On Monday, U.S. Secretary of State Hillary Rodham Clinton announced a series of programs to promote economic growth and job creation in Pakistan’s private sector. Clinton made the announcement following a visit to Islamabad, where she met with senior Pakistani officials to discuss strengthening U.S.-Pakistani relations. The programs will be administered by the U.S. Agency for International Development (USAID), the Overseas Private Investment Corporation (OPIC), the Department of Commerce, and the U.S. Trade & Development Agency (USTDA).

The new programs include:  $50 million for a private equity fund (which has a target capitalization of $150 million) to invest in Pakistani companies that have technology at the core of their business or could benefit from technological upgrades; $100 million over the next five years to expand the ability of small and medium-sized enterprises to access credit through local commercial banks; and a trade mission that will send American business leaders to Pakistan, with the goal of facilitating new business ties between American and Pakistani firms to create new economic opportunities in both countries.

NetSol Technologies, Inc. (Nasdaq: NTWK) (Nasdaq Dubai: NTWK) is one company that is strongly positioned to benefit from these new initiatives. The California-based software provider’s technology center and programming team is located in Pakistan, with offices in Lahore and Karachi. NetSol Technologies Limited, the Company’s subsidiary in Pakistan, offers a wide array of enterprise software solutions and IT services to a variety of sectors.

The new programs represent a major boost for Pakistan and a potential opportunity for NetSol. The Company could benefit from the $50 million private equity investment fund in two ways. First, as a Pakistani company with technology at the core of its business, NetSol Pakistan may qualify to receive funding to advance its growth strategy. NetSol Pakistan’s impressive client list (which includes multinational corporations such as Mercedes-Benz, BMW and Yamaha), high-quality products, and strong growth potential make it an ideal recipient of technological development dollars. Second, Pakistani companies that receive funding to upgrade their technology systems may choose to “buy local” when selecting an enterprise software provider. NetSol has an established track record of improving operational efficiency for its blue-chip client base. Moreover, the Company offers cost-effective, scalable solutions that are uniquely attractive to businesses in emerging markets such as China and Pakistan. As a company operating in both the U.S. and Pakistan, NetSol could also see sales growth resulting from new economic opportunities created by the trade mission and the $100 million allocation for small and medium-sized Pakistani businesses. Overall, these programs are a significant step in U.S.-Pakistani relations that could spur further private investments in Pakistan’s technology sector and benefit the software industry as a whole.

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