From now on, IT sector of Pakistan to quote prices in dollars for foreign customers

Letters have been sent to foreign clients by the heads of IT industries to inform them about change.

  • The currency dropped 35%, which caused problems for the entire IT industry.
  • “Many companies have endured heavy losses due to the rupee fluctuation,” JBS CEO

IT sector

The IT sector of Pakistan has decided to quote prices in US dollars for foreign clients. This has been decided by key players in the IT sector due to fluctuation in Pakistani rupee during the last year.

A letter by major players of top IT industries including JBS, Premier Systems, Silicon Technologies, IBL Unisys, Infotech, and Abacus Consulting has been sent to their customers to notify them about the change.

JBS CEO Veqarul Islam while talking to the source said, “IT industry has borne a massive loss while quoting prices in rupees.”

Rupee Fluctuation

Pakistan’s hardware and software industries are dependent on the import of different software. Whether they are Microsoft, oracle, MATLAB. When rupee was stable buying of this software was affordable. However, the problem started when last year’s currency dropped to 35% that caused troubles for the entire industry.

“In this situation, the survival of a business is difficult,” said the JBS CEO. “Many companies have endured heavy losses due to the rupee fluctuation.”

Pakistan IT industries were always working with limited profit margin, which fell within the range of 1-4%, he added.

He further added, “If we want to stay in business, we have to quote prices in dollars.”

If we are not going to do anything about this most of the IT industries will close. Moreover, there were only two to three IT industries, which survived for the last 30 years.

Trading and production are the two businesses in which IT companies are involved. Now, less amount of profit is generated through trading all over the world and production is becoming more profitable with time.

“In Pakistan, we mainly trade and do not produce,” he said. “For example, we buy a license of any software from Microsoft, Oracle or any other company in dollars and sell it to local users.” In this transaction, the manufacturer made the real money but not the trading business, he argued. “In the trading business, there will be six competitors selling the same software license and all will try to lure customers by giving up their profit margins.”

Also See: In An Optimistic Development, Pakistan’s IT Exports Reach An All-Time High

What are your views on this? Share with us in the comments bar below.

  • lol guys I find it funny. I started my start up in 2015, I am always deal in USD. how can you guys deal with international client in rupees. situation was not good in past years as well. up down always is part of game in Pakistan. anyway good step.

  • This looks like some bullshit article. No IT company in Pakistan ever quotes in Rupees to foreign clients. This has been practice from day one. Even freelancers quote in USD and they are talking about big names like JBS, Premier, TechSurge etc.

  • This is a strange article.

    1. Foreign clients are always billed in USD, I dont think they pay in Pak rupees.
    2. The term IT companies generally refers software houses, and software house dont sell/resell software licences they make their own product! They also make up I would say 90% of the IT business in Pakistan.

    3. Also ironically the reason for the supposed losses was given that they buy licenses from Microsoft/Matlab/Oracle and resell them to LOCAL users, which makes sense as why would a foreign user buy software license of a product from Pakistan when the product is from somewhere else (mainly EU or USA). Who are the foreign clients of such so called “IT companies” ?

    Licenses like these are sold by small scale companies which sell Computer units to coorporate clients, and theres a huge bunch of these companies located at II Chunriger road (Uni Tower, Uni Center, Techno City).

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