April 5, 2003	Saturday	Safar 2, 1424

LAHORE, April 4: The prospects of software exports from Pakistan improving in the short-term remain grim because of a low demand in the US software market since the fateful events of 9/11, say exporters.

Pakistan’s software exports did show some signs of improvement in the second half of 2002 after over two-year long slump, that is, said to have forced scores of smaller software companies to close down their operations and the bigger ones to cut jobs

and lay off hundreds of their employees.

The exporters were pretty much hopeful during the last quarter of 2002 that the software exports from the country would increase by the end of March 2003 as many of them were reported to have obtained orders from the United States.

“It is true that a few companies did get and are still getting orders from the US enabling them to recover from the shocks which had resulted from the bursting of IT bubble and 9/11. However, it is incorrect to claim that the entire industry has benefited from the few orders secured by the top companies,” said the owner of a software firm while talking to Dawn on Friday.

He pointed out that an IT professional, who was difficult to be engaged for as attractive a salary as Rs50,000 per month prior to the slump in the American market, can now be roped in for Rs20,000 or Rs25,000. Similarly, he maintained, the number of students who join IT institutions these days has also declined substantially.

He was quite pessimistic about the emerging scenario as far as Pakistan’s software industry is concerned. “Our exports to Europe have not been hit. In a few cases, the European firms are even prepared to pay a higher price. But the future of Pakistan’s software exports would remain gloomy as long as the US market does not improve.”

An IT expert said there was a “very bleak hope that the Pakistan’s software industry would somehow manage to get out of the slump in six months or so down the road”. But, he said, a few big software developers having their presence in the US continue to secure orders, though such firms are still finding it difficult to bring the work off-shore to Pakistan because to a negative public image and perception.

Pakistan’s software exports are said to be around $20 million. However, the industry sources claim, the actual figures should at least be double this amount.