Tag: IT

  • Multinational companies plan to leave Pakistan as internet disruptions continue, says PBC

    Multinational companies plan to leave Pakistan as internet disruptions continue, says PBC

    The Pakistan Business Council (PBC) warned on Friday that numerous multinational companies are planning to relocate their offices from Pakistan, with many having already left the country, due to severe internet disruptions.

    “Many multinational companies (MNCs) are either planning to relocate their back offices from Pakistan or have already done so, as the reported imposition of a firewall causes widespread internet disruptions across the country,” the PBC stated.

    Alarm bells went off when the Dubai Chamber of Commerce released a report highlighting that 3,968 Pakistani companies were registered in Dubai between January and June 2024.

    Pakistan ranked second among the top countries whose companies registered in Dubai, signalling an exodus of businesses from Pakistan.

    Hundreds of thousands of skilled and unskilled workers already exist in the country in search of better opportunities abroad.

    “While we struggle with the costs of idle capacity in power generation leading to unemployment and loss of exports and tax revenue, we now have to contend with the threat of idle capacity in the emerging software sector due to poor firewall execution,” lamented the body.

    The tech industry has expressed serious concerns about the internet slowdown, warning that it could cost the debt-ridden nation up to $300 million.

  • ‘It’s not possible’; Reporting in internet-challenged Pakistan

    ‘It’s not possible’; Reporting in internet-challenged Pakistan

    With the primary shift from newspapers to television channels and now to digital media applications, the dissemination of information has become increasingly competitive for newsrooms, with the latest updates just a click away.

    “Delays can be managed with newspapers, but today everything is in your hands—specifically, mobile phones,” says Raees Ansari, Bureau Chief of Geo News in Lahore.

    “Every single second is crucial in reporting now; some footage needs to be sent and put on air instantly. But due to poor network conditions and slow WhatsApp, content is not being sent on time, which is affecting our professional activities,” he reveals.

    Over the past week, internet users across Pakistan have reported network disruptions, with WhatsApp, Facebook, and Instagram experiencing slowdowns, hindering online activities. The Pakistan Telecommunication Authority (PTA) has denied any connection between these issues and the alleged firewall installation.

    Since the ban on X (formerly Twitter) on February 17, 2024, many have turned to Virtual Private Networks (VPNs). The ongoing disturbances, however, have complicated internet usage, which is crucial for a number of professions.

    Sumaira Raja, an investigative reporter, who is mostly found out on the field, complains of encountering issues with not only the internet but also phone signals which often prevents her from conveying news on time.

    “I also experience delays with receiving beepers, as head office frequently reports that the number is not available due to poor signals. This situation makes it very difficult to do my job. I’ve tried using a VPN, but it hasn’t worked,” Raja says.

    Sports journalist Faizan Lakhani recalls when javelin champion Arshad Nadeem returned to Pakistan on August 17 after winning the gold medal at the Paris Olympics, all the visuals sent through WhatsApp by reporters were delayed, and they struggled to download them unless they used a VPN.

    “This situation is very challenging and affects our workflow. When reporters are working on a story or covering an event, they need to stay connected with the desk. We usually rely on voice notes to pass instructions, but since we started encountering this issue, we are struggling with that method too,” he says.

    “We have been told that the network disruption is because of the firewall installation. While things are becoming easier around the world, it has been getting harder for us. Everything is happening with the help of technology and the current situation is a major challenge.” says Ansari.

    What’s happening?

    A highly placed source in the IT industry identifies that filtering of content delivery networks (CDNs) through Firewall is causing content to be routed via internet backbone rather than CDNs.

    “This means that around 4 TBs of internet traffic previously served through CDNs, hosted in Pakistan, is becoming ineffective. When all traffic goes on backbone bypassing CDNs, it’s causing massive slowdown at many western destinations that’s happening now,” he explains.

    Recently, Fiverr, an online marketplace for freelance services, warned clients that Pakistani freelancers may experience delays due to internet issues and the use of VPNs to change their locations.

    “Brace for impact. God save the internet in Pakistan”, says the IT expert.

    Background

    It all started on February 17, 2024, about a week into the new government, when X (formerly Twitter) was banned.

