Updated: Oct 4, 2020
The Startup ecosystem is strapped to grow to its full potential in the coming years, Thanks to the investors showing more confidence in Pakistani startups.
Pakistan is a country with rising talent. Inquisitive minds are seeking opportunities to aid their ideas. Despite living in a country with a hazy image, their innovative ideas are recognized worldwide. Not a while ago, the mere concept of startup was alien to the people of Pakistan. However, for the last few years, startup ecosystems in Pakistan have bolstered and covered many milestones.
According to the Pakistan Startup Ecosystem Report 2019, in the past 5 years, 83 Pakistani startups have raised $165 million from 101 deals. $12 million raised by Airlift and $1.6 million raised by TelloTalk are not included.
A burning passion alone is not enough; there goes a lot of work and effort into it. Finding a space to unfold the idea until finding the right people to direct you through startup requires nurturing as a newborn baby. That is where incubators play a significant role.
Incubators are like a catalyst that helps an idea grow. They provide facilities like a space to work in, financing, marketing assistance, and links to potential partners. Incubators remain a hub that mentors the youthful, amateur minds by being matched up with someone with a similar struggle. They help forge a connection with fellow startups that have or will face the same challenges. No matter how new and old the startup environment seems, with help and proper mentoring, startup turns into a flourishing business with time.
An incubator is a cushion to startups. It allows its growth and supports it.
have been a massive help. However, our angel investors lack behind in the race. The country lacks in providing a safety hub for the budding youth, which creates a state of confusion. This leads to the reluctance of angel investors to invest in the Pakistani ecosystem.
For the ecosystem to grow and convert passionate startups into multi-million dollar businesses, we need ideal tax and banking policies, tuned to favour the startups and investors, to develop confidence in the market. This startup ecosystem can change the fate of Pakistan, bringing in substantial foreign exchange. Here, the role of Pakistani universities is also appreciable, as a lot of them are developing their incubation centres.
For now, the major problem the ecosystem is facing is a lack of finance.
In addition to improved taxation policies, payment issues, and the flow of money in and out of the country are significant problems.
As a blessing in disguise, the threat of blacklisting in FATF has urged the Government to direct its efforts towards digitizing the economy, leading to a comparatively improved business environment and Ease in Doing Business.
Since 2019, Government is providing loans to fund the startups, and digital skill development programs have been in place, which is a progressive approach, but further facilitation in regulatory aspects are required from the Government to reap huge profit from this promising ecosystem.
Contributors: Muhammad Asad Zameer