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 several types of schools and madrisas, 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. Recently the Import Trade Price (ITP) of used computers has been raised exorbitantly, resulting price hike in used computers.
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 while making policies at top level the IT industry was always ignored in our country, hence whatever development has been made in this sector is because of hard work and constant efforts of private sector. We have spent last few decades fighting against General Sales Tax, Customs Valuations, customs classifications, customs checking on roads, PPRA stupid regulations and many other such obstacles. Now the most recent is the high increase in the ITP of used computers, wherein multi million people are involved in this business and similarly multi millions are the users.
Majority of people belongs to middle class and lower strata of the society can not afford a new computer at a price of Rs.70,000/- to 100,000/ and they opt for a used desktop PC at an average price of 15,000 to 20,000/-. The laptops market presents similar picture where average price of a Core i3 / i5 new laptop in HP/Dell/Lenovo/Samsung etc is around Rs.100,000/- to 150,000/- whereas the same in used is available at a price of 25,000 to 40,000/- and in some lower specifications, which is equally good for using Word, Excel and normal internet browsing, the price is even more cheaper around Rs.20,000/-.
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 or Laptop. 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 or laptop 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
- Hospitals, Clinics, Departmental Stores, Labs and others.
- All types of small and medium size business enterprises.
- All types of schools, even
The increase in the import of used computers, in the country since 1999 is due to the following reasons:
- Affordability for the middle and lower middle class.
- The used IT equipment is not more than three years old and still have a functional life of 5+ years.
- All available software can be operated on these machines and fulfill business and education needs at a very low cost.
- To acknowledge the trade of used IT equipment, Microsoft has launched MAR (Microsoft Authorized Refurbishers) Program worldwide. And offering its windows Software at a very reduced prices. Furthermore most of the imported used computers already comes with pre-installed Windows.
- Market share for refurbished PCs is more than 75% in our country.
- 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.
- Computer has become basic learning tool for education, call centres, software houses. Furthermore students can consult online text books and other helping material from the remote areas.
- Foreign exchange saving: We can save a huge foreign exchange by encouraging used computers and IT equipment. Used computer cost on an average is less than $40 as compare to the cost of new which is $300 to $600.
Important factors which encourage the imports of Used IT equipment:
- Currently there is no indigenous production of IT equipment or it’s parts in the country. This means all the equipment has to be imported to meet local demand. So import of such equipment by no means is threat to any local industry. There are only assemblers, some are small, having only one shop while some have big installation, but both are assemblers. Nothing is produced in our country.
- In last two decades a rapid human resource development has been observed in the field of Information technology. IT call centres, software houses and other assisting companies have grown like mashrooms, you can see them in all markets, bazars and even in small towns. This rapid development pace would be hampered if availability of IT equipment is made expensive.
- To build a Learned Nation, Government should provide Computers in every institution for every student, and only Refurbished/Used Computers can be used to fulfill this job in an affordable manner.
The present government ought to consider that such ill-advised step of raising used computer’s prices would result in a large public outcry and loss of precious foreign exchange, hence the government should immediately withdraw this revision of ITP to save the vast majority of students, small business enterprises and general public who are the users of these used laptops and desktop PCs.
—The writer is Former President of Pakistan Computer Association (PCA) Islamabad Chapter, a countrywide representative body of computer industry in Pakistan.