Karachi surpasses Lahore as South Asia’s startup hub. Startup Blink, a website that rates startup ecosystems, ranked Karachi as one of the top ten most startup-friendly cities in South Asia in 2022. India had a strong hold on the top ten until Pakistan’s port city moved up four spots in just one year.
Karachi surpasses Lahore, Pakistan’s largest metropolis, and other startup-friendly Indian cities this year. But Karachi has dropped five places in the world rankings and is now number 291. But this year, Lahore has dropped 48 places and is now 305th in the world. Islamabad dropped one spot on the global list and is now 438th. Even so, it is still the third most popular in Pakistan.
Pakistan dropped two spots and is now 76th in the world in terms of how friendly the business climate is as a whole. It also came second in South Asia and fourth in the CAREC.
According to the report, Pakistan’s economic growth depends on digitization and more successful start-ups.
During the time that Pakistan was fighting the pandemic. A new system for digital payments and more access to broadband helped to boost startup activity and investment. Special Technology Zones also gave local IT businesses tax breaks and other incentives.
According to the report, Pakistan has made a lot of progress in improving its legal framework to encourage digitization. However, more information is needed about taxes and incentives for local investment.
Start Blinkup says that the political climate of the country makes it hard to make strong policies. And a trusting environment that would help the startup ecosystem. Also, there are worries about the availability of skilled workers and the rising cost of financing for new businesses.
Pakistan’s startup ecosystem needs to grow so that it can provide the skilled workers needed to meet the growing demand for funding from new businesses.
Originally published at lahoreherald.com