“Due to collective efforts, we are observing positive trends related to significant reduction in our trade deficit,” says Gohar Ejaz
- Textile shipments increase to $1.43bn in Oct: APTMA.
- Exports in first 4 months of current fiscal year declined by 7%.
- Downward trend in exports continued till September.
KARACHI: Pakistan is set to launch its first-ever venture capital fund denominated in the local currency, aiming to boost the country’s tech sector and support startups. Sai Venture Capital Private, a Lahore-based company, is spearheading this initiative, with plans to raise $10 million primarily from local investors.
According to a Bloomberg report, Ahsan Jamil, the co-founder of Sai Venture Capital, said the fund is currently 40% committed, and it recently received approval from the Securities and Exchange Commission of Pakistan (SECP). Jamil emphasised the importance of local investors, stating, “The ecosystem doesn’t develop until you have local smart capital.” This move comes at a time when foreign funders have shown decreased interest in Pakistan.
Sai Venture Capital has already made investments in companies that provide services to enterprises in developed markets, as well as startups focusing on sectors like health, agriculture, and education. In a related development, Federal Caretaker Minister for Information Technology and Telecom, Dr Umar Saif, has expressed a commitment to attracting funding with the launch of the ‘Pakistan Startup Fund.’ This initiative is expected to draw venture capitalists to Pakistan and foster a vibrant startup culture in the country.
Pakistan Software Houses Association (P@SHA), Chairman, Muhammad Zohaib Khan, quoted Saif as saying that the Ministry of Information Technology and Telecom is actively working on establishing the Pakistan Startup Fund, expected to draw venture capitalists to Pakistan and promote the startup culture in the country. This fund will be established using resources from IGNITE, the National Technology Fund, which is supported by the federal government’s telecom industry revenues.
These initiatives represent significant steps toward encouraging local investment in Pakistan’s tech sector and supporting startups, contributing to the country’s economic growth and technological advancement.
Published in The Karachi Business Forum, November 4th, 2023.
Ejaz said the country is now witnessing economic stabilisation, as the trade deficit squeezed to $7.42 billion in the first four months of the current fiscal year (FY24) from $11.36 billion in the same period of FY23 because imports during July-October 2023 went down to $17.03 billion from $20.91 billion in the same period of 2022. Likewise, exports during July-October 2023 stayed at $9.61 billion, which were at $9.55 billion in the same period of 2022.
Last month, APTMA asked the government to lower the electricity tariffs for the textile sector to make it competitive with regional countries.
APTMA sought an electricity tariff without cross-subsidy of 10.85 rupees per unit being extended to non-productive sectors.
The textile industry is currently paying 16 cents per kilowatt-hour (kWh) for power, which is higher than the tariffs in Bangladesh, India and Vietnam.
