Ahmed Al-Faifi, Senior Vice President and MD Middle East and North Africa of enterprise software firm SAP, said his company is facing a challenge just like any other multinational company in terms of repatriating the money it makes in Pakistan.
SAP Pakistan has over 800 customers across all industries, including automotive, chemicals, consumer, government, healthcare, manufacturing, oil and gas, retail, telecommunication and utilities. These companies include PARCO, PSO, PPL, OGDCL, Engro Corporation, Imtiaz Store, Ghulam Farooq Group, National Foods, Fauji Fertiliser and Shan Foods.
Pakistan is int the midst of a massive economic crisis with its foreign exchange reserves standing at just a month of import cover despite import restrictions imposed by the government. The country’s effort to strangle its dollar outflow has resulted in many companies being unable to repatriate profits made from operations in Pakistan.
Al-Faifi said Pakistanis working for SAP for its foreign clients are helping alleviate the issue of profit repatriation.
“It is helping but not resolving the issue,” Al-Faifi told Business Recorder at the sidelines of a press briefing organised by its subsidiary in Pakistan on Thursday. “We have a big business in Pakistan and consuming this money locally is impossible.”
“The idea is to have more Pakistanis work for SAP’s clients abroad but the problem still remains. I hope we find a solution (with the government) down the road.”
SAP identified Pakistan as a high-growth market in 2017. The Covid-19 pandemic saw the company grow nearly 35% growth.
Meanwhile, Al-Faifi said that the growth of the public cloud market in Pakistan is projected to reach $615 million this year.
“This indicates a significant opportunity for businesses to leverage cloud technologies for their digital transformation efforts,” he said.
This also underscores the long-term potential of the cloud market in Pakistan and the opportunities it presents for businesses.
Al-Faifi emphasised the importance of digital transformation in today’s business landscape.
He further explained how SAP can help Pakistani companies streamline their operations, improve efficiency and increase profitability.