PSEB facilitates the creation of a public policy environment including taxes, tariffs, trade, and intellectual property protection to enable the growth of the IT industry.
Telecom Bandwidth Provision
Taxes & Tariffs
Data Confidentiality Law and Framework
National IT Policy
IPR
TELECOM BANDWIDTH PROVISION
Telecom bandwidth has always been the backbone of IT/ITeS-related services and products. It is one of the major considerations for vendors interested in outsourcing their business globally. Pakistan is currently facing issues regarding the quality and cost of bandwidth. PSEB is proactively working with concerned stakeholders to resolve the bottlenecks.
- Quality of Service:-
PSEB periodically conducts studies and recommends measures for the improvement of QoS. Recommendations like Digital Radio Service (DRS) for the last mile are being implemented by PTCL, while other recommended measures like satellite backup are under consideration by various organizations.
- Cost:-
Bandwidth costs have declined substantially over the last few years while international calling rates are amongst the lowest in the world. PSEB conducts periodic studies of international bandwidth costs and provides these to the regulator, Pakistan Telecommunications Authority (PTA), in order to develop justifications for on-going cost reduction.
The MoIT and PSEB have invited the ISP industry and other stakeholders to assemble under its facilitation to develop a clearer understanding of the situation, and to develop a joint proposal. This approach was adopted in the case of the GST issue with some success.
TAXES AND TARIFFS
In order to accelerate the growth of the IT Industry, PSEB, under the auspices of the Ministry of IT, ensures that the cost of doing business remains lowered to the minimum. A number of government incentives are already in place, while others are under consideration.
Meetings with various stakeholders such as the Central Board of Revenue (CBR), and the State Bank of Pakistan (SBP), etc., are periodically conducted in order to safeguard the interests of the IT/ITeS industry.
These stakeholders include:
General Sales Tax (GST)
In the recent budget for the fiscal year 2006-2007, the Government has imposed 15% General Sales Tax (GST) on the import of computer hardware. This imposition is being perceived within the IT Industry as a serious setback, which will particularly impede the assembly of domestic PCs. This will eventually increase the cost of hardware, and, therefore, the cost of operating a business in the sector.
PSEB facilitated the resolution of the issue by assembling 44 industry representatives and several industry associations and evolving a joint industry position.
The Secretary IT then facilitated an interaction with the Chairman CBR regarding the issue. A number of meetings between industry representatives, the CBR, and PSEB were made, and a detailed proposal was submitted to the CBR to levy the imposed GST.
DATA CONFIDENTIALITY LAW AND FRAMEWORK
Keeping in view the worldwide outsourcing requirements of safeguarding electronic data and intellectual property rights and the demand of the IT Industry, Pakistan Software Export Board (PSEB) has outsourced drafting of ‘Data Confidentiality Law and Framework’ to a highly reputed law firm - M/S Jamil and Jamil.
Drafting of the new proposed law is underway and it is envisioned that the proposed law will help ensure the confidentiality of corporate data, both domestic and international, and will thus boost the IT-enabled services sector.
NATIONAL IT POLICY
The Ministry of Information Technology has developed a comprehensive and flexible national IT policy.
The guiding theme for the policy is that ‘the Government shall be the facilitator and enabler to encourage the Private sector to drive the development in IT and Telecommunications’. This statement galvanized the entire Pakistani IT community to participate wholeheartedly in the process. Over 200 professionals, mainly from the private-sector, participated in various dialogues and eleven working groups’ meetings over a period of four months to devise a comprehensive policy and action plan document.
The vision of the policy is to harness the potential of Information Technology as a key contributor to Pakistan’s economic development, and that the broad-based involvement of its key stakeholders is a must for its sustainable development.
IPR
Intellectual Property Rights' (IPR) Protection in Pakistan
Laws in Pakistan provide for the protection of Intellectual Property Rights (IPR). Recently, the government has undertaken the task of rewriting legislation in the areas of copyrights, patents, and trademarks.
Copyright law in Pakistan was governed by the Copyright Ordinance 1962.
Significant changes were made in it through the Copyright (Amendment) Act, 1992 and the Copyright (Amendment) Ordinance 2000 whereby Copyright protection originally available to literary, dramatic, musical, artistic, cinematographic and architectural works, books, photographs, newspapers, engravings, lectures, records (defined as "any disc, tape, wire, perforated roll or other device in which sounds are embodied so as to be capable of being reproduced there from, other than a sound track associated with a cinematographic work") and sculptures was extended to include computer software, periodicals, video films and all forms of audio-visual works.
Pakistan Intellectual Property Rights Organization (PIPRO)
In 2004, the Federal Cabinet approved legislation creating the Pakistan Intellectual Property Rights Organization (PIPRO). Its establishment was announced in the 2002-2003 trade policy to proactively curb the piracy of various goods in Pakistan. It was aimed at reinforcing the government’s strong commitment to provide information and protection regarding all Intellectual Property Rights, such as trademarks, copyrights and patents under one organization, which is currently being provided for by three different ministries. PIPRO will be placed under the overall administrative responsibility of the Ministry of Commerce.
The Government has introduced a draft bill for PIPRO in Parliament. The cabinet has already approved the draft bill for PIPRO, paving the way for its approval by the Parliament. The bill was submitted in the Parliament in May 2005 and so far one reading has taken place by a standing committee.
