GoPInitiative

Pakistan Startup Fund

1. Introduction

Pakistan Startup Fund - Catalyzing Private Finance and Foreign Direct Investments in Pakistani Startups

The Pakistan Startup Fund (PSF) is a strategic initiative launched by the Government of Pakistan under the Ministry of IT & Telecom (MOITT), executed by Ignite National Technology Fund. PSF aims to strengthen Pakistan’s startup and digital investments ecosystem and accelerate its shift to a knowledge-based economy. By reducing financial barriers and investment risks, PSF will make Pakistan an attractive destination for both domestic and international venture capitalists and investors.

PSF supports early-stage Pakistani startups with up to 30% grant of the total investment round size, to bridge funding gaps and scale operations, fostering innovation and reducing startup risks across sectors and regions.

2.Benefits

  • Non-Equity Grants to Startups
  • Supporting Early-Stage Investments by VCs and Investors
  • Reducing Financial Barriers and Investment Risks
  • Supports Startups across technology sectors and regions of Pakistan

3.How PSF Grants Work / Process Flow

  1. Application Submission by interested and eligible startups as per defined guidelines of PSF.
  2. Initial Scrutiny and Due Diligence to assess basic eligibility, and then due diligence to assess startup’s legal, financial, operational, and technical aspects.
  3. Vetting / Evaluation based on the program’s criteria and investor pitch.
  4. Final Approval of recommended applications.
  5. Grant Agreement and Release of Funds as per agreed disbursement mechanism and availability of funds.

4.Startup Eligibility Criteria for PSF Grants

To qualify for funding from the Pakistan Startup Fund (PSF), the startups must meet the following criteria:

1. Registration and Compliance

  • Incorporation: Must be a legally incorporated entity in Pakistan, with no more than 10 years since incorporation.
  • Tax Compliance: Must be an active tax filer with the Federal Board of Revenue (FBR).
  • Innovation-Driven: The Startup must be innovation-driven or engaged in the development or improvement of products, processes, or services, or must operate a scalable business model with high potential for employment generation or wealth creation.
  • Startups Operations: If part of an international holding company, the startup must operate through a legally incorporated entity in Pakistan.

2. Funding Requirements

  • Private Investment: Must have secured or be in advanced stages of securing private investment (e.g., term sheet, funding agreement or letter of intent) from VCs / investor(s).
  • PSF Contribution: PSF can provide up to 30% of the total investment round size, with grant ranging from minimum US$ 50,000 to maximum US$ 1,000,000.
  • Previous PSF Funding: Startups must not have previously received funding from PSF. However, a previously rejected application can be reconsidered if there are material changes in the circumstances of a startup.

3. Alignment with National Goals

  • Priority Areas: Startups demonstrating high growth potential, scalability, funding raised as part of investment round, and alignment with national development priorities i.e 5 Es of Uraan Pakistan framework and specific objectives (E-Pakistan, FDI attraction, job creation, IT exports).
  • Sector-Agnostic: PSF supports startups from all sectors, with priority given to those showing significant growth potential and contributing to the innovation ecosystem.

4.How to Apply

      Applications for the Pakistan Startup Fund (PSF) will be open on a rolling basis through the Ignite official website.

     For application process and details, please visit:
     https://ignite.org.pk/pakistan-startup-fund/

Digital Economy Enhancement Project (DEEP)

Introduction

The Digital Economy Enhancement Project (DEEP) - a flagship initiative of the Ministry of IT & Telecommunication with the support of World Bank is designed to accelerate the country’s transition toward a modern, inclusive, and innovation-driven digital economy. Under the vision of Digital Nation Pakistan, DEEP will enable and strengthen Digital Public Infrastructure (DPI) for the country, paving the way for the implementation of whole-of-government approach. The project will improve service delivery, regulatory efficiency, and citizen engagement enabling data-driven governance and unlocking the potential of public sector through government-led interoperable Digital Identity, Digital Payments and Data Exchange.

Vision

Strengthening Pakistan’s Digital Future through Efficiency, Transparency, and Inclusion.

Project Objective

DEEP is designed to enhance the Government’s capacity for digitally enabled public service delivery for citizens and businesses.

Project Components

The project is structured across the following core components:

Component 1: Foundational Digital Infrastructure (USD 58 Million)

1a. Policy and regulatory reforms (MOITT): will design policy, governance and regulatory reforms for enablement of the DPI components; and development of key enablers for the whole-of-government approach.

1b. National Data Exchange Layer (NADRA): Providing technology infrastructure, institutional capacity building, digital authentication and operational sustainability for open and trusted data sharing across Government entities.

1c. Digital ID (NADRA): will be designed as a unified ID for the citizens to provide them with increased control over their personal data and records in the digital space.  

1d. National Citizen Services Portal (NITB): will support E2E digitalization of G2P services, with the objective to address the current fragmentation and duplication of public services delivery across country; and to build high-quality digital services and knowledge sharing among provinces.