    Initially, amid the uproar, the government remained silent on the matter while the Pakistan Telecommunication Authority (PTA) seemed aloof until the High Courts of Sindh and Islamabad intervened. The PTA eventually admitted that the ban on X was imposed on the orders of the Ministry of Interior based on reports from intelligence agencies.

    The government eventually justified the ban by attributing it to national security concerns, citing ‘digital terrorism‘ and online propaganda as among the threats.

    Earlier in August, Provincial Information Minister Azma Bokhari stated that the government is not against social media but wants to focus on rules and regulations, which, if enforced, could lead to the removal of the ban on X.

    The disruption has now extended beyond X, affecting other widely used apps along with the internet.

    Ironically, since the February 2024 election, the new government has emphasised the need to grow the tech industry in Pakistan.

    In March, Lahore Knowledge Park (a science park) was handed over to the Punjab Central Business District Development Authority with the approval of Chief Minister Punjab Maryam Nawaz, with the goal of establishing Pakistan’s largest IT city.

    In June, Prime Minister Shehbaz Sharif visited Shenzhen— the tech hub in China— in hopes of future collaboration. Ironically, he posted on X (Twitter), expressing how “impressed” he was by the “city’s skyline and development that symbolizes modern-day China.”

    Given the lack of proper infrastructure in the country amid burgeoning surveillance, how will Pakistan evolve in the rapidly transforming digital world? It remains to be seen – but likely we won’t be able to download it.

  • ‘Large-scale’ IT outage hits companies worldwide

    ‘Large-scale’ IT outage hits companies worldwide

    A major outage wrought havoc on global computer systems on Friday, grounding flights in the United States, derailing television broadcasts in the UK and impacting telecommunications in Australia.

    Major US air carriers including Delta, United and American Airlines grounded all flights on Friday over a communication issue, according to the Federal Aviation Administration.

    Flights were suspended at Berlin Brandenburg airport in Germany due to a “technical problem”, a spokeswoman told AFP.

    “There are delays to check-in, and flight operations had to be cancelled until 10:00 am (0800 GMT),” the spokeswoman said, adding that she could not say when they would resume.

    All airports in Spain were experiencing “disruptions” from an IT outage that has hit several companies worldwide on Friday, the airport operator Aena said.

    Hong Kong’s airport also said some airlines had been affected, with its authority issuing a statement in which it linked the disruption to a Microsoft outage.

    The UK’s biggest rail operator meanwhile warned of possible train cancellations due to IT issues, while photos posted online showed large queues forming at Sydney Airport in Australia.

    “Flights are currently arriving and departing however there may be some delays throughout the evening,” a Sydney Airport spokesman said.

    “We have activated our contingency plans with our airline partners and deployed additional staff to our terminals to assist passengers.”

    Australia’s National Cyber Security Coordinator said the “large-scale technical outage” was caused by an issue with a “third-party software platform”, adding there was no information as yet to suggest hacker involvement.

    Banks, airports hit

    Sky News in the UK said the glitch had ended its morning news broadcasts, while Australian broadcaster ABC similarly reported a major “outage”.

    Some self-checkout terminals at one of Australia’s largest supermarket chains were rendered useless, displaying blue error messages.

    New Zealand media said banks and computer systems inside the country’s parliament were reporting issues.

    Australian telecommunications firm Telstra suggested the outages were caused by “global issues” plaguing software provided by Microsoft and cybersecurity company CrowdStrike.

    Microsoft said in a statement it was taking “mitigation actions” in response to service issues.

    It was not clear if those were linked to the global outages.

    “Our services are still seeing continuous improvements while we continue to take mitigation actions,” Microsoft said in a post on social media platform X.

    CrowdStrike could not immediately be reached for comment.

    ‘Enormous’

    University of Melbourne expert Toby Murray said there were indications the problem was linked to a security tool called Crowdstrike Falcon.

    “CrowdStrike is a global cyber security and threat intelligence company,” Murray said.

    “Falcon is what is known as an endpoint detection and response platform, which monitors the computers that it is installed on to detect intrusions (i.e. hacks) and respond to them.”

