World:

Islamabad, the capital, described by foreign journalists as the virtual Shangri-la of world capitals. Ranked among the best cities of Asia, by Asiaweek Magazine.

Offering unlimited supplies of low-cost labour, bandwidth, real estate, and most significantly, Pakistan's first Software Technology Park.

Software Technology Parks:

The jewels in Pakistan's IT profile crown, software technology parks were initiated to provide a haven of highly sophisticated, technologically robust, low cost centers of exellence in software development. Due to high demand, the initial phase of the establishment software technology parks has been followed up with detailed plans for new facilities.

Pakistan's software technology parks offer one-stop, one-window solutions to the logistical and functional requirements for setting up an IT business in the country.

Low Operating Costs:

* Commercial real estate: less than US$ 1 per sq foot, in the tech-
enabled, highly sophisticated software technology parks.
* Included in this rent, air-conditioning, security, power generation
services.
* Residential real estate: 3-bedroom houses/apartments in the
upscale localities of urban Pakistan, average under US$ 300 a
month.
* Internet bandwidth: US$ 6000 per month for 2Mbit connections.
* Cellular phone charges: unlimited incoming, outgoing calls under
US$ 0.10 a minute.
* Electricity charges: commercial rates under US$ 0.10 per kilowatt-
hour.
* Average salaries for IT professionals under US$ 6000 per annum.
* Average salaries for clerical staff under US$ 2000 per annum.

And the most important reason why you should do business in Pakistan is also the simplest one. It costs less, far less, to do business here, than anywhere else.

IT Promotion and Awareness:

A massive IT promotion and awareness campaign would be undertaken. The national strategy includes provision of continued support and funds by the Export Promotion Bureau (EPB) for the participation in world IT/ computer trade fairs, exchange of delegations, posting of IT specialists in embassies and consulates, promotion of IT use by the head of the government, ministers, and all other key figures who can influence public opinion at all public and private forums, declaration of the next fiscal year as 'IT Year' and organization of special events during the current year including national and international exhibitions.

IT Usage:

To embark on an aggressive program to improve efficiency and provide quality services to the citizens of Pakistan, IT would be inducted at all levels of government. Key projects thus launched would include Government Online, Electronic Governance Project and E-Commerce Network.

Legislation:

To provide protection and enhance the confidence of users, providers, and facilitators of information services, legislation based on the recommendations of the working group comprising IT and legal experts would be framed. Action in the areas of Digital Signature Act, Intellectual Property & Copyright Act and the Consumer Protection Act, has been started. The government should seek legislative approval of changes to statutes that will encourage electronic commerce and revise statutes that mandate a paper-based or manual process.

Regulations:

A regulatory framework is essential to avoid violating policy goals and direction. It would be ensured that excessive regulations do not stifle industry investment and growth. In devising a useful regulatory framework, the focus would be on creating a fair, equitable and competitive environment, based on the principles of free market and open access.

The IT Action Plan is an integral part of the IT policy. The Action Plan provides a framework for implementation of the IT Policy which includes priority areas, specific projects that can be conceptualised, formulated, assessed, prioritised and implemented. The implementation of the Action Plan is very much dependent on the funding provision for the IT & tele- communications division and the mechanism from project approval to funds release so that projects could be implemented in a timely fashion to achieve the desirable results in the shortest span of time. A separate mechanism for expeditious project appraisal by experts' committees, approval and funding under National Scientific and Technological Research and Development Management Fund has been developed and would be submitted separately to the cabinet for approval.

The main allocation of funds has been foreseen for training, re-training, human resource development and provisioning of enabling infrastructure. There are a host of other incentives, which could be done at low or no cost, which include changes in governmental processes, legislation, administrative elements, incentives and rules. Some of these have already been submitted to the relevant quarters for approval whereas others are in the pipeline. A system of monitoring, surveying and compiling statistics on the extent and growth of the IT sector will also be devised to provide reliable data for planning and evaluation purposes and to set up performance indicators. The IT Action Plan will be implemented according to its well-defined phased targets and objectives. To ensure that the plan meets its objectives consistently and that suitable midcourse corrections can be incorporated in a timely manner, a mechanism will be set up involving the government, private sector, academia and other national representatives to coordinate and implement the policy and plan elements and provide strategic supervision over the longer term. The IT Policy and Action Plan being a dynamic document, would be subjected to formal review under this mechanism every six months, with more area-specific monitoring carried out on a monthly basis.

Software Piracy and the Law:
What is the law

Copyright (Amendment) Act, 1992 (The Amendment Act) is now extended to cover computer software. It is illegal to make or distribute copies of computer programs without authorization. No other copies may be made without specific authorization from the copyright owner.