Start-Up Ecology of Pakistan

As per the “Global Startups Ecosystem Index 2021”, Pakistan ranked 75th in the world and 2nd in South Asia. This
growth was the culmination of the increase in entrepreneurship in the cities of Pakistan. Lahore is the highest-
ranking city according to multiple reports (257th globally and 4th in South Asia). 8 cities in Pakistan have a global
ranking.

In the first half of 2021, Pakistan's startup ecosystem saw a robust growth, with total investment inflow of over
$120 million across 35 deals. This figure is significantly higher than the $66 million across 48 deals recorded in
2020.

The e-commerce sector's robust performance in the recent years especially due to Covid, has caused a rippling
effect in the industry. In 2021, record funding of $ 42 million (4 times greater than in 2021) marked a shift from
the dominance of the logistics and transport sectors to the e-commerce sector. Fintech was also a key player in
the market and gathered almost $ 32 million in 2021. This year various global investors such as Kleiner Perkins
entered the Pakistani startup market. The below table lists some key start-ups in Pakistan.

Start-Ups
Success Stories On the way to success
 Mangobaaz  Bazaar Technologies
 Daraz.pk  Dastgyr Technologies
 Rozee.Pk  YPay Financial Services
 Bykea  Tajir
 Golootlo  Retailo
 Zameen.Pk  SalesFlo
Pakistan is a growing economy with a booming start up ecology. Below we will highlight a few major problems
being faced by entrepreneurs and their starts ups.

Economic Conditions Lack of knowledge Government Policies Lack of Information

•Uncertainty •Lack of capital •Intellectual Property •Low quality of data
•High Risk •Poor execution of vaguness •Difficulty starting
•Lack of trust strategy •Unsupportive Policies •Lack of incubators
•Security Concerns •Lack of expertise •Intellectual property •Low market
integrations

Despite the challenges faced, the attitude towards start-ups is changing at a macro level with the government
introducing the Ehsaas Policy for Start-Ups. This will help in boosting the ecosystem by encouraging the ease of
doing business, innovation and entrepreneurship by increasing incubation centers (general and specialized),
setting up of a Rs. 10 billion fund for incubators, international payment options and tax exemptions. The micro
environment is also growing supportive of this ecosystem.

There is a long way to go for the start-up ecology to develop fully but it is on the right track. The future
prospects look bright for new entrepreneurs to follow their dreams and leave a mark on society.