Pakistan’s Move to Lure Global Investors Back
- Pakistan is launching a Venture Capital Fund for local early-stage startups, aiming to allocate up to $10 million annually.
- Umar Saif, Pakistan’s Minister for Information Technology and Telecommunications, emphasized the fund’s focus on supporting startups seeking $2 million to $3 million. He envisions this as a catalyst to entice global investors at an early stage.
- The initiative seeks to rejuvenate the fundraising landscape for Pakistani startups, which has experienced a decline from the previous record of $700 million in 2021 and 2022.
- Saif emphasizes that the government’s goal is to give global investors an additional incentive to back young Pakistani companies.
Challenges in Pakistani Startup Fundraising
- Fundraising by the country’s startups has slumped to a fraction of the record $700 million they garnered over 2021 and 2022, according to Invest2Innovate.
- Venture investors pulled back from emerging markets as economies slowed and interest rates and inflation levels jumped.
Umar Saif’s Vision for Pakistan’s Tech Industry
- Umar Saif, a graduate of the Massachusetts Institute of Technology and Cambridge University, is a startup industry veteran.
- He launched a state-backed incubation program in 2012, years before the nation’s startup economy took off.
- He is now part of an interim administration in charge until a February general election.
- Among Umar Saif’s other goals is the introduction of a mandatory internship program for university students.
- Pakistan’s tech industry lags behind other emerging markets partly because a majority of graduates aren’t skilled enough for employment, he said.
Further Initiatives for the Tech Industry
- To further help the tech industry, Saif plans to create a network of offices for freelancers.
- He is also proposing to make Pakistan a hub in China’s project to connect with Africa and Europe through a fiber-optic cable. Pakistan can be used as a base to link Central Asia into the project, he said. 🌐✨
Similar fund: Sai Venture Capital Launches $10 Million Local-Currency VC Fund for Pakistani Startups
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