In a major move to revitalize Pakistan’s startup ecosystem, Telenor Pakistan, Invest2Innovate (i2i), and the Special Technology Zones Authority (STZA) have jointly unveiled a strategic policy document titled “Closing the Funding Gap for Startups in Pakistan.” The policy brief was officially launched at an event held at Telenor Pakistan’s 345 headquarters in Gulberg Greens, Islamabad. This collaborative initiative has been backed by key partners including Telenor Velocity, Ignite, and Visa.
The Pakistan Startup Policy Brief presents a detailed reform roadmap designed to unlock local and international capital, foster innovation, and fuel long-term growth within the country’s entrepreneurial landscape. The document focuses on four critical areas for reform: regulatory and tax restructuring, expansion of flexible funding instruments, creation of exit pathways through capital markets, and the development of a stronger support ecosystem for entrepreneurs.
These proposed interventions are aimed at addressing the sharp decline in startup investment seen in recent years. While Pakistan’s startup funding had surged to a record USD 355 million in 2022, it has since plummeted by 88 percent by 2024. This steep drop underscores the urgent need for a robust and targeted policy environment to attract sustainable investment and ensure consistent growth across sectors like fintech, logistics, e-commerce, and mobility.
Among the dignitaries present at the launch event were Syed Nadir Hussain Shah, Project Director IT & Telecom, Special Investment Facilitation Council (SIFC); Khurrum Ashfaque, CEO, Telenor Pakistan; Sarah Munir, CEO, Invest2Innovate; Hamza Saeed Orakzai, Chief Market Development Officer, STZA; Bilal Abbasi, General Manager, Ignite; Zeeshan Khattak, Commissioner, SECP; and Ali Aamir, Head of Government Engagement, Visa Pakistan.
Khurrum Ashfaque of Telenor Pakistan emphasized the critical nature of funding for startups, noting that timely and flexible capital allows young companies to scale operations, engage global investors, and contribute meaningfully to Pakistan’s digital economy.
Syed Nadir Hussain Shah from SIFC highlighted the brief’s alignment with Pakistan’s broader economic agenda, reinforcing the government’s commitment to enabling tech-driven entrepreneurship through collaborative institutional support.
Sarah Munir of Invest2Innovate pointed out that addressing Pakistan’s funding gap requires more than just capital inflows. She stressed the importance of building institutional trust and creating a foundation that encourages both domestic and global investors.
Speaking on the occasion, Hamza Saeed of STZA reiterated the value of public-private partnerships in promoting technological innovation. He noted that STZA’s ongoing efforts are focused on shaping policy mechanisms that enable startups to drive economic development through job creation and human capital investment.
The launch of this policy brief is a critical inflection point for Pakistan’s startup ecosystem. It symbolizes a growing consensus among government agencies, private corporations, and innovation enablers to work together in closing the capital gap that currently hampers the growth of tech-led businesses. As Pakistan aims to become a regional leader in digital entrepreneurship, this collaborative initiative sets the stage for actionable reform and renewed investor confidence.
