By 2017, Pakistan’s startup ecosystem had reached a pivotal juncture. Once a fringe movement driven by tech-savvy youth, it was now supported by a burgeoning infrastructure of incubators, accelerators, angel investors, and government-backed initiatives. Institutions like Plan9, launched by the Punjab Information Technology Board in 2012, had already incubated dozens of startups, setting a precedent for public-sector involvement in tech entrepreneurship. In Karachi, The Nest I/O continued to serve as a critical platform for early-stage tech ventures.

That year, the National Incubation Centers (NICs) began scaling up across Islamabad, Lahore, and Peshawar under the government’s Digital Pakistan initiative. These centers were not only providing physical space and mentorship but also connecting startups with international venture capital networks. In a milestone moment, Pakistan’s first locally-funded venture capital firm, i2i Ventures, made strategic early-stage investments into ventures such as Mauqa Online and Dot&Line. Meanwhile, Lakson Investments’ Technology Venture Fund, licensed by the SECP, signaled a new phase of institutional capital entering the startup scene [1].

The ride-hailing and mobility sector became especially vibrant. Careem and Uber had aggressively expanded into Lahore, Karachi, and Islamabad, and their presence fostered digital literacy and trust in online platforms. Local competitors such as Bykea also gained traction by tailoring services for motorbike taxis and delivery. E-commerce too was on the rise — Daraz.pk was the undisputed leader, with others like Yayvo and Symbios attempting to carve out market share. These platforms were being supported by increased usage of mobile wallets, notably Easypaisa and JazzCash, which provided secure payment options to users without bank accounts.

Despite these developments, significant hurdles remained. Bureaucratic red tape, inconsistent taxation policies on tech businesses, and inadequate intellectual property rights protections posed serious threats to scalability. Internet penetration, although improved since 3G/4G rollouts in 2014, remained inconsistent in rural areas, limiting total addressable markets for many startups. Moreover, cultural resistance to risk-taking and entrepreneurship still prevailed in many segments of society.

Yet, there was a growing optimism. Universities such as LUMS, NUST, and IBA were launching entrepreneurship centers, while private programs like the Arfa Technology Park were helping build a local innovation narrative. In 2017 alone, Pakistani startups raised over $7.5 million in disclosed funding rounds — a fraction of global levels, but a step forward compared to earlier years [2].

With clear regulatory reforms, deeper internet access, and support from local and foreign investors, Pakistan’s tech-driven entrepreneurship was poised to shift from a hopeful movement to a foundational pillar of economic transformation. As of 2017, the country was no longer asking if startups could succeed — it was asking how they could scale sustainably.

References:

[1] i2i Ventures, 'Pakistan’s First Female-Led VC Fund', 2017. https://www.i2iaccelerator.com

[2] TechJuice, 'Pakistani Startups Raised $7.5 Million in 2017', December 2017. https://www.techjuice.pk