Used Refurbished Computers in Pakistan



REJECTION OF BASESLESS AND UNJUSTIFIED PROPOSAL TO BAN TRADE OF USED/REFURBISHED COMPUTERS IN PAKISTAN

Brief Summary on Past History:

We look at the IT industry prior to implementation user friendly IT policies in early 2000 by then Ministry of IT and Education headed by Professor Ata-ur-Rehman, knowledge based computerization in Pakistan was equivalent to Nil. Likewise, the students and new generation were not even in position to understand the computer usage and culture due to heavy cost due and thus lack of availability. These factors had negatively impacted the local economy due to non availability of IT professional at mass level resulted in backwardness of local citizens in this era. Needless to mention the cost of computer was prevailing between PKR 50,000/= to PKR 100,000/= prior to start of 21st century.

Dr. Atta ur Rehman’s policy to keep the availability of computer technology within the reach of all students, all homes, all institutes and all individuals including the POOR people all across Pakistan.

The matter was brought up into the senior Government officials to get the IT educational environment improved.

In the current Fiscal Budget of Pakistan 2009-2010 during the trade policy speech our honorable Minister of Commerce Makhdom Ameen Faheem on July 27th 2009, while delivering his speech has mentioned the usefulness and high utility of used/refurbished computers and its trade in Pakistan which directly benefits the Pakistani society as we are a third world country with masses who are generally poor. Thus in order to encourgare the use of computers by low income groups import has been allowed for used and old computers, since to make education and development possible used/refurbished computers are playing a vital role.

Benefits of Used/Refurbished Computers in Pakistan

  • Small and Medium size Entrepreneurship enhancement:

Trader of Used/Refurbished computers needs very limited capital to start his own business. On an average the requirement for a person to start a business of Used/Refurbished Computers parts and equipment is between PKR 200,000 – 500,000

  • Employments and economic activity generation:

Since the year 2000 IT Industry has seen rapid growth and thus a strong trade network has developed across big cities and rural areas of Pakistan creating hundreds of thousands of jobs for masses who were initially unemployed at these shops trading in used and refurbished computer. Most of the people employed at these shops and retail outlets are students from low income groups who are unable to continue their education if they are not employed because of economic pressures in their families. Working at these shops allows them to manage to get salaries between PKR 8,000 – 12,000 which is a major step towards supporting their families as well as themselves because once these technicians who are also part time students are trained they get themselves educated by using these jobs as transition to a professional and prosperous future in IT Industry of Pakistan.

  • Rural Area Coverage:

Used/Refurbished computers have extremely high coverage for a country like Pakistan especially in the rural areas these computers work as life line for communities who traditionally haven’t been able to upgrade themselves with the changing technologies in the world. Availability of Used/Refurbished computers have made it possible for places like hospitals, clinics, schools departmental and general stores in small villages and towns of Pakistan to use them because of their quality and affordability. Just imagine would it be possible for a maternity clinic in a Deh of Dadu or a primary school in Khuzdar or a madrasah in Pindi Bhatian or a net Café in FATA to be able to have a computer if they had to pay high amounts to procure a new PC? No but thanks to used/refurbished computers availability all these places and students have now access to IT technology in small centers of Pakistan.

  • Technical Education Availability Computer Literacy

With the ease of access to computer hardware at an affordable price the access to technical education is now not restricted any more to posh areas of urban centers instead a there are people learning use of technology in Kutchi Bastis, Villages and Towns which is off the same level as major cities of Pakistan.

  • Help Reduce Unemployment ratio:

Used/Refurbished computer industry has not only created basically level jobs at the markets but also help reduce unemployment ration by increased availability of IT professional since more people have now got access to computers which has contributed to Pakistan’s GDP.

  • Strong IT Infrastructure:

Since it is an accepted fact now that due to ease of access of Used/Refurbished computers many more people in Pakistan are now Tech savvy and have knowledge and education about usage of IT equipment which has resulted in extreme strength of IT infrastructure of Pakistan which is now able to compete the with the very best of professionals for all over the world

  • Revenue Recognition:

It may be also be noted here that Used/Refurbished computers come in to the country in large quantity and come under jurisdiction of heavy taxes thus not only aesthetically adding to the economy but also directly contributing by paying nearly $ 9.5 Million to the exchequer in duties and taxes.

  • Computerization Culture in Country

Used/Refurbished computers have led for the country towards the road to development and the movement in the upward direction aspiring towards developing nation rather than a third world country.

IT Growth in Pakistan after 2000.

Taking this opportunity we would like to highlight some key figures indicated growth of Pakistan in the field of Information Technology and its implementation in the Pakistani Society as whole.

1- We were only 133,000 internet users back in 2000 and now 17.5 million in 2010 and it’ll grow 22 million in 2013 by PTA. (Pakistan telecommunication Authority) this comes to annual average growth 1,700,000 for the past decade.

2- Approximately 5000 Internet Cafes creating 15000 new jobs and thus access of IT and internet usage in rural areas of Pakistan.

3- PC population is now more than 10 million due to low cost computers.

4- 50% growth in hardware sales every with more than 750,000 units sold (IDC) in 2009.

5- 20,000 Graduates at Masters and Bachelor levels in both public and private sector are being produced

6- More than 100,000 Non-Graduates like Diploma holders are being produced annually now.

7- Two local based online stores (www.beliscity.com, www.shopive.com) working through partnerships with local banks for online transactions getting 65,000 users from Pakistan everyday which zero 7 years ago.

Growth of software export as an evidence of benefit of used computer availability in Pakistan

Asia Pacific Network Information System

Software Export comparison between 2000 to 2010

Years

Amount

2000

$35 Million

2010

$300 Million


Current Market Share in Pakistan:

PC Demand in Pakistan

Description

Number of units

Percentage

New

56,000

9.40%

Used

540,000

90.60%

Total

596,000

100%



Electricity Consumption:

Another falsely propagated perception of usage of quality used/refurbished computer products is excess electric consumption, the computer and its components having the similar kind of supply cannot consume more electricity in the old computer compared to the new computers as per research.

1- Used Computer power supply consumed 200Watt.

2- New System power supply consumed 400Watt.

3- CRT Monitor import is already banned thus leaving only LCD technology as the only visual output of computers which is the same for both Used and New computer

The above proves that the claim of extra electricity consumption by used/refurbished computers is not only baseless but also motivated by ill intention.

Impact on Environment:

As the major part of the public can be underlined under the poor or middle class head and therefore they avoid reselling or destroying the computer or even its components. Mostly computer user uses the computers and had over their younger brother/sister/friends before it becomes obsolete.

No environment hazard because USA, UK and Australia selling used/refurbished product in their countries

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