The Pakistan Startup Fund has logged its first 10 applications, with project progress at 24% and a Rs. 3 billion outlay to support early-stage startups with equity-free grants.
Early Progress on a Rs. 3 Billion Flagship Fund
The Pakistan Startup Fund, a flagship initiative of the Ministry of IT & Telecommunication, has started to show early traction, with 10 applications received so far. Official documents reveal that the project carries a total cost of Rs. 3 billion, aimed at providing equity-free, non-dilutive grants to promising early-stage startups across the country.
Cumulative expenditure on the project currently stands at Rs. 132.84 million. For the upcoming fiscal year 2026–27, the proposed budget demand has been set at Rs. 1 billion. Physical progress is reported at 24 percent, while financial progress is at 5 percent, reflecting that the foundations of the program are being laid before large-scale disbursements take place.
Despite the relatively low financial utilisation so far, the early-stage work on governance, systems and outreach is expected to play a key role in making future funding more transparent, targeted and investor-aligned.
Governance, Advisory Committee and Grant Disbursement Strategy
To ensure that public funds are used fairly and effectively, the government has put in place a multi-layered governance structure for the Pakistan Startup Fund. An Advisory Committee of 15 distinguished members has been constituted to provide oversight, strategic guidance and high-level review of the fund’s direction.
A Grant Disbursement Strategy has also been developed through a specialised third-party consultant. This framework is now being implemented to guide how grants are evaluated, approved and released, with a focus on merit, impact and alignment with broader digital policy goals.
A dedicated online platform has been launched to manage rolling applications, giving startups the ability to apply as they reach funding rounds rather than waiting for fixed windows. The 10 applications received so far are currently undergoing due diligence under this structured process.
Bridge Start Pakistan and the Support Ecosystem Around the Fund
Beyond direct grants, the Pakistan Startup Fund is being supported by the Bridge Start Pakistan initiative, which aims to strengthen the wider startup ecosystem. Under this initiative, an Expert Committee has been onboarded to provide technical evaluation and strategic input on pipeline building, sector focus and investor engagement.
Work is underway to map and connect with more than 20 incubators and accelerators for potential collaboration. These partners will help identify high-potential founders, improve the quality of applications and prepare startups to absorb funding effectively.
A key objective is to build stronger linkages between Pakistani startups and investors, both locally and internationally. By aligning public grants with private capital and ecosystem support, the program hopes to increase the chances that funded startups can scale sustainably rather than relying only on one-off injections of public money.
How the Pakistan Startup Fund is Structured for Founders
The Pakistan Startup Fund is executed by Ignite National Technology Fund and was formally launched on January 9, 2024, in Islamabad. It was designed in response to a slowdown in startup funding and a need to attract more foreign direct investment into Pakistan’s digital economy.
Under the initiative, the government has committed to allocate up to Rs. 2 billion annually. The fund is structured as a ‘last cheque’ in an investment round, meaning it contributes 10 to 30 percent of the total investment only after a private venture capital investor has committed funding.
For founders, this structure offers a powerful signal: if they can secure a term sheet from a recognised private investor, the Pakistan Startup Fund can top up the round with an equity-free grant. This reduces dilution for founders, improves the overall round size and makes Pakistan-based deals more attractive to both local and foreign investors.
What the First 10 Applications Mean for the Ecosystem
The initial 10 applications under the Pakistan Startup Fund mark an early test of how well the model connects startups, investors and public support. While the number is still small, it indicates that founders and funds are beginning to explore the scheme as part of their financing strategy.
If the due diligence and approval process runs smoothly, the first few success stories could set an important precedent, showing that equity-free public grants can be deployed in a disciplined, investor-aligned way. Over time, this could help rebuild momentum after the funding slowdown of recent years and position Pakistan’s startup ecosystem on a more stable, institutional footing.
For now, the focus remains on strengthening the operational backbone of the fund, refining evaluation processes and deepening partnerships with incubators, accelerators and investors. As these pieces fall into place, the Pakistan Startup Fund is expected to play a central role in backing early-stage innovation and signalling that Pakistan remains open for venture-backed growth.
