Future of Tech Startup in Pakistan


What a change just few years can make. In less than two years, Pakistan’s tech sector has grown from an early stage to a competitive one. Investment levels are rising at an extraordinary speed. The largest single private fundraising round in Pakistani history, $85 million was raised by Airlift Technologies in 2021, which led to an amazing $200 million being invested in the startup ecosystem of the nation. Even more amazing were the investment figures from the previous year, when Pakistani companies raised around $375 million, surpassing the sum of the prior six years. The fundraising effort is already on pace to break previous records this year.

The rapid change brought in investment of Pakistan’s ecosystem by few primary factors.

Financial services:

Pakistan is one of the world’s countries with the largest percentage of adult population without access to a bank account. Just a third of the more than 3 million SMEs in the nation have access to loan lines. Cash continues to be the most popular and widely utilised form of payment. Consumers pay for everything using cash, from small costs like eating out to larger ones like shopping for food and clothing. Even in huge corporate transactions, cash is still used.

At the same time, almost 85% of people currently have a cell phone. Internet usage is also increasing quickly (from 22% in 2018 to 34% in 2020). The great majority of people, including the unbanked and millions of underserved SME enterprises.

Of course, there are still problems. We must overcome widespread ignorance and poor levels of financial literacy in order to deliver digital banking and financial services. Even for those familiar with solutions, there remains a sizable trust gap. Many consumers still choose to pay their electricity bills via bank because they prefer a paper payment receipt to a digital one.


The tech industry in Pakistan has surprisingly taken off after years of underachieving its promise and trailing other growing economies. It also shows no indications of slowing down. In First quarter of 2022, raising $177 million during 3 months’ time span was an incredible movement. Huge number of international investors take part in growing local investor base and leading the industry.

In the start of 2022 Pakistan’s Startup businesses started taking over and is made up of ideas, visions, planning, proper marketing and then success.

In 2021 according to the insights $352 millions were raised, this amount is exceptional in a 7-year context: since 2015, Pakistan’s startup have in total raised $563.5 million. These numbers already said it all, what’s the future startup beholds.

Pakistan has a sizable network of support organizations such as startup incubators, for young startups it is a positive sign to start working on it now, some shortcomings have seen in the market, one of them is not able to take first step providing a platform for them to understand how it works. Consultation should be provided to them so they can start working on their goals.


Pros of working for a Startup is it provides opportunities to learn within flexible hours. Startups helps you grow in different ways, whether its financially or morally it helps you provide deep understanding of global businesses and helps you grow by investing


Taxation is one of the biggest concerns for startups and young entrepreneurs. There are generally two areas in taxation as point of concern a lack of clarity in terms of sector specific taxation policies and concerns around taxation on capital gains in the case of exits.


One of the first tax benefit for entrepreneurs’ is deducting a home office, this tax comes with perks that you can avail your time properly, you don’t have to go through 9 to 5 grind. But many entrepreneurs don’t take advantage of it because they don’t know much about it.

Another benefit that comes with startup is reduce your taxable income by saving for retirement, again the key is to making the most of this benefit will involve a proper reading fine print but it’s definitely worth it.

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