Pakistani startups hope for revival of funding storm after IMF deal

ABC CEO Khurram Schehzad stated:

“This drop in funding was in line with the global slowdown coupled with the domestic macroeconomic crisis. The parity problem between the rupee and the dollar, sluggish industrial activity and high inflation created a context where investors chose to stay on the sidelines rather than put their money into risky start-ups.”

Reports further claim that the number of funding breakthroughs has remained dormant mainly in the second quarter of 2023. Big deals include Fintech startups like GoldFin and Neem. Additionally, smaller pre-seed and accelerator deals were knocked out by Apollo Group, Qist Bazaar, OkayKer, and Pattern App.

Pakistan has been struggling for some time with eroding economic conditions. It finally reached a staff-level agreement (SLA) with the IMF last month on a $3 billion bailout program that rejuvenated hopes of seed funding. However, the current news about the IMF bailout is a welcome sleep, at least in the short term. Schehzad further stated that the recovery would be gradual as the IMF deal would improve investor confidence and help improve the current liquidity situation in the market. Pakistani startup experts argue that startups operating in e-commerce, fintech health tech, agritech and education have significant potential to attract funding from investors in the future.

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