Report forecasts Pakistan's rise as an IT hub within 5-6 years

Morning! ☁️☁️☁️ Greetings from my city, where smog season is our way of adding a touch of mystery to the everyday boring work commute. Rather than thinking about how the smog is taking 7-years out of our lives, we will conveniently focus on how aesthetic the view is 🥰

In this week’s edition:

🛒 Nothing a good deal won’t fix

💸 Prices are high af

🦾 Hello, ‘median human co-worker’!

❗ Error 404 for ‘Roadmap for IT/ITeS Growth’

- The Itla Squad 💼

Business

Global 🌎️

Guess we all were just waiting for a good deal

Black Friday, aka the met-gala for shoppers, saw a remarkable 7.5% year-on-year increase in e-commerce spending, reaching an unprecedented $9.8 billion in the U.S. This surge, according to Adobe Analytics, reveals that after all, we all secretly were waiting for that perfect deal to finally hit ‘checkout’ after 'add to cart.'

• It seems like we all hit save after scrolling through those TikTok product reviews, as this year's spending surge shows a more willing consumer compared to 2022. Influenced by influencers and social media, shoppers made $5.3 billion in purchases through mobile shopping.

• Despite a willingness to spend, shoppers remain price-sensitive. The 'Buy Now, Pay Later' method, with a 47% increase, highlights consumers managing tighter budgets through flexible payment options.

• Electronics, toys, and gaming dominated sales. Top-selling categories directly correlated with the best discounts available, emphasizing consumer preference for deals.

• People were on a mission for the best deals, and it looks like the online realm was where they found them. Consumers prefer online shopping for side-by-side comparisons, prompting retailers to adapt to increased discounts and promotions.

• Deep discounts, 'Buy Now, Pay Later,' and mobile dominance drove Black Friday's record.

Big picture: Momentum from Thanksgiving continued, with a forecast of $10 billion in online spending over the weekend and a record $12 billion on Cyber Monday. Early figures from Adobe Digital Insights indicate that we are on track for a record $12.4 billion.

TLDR: Black Friday saw a 7.5% increase in U.S. e-commerce spending, hitting $9.8 billion. Mobile shopping contributed $5.3 billion. Shoppers, despite a willingness to spend, remained price-sensitive, with a 47% increase in 'Buy Now, Pay Later.' Top-selling categories were electronics, toys, and gaming. The momentum continues with a forecast of a record $12 billion on Cyber Monday, per Adobe Digital Insights.

What else is new in news

✶ Geopolitical risks, including major wars and pivotal elections in key global powers, are set to be the primary threat to the 2024 economic outlook as revealed in a recent global risk survey by Oxford Economics involving 130 businesses.

Local 🇵🇰

Prices are high af

It’s not just you: bills are not going down even when the world prices for stuff like raw materials and groceries dropped, the rupee got down, and transport costs chilled out. Understandably, manufacturers are getting some narrow eyes for not fully passing on the lower production costs.

What’s happening:

• Retailers are playing their own game. They're holding onto pre-drop prices, especially for staples like pulses and wheat flour. Despite government actions, these essentials are not getting any cheaper.

• While the government cracked down on sugar and wheat mafias, the results were mixed. Sugar prices did drop, but wheat-based products didn't.

Import, export, and transportation stuff: 

• Looking at wheat imports, the numbers say prices dropped. But the reality for consumers is different. Despite private sector imports, a solid local crop, and a stronger rupee, we're not seeing the relief in our flour prices.

• The export surge in non-basmati rice, thanks to India's ban, is having a ripple effect. Our local rice prices are on the rise, and we're left to bear the bill for this export-driven hike.

• Transportation costs decreased with lower diesel rates, but surprise surprise – consumers aren't feeling the impact.

Zooming out: It seems like the price game is a rollercoaster, and consumers are the ones gripping the safety bar. Despite all the moves (sincere or otherwise) by the government and the industry, we're still wrestling with those scarily high prices.

TLDR: Prices are staying high despite global drops in costs. Manufacturers aren't passing on savings, retailers are holding onto old prices, and government actions had mixed results. Wheat and flour prices aren't budging, and non-basmati rice exports are driving local prices up.

News Flash

✶Pakistan is in Dubai for the big climate conference (COP28) so The International Monetary Fund (IMF) advises the government to make the budget for FY2024-25 a crucial moment, focusing on planning and investments aligned with climate adaptation.

