KARACHI: Pakistan is expected to launch a Rs1 billion ($5.6 million) technology startup fund this month to support the South Asian country’s startup ecosystem by providing seed funding to around 50 enterprises every year, officials and insiders said on Saturday.
Prime Minister Imran Khan last month announced establishing the Pakistan Technology Startup Fund (PTSF), allowing tax exemptions and 100 percent foreign exchange retention for IT companies and freelancers registered with Pakistan Software Export Board.
“The incentive package has been approved at higher level by the prime minister and now only its mechanics and legislations are in process,” Badar Khushnood, a member of the government’s National E-Commerce Council, told Arab News on Saturday.
“Hopefully, the process will be completed within a couple of weeks and the ordinance will be promulgated within this month,” said Khushnood, who played a key role in getting approval for the incentive package.
“The major purpose is to facilitate and let the growth of the IT industry continue without any hindrance.”
PM Khan announced making changes in the policies to help startups, including the Roshan Digital IT Accounts, freelancers and IT firms to retain 100 percent foreign exchange with no restrictions on its movement, resolution of double taxation of IT sector by tax authorities and exemption from Capital Gains Tax on Venture Funding (VC) into startups.
“IT companies were allowed to keep dollar accounts but they were previously permitted to utilize only 35 percent of the amount ... now they will be able to use 100 percent without any restriction on mobilization of dollars,” Khushnood, who is also the chairman of Pakistan Software Houses Association (P@SHA), told Arab News.
“This was the big issue for IT companies which has been resolved.”
Pakistani officials calling for efficient management of funds said it would help uplift the country’s ecosystem.
“It is a great initiative. It will definitely help the overall ecosystem, but efficient management will be the key,” Omar Abedin, director of the National Incubation Center Karachi (NICK) which is part of the IT Ministry, told Arab News.
“The role of NICs is not clear, but there is an opportunity to leverage this network of incubation centers to optimize the impact of these disbursements, making sure these funds go to the most deserving and hard-working startups.”
Venture capitalists also hailed the government’s decision to exempt them from the Capital Gains Tax.
“I think this is a promising initiative by the government but it also comes down to execution and implementation,” said Kalsoom Lakhani, co-founder and general partner at i2i Ventures, a Venture Capital Fund.
“Having transparent criteria, sourcing & vetting will be key to making it possible for startups to access this type of capital, especially in the earliest stages of a company’s journey.”
Experts said many other countries had funded startups with seed and brought private investors to uplift their ecosystems.
“This is a huge development and a much-needed initiative that the government under the PM has taken,” Khurram Schehzad, CEO of Alpha Beta Core startup investment advisory platform, told Arab News.
“Many other countries have done it with investing seed and bringing in private investors to uplift the local ecosystem, addressing the society’s pain points as well as making sense commercially for all the stakeholders involved,” Schehzad said.
“The Idea was pitched to PM back in December 2021 through this platform and we worked for the maximum investor and startup benefit till its approval.”
P@SHA chairman informed that the fund, incentives and the earlier announced boot camp would help fresh graduates get required training and jobs eventually.
“25,000 to 30,000 IT students graduate every year in the country but only 10 percent are employable and 90 percent don’t get jobs mainly due to a lack of quality education,” Khushnood said, adding the new measures would help them avail job opportunities.
He informed the Rs1 billion boot camp program announced by the government to train IT graduates was also under process and would be executed before June for the improvement of the supply side of manpower.
Khushnood said the government’s incentives would help the country increase IT export to up to $4 billion next year as compared to over $2 billion achieved last fiscal year.
“The emerging situation in eastern Europe is also expected to help Pakistani IT companies because foreign companies which were outsourcing in the region would now look at Pakistan for it,” he said.
Pakistani IT experts and officials also applauded the premier’s directives to establish Special Technology Zones (STZs) on a fast-track basis, saying this was an area where progress was slow.
