ISLAMABAD: Rupees two billion have been allocated for the Pakistan Startup Fund, aiming to enhance venture capital investment within the country.
According to an official from the Ministry of IT, this fund will provide financial assistance to startups, with each receiving 30% backing, while venture capitalists will contribute the remaining 70% of the capital. It is anticipated that this initiative will significantly contribute to Pakistan’s economic growth.
In addition, to stimulate mobile phone production domestically, the government has introduced a 3% Research and Development (R&D) incentive for the local handset manufacturing industry. This incentive is intended to boost the industry’s global competitiveness in terms of pricing.
The government also plans to implement a strategy for manufacturing components within Pakistan, thereby making locally produced phones more affordable compared to imported ones through a tariff-differential policy.
Highlighting the potential of Pakistan’s cellular market, the official stated that country ranks as seventh-largest market for cellular users globally, with 191 million cellular connections.
However, despite the vast market, the majority of mobile phones are imported. The official emphasized the need to establish local manufacturing facilities to produce phones domestically and develop an industry for exporting “made-in-Pakistan” phones.
