Caretaker IT Minister Dr. Umar Saif inaugurated the Pakistan Startup Fund (PSF) today, marking a significant milestone in the country’s entrepreneurial landscape. The official launch ceremony, attended by domestic and international venture capitalists, diplomats, and prominent tech companies, showcased the government’s commitment to fostering innovation and economic development.
Accompanying Dr. Umar Saif at the ceremony were Secretary IT Hasan Nasir Jami and Ignite CEO Asim Shehryar. Dr. Saif emphasized that the primary goal of the Rs. 2 billion PSF is to expedite venture investment in Pakistan, playing a pivotal role in the nation’s economic growth.
The fund aims to provide crucial financial support to startups, with each venture receiving 30 percent backing from the PSF, while the remaining 70 percent will come from venture capitalists. Dr. Umar Saif stated that the government aims to facilitate and accelerate the growth of innovative ventures through the PSF, creating a conducive environment for startups to flourish.
Highlighting the broader strategy of the IT Ministry to boost the local tech ecosystem, Dr. Saif mentioned that over the past four years, Pakistani startups have attracted approximately $800 million in foreign investments, showcasing the growing global interest in the country’s entrepreneurial landscape.
In a tweet, Dr. Umar Saif stated, “If you are a startup in Pakistan and a foreign VC is evaluating your startup for a $1 million investment, the VC only needs to invest $700k — the Pakistan Startup Fund will give you a grant of $300k to help close the round.” He emphasized that the PSF is designed to lower the risk for international investors, betting on the success of startups without taking equity, shares, or board positions.
“With PSF, we hope to create a value of at least Rs 50 Billion per year in the startup ecosystem in Pakistan,” he added.
During the launch ceremony, Dr. Saif revealed that 8 National Incubation Centers across the nation are supporting more than 4,000 startups. The government is committed to aiding startups in securing funding, with an annual allocation of Rs. 2 billion earmarked to help startups raise a substantial Rs. 50 billion.
The PSF is set to begin disbursing financial support to startups from March 1, providing policy guidelines for venture funds, ensuring investment protection for foreign investors, and enabling significant corporations to invest in Pakistani startups.