Pakistan likely to launch $5.6 million technology startup fund in March — officials
https://arab.news/9qv5e
Pakistan likely to launch $5.6 million technology startup fund in March — officials
- The fund along with boot camp initiative will support around 50 startups, 30,000 graduates every year
- Stakeholders hail the initiative but call for better management of funds for startup ecosystem
Pakistan monsoon death toll hits 242, with at least 116 children among the dead
- Disaster agency warns of glacier lake floods and landslides in northern Pakistan amid continued heavy rainfall
- Urban flooding, house collapses, flash floods reported nationwide as rains forecast to persist until July 25
ISLAMABAD: Pakistan’s meteorological department on Tuesday warned of glacier lake outburst floods (GLOFs), flash floods and landslides in the country’s mountainous northern regions, as the national death toll from monsoon-related incidents climbed to 242, including at least 116 children.
The warning comes amid ongoing heavy monsoon rains that have battered the country since late June, triggering urban flooding, house collapses and deadly flash floods.
At least 21 people, including 12 children, died in the past 24 hours alone, according to Pakistan’s National Disaster Management Authority (NDMA), with many of the fatalities reported from drowning, building collapses and fast-moving floodwaters.
The worst-hit province has been Punjab, Pakistan’s most populous region, where at least 135 people have died. Khyber Pakhtunkhwa (KP) reported 56 fatalities, followed by 24 in Sindh, 16 in Balochistan, six in the federal capital of Islamabad, three in Gilgit-Baltistan (GB) and two in Azad Jammu and Kashmir.
“In continuation to the GLOF alert issued dated July 15, the wet spell is likely to continue and can affect KP and GB in the current week,” the Pakistan Meteorological Department (PMD) said in a public statement.
“The prevailing weather conditions increase the risk of GLOFs, flashfloods, and landslide events in vulnerable glaciated regions of GB and KP.”
Glacier lake outburst floods, sudden discharges of water from glacial lakes, are a growing threat in Pakistan’s north due to accelerated glacial melting driven by climate change. These floods can inundate entire valleys in minutes, destroying roads, homes and livelihoods.
The PMD also warned of landslides and mudslides in areas such as Murree, Galliyat, Azad Kashmir, and Gilgit-Baltistan, cautioning that roads could be blocked and essential connectivity disrupted.
Heavy rains are forecast to continue until July 25.
CLIMATE CHANGE EFFECTS
On Tuesday, urban flooding also hit the capital Islamabad, with viral videos showing cars swept away by torrents of water in Saidpur Village and the upscale Defense Housing Authority (DHA) neighborhood.
One video widely circulated on social media showed a vehicle submerged in floodwater, with a man inside calling for help.
Prime Minister Shehbaz Sharif expressed sorrow over reports of a father and daughter believed to have drowned in the DHA flooding and directed authorities to expedite rescue operations across flood-affected areas.
The monsoon season typically brings 70 to 80 percent of South Asia’s annual rainfall, arriving in June in India and slightly later in Pakistan. While vital for agriculture, the rains also wreak havoc in countries with fragile infrastructure, poor drainage and high vulnerability to climate shocks.
Pakistan, home to more than 7,000 glaciers, is consistently ranked among the countries most at risk from climate change, despite contributing less than 1 percent to global greenhouse gas emissions. It has seen increasingly erratic weather patterns in recent years, including record-breaking heatwaves, droughts, and severe storms.
In May, at least 32 people were killed in separate incidents of torrential rainfall and hailstorms across the country.
In 2022, catastrophic floods caused by a combination of unprecedented monsoon rains and glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million.
That disaster inflicted an estimated $30 billion in economic losses and prompted repeated UN calls for global climate reparations.
Bangladesh take second T20I for first series win over Pakistan
- Left-arm Bangladesh pacer Shoriful Islam picks up his best T20I bowling figures of 3-17
- Pakistan lost five wickets for 15 runs and was bowled out for 125 while chasing target of 134
DHAKA: Bangladesh survived a late onslaught by Faheem Ashraf and Ahmed Daniyal to pull off a narrow eight-run victory in the second T20I match on Tuesday, winning a first-ever series in the format against Pakistan.
