October 22, 2003	Wednesday	Sha’aban 25, 1424

KARACHI, Oct 21: The top state-run enterprises prefer multinationals for automation of their business operations, and thus discourage development of local software industry.

This was highlighted by a participant in a panel discussion organized by TMT Ventures Ltd on “Encouraging technology start-ups” at a local hotel here.

Responding to questions, a lady executive of a foreign company said her firm could collaborate with local firms provided they were willing to help the company’s strategic goals. “If entrepreneurs come to us to add value, they would be welcome,” she added.

The panelists also stressed that entrepreneurs selling ideas to companies should focus on the gains it would bring to prospective customers.

Ali Ansari, chief executive of AKD Securities, said the government should create the enabling environment by providing infrastructure and support.

It should serve as a catalyst as the US government has done initially in the case of Silicon valley.

IBM country marketing manager M. Shoaib Khan proposed that database of local companies should be set up to promote the growth of local software industry.

A participant Ayaz Ghaznavi told Dawn the government institutions like Nadra and state enterprises like PSO had preferred to give business to multinationals and the government had not bothered to investigate why local software companies had closed down.

Sohail Malik, group executive, credit policy, did not see much opportunity for banks at the moment in financing the software industry.

He assured the participants that financing was a not major issue as there was no need for tangible assets and credit could be advanced against contracts and letters of credit.

The panelists at the discussions included Kamil F. Hasan, country manager, Intel; Ms Samina Rizwan, regional manager, Oracle SAGE; and Veqar ul Islam, country general manager, NCR Corporation.