The IT minister inaugurated the “Pakistan Startup Fund” of Rs. 2 billion.
The Pakistan Startup Fund (PSF) was publicly launched by Dr. Umar Saif, who is the caretaker IT minister. Venture capitalists, diplomats, and top tech companies from around the world were there. The Rs. 2 billion fund is meant to speed up venture capital investment in Pakistan and be an important part of the country’s economic growth.
Hasan Nasir Jami, Secretary of IT, and Asim Shehryar, CEO of Ignite, joined Dr. Umar Saif at the event. The minister made it clear that the PSF’s main goal is to speed up venture capital investment by giving startups a lot of money. Every project that the PSF backs will get 30% of its money from the fund, and the other 70% will come from venture funders.
Dr. Umar Saif said that the government wanted to use the PSF to help encourage the growth of new businesses in Pakistan. This project not only gives money to startups but also tries to make the setting good for them to do well. As part of its larger plan to improve the local tech ecosystem, the IT Ministry is working hard to give IT startups tools and help.
Dr. Umar Saif talked about how successful Pakistani companies have been by saying that they have received about $800 million in foreign investments over the last four years. This shows that people around the world are becoming more interested in the country’s business scene.
The Caretaker Minister said in a tweet that a foreign venture capitalist only needs to spend $700,000 in a Pakistani startup in order to decide whether to invest $1 million. To help finish the funding round, the PSF will give a grant of $300,000. It’s important to note that the government won’t have any equity, shares, or board positions in the startup. This shows how important the PSF is for lowering the risk for foreign investors and helping Pakistani startups succeed.
Today we launched the Pakistan Startup Fund (PSF) which will invest up to Rs 2 Billion every year in Pakistani startups. The fund is structured as an equity-free capital to help close a VC round for a startup. PSF is designed to help a startup raise its first external investment.… pic.twitter.com/I0CGdZ9Js1
— Umar Saif (@umarsaif) January 9, 2024
The Caretaker IT Minister said at the opening of the Pakistan Startup Fund (PSF) that the fund’s goal is to add at least Rs 50 billion to Pakistan’s startup ecosystem every year. The minister said that more than 4,000 startups are getting help from eight national incubator centers across the country.
With an annual budget of Rs. 2 billion, the government is committed to helping startups get funds. This includes helping them raise a substantial Rs. 50 billion. According to the minister, this fund is very important because it helps startups get money. He also said that the government is committed to making Pakistan a good place for new businesses to grow.
It is planned that the PSF will begin giving money to startups on March 1. These rules will help venture funds make decisions, protect foreign investors’ money, and allow big companies to put money into Pakistani startups. This strategy plan is likely to have a positive effect on the startup ecosystem in the country by promoting growth, innovation, and investment in the business world.