    University of South Australia cybersecurity researcher Jill Slay said the global impact of the outages was likely to be “enormous”.

    sft/djw/ser/mca

    © Agence France-Presse

  • ‘Sans par bhi tax ley lein,’ Sindh to tax Netflix subscriptions

    ‘Sans par bhi tax ley lein,’ Sindh to tax Netflix subscriptions

    If you’re a Netflix user in Pakistan, get ready to pay more for the streaming service. The Sindh Revenue Board (SRB) has added new taxes to your subscription fees.
    Starting now, Netflix users will have to pay a 3% sales tax on IT services. Additionally, if you’re making an international transaction to pay for your subscription and you’re a tax filer, there’s a five percent advance tax. On top of that, there’s a four percent card transaction charge when using debit or credit cards, plus a federal excise duty.

    Out of all the over-the-top (OTT) streaming services, Netflix continues to be the most well-known. It offers highly regarded TV series, films, documentaries, and other original material in various genres.
    The platform allows viewers to stream content on-demand over the internet to a variety of devices, including PCs, mobile phones, tablets, TVs, and consoles. While Pakistanis consume a lot of free content, many are happily paying for premium OTT services like Netflix.

    Recently, a new Finance Bill was introduced in 2024 that imposes tax on tech companies like Netflix that earn income in Pakistan through digital means and presence, even without a physical establishment.
    Last month The Federal Board of Revenue (FBR) has served a notice to Netflix for recovery of over Rs. 200 million in income tax.
    Effective immediately, subscribers will see additional charges on their Netflix subscriptions. Here’s how the new taxes will affect the current subscription rates:

    Mobile Plan: PKR 250
    Basic Plan: PKR 450
    Standard Plan: PKR 800
    Premium Plan: PKR 1,100

    Here are the Netflix subscription plans and their rates in Pakistan after the new taxes:

    Mobile Plan: PKR 324.80
    Basic Plan: PKR 584.64
    Standard Plan: PKR 1,039.36
    Premium Plan: PKR 1,429.12

    These new taxes are part of the government’s efforts to generate more revenue from digital services. So, the next time you settle down for a Netflix binge, be prepared for these extra charges on your bill.
    This new taxes significantly increase the total cost of Netflix subscriptions in Pakistan. This is something users need to be aware of when budgeting for their monthly entertainment expenses.

  • Army gets more land for ‘agriculture’

    Army gets more land for ‘agriculture’

    The Pakistan Army is set to start agriculture farming on 41,000 acres of land in South Waziristan’s Zarmalam area.

    Peshawar Corps Commander Lieutenant General Sardar Hasan Azhar Hayat has said that the army was determined to increase agricultural farming in Khyber Pakhtunkhwa, as per Geo News.

    Lt Gen Hayat said the army has prepared a farming plan on 41,000 acres of land that had been barren for years.

    The officer was of the view that there is a vast opportunity for investment in minerals, hydropower, agriculture, and tourism in KP that can help boost the province’s resources.

    The three-star officer said the army has worked together with the civil government to bring investment in minerals, agriculture, hydropower, and tourism to the province, which is yielding positive results.

    The Pakistan Army’s decision has sparked mixed reactions among locals and experts, with some expressing concerns over the potential implications for the region.

    The move, which involves the cultivation of 41,000 acres of land, has raised questions about the long-term impact on the area’s ecosystem and implications for local communities.

    Critics argue that the project’s scale could lead to significant land and water resource depletion, impacting the livelihoods of communities dependent on the land.

    Additionally, there have been concerns about the army’s increasing involvement in civilian sectors, with some experts cautioning against potential overreach and the need to ensure civilian oversight in such initiatives.

    On October 1st this year, The Pakistan Army launched the first agriculture project under the Special Investment Facilitation Council (SIFC) to make barren lands cultivable in South Waziristan.

    The pilot project launched in the Zarmalam district of South Waziristan oversaw 1,000 acres of barren land made suitable for cultivation.

    The Pakistan Army’s decision has sparked mixed reactions among locals and experts, with some expressing concerns over the potential implications for the region.

    The move, which involves the cultivation of 41,000 acres of land, has raised questions about the long-term impact on the area’s ecosystem and the implications for local communities.

    Critics argue that the project’s scale could lead to significant land and water resource depletion, impacting the livelihoods of communities dependent on the land.

