Fozia Azam

Pakistan’s economy has massive potential to grow, and digitalisation and successful startups are crucial contributors in this regard. Recently, Pakistan scaled new heights, securing second position in South Asia and an impressive 76th position globally in the Global Startup Ecosystem Index 2023. The index is a comprehensive ranking of startup ecosystems around the world, which provides insights into the growth potential, challenges, and opportunities for startup founders and investors.

It assesses various factors including funding, talent, market reach, and startup experience to determine the positioning of countries in the global startup landscape. This remarkable achievement is a testament to Pakistan’s growing startup ecosystem, demonstrating its potential and attracting attention from around the world. Over the past decade, Pakistan has witnessed a vibrant entrepreneurial culture, fueled by a growing number of tech startups across various sectors. The upsurge of successful startups in fields such as e-commerce, fintech, ed-tech, and software development has garnered attention and propelled Pakistan’s reputation as a fertile ground for innovation.

Experts believe the Pakistan government can foster a supportive environment for startups by taking proactive measures. Initiatives like the establishment of incubation centers, tax incentives for startups, and the creation of regulations promoting ease of doing business have played a crucial role in attracting both local and foreign investment.  The availability of funding has been a vital catalyst in the growth of Pakistani startups. Venture capital firms, angel investors, and government-backed funds have recognised the potential of Pakistan’s startup scene and have been actively investing in promising ventures.

The improved access to funding has provided startups with necessary resources to scale their operations and fuel exponential growth. Pakistan is home to a diverse and skilled workforce, particularly in the technology sector. The country’s booming IT industry and numerous engineering institutions have helped cultivate a pool of talented individuals adept at driving innovation.  This availability of skilled professionals has further attracted global investors and contributed to the success of Pakistani startups. With a population of over 220 million, Pakistan represents a substantial untapped market for startups. The country’s increasing digitisation and expanding middle class present immense opportunities for entrepreneurs to address local challenges and build scalable businesses that can have a significant societal and economic impact.

Credit: INP-WealthPk