November 7, 2001	Wednesday	Shaba’an 20, 1422

KARACHI, Nov 6: Pakistani software industry is heading for a collapse in the absence of new orders from foreign buyers, resulting into massive layoffs of engineers and developers.

“Orders from foreign buyers have dropped by over 50 per cent after September 11 debacle,” the president, Pakistan Software Houses Association (PASHA), Syed Hamza Matin told Dawn on Tuesday.

“We are surviving on a few old orders. But how long. Virtually no new orders from America and other countries are coming,” he said. “More than 300 software engineers have been sent home out of 1,500 in 150 software houses after September 11. The number is rising day by day.”

Some 20-25 software houses informed to Minister of Science and Technology, Dr Atta ur Rahman last Wednesday in Islamabad about the on-going crisis in software exporting companies.

PASHA members have asked the minister to allocate government IT related projects to local companies so that the unemployed youths could be utilised in reasonable jobs.

Exporters said, “our foreign embassies could persuade foreign companies not to suspend the orders as Pakistan does not fall in the war-zone.” They suggested devising a rescue plan to create demand for local engineers and developers in the on-going IT related government projects.

Hamza said that the government is focussed on making allocations for education without linking it to the manpower market. He said that exporters are also facing problems in getting visa of Dubai, Singapore, the US, etc.

Meanwhile, member central executive committee PASHA, Khurram P. Rafiq paints a more depressing scenario. He said that the current crisis in Pakistani software exports has coincided with recession in America that has already led to the closure of a number of dot.com and IT related companies in America.

Since February, he said, an estimated $17-18 million of orders have been cancelled for our software exports.

There are over 800 software houses in Pakistan, employing around 13,000 persons. Around 62 companies are engaged in export business but seven to eight companies have more than 70 per cent share in exports.

“An estimated 2,800 persons in IT and software related business have lost their jobs in July-August, reaching the total to 5,400 till October 31,” Rafiq said.

He said an estimated 125 software houses have virtually no work to do these days and they are heading for closure if the situation persists.

Exporters were expecting an increase in software exports in 2001 to $42 million from $20-25 million in 2000, but under present crisis situation, exports will range between $16-17 million. More than 70 per cent of our software exports are destined to the US.

The September 11 incident has also caused a stir among youths, who are currently doing short courses in various IT institutes and universities just to move to the US.

An official in an IT institute in Gulshan-e-Iqbal said that the IT craze has somewhat subsided particularly after September 11, thus reducing the number of new applicants.