    Additionally, there have been concerns about the army’s increasing involvement in civilian sectors, with some experts cautioning against potential overreach and the need to ensure civilian oversight in such initiatives.

  • Pakistan invites Saudi Arabia to invest in key sectors like agriculture, IT, and energy

    Pakistan invites Saudi Arabia to invest in key sectors like agriculture, IT, and energy

    Prime Minister (PM) Shehbaz Sharif has extended a warm invitation to companies from Saudi Arabia, encouraging them to explore exciting investment prospects in various sectors such as agriculture, mining, technology, energy, and more.

    This friendly call was made during a meeting with Saudi Arabia’s Vice Minister for Foreign Affairs, Waleed Abdulkarim El Khereji, held in Islamabad.

    To boost economic partnerships, PM Shehbaz highlighted the creation of a Special Investment Facilitation Council (SIFC). This council is designed to simplify and speed up potential investments from countries in the Gulf Cooperation Council (GCC), with a special focus on enhancing collaborations with Saudi Arabia.

    PM Shehbaz also expressed heartfelt appreciation for Saudi Arabia’s timely financial support, particularly in the aftermath of natural disasters like floods. He acknowledged the Kingdom’s crucial role in helping Pakistan work towards a stable economy.

    He emphasised the importance of the visit by the Saudi delegation, underscoring the shared interest and eagerness on both sides to elevate their long-standing friendly relations to a practical and mutually beneficial economic partnership.

    In a significant earlier announcement, PM Shehbaz revealed plans to auction gifts from the Toshakhana. The funds generated from this auction will be directed towards the well-being of underprivileged individuals, especially those who are orphaned and vulnerable.

  • Pakistan earned $1,523 million by providing IT services to various countries: report

    Pakistan earned $1,523 million by providing IT services to various countries: report

    Pakistan has earned US$1,523.280 million by providing different Information Technology (IT) services to various countries during the first seven months of the current fiscal year 2022-23, according to the Pakistan Bureau of Statistics (PBS).

    This represents a growth of 2.38 per cent as compared to US$1,487.865 million earned during the same months of the fiscal year 2021-22.

    During July-January (2022-23), the export of computer services climbed by 2.87 per cent as it increased from US$1,191.575 million last fiscal year to US$1,225.730 million this year.

    The exports of software consultancy services saw an increase of 5.57 per cent, from US$430.309 million to US$454.283 million while the exports of hardware consultancy services also rose by 158.07 per cent from US$1.357 million to US$3.502 million.

    According to APP, the export and import of computer software-related services surged by 11.89 per cent, from US$312.484 million to US$349.635 million whereas the exports of repair and maintenance services increased to US$1.594 million from US$0.770 million.

    The export of telecommunication services also witnessed an increase of 0.60 per cent as these went up from US$293.180 million to US$294.950 million during the months under review, the data revealed.

    Among the telecommunication services, the export of call centre services rose by 2.30 per cent during the period as its exports increased from US$118.669 million to US$121.398 million whereas the export of other telecommunication services decreased by 0.55 per cent, from US$174.511 million to US$173.552 million during the period under review, the PBS data revealed.

    Moreover, the exports of other computer services witnessed a decline of 6.70 per cent going down from US$446.655 million to US$416.716 million.

    Meanwhile, the export of information services during the period under review declined by 16.40 per cent going down from US$3.110 million to US$2.600 million.

  • Pakistan has averted default, Army Chief assures businessmen of economic prosperity

    Pakistan has averted default, Army Chief assures businessmen of economic prosperity

    The Chief of Army Staff (COAS), General Asim Munir, held a meeting on Monday night with the top businessmen in the country, in the presence of Finance Minister Ishaq Dar. While no official statement has been issued about the meeting, sources suggest that the army chief expressed optimism and confidence that the current economic difficulties would be overcome. He assured the businessmen that Pakistan has overcome the possibility of default, and urged them to remain firm and confident.

    The businessmen raised concerns about political polarization and chaos, and urged the military to ensure that this did not deepen further. They asked the army chief why politicians were not being brought together to meet the country’s challenges.

    The army chief emphasized that difficult times are a natural part of a nation’s progress, and reassured the businessmen that the worst is behind them. He referred to Islamic teachings to reinforce his message of resilience and strength.

