Syeda Fazeelat Fatima 
Dec 20, 2024
In a rapidly evolving landscape of technology and innovation, Pakistan’s startup ecosystem stands poised for transformation. Despite numerous challenges, the country’s resilient entrepreneurs continue to demonstrate remarkable adaptability and tenacity, shaping the future of Pakistan’s digital landscape.
Paklaunch, an initiative dedicated to strengthening connections within the global tech startup ecosystem, recently organised the ‘Pakistan Startup Ecosystem Report 2024’ webinar. This event brought together a dynamic mix of investors, visionary entrepreneurs, and key ecosystem stakeholders to discuss the current state of Pakistan’s tech startup scene.
The webinar featured distinguished speakers, including Kalsoom Lakhani, Co-Founder and GP of i2i Ventures and Founder of invest2innovate; Sarah O. Munir, CEO of invest2innovate; and Amna Masood, Chief Executive Officer of Maven Logix Pvt Ltd. These leaders shared profound insights into the evolving landscape, outlining Pakistan’s opportunities, challenges, and prospects for growth.
Adapting to change: The resilience of Pakistani entrepreneurs
Although Pakistan ranks 91st on the Global Innovation Index, its entrepreneurial landscape continues to thrive against the odds. Entrepreneurs are shifting from high-cost, capital-intensive strategies to resilient business frameworks that emphasise positive unit economics. This shift represents a significant phase in Pakistan’s startup journey, one that prioritises sustained growth over short-term gains.
Infrastructure challenges
While Pakistan’s digital ecosystem is advancing, it remains hampered by several infrastructure challenges. A heavy reliance on cash and a sprawling informal economy complicates the business environment, creating unfair competition for larger enterprises.
Notably, the country’s optical fibre network remains underutilised. Of its 164,000 kilometres of fibre, only 1.1 million subscribers currently benefit from the service. Consequently, nearly half of Pakistan’s population remains offline, stifling the untapped potential of digital transformation.
Opportunities on the horizon: Pakistan’s digital future
Amid these challenges, opportunities are emerging in Pakistan’s startup ecosystem. Support networks are gaining momentum, with an increase in co-working spaces, corporate initiatives, and progressive government policies. As Munir observed: “The country has got all the healthy and supporting communities to establish financial sustainability.” However, unpredictable regulatory policies continue to present a significant hurdle.
Funding remains a critical issue for startups. While fintech has garnered substantial attention and investment due to impressive advancements, local investor participation remains limited. Gender disparity also persists, with women founders in Pakistan receiving only 18.75% of total startup funding since 2015, despite women comprising nearly 39% of the workforce.
Nevertheless, the report underscores emerging opportunities in Pakistan’s tech ecosystem, which hold promise for promoting economic growth and sustainability. With a young demographic—65% of the population is under 30—and a sharp rise in IT exports, Pakistan is steadily progressing towards a more prosperous digital future. The country’s digital economy is projected to reach a valuation of PKR 9.7 trillion by 2030.
Munir further emphasised Pakistan’s vast untapped potential, highlighting the enthusiasm of its youth: “Pakistan has vast untapped potential, with young people under the age of 30 actively seeking ways to succeed in launching their startups.”
A call to action: Supporting the growth of Pakistan’s startup ecosystem
To fully realise the potential of Pakistan’s startup ecosystem, coordinated efforts from both the public and private sectors are essential. The public sector can play a pivotal role by streamlining regulations, enhancing digital infrastructure, and offering tax incentives to attract local investment.
Simultaneously, the private sector is encouraged to establish corporate venture funds, organise targeted pilot programmes, and promote the exchange of data and expertise to support startups in refining their products and services.
Academia also has a significant role to play in nurturing entrepreneurial talent. Lakhani remarked: “There is so much happening in universities, but there is a limitation in terms of practical experience. The focus should be placed on producing quality research that addresses real-world challenges while establishing stronger connections with the startup ecosystem to ensure that research is impactful.”
Pakistan’s startup ecosystem faces undeniable challenges but also brims with untapped potential. With concerted support from domestic and global stakeholders, this ecosystem has the capacity to evolve into a hub of innovation and entrepreneurship. By leveraging its youthful population and advancing its digital infrastructure, Pakistan can chart a course towards a brighter and more sustainable future.
