Is Pakistan a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Pakistan has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Pakistan gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Pakistan

Funding is one of the most critical ingredients in building a successful startup – and Pakistan offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding scene for Pakistani startups is navigating a challenging period, despite the presence of active investors and government support. Notable VC firms like Sarmayacar, Fatima Gobi Ventures, i2i Ventures, Indus Valley Capital, and Zayn Capital are key players, often focusing on early-stage rounds. Angel networks such as Pakistani Angels and the Pakistan Business Angel Network (PBAN) also provide crucial early capital and mentorship. The government has introduced initiatives like the Pakistan Startup Fund (PSF) to act as a "last-cheque" investor, aiming to fill funding gaps alongside VC investment. However, the ecosystem faces significant hurdles. Startup funding in Pakistan saw a sharp 70% decline in 2024, dropping to $22.5 million from $75.8 million in 2023, according to Data Darbar. This downturn reflects global economic constraints and Pakistan's own economic risks, which deter international investors. While early-stage deals still dominate, securing later-stage Series A and B funding remains a significant challenge. Other issues include a lack of a standardized startup definition and limitations in the banking sector's willingness to fund startups. Despite these difficulties, there's a push towards local capital and debt financing is also being utilized.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Pakistan has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Pakistan has a rapidly evolving startup and innovation culture, fueled by a large, young, tech-savvy population. Entrepreneurial activity is increasing, with a notable rate of nascent entrepreneurship. Coworking spaces are present in major cities like Lahore, Karachi, and Islamabad, offering flexible workspaces and community for freelancers and startups. The country also hosts various tech events and conferences, bringing together innovators and providing networking opportunities. The ecosystem supports both early-stage and more mature startups through incubators, accelerators, and venture capital firms. While competitive programs exist, there is also a focus on providing mentorship and hands-on support, particularly for early-stage and women-led businesses. Government initiatives and increasing investor confidence are further contributing to the growth of the ecosystem.

For many entrepreneurs, the energy and resources available in Pakistan can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Pakistan, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Pakistan is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Pakistan has a large, youthful population providing a significant talent pool for startups. Numerous educational institutions, including universities like LUMS and NUST, contribute by producing graduates and hosting incubation centers. While there's a strong base in areas like software development, e-commerce, and logistics, there's a developing need for skills in emerging fields like AI and data science. Local talent supports entrepreneurial growth through innovation, addressing local needs, and contributing to economic diversification. Government initiatives and private sector support, including incubators and accelerators, further nurture this talent and the startup ecosystem.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Pakistan can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Pakistan boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Pakistan's startup ecosystem is supported by a growing infrastructure including incubators, accelerators, and co-working spaces across major cities like Islamabad, Karachi, and Lahore. These hubs provide mentorship, training, networking, and sometimes initial funding. Organizations like National Incubation Centers (NICs), Plan9, and Invest2Innovate play a key role in nurturing startups. Government initiatives are crucial. The Ministry of IT & Telecommunication (MOITT) backs programs like Ignite, which established NICs. The new Pakistan Startup Fund (PSF), also under MOITT, aims to co-invest with VCs to help startups raise up to $1 million, acting as a "last cheque" after private funding is secured. Special Technology Zones (STZs) offer incentives like tax exemptions. These resources help startups develop ideas, gain expertise, access funding, and scale their businesses.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Pakistan. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Pakistan Be Considered the Best Place to Launch a Startup?

There’s no doubt that Pakistan provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Pakistan face several significant hurdles. Competition is a major challenge, with both established businesses and a growing number of new ventures vying for market share. Navigating the regulatory landscape is also complex, involving cumbersome processes, tax issues, and compliance requirements that can be difficult and costly for new businesses to manage. While the search results didn't directly address the "cost of living" as a specific barrier for entrepreneurs, the broader economic instability, high inflation, and currency devaluation mentioned can indirectly impact startup costs and access to funding. Additionally, securing early-stage funding and attracting foreign investment remain challenges.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Pakistan or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Pakistan offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash