Pakistan Journal of Social Sciences (PJSS) Vol. 29, No. 1 (June 2009), pp. 13-22 Information Technology in Pakistan: An Analysis of Problems Faced in IT Implementation by Pakistan’s Banking and Manufacturing Companies Muhammad Shaukat Assistant Professor, Institute of Management Sciences, Bahauddin Zakariya University Multan, Pakistan E-mail: Shoukatmalik@bzu.edu.pk Muhammad Zafarullah Vice Chancellor, Bahauddin Zakariya University Multan, Pakistan E-mail: vc@bzu.edu.pk Rana Abdul Wajid Professor, Centre for Mathematical and Statistical Sciences, Lahore School of Economics, Lahore, Pakistan Abstract Information Technology is being used both by developed and developing countries for performance improvements. Similar to other developing countries, this technology is also being applied aggressively in all the organizations of Pakistan. This study has examined the problems faced by different companies of Pakistan in manufacturing and banking sectors in implementation of IT, over last decade. The primary data was collected through in-depth interviews and field surveys of 48 companies, 24 in manufacturing sector(12 local and 12 foreign) and 24 in banking sector(12 local and 12 foreign). The data was tested by applying different statistical techniques. The results of the research have led to the conclusion that besides other problems inadequate telecommunication infrastructure has been found the major problem in proper IT implementation in the Pakistani organization. It is suggested that Pakistan must upgrade its IT infrastructure besides doing other things. The government is also needed to concentrate more efforts to overcome these problems. Key Words: Information Technology, IT implementation problems. Banking and Manufacturing IT Systems. I. Introduction Information Technology (IT), as defined by William and Sawyar (2005) is “a general term that describes any technology that helps to produce, manipulate process, store, communicate, and/or disseminate information”. It includes hardware, software, databases, networks, and other related components which are used to build information systems (Shelly et al., 2004). IT as a tool of socio-economic development has been spreading very rapidly into developing countries. IT has become, within a very short time, one of the basic building blocks of modern industrial society. IT now is the major contributor to the progress of both developing and developed countries (Vasudevan, 2003; Long and Long, 1999).