2021 will prove to be standout year for startups in Pakistan

Pakistan saw a whooping $330 million come into the country in the form of investment into tech startups in 2021, which may lead to a boom of homegrown industries over 2022 and beyond.

In reaction to the outstanding numbers, Prime Minister Imran Khan and other public officials have been quick to congragulate the entrepenuars on Twitter, in manner taking some degree of credit for the success. The federal government has arguably played a part in faciliating the development of the tech sector in the country through the introduction of special economic zones.

The premier last month had inaugurated Lahore Technopolis, a special economic zone designed to incentivize the tech industry and aid businessmen. PM Imran at the time compared Pakistan’s industry to tech giants like Amazon and Google, wherein he said that all industries faced a slump during the pandemic but tech ventures multiplied their profits. He asserted that a tech boom would help offset the account deficit faced by the country.

One of the most noteworthy injections of capital to a tech company came to Swvl, which was originally Eygpt-based, but found strong fiscal footing in Pakistan in 2021.

However, there is no hard data to whether government influence played a major role in the investments. There have been independent efforts to elevate and support local startups in the country. Media companies like FilmNigaar, argo-companies like Agriculture Republic, and service provides like Bellboy aim to achieve the same level of local success as Pakistan’s leading tech business like Foodpanda and Careem through these investments.

It is likely that the boom will continue, as Dawn reported a number of companies like Sequoia and Andreessen Horowitz are aiming to invest in Pakistan. Moreover, the local manufacturing of smartphones may also bring in capital from existing mobile companies.