Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja formally inaugurated The Innovation Hive at United States Educational Foundation in Pakistan in Islamabad on Monday, alongside US Embassy Chargé d’Affaires Natalie Baker. The ceremony was attended by STEPI Pakistan chief executive officer Dr Mazhar H Qureshi and USEFP Alumni Affairs Director Mazhar Awan, marking the formal launch of a space designed to give Pakistani entrepreneurs direct access to American mentors, technology, and investment networks.
Baker described the initiative around a simple premise, that talent exists everywhere in Pakistan and just needs a place where opportunity can find it, framing the partnership as reflective of a broader vision for America’s relationships abroad to deliver more trade, more investment, and more prosperity for both countries. She added that over its first year, the Innovation Hive would connect more than 250 American mentors with entrepreneurs at every stage, with the US government investing directly to support top Pakistani entrepreneurs.
Khawaja described the Innovation Hive as not merely a building or an office, but a strong bridge that would provide Pakistani entrepreneurs with direct access to the US market and investors without having to leave the country. She noted that the US remains Pakistan’s largest export market, accounting for around 20 percent of the country’s total exports during fiscal year 2025-26, with bilateral trade exceeding 8 billion dollars in 2025. Under the Pakistan-US trade agreement reached in July 2025, US import duties on IT services, textiles, and other sectors were reduced, and Pakistan, as a goodwill gesture, abolished its five percent Digital Services Tax.
Khawaja shared figures placing this launch within Pakistan’s broader startup trajectory, noting that the combined enterprise value of Pakistan’s VC-funded startups has exceeded 4 billion dollars, with startups raising 74.2 million dollars in funding during 2025. Funding for startups founded or co-founded by women rose sharply over the same period, climbing from 5.5 million dollars in 2024 to 10.1 million dollars in 2025. She also referenced existing government-backed infrastructure the Innovation Hive now complements, including nine National Incubation Centres through which Ignite has supported more than 2,350 startups and created over 185,000 employment opportunities, the Pakistan Startup Fund’s role restoring US investor confidence by offering funding covering up to 30 percent of an investment round without taking government equity, and the Special Technology Zones Authority’s 10-year tax and customs incentives for technology and AI companies.
Closing her address, Khawaja told entrepreneurs that the US market they want to reach is no longer across the ocean, since its address is now in Islamabad, describing the bridge as reflecting the shared commitment of both countries. At the conclusion of the ceremony, the minister toured various sections of USEFP and was briefed on the organisation’s broader activities, extending decades of USEFP work helping Pakistani students access American educational opportunities into this new entrepreneurial and commercial dimension.
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