Ashraf hit an aggressive 32-ball 51 while debutant Daniyal smashed an 11-ball 17 but holed out off the second ball of the final over as Pakistan were all out for 125 in their chase of 134 to win in Dhaka.
Earlier, Jaker Ali struck a 48-ball 55 as Bangladesh — sent in to bat — were bowled out for 133 in 20 overs, with Salman Mirza taking 2-17 and Daniyal close behind on 2-23.
Left-arm Bangladesh pacer Shoriful Islam picked up his best T20I figures of 3-17 on a slow-paced Mirpur pitch as Pakistan lost their first five wickets for just 15 runs by the fifth over.
Ashraf cracked four sixes and as many boundaries to raise hopes of a comeback win, but spinner Rishad Hossain bowled him in the penultimate over.
Ashraf and Abbas Afridi, who scored a 13-ball 19, had revived the innings from 47-7 with a 41-run stand, but Bangladesh had the last laugh.
Bangladesh won the first match at the same venue by seven wickets and took an unassailable 2-0 lead with the final match on Thursday, also in Dhaka.
This was Bangladesh’s first T20I series win over Pakistan in four tries.
Pakistan lost opener Saim Ayub to a run out for one in the first over before Islam dismissed Fakhar Zaman (8) and Mohammad Haris (0) to hit Pakistan hard at the top.
Bangladesh skipper Litton Das praised a team effort.
“It’s wonderful to win back-to-back series,” said Litton, who also led the team to a 2-1 T20I series in Sri Lanka last week. “This shows good improvement in our standards.”
Pakistan captain Salman Agha rued his side’s batting lapses.
“We thought 134 would be gettable but we lost too many wickets early on and that’s something we must address quickly,” said Agha.
Earlier, Jaker smashed five sixes and a boundary for his third T20I half century.
Bangladesh had lost four wickets for 28 by the sixth over before Jaker and Mahedi Hasan revived the innings with a 53-run stand for the fifth wicket.
Mahedi scored a 25-ball 33 with two sixes and as many boundaries.
UN backs peaceful dispute resolution as Pakistan slams India over water treaty suspension
- Pakistan’s deputy PM criticizes India for “illegally” suspending 65-year-old water-sharing treaty
- UN Security Council unanimously adopts resolution on mechanisms to resolve global conflicts
ISLAMABAD: The United Nations Security Council on Tuesday unanimously adopted a resolution calling on member states to use peaceful means, including negotiation, mediation and judicial settlement, to resolve disputes, as Pakistan accused India of undermining a landmark water-sharing agreement.
Signed in 1960 with World Bank mediation, the Indus Waters Treaty governs the distribution of the Indus River and its tributaries between India and Pakistan, two nuclear-armed neighbors with a history of conflict. Despite strained bilateral relations over the decades, the treaty has been regarded as one of the most resilient diplomatic frameworks in South Asia.
Speaking at the UNSC’s open debate, Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar said the 65-year-old Indus Waters Treaty remained a “noteworthy example of dialog and diplomacy working for peacefully arriving at a water-sharing arrangement between two neighbors.”
“The treaty has withstood periods of trials and tribulations in bilateral relations,” Dar said.
“It is most unfortunate and regrettable that India has chosen to illegally and unilaterally hold this treaty in abeyance on baseless grounds with the intention of withholding the flow of water to 240 million people of Pakistan, who rely on it for their livelihood and survival.”
Dar’s remarks came as the Security Council adopted a resolution reaffirming the importance of peaceful dispute resolution mechanisms, with all 15 of the Council’s members voting in favor.
The resolution encourages states to make full use of existing mechanisms such as “negotiation, mediation, arbitration, judicial settlement or other peaceful means,” in accordance with the UN Charter.
