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Some 35 IT companies with almost 2000 employees have been asked to vacate the IT Park Islamabad. The Evacuee Trust Property Board (ETPB) issued a notice on 23^rd of May. The companies were asked to leave the building in seven days, which was supposed to be 31^st of May. However, no action has been taken until now, but this situation has created a completely new situation for the rapidly growing IT industry.

It has been officially designated as IT Park by the Chief Executive’s Secretariat, for the development and growth of IT industry in Pakistan. It was very beneficial for the whole IT sector, and IT industries indeed showed a very bright performance by reaching to a share of 58% in annual income of Pakistan, with almost 1200 Companies and SMEs.

The IT industry has flourished in Pakistan in a significant and efficient manner, by making a prominent appearance in Global Market. Banking, Healthcare, Education or other industries and several other regions benefit from Information Technology. And for a while, at least during the Musharraf era, it actually looked like the Information Technology sector was making some real progress.

However, the recent incident has discouraged all the positive expectations. The IT companies have been given a sudden notice that leaves them rattled. The ETPB asked them to leave the building in 7 days, as most of the companies’ lease agreements had reached expiration. But if expiration of the lease agreements is the main issue, then what made ETPB sent out notices to a number of companies with lease agreements till August?

Dr. Aamir Matin, Country Manger of Cisco Pakistan, commented that, “We are not against the proprietors’ right - we are not even objecting on the increase in rents. Property owners have their rights and we certainly respect them, but they have not followed a formal process, the whole process has taken place without any rule of law.”

Every company in the IT Park services international clients and the current situations have created quite an embarrassing situation for them. Are they really expected to let their clients know that they need deadline extensions because they are being evicted?

Companies are likely to lose international clients ultimately costing a reduction in the annual generated economic revenue. As for the other foreigner investors who were interested in establishing their business in Pakistan, it remains to be seen how excited those prospects shall remain.

When asked what the effects of this action on international clients and investors, Dr. Matin said, “When such a situation occurs, we being an international company, contact our seniors in US and they realize that there is no rule of law in Pakistan. They are not comfortable to work here because they do not feel secure and the instability of law and everything else we work so hard to build, is washed away. That is a very discouraging situation for us. If we want foreign companies to start their businesses here, we have to provide them the environment, security and stability for their business. That is only possible when there is no violation of rules.”

Dr. Matin discouraged the improper processing by ETBP and also emphasized that ETBP should have adopted a formal process, even if they had wanted evacuation. Besides, the building has been designated as the IT Park. If the ETBP is unaware of that, it means the decisions taken by the Government, are quite casual in nature.

The IT sector is taking a serious notice of this issue and a few meetings with government personnel have been organized. It is expected that this matter will be solved in a few days. If this situation does not resolve itself, the growth of IT as we know it, will retard to a great extent. Certainly not something anyone can afford.

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