Pakistani startups are beginning to show signs of resilience in 2025, even though overall venture capital (VC) funding remains modest due to global and regional instability.
In the first quarter of 2025, startups in Pakistan raised just $196,000 across three deals, according to Invest2Innovate. While this number is far from past highs, it reflects a slow but steady effort by entrepreneurs to stay active in the market.
The local startup ecosystem has faced tough conditions since 2022, when investor confidence declined due to economic challenges, currency depreciation, and political instability. Yet, despite these headwinds, a few sectors such as fintech, healthtech, and enterprise tech have attracted renewed interest from regional investors.
Companies like MedIQ, ABHI and Oraan are among the few that managed to secure funding in late 2024 and early 2025, signaling a shift toward sustainable business models and practical solutions. These startups focus on solving real-world problems such as digital healthcare, payroll financing, and financial inclusion for women.
Industry analysts say that although funding numbers remain low compared to the $350M+ raised in 2021, the founder quality and innovation potential in Pakistan are still strong. Government efforts to support digitalization and ease of doing business are also helping to rebuild investor trust.
As macroeconomic indicators stabilize, many believe that Pakistan’s startup ecosystem could gradually rebound, especially in Karachi, Lahore and Islamabad, which continue to serve as key innovation hubs.
