Digitisation of businesses to ensure rapid growth of Pakistan’s economy

October 05, 2022

Naveed Ahmed

The use of modern technology for the effective administration of enterprises in Pakistan can help in the growth of the national economy.

Automation can maximise the profit of businesses, which will lead to the overall expansion of the economy. However, the services of experts are needed to digitise businesses.

System Application and Product in Processing (SAP) Pakistan has taken the lead in providing services to the business community to use software for the effective administration of their enterprises. The firm is also executing different projects to provide practical training to Pakistani youth in software development.

Muhammad Athar Rehan, the IT executive at SAP, told WealthPK that their company was assisting top firms in the automation of their businesses including handling payroll, cash flow, inventories and human resources.

He said that managing business manually and using software with limited capabilities, such as those found in stores and retail counters or physical file systems, resulted in more errors and inefficiencies.

“SAP software assists traders in effectively managing all these challenges, ultimately expanding business on a larger scale. Based on the indications included in the programme, SAP provides a picture of future to managers for growth of their business,” he added.

SAP wants to keep track of the digital footprints in Pakistan. It uses metrics to track internet traffic across different websites. It has an account of the activities of internet users, including customers. As a result, businesses can forecast the demand for a particular commodity. “It enables the investor to fund future company ideas,” said Athar Rehan.

He said that of the 20,000 IT graduates of various universities yearly, only 10,000 were employed in relevant fields. “The remaining 10 million students are at a low competence level. If the government provides training to all 20,000 graduates, Pakistan’s exports would grow by $3 billion to $4 billion,” he added.

He said that SAP was also interested in teaching Pakistani youth as it had already joined hands with the Kamyab Jawan Programme to offer free training and reading materials, which otherwise cost $650, to the young generation.

“Attending these classes doesn’t always necessitate an IT background. Anyone can get these qualifications,” said Athar Rehan.

The data of the State Bank of Pakistan shows that IT exports from the country from July to March of the financial year 2021-22 reached $1.948 billion, showing an increase of 29.26 percent as compared to $1.5 billion in the corresponding period of the preceding year.

Athar Rehan said that SAP is a multinational software corporation that generated €27 billion during the previous year.

“Unlike other industries, the IT sector has a higher input-to-output ratio of labour. For instance, Pakistan's textile exports, which account for a significant portion of the total exports from the country, requires 100,000 workers to make an increase of $3 billion to $4 billion,” he said.

He said that IBM, Systems Limited, and Simens were among the top clients of SAP in the digital industry. “If students get training from SAP, they will have the chance to work for these organisations and several other local and foreign firms,” he added.

Athar Rehan told WealthPK that government should also make it mandatory for students to undergo internship as part of their degree programme to gain field experience.

Credit : Independent News Pakistan-WealthPk