Recognizing the importance of a strong Startup friendly eco system in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has published a comprehensive Position Paper aimed at fostering a supportive start-up ecosystem in the country. The paper seeks to gather feedback from stakeholders and highlights the critical role of start-ups in driving economic growth and innovation. The paper provides a glimpse into successful start-ups in Pakistan, outlines the importance of a robust start-up ecosystem, and identifies key factors that hinder its development.
The Position Paper delves into various aspects of the start-up landscape, including a comparison of definitions of start-ups adopted in Pakistan and internationally, an overview of the start-up financing life cycle, and the funding status of start-ups over the past four years. It also reviews the regulatory facilitation provided by the SECP and presents case studies from international jurisdictions where start-ups have significantly contributed to economic growth. By addressing the challenges faced by Pakistan’s start-up ecosystem, the paper opens avenues for constructive dialogue aimed at bridging existing gaps.
To streamline the start-up ecosystem, the paper proposes several consultation avenues, including the establishment of a unified definition of start-ups across key institutions, the creation of a government-backed fund to enhance liquidity, and the introduction of tax reforms to attract private equity and venture capital investments.
