Pakistan is rapidly moving towards the digital economy. The importance of the digital economy is not unknown to Pakistani citizens, however, the government is showing keen interest in developing the future of digital Pakistan as well.
In a new report, Pakistan is swiftly developing frameworks to expedite the startup ecosystem and streamline investment in Pakistan. Furthermore, investors are the prime focus of this new framework to encourage competition and innovation throughout.
What is causing a boom in the digital economy of Pakistan?
As the internet accessibility is becoming prevalent in rural and urban areas of Pakistan, millions of consumers have joined the online customer-base for startups to compete in. Moreover, various startups have already secured millions of dollars in seed funding, grants, angel investments, and venture capital investments.
It is to be noted that Pakistan is a problematic country in various domains. There is an abundance of problems in daily lives for citizens. Nevertheless, as bad as it may sound, it also opens up the possibility startups have hundreds of problems they can solve. Consequently, new companies are being formed every single day, especially in the urban cities of Pakistan.
What is the main focus of startups in Pakistan?
These companies vary in operations, however, most of them focus on developing solutions in the domains of entertainment, services, digital media, advertisement, and so on. This trend of startups is not recent, however. Many companies such as Careem have become a success story of how Pakistani consumer base is becoming more and more accommodating to new services. Careem is a ride-sharing platform where thousands of riders from Pakistan are earning their livelihood. Furthermore, many Pakistanis are using the service on daily basis.
Read Also: MIT backs VR Startup from Pakistan.
Pakistanis are still reluctant.
When it comes to financial markets, Pakistan has been a bit reluctant in the adoption of such systems. A primary factor of this mistrust comes from the fact that most of the population deems digital currency as being insecure and intangible. Moreover, many of them still prefer having cold-hard cash as a choice.
But the Pakistani authorities are realizing this and creating policies for online financial instruments as well. Whether these policies are competent or not, it is highly subjective. Regardless, it is still a positive notion to see lawmakers in acceptance of the modern utilities available.
As of now, Pakistan is moving towards a digital economy with no signs of stopping. The investment from local and foreign companies is constantly bringing out new ideas and breeding innovation in the Pakistani market.
Read Also: Google and UNICEF invest in a Pakistani startup.