The Caretaker IT Minister officially inaugurated the Pakistan Startup Fund (PSF) with a substantial investment of Rs. 2 billion.
In a landmark ceremony attended by domestic and international venture capitalists, diplomats, and leading tech companies, the Caretaker IT Minister officially inaugurated the Pakistan Startup Fund (PSF) with a substantial investment of Rs. 2 billion.
The launch event, graced by Secretary IT Hasan Nasir Jami and Ignite CEO Asim Shehryar, marked a pivotal moment in Pakistan’s commitment to fostering innovation and boosting economic development through strategic investments in the burgeoning startup ecosystem.
Caretaker IT Minister, during his address, emphasized the primary objective of the PSF: to expedite venture investment within the country. He underscored the fund’s pivotal role in the economic development of Pakistan, outlining its commitment to providing critical financial support to startups. Each venture supported by the PSF is slated to receive 30 percent of its funding from the fund, with the remaining 70 percent sourced from venture capitalists.
The minister expressed the government’s keen interest in facilitating and accelerating the growth of innovative ventures in Pakistan through the PSF. Beyond financial backing, the initiative aims to create a conducive environment for startups to flourish.
Caretaker IT Minister highlighted ongoing efforts by the IT Ministry to provide facilities and support to IT startups, forming a crucial part of the broader strategy to enhance the local tech ecosystem.
Over the past four years, Pakistani startups have garnered approximately $800 million in foreign investments, a testament to the growing global interest in the country’s entrepreneurial landscape.
Minister took to Twitter to share additional details, stating, “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 reassured startups that the PSF would not take any equity, shares, or board positions, emphasizing its role in lowering the risk for international investors. Minister expressed confidence in the success of Pakistani startups, betting on both entrepreneurs and VC investors to drive their success.
“With PSF, we hope to create a value of at least Rs 50 Billion per year in the startup ecosystem in Pakistan,” he added, underscoring the fund’s ambitious goals for fostering economic growth and innovation.
During the PSF launch ceremony, the minister revealed that 8 National Incubation Centers across the nation are currently supporting more than 4,000 startups. He reiterated the government’s commitment 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 fund is set to commence disbursing financial support to startups from March 1, providing policy guidelines for venture funds, ensuring investment protection for foreign investors, and enabling prominent corporations to invest in Pakistani startups.
The launch of the PSF marks a significant step towards creating a thriving and sustainable startup ecosystem, positioning Pakistan as an attractive destination for both local and international investors seeking innovation and economic growth.