Pakistan Startup Fund to launch on Oct 31, improve Pakistan’s startup scene

PSF is believed to reshape Pakistan’s startup landscape by allowing founders to retain control of their ventures
An undated image. — Ignite/Gemini
An undated image. — Ignite/Gemini

A new and bold chapter is unfolding in Pakistan’s startup scene, as the Pakistan Startup Fund (PSF) is set to launch on 31 October 2025 at the National Incubation Centre in Islamabad.

This initiative was spearheaded by the Ministry of IT and Telecom and executed by Ignite, aiming to supercharge Pakistan's startup ecosystem by connecting ideas, investors, and opportunities.

The PSF reportedly offers equity-free funding, global exposure, and a supportive framework for Pakistani innovators. It will also empower early-stage startups through funding after they have secured private investment, encouraging local and international venture capital firms to invest in Pakistan.

Here’s how PSF works

  • A venture capital (VC) firm registers as a PSF partner through the portal startupconnect.pk.
  • PSF verifies the VC and conducts due diligence.
  • The VC invests in a startup and finalises the funding round.
  • Once the investment is confirmed, PSF disburses a grant of 10-30% of the VC’s investment.

This model addresses the common challenge of closing funding rounds, acting as a “last cheque” to reassure investors. With the launch approaching fast, the PSF is believed to reshape Pakistan’s startup landscape by allowing founders to retain control of their ventures.

The PSF comes as an outstanding development in Pakistan's thriving innovation ecosystem.