Based on a recent episode of the Emerging Markets Today podcast, host Ana Paula Picasso explores Pakistan’s burgeoning technology and startup ecosystem in a conversation with investor and advisor Alexander Piskunov, who brings deep experience working on innovation across emerging markets. Piskunov’s relationship with Pakistan began while he was lecturing on the Executive MBA programme at the University of Cambridge, where one of his students—a government minister working in the innovation sphere—invited him to join Pakistan’s National Council for the Development of AI. Serving at the time as the only foreigner and the sole person with an investment background on the council, Piskunov’s involvement has since expanded into multiple projects, including helping establish investment funds and working on various advisory and innovation programs across the country.
Setting the stage with a regional comparison, Piskunov cautions against viewing Pakistan simply as a smaller version of India. India boasts a much larger domestic market and a more established startup funding ecosystem, allowing an Indian company to grow substantially and even become a domestic unicorn before figuring out how to sell abroad. In contrast, a Pakistani company with big ambitions must confront the international question much earlier because the local market may not support the scale it needs. Founders must think about international customers almost from the beginning, anticipating how buyers in Europe or the US will expect different payment terms, sales processes, and customer support levels, while also carefully considering where the company is incorporated and how overseas investors can legally invest.
Shifting to the role of public capital, Piskunov details his extensive work with Pakistani ministries on AI policy, research and development priorities, and technology skills training, as well as helping academic researchers understand how to turn research into viable businesses. He notes that Pakistan approved a broad national AI policy encompassing a national fund for early-stage entrepreneurs, research centers, and training programs. While policy approval does not mean every component is instantaneously operational, it signals clear government intent. A major challenge in emerging markets is bridging the gap between an idea and a customer, as researchers often lack access to the equipment or data needed to test solutions properly, or validation on whether anyone outside the university shares that specific problem. Because established private investors are less common in Pakistan, the government fills a vital role by supporting that process and educating entrepreneurs on fundraising and pitching, with Piskunov’s work on the National AI Fund specifically targeting commercialization routes alongside technical skills.
Addressing how Pakistani technology is perceived abroad, particularly in the US and Europe, Piskunov emphasizes that there is no single monolithic perception, but rather distinct viewpoints among investors, corporate buyers, and companies looking to hire software teams. While Pakistan is well recognized—much like India—for producing talented programmers who deliver services to overseas corporations, young Pakistani product companies seeking long-term contracts or investment face rigorous practical scrutiny. Overseas investors immediately raise questions regarding company ownership, contract storage, customer payment mechanisms, talent retention, and future funding rounds. Minor details can quickly turn promising talks into red flags. Piskunov stresses that founders should not misinterpret these commercial inquiries as personal or national judgments, nor should they waste entire meetings arguing against broader political or economic headlines. Instead, founders should bring the conversation back to the actual business, letting investors speak directly to customers to demonstrate real product usage and retention rates. Examining which sectors have the best chance of scaling globally, Piskunov points to software businesses and technology services exporters that have spent years partnering with or selling directly to international clients. This background teaches local teams what customers complain about, where bottlenecks lie, and what clients are willing to pay for solutions. Founders who successfully transition the insights gained from a corporate or services career into a sustainable software product have immense potential, provided they learn which customer requests to turn down so they do not inadvertently end up running a customized services business under a new label.
On the topic of artificial intelligence, Piskunov notes that Pakistan—like the rest of the world—is still finding its niche, especially since global tech hubs are themselves still figuring out where AI is heading. Rather than trying to build a local version of every global AI company, Piskunov advises Pakistani founders to focus on applied AI: identifying specific business processes that are currently too slow or expensive, such as routine document reviews or multilingual customer service operations. If a local company can accelerate or cheapen those processes without increasing errors, it creates a viable business case that can be demonstrated to customers anywhere in the world. Looking at fintech and financial inclusion, Piskunov highlights that Pakistan’s large, rapidly growing population, rising purchasing power, and previously underserved consumer base create an ideal environment for financial innovation, supported in some areas by a less restrictive regulatory environment than found in places like the US. Furthermore, as a Muslim-majority country, Pakistan is uniquely positioned to capitalize on Islamic banking trends, allowing local companies to develop financial products that resonate strongly in domestic markets as well as across the Middle East and Indonesia.
Closing the discussion with advice for regional founders, Piskunov underscores that an idea on its own is worth almost nothing—implementation is everything. Because companies cannot rely purely on grants and corporate financing remains restrictive across emerging markets, entrepreneurs must think carefully about their path to scale before the next funding round. He strongly advises against chasing multiple verticals simultaneously, urging founders instead to secure a product that works and sells exceptionally well to a single customer niche first before attempting broader expansion.
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