In a significant move to accelerate Pakistan’s innovation ecosystem, the Ministry of Information Technology and Telecommunication (MoITT) held a showcase event for the Pakistan Startup Fund (PSF) at the National Incubation Center (NIC) Islamabad, reaffirming the government’s commitment to supporting local founders and strengthening investor confidence.
Originally launched in early 2024, the PSF, executed by Ignite National Technology Fund, is one of the country’s flagship initiatives aimed at bridging the gap between early stage innovation and venture investment. The fund provides equity free grants to startups, connecting them with global investors, mentors, and accelerators. It also aligns with the government’s Digital Pakistan Vision, which seeks to position Pakistan as a key innovation hub in South Asia and the broader MENA region.
Unlike traditional venture capital programs, the PSF offers non dilutive funding, meaning the government does not take equity or control in participating startups. Instead, the fund complements private capital by covering up to 30% of a startup’s total investment round, typically ranging between USD 50,000 to 1 million. The grant acts as a “last cheque”, unlocking additional investment and de risking early stage funding rounds.
The program is open to startups across fintech, healthtech, agritech, edtech, and e commerce, with applications available on a rolling basis through startupconnect.pk. In addition to funding, selected startups receive mentorship, investor matchmaking, and visibility across global tech platforms.
Speaking at the event, officials from MoITT and Ignite emphasized that the PSF’s hybrid model, part co investment and part grant, is designed to attract diaspora investors and international venture firms to Pakistan’s ecosystem by providing confidence in deal security and regulatory transparency.
In recent years, Ignite has spearheaded several key programs, from establishing National Incubation Centers to backing AI, IoT, and climate focused startups. The PSF now represents the next step in this journey, addressing what many experts call the “valley of death,” the funding gap between idea validation and sustainable growth.
Following a challenging 2023, where startup funding in Pakistan fell 77% to $75.6 million, the ecosystem is finally showing signs of revival. In 2025, total funding in the first half of the year already surpassed 2024’s total, with increased interest from regional venture funds and local angel networks.
Analysts suggest that initiatives like PSF are pivotal to this rebound, offering structured, transparent mechanisms for funding that can encourage both local and international participation. By showcasing success stories and supporting high potential founders, the government aims to reignite investor trust and position Pakistan as a regional startup hub.
The October 8 event at NIC Islamabad drew notable figures from Pakistan’s innovation landscape, including representatives from Digital Nation Pakistan, Tech Destination Pakistan, and multiple incubation programs.
Beyond the financial incentives, the PSF signals a long term national commitment to empowering youth, promoting innovation, and ensuring that Pakistan’s next generation of tech entrepreneurs has the platform and backing to compete globally.