Stirring start-ups

Pakistan remains a lucrative market for start-ups, according to the recently launched World Start-ups Report (WSR). In an attempt to promote local start-ups, the WSR documents the worlds start-up ecosystem, detailing on the local culture, key players, challenges and opportunities.
The report highlights that with no limit on equity (allowing investors to hold 100 percent in a company and with no local partner), and 100 percent repatriation of capital, Pakistan offers one of the most liberal investment policies in the region.
Experts have long highlighted that Pakistan carries enormous potential to reap demographic dividends owing to its demographic structure, with over 50 percent of the population between the ages of 15 and 45. However, the country also offers lucrative markets for investors in terms of being the fourth largest middle class population in developing Asia.
Even within the country, too, this effect has historically been clearly evident in the case of Karachi, which continues to hold investor attention despite continued deterioration in law and order over the years.
Moreover, for start-up opportunities, internet penetration is one of the highest in the region and will be boosted further with the advent of 3G/4G in the country. "Foreign firms are rushing into Pakistan to compete in some of the most easily monetizable parts of the web," says Steven Millward, Editor TechinAsia.
More interestingly, WSRs commodity innovation map for Pakistan suggests potentially rewarding avenues for start-ups, including music-streaming, travels and tours, finance, and domestic transport. Local entrepreneurs are encouraged to seek advice from incubators such as Plan9, The Foundation, and Invest2Innovate, to also participate in start-up competitions. On the other hand, foreign investors should take immediate note of opportunities in Pakistan before local markets get more saturated.
Start-ups provide an excellent route to economic prosperity and development. While a number of start-ups have gained traction in the country over the years, government initiatives towards facilitation and support need to be acknowledged as well. These include support for incubators such as Plan9 and initiatives in the fields of e-governance being spearheaded by the Punjab IT Board. This is a welcome sign on part of the Punjab government; in the post-18th Amendment scenario, other provinces should also step up their efforts in this area.
For a detailed discussion on start-ups, follow our Brief Recording section on Monday where we interview Khurram Zafar, Executive Director of LUMS Centre for Entrepreneurship.