Pakistan Start-Up Space Gathers Momentum.

Byline: MURTAZA HASHWANI

The year 2021 saw Pakistani start-ups getting attention from around the world as they collectively raised $365.87 million as opposed to $66.44 million in 2020. There's more money invested in the budding start-up space in Pakistan during 2021 than in the last six years combined. This economic development combined with projected 4.5 per cent GDP growth during the current fiscal year with further 6% expected growth in 2022-23 are all positive signs for the country.

According to McKinsey, Pakistan, home to over 200 million people, is one of the fastest growing economies in the world. With 64% of the population below the age of 30 and 23 being the median age, Pakistan has one of the youngest populations in the world with a growing middle-class. Therefore, it's no surprise that smart phone users are growing substantially as well.

There are still numerous challenges that pose a hurdle to an entrepreneurial mind-set such as security concerns, power shortages and an up-and-coming digital infrastructure. Despite these challenges huge strides have been taken and a lot talent is emerging from the country.

While Pakistan has the right intrinsic drivers to house high-valuation start-ups, the country needs dedicated effort to realize its full potential.

As we contemplate where the 'next big thing' might come from in 2022, it's worth paying close attention to the frenzy of business activity in Pakistan.

The first half of 2021 was truly unprecedented for Pakistani start-ups. According to data compiled by Data Darbaar, total investment into the country's ecosystem topped $125 million across 35 unique deals during this period, almost doubling the total raised in all of 2020 when 48 total deals were completed.

There were also tantalising glimpses of big name VC investors in the country last year, notably Kleiner Perkins leading Tajir's $17 million Series A in June 2021.

Add to this, the recent 'zero' tax announcement by the Prime Minister for freelancers and individuals in the IT industry will also bring more talent to the front. By launching National Tijarat (business) Portal, the government has taken steps to remove barriers for the youth to explore the tech industry. The leadership's vision is for the country to reach $50 billion in tech export in a few years. Not an unexpected task I feel.

So, what's the appeal of Pakistan suddenly? In one word: opportunity.

People have woken up to the fact that Pakistan...