India decided to hold the IWT treaty “in abeyance” after a militant attack in Indian-administered Kashmir killed 26 people in April. New Delhi blamed Pakistan for being behind the attack and announced a slew of punitive measures, including suspending the water sharing pact.
Pakistan denies involvement in the assault and has called for an independent international investigation.
The IWT ensures water supply for 80 percent of Pakistani farms. Pakistan has previously warned that the treaty contains no provision for unilateral withdrawal and any attempt to block or stop river water flowing into the country would be considered “an act of war.”
In May, weeks after the April attack, the most intense India–Pakistan military confrontation in decades ensued, involving a series of drone, artillery and missile strikes before a ceasefire was brokered by the US on May 10.
Pakistan grants first digital-only license to non-life insurer in regulatory first
- The license will enable Digi Insurance to sell general products like motor, health and travel coverage
- The approval marks a milestone for an insurance industry aiming to expand inclusion, accessibility
KARACHI: Pakistan’s top financial regulator has issued the country’s first-ever digital-only license to a non-life insurer, allowing Karachi-based Digi Insurance Limited to operate entirely without a physical branch network, the Securities and Exchange Commission of Pakistan (SECP) said on Tuesday.
The license enables Digi Insurance to sell general insurance products — such as motor, health and travel coverage — through a fully digital platform, with no in-person interaction or branch infrastructure required.
The approval marks a regulatory milestone for Pakistan’s insurance industry as it seeks to modernize and improve accessibility.
“This development reflects SECP’s broader objective of enabling financial inclusion through responsible innovation and encouraging customer-centric, tech-enabled insurance solutions,” the commission said in a statement.
The SECP said the approval was granted under a revised regulatory framework aimed at supporting new business models and encouraging the use of technology in insurance distribution, policy issuance and claims processing.
The Pakistani financial regulator said it expects the move to promote competition, expand access to underserved markets and encourage further innovation across the sector.
It also maintained digital models offer a scalable, cost-effective alternative that could help close Pakistan’s insurance gap.
Pak-Qatar Asset Management reports 117% growth in assets for FY2025
- Company says asset growth driven by investor trust, demand for Shariah products
- It plans to expand its offerings, strengthen position in local Islamic finance market
KARACHI: Pak-Qatar Asset Management Company (PQAMC) said on Tuesday its assets under management (AUM) rose by 117% in the financial year ending June 30, citing growing demand for Shariah-compliant investment products in Pakistan.
The company is part of the Pak-Qatar Group, a joint venture backed by Qatari and Pakistani investors focused on the development and promotion of Islamic finance. It said the surge in AUM, which refers to the total market value of client investments it oversees, was driven by consistent fund performance, increasing investor confidence and a broader client base across both retail and institutional segments.
The growth reinforces the company’s position among the fastest-expanding Islamic asset managers in the country.
“We are humbled by the trust placed in us by our investors, which has enabled us to achieve this tremendous growth,” its chief executive officer, Farhan Shaukat, said in a statement. “This success is a testament to our unwavering focus on delivering sustainable and Shariah-compliant investment avenues that meet the evolving financial aspirations of our clients.”
Following its recent performance, the company said it aims to further strengthen its position by offering innovative Islamic investment solutions tailored to a range of financial goals. It maintained its strategy remains anchored in ethical wealth creation, sound governance and disciplined portfolio management in accordance with Islamic principles.
The company has expanded its reach in recent years by diversifying its product offerings and investing in client education around Islamic financial planning. It now manages a growing suite of funds catering to both conservative and growth-oriented investors seeking faith-based alternatives in a volatile economic environment.
The company’s performance comes amid increasing interest in Islamic finance across Pakistan’s investment landscape, with regulatory support and shifting investor preferences driving demand for Shariah-aligned mutual funds and retirement products.
The company said it would continue to build on its momentum by enhancing digital accessibility, improving client engagement and launching new funds in response to market trends and participant needs.
