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Tuesday, November 12, 2024

How tech startups can help boost Pakistan’s economy

The initiative can help create job opportunities in the country at a rate of more than 25%. This would in turn increase the GDP and GNP of the country.

One of the quickest ways to achieve economic stability in the country is to enhance the tech startups in the country. Pakistan has a lot of potential in terms of human capacity and innovative ideas, but unfortunately due to a lack of resources and capital, the country experiences a brain drain. The great minds of the country are then attracted by foreign companies and investors, hence the country is then left behind with fewer innovative minds.

The initiative of tech startups is one of the best and yet fastest ways to enhance the country’s economy and progressively contribute to its GDP and GNP. Moreover, India has already built almost 100 unicorns in a decade which is contributing significantly to its economy with over $300 billion. This makes it around 50% of Pakistan’s GDP.

However, Pakistan still lacks progress in the domains of technology and e-commerce as less attention is paid to this and conventional business tactics are employed for economic progression only.

Moreover, the issues like absence of rule of law, lack of tax regulation, inefficient corporate governance, and capital flows are the driving factors for the lack of globalization and modernization in technology and e-commerce domains.

Advantages of tech unicorns in the country

Furthermore, skilled training should be prioritized instead of basic mainstream education to produce a significant number of trained IT experts who can cater to the technological demands of contemporary times.

Additionally, Pakistani tech startups have started to grow gradually in the past few years and the country has an output of 20,000 graduates each year trained in the field of IT and e-commerce. Likewise, many tech start-ups are successfully running in the country and are contributing to the GDP and GNP of Pakistan.

Read more: Pakistani startups raise over $200 Million

Careem, Uber, Eatoye, Foodpanda, and Patari are a few examples of tech unicorns running in the country helping to enhance the tech industry’s standards. Moreover, Zameen.com was founded in 2006. This app largely guides customers regarding investing, buying, selling, or renting any property.

Likewise, the initiative can help create job opportunities in the country at a rate of more than 25%. This would in turn increase the GDP and GNP of the country as the unemployment rate was expected to rise by about 6.65 million between 2020 and 2021.

Read more: Pakistani startup “Oware” raises $3.3 million

The initiatives of tech startups largely helped the country improve its economy through employment and job opportunities. Additionally, the tech unicorns would also be beneficial in the growth of the tech industry’s standards and decrease dependency on foreign products and goods.