Telecom News Bulletin

The import of used IT equipment has played a vital role in the nation’s development. The imported used and low cost computers are used by IT educational institutions, middle class and lower middle class students and families. Likewise, hospitals, clinics, departmental stores and all types of small and medium size business enterprises, even all types of schools, even madrisas depend on used computers due to affordability for the middle and lower middle class.

The IT and Computer industry in Pakistan, despite having immense potential to grow, has been forced to struggle for its very survival due to ill-conceived and hostile official policies. Had the genuine issues of the industry would have been resolved; the country could have reap tremendous benefits, especially in regard with earning precious foreign exchange.

It’s ironic that whenever, industry raises the genuine concerns at top decision making levels, some vested interest group derail the process by floating issues based on their vested interest. One of such issue has been raised by insensitive proposal to ban used IT equipment in Pakistan. The vested interest groups could not comprehend the fact that there are hundred of thousands of people are involved in used computer business.

Similarly, majority of people belongs to middle class and lower strata of the society can not afford a new computer at a price of 25,000 to 45,000/ and they opt for a used desktop PC at an average price of 5,000 to 10,000/-. The laptops market presents similar picture where average price of a Dual Core new laptop in HP/Dell/Acer is around 45,000 to 55,000/- whereas the same in used is available at a price of 27,000 to 30,000/- and in Centrino technology even more cheaper upto 22,000/-.

We simply cannot ignore the fact that Pakistan is a third world poor country and majority of the people are living below the poverty line and it is not possible for them to afford a new PC. It has been observed that a great number of students and professionals are using these used computers and laptops. The initial users and beginners don’t need a hi-fi computer rather a normal low-end PC works fine for this purpose.

The import of used IT equipment has played a vital role in the nation’s development. The imported used and low cost computers are used by IT educational institutions, middle class and lower middle class students and families. Likewise, hospitals, clinics, departmental stores and all types of small and medium size business enterprises, even all types of schools, even madrisas depend on used computers due to affordability for the middle and lower middle class.

The industry is aware of the fact that the used IT equipment is not more than three years old and it still have a functional life of 5+ years and all available software can be operated on these machines and fulfills business and education needs at a very low cost. Thus, resale of used/Refurbished PCs is not only popular in developing countries like Pakistan but also in the developed nations like USA, England, Europe, Canada and Australia are widely using these computers.

According to a conservative estimate, Pakistan can save a huge foreign exchange by encouraging used computers and IT equipment as used computer cost on an average is less than $40 as compare to the cost of new ranges from $300 to $600. Currently there is no indigenous production of IT equipment and its parts in the country. Therefore, import of such equipment by no means is threat to any local industry. As said earlier there are only assemblers, some are small one having one shop and some have big installation, but both are assemblers and nothing is produced in our country.

Not withstanding national needs and aspirations, some multinational firms engaged in computer hardware manufacturing are trying to get import of used IT equipment banned to make quick and big money. However, the sitting government ought to consider that any such ill-advised step would result in large public outcry and loss of precious foreign exchange.

The proposal of imposing any type of ban on used IT equipments is absolutely unnecessary as Pakistan is not producing / manufacturing any computer then what industry we are talking about: there are only assemblers. As a matter of policy we should not look at someone’s personal business or cartel of few companies, rather we should think about the wellness of majority, people at large and national interest.

By Abdullah Malik

–The writer is President of Pakistan Computer Association (PCA) Islamabad Chapter, a countrywide representative body of computer industry in Pakistan.