1e. Civic Innovation (Ignite-NTF): will build the National Open Data Ecosystem, Civic Innovation and Technology Labs, Hackathons to solve the Government challenges for citizens centric services and nationwide Digital Literacy to create tech-savvy citizens and comfortable adoption of technology by Government.

 

Component 2: Digital Business and Regulatory Modernization (BOI) (USD 15 Million)

  • Modernization of regulatory regimes: will establish a catalogue of federal and provincial business RLCOs for simplifying, streamlining, and improving existing regulatory requirements for investing and operating business.
  • Pakistan Business Portal: will act as an interface to host all digitalized and available RLCOs and be the centralised portal for all trade and business-related services.

Component 3: Project Management (USD 5 Million)

  • Program management, coordination, monitoring, and implementation support

Project Outcomes

Upon completion, DEEP will deliver:

•       Improved citizen and business service delivery

•       Enable trusted, interoperable government systems

•       Enable secure and efficient data sharing across government (G2G, G2P, G2B)

•       Institutionalize data-driven decision-making

•       Support digital economic growth and innovation

•       Simplify and digitize regulatory processes to improve ease of doing business

•       Digitalization of RLCOs to facilitate businesses

•       Strengthen sovereign digital capabilities

•       Promote citizen-centric innovation through civic engagement

  •  Build secure, transparent, and accountable digital systems for citizens and businesses 
  •              Develop interoperable systems for digital identity, payments, and data exchange.
  • Inclusive Digital Ecosystem through greater participation of women, SMEs, and underserved communities.

E-Rozgaar

Introduction:

The Ministry of Information Technology and PSEB are leading a transformative initiative to establish 250 e-Rozgaar centers in Pakistan, fostering growth for freelancers and startups. These centers, operating on a public-private partnership model, provide dedicated workspaces and address financial barriers through interest-free loans up to Rs. 10.00 million. Established in every district in collaboration with provincial IT departments, the initiative aims to empower and elevate the digital entrepreneurial landscape in Pakistan.

Objective :

The objective of the Project is to establish 250 e-Rozgaar centers across Pakistan to facilitate freelancers and startups.

 

Locations:

Province spread of e-Rozgaar is based on population of the provinces as well as data 1.2 million freelancers from ignite.

 

KEY INCENTIVES:

The key incentives of this initiative lie in its multifaceted support system aimed at catalyzing the growth of freelancers and startups. 

 

 

https://erozgaar.gov.pk/

 

National Incubation Center

Ignite has established eight (8) National Incubation Centers (NICs) in Islamabad, Lahore, Quetta, Karachi, Peshawar, Hyderabad including, two specialized incubators in Faisalabad (for agritech) and Rawalpindi (for aerospace technologies). Over the last 5 years, these NICs have incubated more than 1300 startups, with more than 660 startups have graduated successfully. These startups have created more than 126,000 jobs, committed a total investment of Rs. 22 billion, and have generated a combined revenue of Rs. 13.85 billion. So far, more than 2,300 women have been empowered through this program. Some promising startups hosted by these NICs have raised significant investments including BYKEA with USD 29 million, PakVitae USD 17 million, Integry USD 4 million, Vceela USD 2 million, DigiKhata USD2 million, and Ezbike USD1 million.

E-File System

E-Office is an application helping the Government departments to go paperless. It is aimed at improving internal efficiencies in an organization through electronic administration.

The physical file movement of official files and documents consumes a lot of time and requires continuous monitoring from desk to the desk before the final decision is made by the senior officials. Consequently, many crucial decisions get delayed due to the slow movement of files and/or unavailability or absence of the senior officials in the government offices. In addition, the hazard of theft and missing of files is also common in most of the government offices. The immediate need in such a scenario is to have a system in place where an authorized employee could locate the required documents and/or files in the shortest possible time.

E-Office is a step forward into an era of paperless administration in the government offices. It is a digital workplace solution that replaces the existing method of manual handling of files and documents with an efficient electronic system. The app can update and share files with other relevant users and eventually store them with proper references. The electronic system has its inherent advantages such as data stored digitally with audit trails for every transaction being done. Regular backups and Disaster Recovery systems (DRS) are in place which ensures that the Government files are not damaged in case of any mishap.

Key Performance Indicators (KPI’s)

  • Active Users 6760
  • DR Poll up to 500 million
  • Up to Rs. 300 million savings on stationary
  • Up to 80% Operating Time-saving
  • Up to 80% increase in efficiency

 

DigiSkills.Pk Training

The Program has conducted are more than 3.36 million. The total trainees comprise 73% males and 27% females. The number of overseas Pakistanis trained in the program is more than 35,000. Exports generated through freelancing services are between 15-20% of total IT exports at present. A parallel exclusive program was also launched for Southern Balochistan" was launched in February 2022 by Ignite in collaboration with Virtual University.