PAKISTAN
EMERGING MARKET & BEYOND
“ With faith, discipline, and selfless devotion to duty, there is nothing worthwhile you cannot achieve.” - Muhammad Ali Jinnah
Pakistan is home to about 200 million people and is one of the fastest growing economies in Asia. As the country continues to develop, an additional 2.1 million middle-income households are expected to be established by 2025.
Connectivity is also increasing with the number of 3G/4G subscribers rising four-fold in the last three years and demand for digital services clearly expanding – the country’s e-commerce market beat analysts’ predictions to cross the US$1 billion mark in 2018. Consequently, startup activity has surged as businesses emerge to satisfy unmet demand across the country.
The government has taken the lead by building national and provincial incubators, introducing a three-year tax relief and creating regulations to allow local venture capital (VC) firms and investors to set up shop in the country. The private sector is following suit, with the emergence of incubators and accelerators supported by foreign organizations such as Google’s Nest I/O in addition to new, local VCs
Population [divided by age]
0-14 years: 36.01% (male 42,923,925 / female 41,149,694)
15-24 years: 19.3% (male 23,119,205 / female 21,952,976)
25-54 years: 34.7% (male 41,589,381 / female 39,442,046)
55-64 years: 5.55% (male 6,526,656 / female 6,423,993)
65 years and over: 4.44% (male 4,802,165 / female 5,570,595) (2020 est.)
Household consumption accounts for ~80% of Pakistan’s GDP and consumer spending is projected to grow at ~15% in the coming years driven by the expanding middle class.
Between 2015 and 2025 a report by McKinsey projects Pakistan will have an additional ~700,000 high-income and 2.1 million middle-income households. Other sources also support this trend. For example, according to a recent government-led survey, the percentage of people living below the poverty line has halved in the last ten years.
Entrepreneurship in Pakistan is already on the rise, reflecting a broader global trend and increased digital consumption within the country. Since 2010, ~720 startups have been established (67% still active) with ~100 successfully raising funding.
Some of the biggest funding deals in Pakistan have taken place in recent years, highlighting the vast opportunity for local startups and increased investor focus on a country that is still yet to produce its first high-valuation startup