The caretaker government has unveiled plans to establish a ‘Pakistan Startup Fund’ to attract venture capital investment. Additionally, the government aims to introduce next-generation 5G internet by mid-2024, according to the Minister for Information Technology and Telecommunication, Dr. Umar Saif.
Dr. Umar Saif revealed that the interim administration has allocated over Rs2 billion for the creation of this fund, which will be matched by private investors. Furthermore, commitments from venture capitalists are set to provide an additional Rs8 billion in Series ‘A’ financing for startups that graduate from the fund.
This announcement came following a strategic partnership signing ceremony between Habib Bank Ltd (HBL) and the Pakistan Software Houses Association (P@SHA). The Information Minister highlighted that co-working spaces will be established to accommodate around half a million IT freelancers, promoting a conducive environment for tech-driven innovation.Â
He said that the interim administration is working diligently on the project, with the expectation of completing the groundwork before the newly elected administration takes office. The plan also includes the initiation of the 5G auction process.
Dr. Saif acknowledged the contributions of the Special Investment Facilitation Council (SIFC) and mentioned that IT companies are now permitted to retain 50 percent of their revenue in US dollar accounts. Corporate debit cards will also be issued by banks to these companies, facilitating international payments and boosting export earnings.
Muhammad Aurangzeb, President and CEO of HBL, expressed his confidence in the potential of the IT industry as a major driver of economic growth and job creation in Pakistan. He underlined HBL’s commitment to becoming a ‘Technology Company with a Banking License’ and the collaboration’s role in engaging with key stakeholders in the IT, freelancer, software, and gaming industry to provide innovative financial solutions and services tailored to the IT sector’s specific needs.
The government’s initiative to launch the Pakistan Startup Fund and bring 5G internet by mid-2024 is a promising development for the country’s tech and entrepreneurial ecosystem. These strategic steps will undoubtedly foster innovation and economic growth. Thank you for sharing this exciting news about Pakistan’s future in the tech and startup landscape.