Despite all the hurdles and financial constraints put forth by the government, the start-up economy of Pakistan has thrived. Securing $280 million through investments for the first half of the year alone is an accomplishment that deserves to be celebrated. It signifies the presence of innovation that drives businesses and the is a testament to the potential that Pakistan has even in times of immense economic strife. The job of the government now is to support these infant companies through strategic policies that will bring in much needed revenue in the future.
The $280 million secured was primarily through e-commerce, fintech, healthtech, agritech, edtech and supply chain. Evidently, technological developments and innovation is our forte since it attracted majority of the investment from national and international sources. If these businesses continue to experience success at such scales, then the scope for modernising the entire economy of Pakistan will expand tremendously. They have the potential to bring us into the modern era and provide sources of revenue through exporting their goods and services.
Despite riding the wave of financial insecurity in the country successfully, founders have expressed concerns about how investor confidence is lost and harsh policies by the government threaten the survival of majority of these startups. Rising inflation, increased oil prices, dollar appreciation combined with tempered growth expectations and limited investments all take away from their overall growth.
Acknowledging their importance for the future of the country, the government must implement policies that aid startups and remain consistent through time. Giving direct grants, low-interest loans, injecting venture capital and promoting their demand are just a few ways through which they can provide enough of a platform to these businesses that they do not go under. These measures may also not be a major burden on the economy considering that the potential for return is immense.