Initiatives within the Government
The Government of Pakistan is committed to the elimination of piracy, the protection of intellectual property, and the indigenous development of open source technologies by committed academicians, and software professionals. Meetings, seminars and conferences are being arranged by the government through its various ministries, divisions and departments to educate users in this regard.
Since 2002, the Federal Government has strictly prohibited the use of pirated software on the nearly 5000 computers spread throughout its ministries, divisions and departments. Vendors are clearly instructed to quote the rates for registered software only, while floating tender notices or advertisements for the supply of computer hardware, for example. A good example of this policy is the June 2005 multimillion-dollar multi-year enterprise agreement signed by the Pakistan Telecommunications Company Limited and Microsoft. At the same time, vigorous discussions are taking place with the global IT companies that supply proprietary software products so that these products are made available in Pakistan at substantially reduced rates. This will in itself be a significant deterrent to the use of pirated software within the private sector.
The Government is also actively pursuing the use of open source technologies in the organizations within its purview. All server-side software has to be open source, and there has been a recent move to install OpenOffice on over 1000 desktops within the Federal Government in Islamabad. An Open Source Resource Center (http://www.osrc.org.pk) has been set up in order to promote the adoption of open source in the country.
Pakistan’s International Commitments
The U.S. Pakistan Treaty of Friendship, Commerce, and Navigation guarantees national treatment for patent, trademark and industrial property rights. Pakistan is a member of the World Intellectual Property Organization (WIPO), the Universal Copyright Convention, and the Bern Copyright Union. The United States and Pakistan have held a series of official discussions regarding intellectual property protection, preserving the rights of foreign companies and individuals, and Pakistan’s active commitment to the Trade-Related aspects of Intellectual Property Rights (TRIPS). Pakistan became a signatory to TRIPS in 1995; as a result, the scope of foreign investment through the field of intellectual property rights has increased considerably.
Initiatives within the Private Sector
Apart from the government, some private organizations are also actively playing their role in enforcing intellectual property rights, particularly within the IT sector. These are very encouraging signs for both local software developers, and international software firms. The Business Software Alliance (BSA) is working closely with the Pakistan Software Houses Association (PASHA) to check piracy, and to boost the country’s software export potential. The BSA's toll-free helpline (0800-01234), has proved a highly useful resource for local software developers seeking information regarding copyright protection on software exports from Pakistan, and to combat the threat of its infringement in cyberspace.
The American Business Council of Pakistan (ABC) encourages US investment in Pakistan, and promotes the development of commerce between the two countries. It has suggested that the Government of Pakistan should establish an Intellectual Property Rights Task Force - which also includes trademarks - the sole purpose of which should be to eliminate intellectual property rights’ infringement from Pakistan.
Active Implementation of IPR Laws
Implementing and strictly enforcing Pakistan’s intellectual property rights’ laws is a regular and an ongoing process. Pakistan’s Federal Investigation Agency (FIA) arrested nine people in April 2005; seized over 100,000 pirated Compact Discs (CDs), videos and cassettes; and shut down six illegal duplication facilities in Karachi.
International Appreciation for Pakistan’s Efforts
In a statement issued by the American Embassy in Islamabad on 5th May 2005, the US Deputy Trade Representative, Josette Sheeran Shiner, said:
“We welcome two steps recently taken by Pakistan to improve Intellectual Property Rights protection. First, it has created an organization — PIPRO — to consolidate authority over trademarks, patents, and copyrights in one government body. Second, the FIA’s attempt of arrest and seizure of pirated discs.”
International film, music and software producers also commended Pakistan's efforts in this regard. A joint press statement issued on 20th May 2005 by the senior representatives of the International Federation of Phonographic Industry (IFPI), Business Software Alliance (BSA) and Motion Picture Association (MPA) said:
"Pakistan is showing that it takes seriously the need to address its severe levels of copyright piracy."
The three international groups unanimously said:
“We applaud the Pakistan government’s efforts for strongly protecting the intellectual property of the musicians, filmmakers and software developers and believe these will benefit the country."
Willem van Adrichem, Regional Co-ordinator IFPI; Al Redha, Co-Chairman, BSA Middle East and Mary Callahan, Director Optical Disk Operations, Worldwide Anti-Piracy of the Motion Picture Association (MPA) in a joint statement added:
"We urge the authorities to maintain the pressure on those who seek to profit from the creativity of others and also hold back the development of the country's domestic talent."
It is believed that vigorous implementation of laws by the Pakistan Intellectual Property Rights Organization (PIPRO) will help to attract greater Foreign Direct Investment (FDI) and will further strengthen our standing in the global marketplace. The government and private parties’ current efforts to strengthen the protection of intellectual property rights through administrative reform and aggressive enforcement will help Pakistan to generate more government and corporate revenue, result in internationally acceptable documentation, increase production and sales, and further stimulate an already vibrant economy.
If you have any questions, please contact:
Mr. Sajid Iqbal
Head of Domestic Business
Pakistan Software Export Board (G) Limited
2nd Floor Evacuee Trust Complex
F-5, Aga Khan Road
Islamabad - 44000
Telephone: 92-51-9204074, Extension 102
Fax: 92-51-9204075
E-mail: siqbal@pseb.org.pk
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