2,250 startups incubated, only 3 get latest government funding

Islamabad: The government revealed that more than 2,250 technology startups have been incubated across Pakistan since 2017, creating over 185,000 jobs and generating more than Rs36.3 billion in revenue. However, a much smaller number of startups has so far benefited from the latest round of the government’s Pakistan Startup Fund.

The figures show a major expansion of Pakistan’s startup sector, but they also raise questions about how widely direct government funding is reaching young businesses. The government informed the National Assembly that only three startups were selected by the Pakistan Startup Fund for the latest investment grant round.

The government said it provides both financial and technical assistance to startup companies through the Ignite National Technology Fund under the Ministry of Information Technology and Telecommunication.

According to the official reply, eight National Incubation Centres have been operating across the country. These centres provide free incubation services to technology startups, including business guidance, mentorship, shared working spaces, specialised laboratories, legal and financial advice and links with investors and industry.

Since the programme began in 2017, the eight centres have incubated more than 2,250 startups. These businesses have reportedly created more than 185,000 jobs and generated over Rs36.3 billion in revenue.

The startups have also attracted more than Rs34.7 billion in investment from Pakistani and international investors.

The government further disclosed that around 31 percent of the incubated startups are led by women. This means about 700 women led startups have received support through the national incubation network.

Despite these large numbers, the latest Pakistan Startup Fund figures show a much narrower flow of direct grants. The government said that three startups were selected in the last investment grant round.

The Pakistan Startup Fund can provide a grant of up to 30 percent of the total investment round of an eligible early stage startup. The purpose is to help businesses fill funding gaps, expand their operations and reduce the risks faced by new companies.

The government says the fund is designed to support startups that have difficulty attracting enough private investment during their early stages.

Another major funding facility is Ignite’s acceleration programme, under which eligible startups can receive seed funding of up to Rs5 million through acceleration programmes in Islamabad, Lahore and Karachi.

The government is also preparing new programmes for the technology sector. The Spark and Elevate programmes are planned for the financial year 2026 to 27 and are expected to provide grants to researchers, innovators and startups working on technologies linked to the Fourth Industrial Revolution.

Pakistan is also planning to establish a Pakistan Venture Fund during the financial year 2026 to 27. The proposed fund is intended to provide growth stage capital to startups that have already moved beyond incubation and early seed funding but need larger investment to expand.

The country currently has eight National Incubation Centres in Islamabad, Lahore, Karachi, Peshawar, Quetta, Rawalpindi, Faisalabad and Hyderabad.

The government said these centres are spread across the federal capital and all provinces.

Islamabad has one centre, while Punjab has centres in Lahore, Rawalpindi and Faisalabad. The Rawalpindi centre has a specialised aerospace focus, while Faisalabad has an agriculture technology focus.

Sindh has centres in Karachi and Hyderabad, Khyber Pakhtunkhwa has one in Peshawar and Balochistan has one in Quetta.

The government is also establishing a ninth National Incubation Centre in Sialkot, which is scheduled to begin operations in July 2026.

The expansion means that the government wants startup support to reach more cities instead of keeping most technology opportunities concentrated in a few major urban centres.

The government has also established two Centres of Excellence in gaming and animation. These centres became operational in November 2025 and are located in Lahore and Karachi according to one part of the official response, although another section of the response refers to Lahore and Islamabad.

The centres are intended to train young people, provide modern facilities and mentorship and help create startups in gaming, animation and other creative technology fields.

The government says its wider strategy is to create a self sustaining startup ecosystem in Pakistan. The plan is not limited to giving money to startups but also includes training, incubation, acceleration, investment opportunities, technology infrastructure and access to investors.

Artificial intelligence has also been included in the strategy. The National AI Innovation Hub is being developed to support artificial intelligence startups under the National AI Policy 2025. The hub is intended to provide computing and AI infrastructure, structured development opportunities and a marketplace where startups can display and sell their AI based solutions.

The government says the overall aim is to help Pakistani startups grow from small new businesses into companies capable of attracting investment and competing in international markets.

However, the figures also show the difference between the number of startups receiving incubation support and the number receiving direct financial assistance through the latest Pakistan Startup Fund round.

More than 2,250 startups have passed through the eight incubation centres since 2017, while only three startups were selected for the latest Pakistan Startup Fund investment grant round disclosed in the official reply.

The government maintains that its funding system includes several different programmes and that the Pakistan Startup Fund is only one part of the wider startup support structure.

For young entrepreneurs, the availability of funding remains a critical issue because a new business may have an idea and a trained team but still struggle to obtain the money needed to develop a product, hire workers and enter the market.

The government’s reported figures suggest that the incubation programme has already produced significant economic activity, with more than Rs36.3 billion in reported revenue, Rs34.7 billion in investment and 185,000 jobs.

The next challenge will be to ensure that more startups can move beyond incubation and early stages and obtain the investment needed to become larger and sustainable businesses.

The government has said its planned Pakistan Venture Fund, new grant programmes, acceleration support, artificial intelligence infrastructure and expansion of incubation centres are intended to address this gap.

The information was provided in response to a question by Ms Shahida Rehmani, who asked the Minister for Information Technology and Telecommunication whether the government had provided financial or technical assistance to promote startup companies, how many startups had received support, what results had been achieved, whether incubation centres had been established in the provinces and what strategy was being followed to promote the startup ecosystem.

The matter was raised in the National Assembly during its 29th session.