IT Industry of Pakistan Decided to Quote Prices in Dollars for Foreign Clients

IT Industry of Pakistan Decided to Quote Prices in Dollars for Foreign Clients

As it seems a heavy rupee depreciation in the past year in Pakistan, the IT industry of the country has decided to quote prices in dollars instead of rupees for all the foreign clients. The news came on the base of a letter that is circulating between JBS, Premier Systems, Silicon Technologies, IBL Unisys, Infotech, and Abacus Consulting. The companies also send this letter to their customers to inform then of future projects. IT Industry of Pakistan Decided to Quote Prices in Dollars for Foreign Clients

JBS CEO Veqarul Islam said:

IT industry has borne a massive loss while quoting prices in rupees.

The IT industry suffers every time while rupee depreciation reaches its top because every hardware is made up of imported goods. This is the reason that the rupee value fluctuates from time to time. As everyone knows that currency dropped down to 15 percent which is the main cause of many problems for the whole industry. Because everything remains OK when price quotation in rupees is affordable but with the fluctuation of rupee value, the industry goes to a big loss.

IT Industry of Pakistan Decided to Quote Prices in Dollars for Foreign Clients

JBS CEO said:

In this situation, the survival of business is difficult. Many companies have endured heavy losses due to the rupee fluctuation.”

According to him, the profit margins dropped within the range of 1- 4 percent. Becauseof an increase in dollars price, financial cost also increased.

He further added that:

If we want to stay in business, we have to quote prices in dollars. IT businesses were not currency exchanges which gained or lost money with fluctuation in the rupee value. In Pakistan, we mainly trade and do not produce. For example, we buy licence of any software from Microsoft, Oracle or any other company in dollars and sell it to local users. In this transaction, the manufacturer made the real money but not the trading business, he argued. In the trading business, there will be six competitors selling the same software licence and all will try to lure customers by giving up their profit margins.

IT companies are doing two types of businesses. One is production and the other is trading. Trading of supplies going down and down as compared to the production that becoming more profitable with time.

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