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
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.”
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.”
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