In a bid to reignite interest from global investors, Pakistan is initiating a venture capital fund specifically for early-stage startups. Dr. Umar Saif, Pakistan’s Minister for Information Technology and Telecommunications, revealed in an interview that the fund plans to allocate up to $10 million annually. Targeting startups aiming for $2 million to $3 million in funding, the initiative aims to attract additional global investment to support emerging Pakistani companies.

As the country’s startup fundraising witnessed a significant drop from the peak of $700 million in 2021 and 2022, the government is taking steps to incentivize global investors. Invest2Innovate reports a sharp decline in startup fundraising amid economic slowdowns and increased interest rates and inflation levels, leading venture investors to withdraw from emerging markets.

As a startup industry veteran especially with his work at PITB, and now part of the interim administration, Dr Saif emphasizes Pakistan’s proactive approach to attract global investors at the early stages of startup development. 

Dr Saif, who launched a state-backed incubation program in 2012, aims to bolster Pakistan’s tech industry by introducing a mandatory internship program for university students and creating a network of offices for freelancers. These initiatives aim to address skill gaps and further support the growth of the country’s startup ecosystem.