With a population of 220 million people, Pakistan is one of the fast-growing economies in Asia. This growth has come about as a result of growing startups in Pakistan. According to the Security and Exchange Commission of Pakistan (SECP), the country has made progress in the World Bank’s Ease of Doing Business Index for the second consecutive year since 2019, going from 130th to 72nd in the Starting a business category.
Over the years, Pakistan has seen many start-ups and a boom in various branches of industry, including textiles, construction, IT and the cement industry. Pakistan’s economy has been suffering through rising inflation, supply chain shocks and high energy prices for the last few years.
Still, the startup sector has maintained to turn out to be the silver lining for the country in these difficult times. COVID-19 was proved to be a catalyst for the startup landscape in Pakistan, showing a rise in investment from $65m in 2020 to $350m in 2021.
Extended lockdowns and quarantines allowed entrepreneurs to create digital products with a human impact. These initiatives have created a supportive startup ecosystem in which businesses can flourish. According to a United Nations study, Pakistan still needs at least 1.3 million jobs to be added every year. The startup industry plays a pivotal role in creating job opportunities.
Initiatives should be taken to develop incubators and an environment where entrepreneurs are encouraged to build unique startups. A developed startup industry can improve a country’s economy by providing job opportunities to a growing population.
The government plays a key role in developing a nurturing entrepreneurship ecosystem in the country. However, there is a dire need to develop sector-wise incubation centres and sector-specific funds to initiate startups in every economic sector. The promotion and facilitation of entrepreneurial culture in society is inescapable for the prosperous future of our coming generations.
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