Tech

Global 🌎️

Hello, ‘median human co-worker’!

Maybe the most interesting thing that happened amid the whole OpenAI-firing-hiring-CEO-adventures and getting into a messy love triangle with Microsoft is the hype the concept of AGI (Artificial general intelligence) is getting.

What’s up: A letter from staff researchers reveals concerns about Project Q*, an AI superintelligence model that played a role in Sam Altman's departure.

What is Project Q* and the way towards AGI: Project Q* is OpenAI's new venture in AGI development. Generally, it is defined as a type of artificial intelligence that possesses the ability to understand, learn, and apply knowledge across a broad range of tasks, operating like the human brain. Recent reports indicate superior reasoning skills, hinting at its potential to outperform humans in various tasks.

Should we be scared? OpenAI's charter describes AGI as a set of "highly autonomous systems that outperform humans at most economically valuable work." so maybe yes? Also, in the past, Altman likened AGI to a "median human co-worker," prompting concerns from AI ethicists. The comparison, deemed "icky," suggests differing viewpoints on the implications of AGI for job security. Now, that Altman is back, we are really looking forward to meeting our "median human co-worker" soon..

What's the plan for this super smart AI? DeepMind, a UN-like organization for super-smart AI, is setting rules about what it can and can't do. If it’s going to be anything like the UN, may God help us.

Zooming out:

• For OpenAI, With Sam Altman back in charge and Project Q* likely to proceed, it will be interesting to see how OpenAI faces the challenge of balancing AGI advancements with ethical considerations.

• For us: We have no idea but we can’t wait to find out.

TLDR: Project Q*, OpenAI's venture in AGI, raised eyebrows, and recent reports hint at its potential to surpass human capabilities. Concerns arise as staff researchers express apprehensions about the model, adding intrigue to the CEO saga. Described as a type of AI emulating human brain functions, AGI's superior reasoning skills spark discussions on its implications.

What else is new in news

✶There’s never too much AI, right? If you are feeling a bit overwhelmed by the vast world of AI, reading this article on “AIl the AI terms you need to know” is a good place to start.

Local 🇵🇰 

Error 404: Quality not found

Digging into the recently released "Roadmap for IT/ITeS Growth" by the Ministry of Information Technology and Telecommunication and PwC felt a bit like grabbing a Subway sandwich with not much inside or at least that’s what the analysts seem to say.

What does the document say: It says that Pakistan is gearing up to establish itself as a global IT hub, eyeing a surge in export revenues to $18 billion by 2028. The roadmap involves things like enhancing essential infrastructure, launching a skills development program for one million individuals, introducing financial support mechanisms, implementing regulatory reforms, and facilitating foreign exchange flexibility.

What does the document mean: A whole lot of nothing. This analysis by Data Darbar brilliantly explains why:

• Out of 18 pages, only 10 have the real stuff. The rest? They've got multiple hellos, a disclaimer, and a table of contents.

• The document uses outdated and inaccurate data, such as Information Technology export figures from FY21, which raises questions about the competency of those responsible. Comparing annual remittances to monthly figures adds another layer of misinformation.

• They're saying the IT workforce is 316K strong, but that's based on data from 2018-19. It's like they missed a few years of updates. The analysis suggests a potential decline in the workforce size, contrary to the logical expectation of growth given industry trends.

• All talk, no action. The document includes wishful global opportunity projections without concrete plans or strategic initiatives. Key interventions are listed as bullet points, lacking detail or context, leaving readers questioning the tangible impact.

TLDR: The "Roadmap for IT/ITeS Growth" envisions Pakistan as a global IT hub with targeted export revenue growth, but critics argue that the document lacks substance. Among its issues are 18 pages with minimal valuable content, reliance on outdated data, particularly FY21 IT export figures, and a questionable reported IT workforce size of 316K based on 2018-19 data.

Tech tour of news

✶ A survey reveals that IT graduates in Pakistan have a 63% employability rate within a year of graduation, with 54% finding their skills relevant to their jobs. The survey, part of the IT Export Strategy Report, shows that half of the graduates are interested in opportunities abroad, but only 9% secured overseas jobs in the last year.

More interesting Itla (اطلاع) we consumed:

🌈 It is easy to lose sight of the bigger picture of our lives/world if you are into the corporate/adulting grind which is why you should absolutely watch this video called What the Longest-Running Study on Happiness Reveals. Bookmark this video and watch it when you have 23 minutes on you.