Islamabad, Apr 6, 2025: In the first quarter of 2025, Pakistani startups managed to secure just $196,000 in disclosed investments, spread across a single public deal, as per the latest insights from Invest2Innovate.
While three companies—Chrio, BusCaro, and Qist Bazaar—were involved in signed funding agreements, only the deal with Qist Bazaar was publicly revealed.
Bank Alfalah Limited contributed Rs. 55 million (approximately $196,000) to Qist Bazaar as part of a broader Series A round.
The overall investment landscape remained subdued during the early months of 2025.
This cautious environment was primarily driven by the country’s struggle to obtain the IMF’s approval for the second $1 billion installment of the $7 billion Extended Fund Facility (EFF).
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However, a major development came in the form of a Staff-Level Agreement (SLA) signed with the IMF, along with another SLA for a new $1.3 billion climate resilience loan.
These agreements could potentially restore investor trust and trigger renewed interest in the Pakistani startup space in the upcoming quarters.
Positive Developments in the Ecosystem
Meanwhile, Dubai-based Yango Group, a technology company active in Pakistan’s ride-hailing sector, announced a $20 million venture capital fund aimed at early-stage startups across regions including Pakistan, MENA, Sub-Saharan Africa, and Latin America.
This marks a significant step toward enhancing innovation and encouraging cross-border entrepreneurship.
Another promising initiative came from the collaboration between Abhi (YC S21) and TPL Corp, which launched ABHI Microfinance Bank.
This institution aims to improve financial inclusion, particularly for underserved communities, by promoting digital banking solutions and supporting small-scale businesses.
Challenges Remain, But Optimism Grows
Despite the progress, numerous obstacles continue to hinder the startup environment in Pakistan.
These include unpredictable regulations, scarce local investment, and ongoing economic volatility.
The underdevelopment of venture capital and private equity avenues further limits foreign investor participation.
Nevertheless, there is cautious optimism for a rebound in the latter half of 2025.
With improving macroeconomic indicators, possible interest rate cuts, and heightened regional investor attention, Pakistan’s startup landscape may begin to recover.
Going forward, the focus must shift toward regulatory reforms, encouraging local investment, and forming strategic collaborations to create a more vibrant funding ecosystem.
