Govt Urged to Establish Software Technology Zones in Karachi

December 15, 2024 Mahi Bukhari

Karachi, known as the economic powerhouse of Pakistan, is facing a significant gap in its technological infrastructure that is hindering its full potential in the global IT market. Despite being home to a young, skilled workforce, Karachi is currently lacking essential facilities such as Software Technology Zones (STZs) and Software Technology Parks (STPs), unlike other major cities like Lahore and Islamabad. Leading IT experts and industry professionals are calling on the government to take immediate action to establish these vital infrastructure components to support the rapid growth of the IT and IT-enabled services (ITeS) sectors.

The Urgent Need for Software Technology Zones in Karachi

Current Landscape and the Need for Action

Karachi’s IT sector has been growing steadily, but it faces numerous challenges that can only be addressed through the establishment of dedicated zones and parks for software development and IT innovation. According to Syed Saad Ali, an IT expert and analyst, Karachi must have at least eight to ten Software Technology Zones to help boost the nation’s IT exports. He emphasizes the importance of not just planning but executing these projects, urging government bodies such as the Special Technology Zone Authority (STZA) and Pakistan Software Export Board (PSEB) to prioritize their establishment.

“Setting up these IT facilities will help Pakistan tap into the global IT export market, which is vital for the country’s economic growth,” said Ali. “The public sector universities must also focus on producing industry-ready talent, which is crucial for the success of such innovation hubs.”

What are Software Technology Zones (STZs)?

Software Technology Zones (STZs) are areas where various tech companies, research institutes, and academic organizations can collaborate, share resources, and drive technological innovation. These zones are typically equipped with state-of-the-art infrastructure, tax incentives, and regulatory support to foster growth in the IT sector. They serve as a catalyst for technological advancement and attract both local and international investments, creating a sustainable ecosystem for IT businesses to thrive.

The lack of such zones in Karachi is seen as a major roadblock in realizing the city’s full potential as a tech hub. If established, these zones can significantly contribute to the growth of the IT sector, both in terms of innovation and export revenues.

The Role of Innovation Hubs in Promoting Growth

A Proven Path to Success

The global success stories of tech hubs such as the Research Triangle Park (RTP) in the United States, Zhongguancun in Beijing, and Kista Science City in Stockholm provide valuable lessons for Karachi. These parks have not only driven technological and economic growth but have also positioned their respective cities as leaders in the global tech industry.

Syed Azfar Hussain, an IT analyst and Project Director at the National Incubation Centre (NIC) Karachi, highlighted the potential benefits of such innovation hubs. “Innovation hubs like software parks are critical in fostering creativity and collaboration among tech startups, established companies, and academic institutions. Karachi, with its entrepreneurial spirit, large talent pool, and world-class universities, is well-positioned to benefit from such a setup,” said Hussain.

He also pointed to global examples where similar parks have resulted in the emergence of global tech giants such as Skype and Spotify, both of which originated from innovation hubs in Sweden. Karachi could replicate such success by creating a conducive environment for local talent to innovate and collaborate.

The Economic Impact of Software Technology Parks

Boosting Exports and Generating Jobs

One of the key benefits of establishing Software Technology Parks in Karachi would be the significant boost to Pakistan’s IT exports. With the right infrastructure and government support, Karachi could become a global leader in IT outsourcing, providing services to clients in markets like the United States, Europe, and the Middle East.

In addition to fostering innovation, these parks would also create thousands of high-paying jobs, contributing to the local economy. Karachi, with its vast pool of young and skilled professionals, is poised to benefit immensely from such a move. However, the city’s lack of specialized tech zones means that it is currently falling behind other cities in terms of attracting both foreign and domestic investments.

FPCCI’s Advocacy for a Software Technology Park in Karachi

A Unified Call for Action

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has also weighed in on the issue, calling for the establishment of a Software Technology Park in Karachi. FPCCI President Atif Ikram Sheikh pointed out that Karachi faces significant infrastructural challenges that hinder its potential for IT exports. “A software technology park in Karachi would provide the necessary infrastructure and support to promote IT and ITeS exports, which are essential for the country’s economic growth,” Sheikh said.

PSEB’s Role in Establishing Technology Parks

Collaboration for Growth

Abu Bakar, the CEO of the Pakistan Software Export Board (PSEB), has also emphasized the importance of setting up a large-scale Software Technology Park in Karachi. “We are working aggressively to establish such a facility to match Karachi’s young, skilled, and motivated workforce,” Bakar said during a recent visit to the FPCCI head office in Karachi.

He also pointed out that IT companies in Pakistan, unlike their counterparts in developed nations, often struggle to secure rapid funding and expand their operations. Bakar stressed the importance of attracting private-sector investments to the IT industry in Pakistan to make it competitive on the global stage.

The Need for Collaboration and Investment

Public and Private Sector Cooperation

Former P@SHA Chairman Zohaib Khan suggested that a collaborative approach between IT-related central standing committees of FPCCI, business councils, and PSEB could pave the way for the establishment of technology parks. A joint working group with specific objectives could be formed to address key issues such as investment, market expansion, and talent development.

The proposed objectives of this working group include:

Acting as a matchmaking platform between the IT industry and the business community for investment and collaboration.
Exploring untapped export markets such as the US, Europe, and GCC countries.
Facilitating swift visa issuance for IT professionals, service providers, and exhibitors.
Raising awareness about the importance of Software Technology Parks and Special Technology Zones.

FAQs:

1. What are Software Technology Zones (STZs)?

Software Technology Zones (STZs) are designated areas where technology companies, universities, and research institutions collaborate to drive innovation, promote technological advancements, and create a favorable environment for IT businesses to thrive.

2. How can Karachi benefit from Software Technology Zones?

Karachi can significantly boost its IT exports, generate employment opportunities, and attract local and international investments by establishing Software Technology Zones. These zones would create a conducive environment for innovation and collaboration.

3. Why is Karachi lagging behind in terms of IT infrastructure?

Karachi faces infrastructural challenges that hinder its growth in the IT sector. The lack of Software Technology Parks and Zones is one of the key factors limiting its potential as a tech hub.

4. What role does PSEB play in the establishment of Software Technology Parks?

The Pakistan Software Export Board (PSEB) is actively working towards the establishment of large-scale Software Technology Parks in Karachi to leverage the city’s young and skilled workforce and promote IT exports.

5. What is the proposed approach to establishing Software Technology Parks?

A collaborative approach between the IT industry, government bodies like PSEB and FPCCI, and private investors is crucial. The formation of a joint working group to address key challenges such as investment, market expansion, and talent development is essential.