    One participant, who requested anonymity, said that the businessmen had requested the meeting with the army chief. The meeting was deemed successful by the participants, and it was revealed that all prior conditions of the IMF had been met.

    The businessmen were told that agreements with friendly countries to provide dollars for the country’s foreign exchange reserves should be documented, and commitments had been secured for investments in agriculture, mining, and IT, with advanced equity expected from these countries.

    Sources further said the business community also expressed hope that army won’t allow unrest in the country. 

  • IT minister announces new launch date for 5G

    IT minister announces new launch date for 5G

    The government is expected to introduce 5G in July 2023 instead of next month.

    Syed Amin ul Haq, the minister of information technology and telecommunications, said that the effort would help further expand the IT industry and its export at an exponential rate while announcing the new date.

    Speaking at a ceremony for the UBIT Career Fest 2022, which was put on by the University of Karachi’s Department of Computer Science, the minister expressed confidence that the new deadline for the introduction of 5G technology would be met without further delay.

    “Our IT industry has already witnessed robust growth,” he said. “As compared to the other 43 ministries of Pakistan, the highest increase in exports has been registered by the IT and telecommunication sector. The exports of other ministries increased by 2 to 3 per cent only over the last couple of years while the exports of IT and telecom jumped by 47.44 per cent during the same period. “It reflects the potential which we need to capitalise on,” the minister remarked.

    The young IT graduates can seize the expanding opportunities being offered by the IT companies amid huge funding of $373 million from the government for the startups, he claimed, demonstrating that future job needs can be met with the cooperation of industry and universities.

  • IT sector’s GDP contribution will increase from 2.7% to 13% by 2025: MoITT

    IT sector’s GDP contribution will increase from 2.7% to 13% by 2025: MoITT

    According to estimates from the Ministry of Information Technology and Telecommunication (MoITT), the GDP share of the digital and information technology (IT) sectors would rise to 13 per cent by 2025 as a result of the rapid growth of the digital economy over the next five years.

    MoITT’s offical documents reveal that the size of the digital economy will significantly increase over the next five years as Pakistan’s adoption of digital technology expands. In the upcoming years, the GDP’s share of the digital economy will increase, according to Brecorder.

    While the GDP contribution of the digital and IT sectors will rise from 2.7 per cent to 13 per cent, the GDP contribution of the Information and Communication Technology (ICT) core industry will rise from 1.2 per cent to 8.15 per cent.

    According to the data that is currently available, Pakistan’s digital economy is measured in two ways, i.e. The key industries of ICT, digital technology, and IT. The ICT core industry’s share of the global GDP in 2019 was 1.2 per cent. The IT and telecom industry in Pakistan makes about 2.7 per cent of the country’s GDP.

    Modern ICTs have the ability to accelerate social and economic growth, and this promise will be further realised with the maturation of four enabling technologies: IoT, cloud computing, big data analytics, and AI.

    The cornerstone for nations to build a digital economy and improve their overall economic competitiveness and well-being is ICT infrastructure and services. They can support sustainable cities and communities by lowering poverty and hunger, improving health, generating new jobs, reducing climate change, and enhancing energy efficiency.

    In low- and middle-income nations, mobile remains the main method by which many users access the internet (LMICs). The Information Technology University (ITU) estimates that 87 per cent of broadband connections in developing nations occurred through mobile devices in 2019. Mobile networks and devices are propelling economic growth by connecting consumers and businesses and delivering public and commercial e-services across a range of industries.

    According to the report, Pakistan’s mobile ecosystem is becoming more and more crucial to the country’s economic development due to its direct impact on GDP and the productivity and efficiency benefits it fosters in a variety of economic sectors.

    The majority of nations currently use 4G as the cornerstone of mobile broadband, and this number is continually increasing. The switch from 4G to 5G is happening at the same time all across the world.

    In 2019, 4G connections made up more than 50 per cent of all mobile connections worldwide for the first time, according to the most recent GSMA research. In low and middle-income countries (LMICs), 4G covered 82 per cent of the population compared to 90 per cent for 3G. Compared to 10 years for 3G, LMICs took about seven years to reach more than 80 per cent coverage for 4G.