Pakistans Strengths & Weaknesses Pakistans Strengths: Location and size: Pakistan is the worlds seventh most populous country and is therefore in a better position than smaller countries that are limited in terms of their scope of growth and expansion. Pakistans size also also means that the country has a large domestic market that it has access to. Another advantage is that India because of its vicinity lends itself to export from Pakistan. Foreign Aid: Pakistan has in the past depended tremendously on foreign aid to further its industrial infrastructure. Based on the current regional instability, Pakistan can apply for additional aid and with that investment it gains access to expertise from sources like the world Bank and the IMF. Pakistan can also avail this aid from the developed countries like the US, which would allow Pakistan access to foreign markets and can ensure foreign direct investment growth. Government Approach: Pakistan is a country plagued by an uncertain and often violent political past. The last few governments have all shown commitment to furthering the information technology infrastructure. Weaknesses: Unskilled Labor: It has been proven over and over again that for a successful IT infrastructure a skilled workforce is an absolute necessity. Although Pakistan has a large workforce, most of it is concentrated in the agricultural sector. This in my view is the most important reason for Pakistans poor IT sector. Pakistan will need to focus on increasing the skill level of its workforce in the future to attain a sustainable IT infrastructure. Poor education system: Education is the key to a knowledge economy, which Pakistan wants to be. Pakistan must improve education on all levels i.e primary, secondary and higher. From an IT stand point the most critical level is higher level education, which will in turn produce industry leading professionals. A strong education system will also the root cause of a skill deficient workforce. No emphasis on English: Even though Pakistan recognizes English as one of the three official languages. It has not done enough to promote the language to the common man. The education system does not emphasize English rather it emphasizes religion. the curricula should involve as much English as possible. Political Instability: Pakistan has seen its share of political instability. It has been witness to numerous coups that have hurt the country and the economy. These sudden shifts in political clout effect the direction in which the economy is headed because of the differences in the political view points. Poor Infrastructure: It is ironic that the current lag in terms of infrastructure be the reason for Pakistans attempts to improve it. The current telecommunication infrastructure is out-dated and is hampering in the process of upgrading because of its incremental nature. Fundamentalist movement: Pakistan has from its very inception been an Islamic state. Islam is so prominent Pakistan that it has found its way into the legal system of the country. The emphasis on religion in the educational system has also limited Pakistan from being a leader in the telecommunication field. Weak legal System: A weak legal system coupled with weak enforcement has created an environment conducive to piracy. The legal system is lacking especially in dealing with technology related disputes. the legal system is backlogged to such an extent that for any decision the plaintiff has to wait for years, which acts as a deterrent to litigation. Opportunities: Software Export: The most lucrative direction that Pakistan should focus on is the software export market in my view. It can use its relationships with developed countries to build the needed relationships. Export of services: Pakistan should focus on creating a service oriented industry. Industries such as call centers lends itself to Pakistan. Capitalize on local market size: Pakistans local market is very large and is capable of supporting local industries. Local companies are also in a better position to cater to the needs of the local market. Threats: India: The obvious threat to Pakistans telecommunication structure is Indias size and prowess to export information technology related products and services. Deregulation will allow India to capitalize on the domestic market because of its expertise in exporting. Multi-National companies: Along with deregulation come the multi national corporations that can beat out the local Pakistani firms because of their size. Economies of scale will be harder to achieve for Pakistani firms as compared to the multi nationals who can harness the full power of economies of s
Posted on: Wed, 29 Jan 2014 08:22:39 +0000
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