In recent years, there has been strong growth in start-ups in Pakistan. According to the Security and Exchange Commission of Pakistan (SECP), the country has moved up in the World Bank’s Ease of Doing Business Index for the second consecutive year since 2019, going from 130th to 72nd in the ‘Starting a Business’ category.
Over the past few years, Pakistan has seen many start-ups and a boom in various branches of industry. This includes textiles, construction, IT and the cement industry.
How exactly have Start-Ups Boomed and Flourished during a Period of Pandemic?
Pakistan is one of the eight fastest growing economies in the world. This growth has come about as a result of the structural reforms started by the current government and the flagship project of the Belt and Road Initiative (BRI), the China-Pakistan Economic Corridor (CPEC).
Small and medium-sized enterprises in Pakistan account for 90% of economic growth, but despite this they only take up 7% of the credit provided by the financial sector. Large scale manufacturing industries have also reached a 16-year high level of growth: 14.85% in the financial year 2021. This growth has equally been encouraged by the government’s new policies which have led to expansion in sectors such as textile, construction, food, tourism, and automotive.
Would you like to invest in Pakistan? We can help you to locate your business here. Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan
Support for Start-Ups in Pakistan
Regulatory bodies have collaborated with each other to enable an omni channel for company incorporation services. This means that they can provide services from start to finish, from incorporation to liquidation. This gives clients a unified experience where they can obtain all the services their company might need in one place. The Board of Investment of Pakistan is encouraging both local and foreign investors and providing opportunities for them to play significant roles in enabling entrepreneurs to boost the ease of doing business. In general, Pakistan provides an optimal environment for the prosperity of small businesses and multinational companies alike, as it provides low-cost factors of doing business, explain the Ecovis advisers. 55% of the total population of 220 million is under 30 years of age. This ensures that labour is readily available in various skillsets. The workforce is also very diverse, ranging from high-skilled technical resources to low-cost labourers. The fast-growing logistics sector ensures that distribution channels are always connected, providing a smooth service from start to finish.