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  • Pakistani startups raise $85 million in 2021 with rush of foreign capital in fintechs 


Pakistani startups raise $85 million in 2021 with rush of foreign capital in fintechs 

This photograph taken on November 19, 2015 shows Pakistani employees of online marketplace company at work in Karachi. (AFP/File)
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Updated 13 June 2021
KHURSHID AHMED 
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Pakistani startups raise $85 million in 2021 with rush of foreign capital in fintechs 

  • Internet platforms engaged in finance have fetched around $22 million, mostly in foreign funding, since January 2021
  • Increasing mobile phone penetration and growing young population are major attractions for foreign funding in Pakistani startups
Updated 13 June 2021
KHURSHID AHMED 

KARACHI: Venture capitalists poured over $85 million in funding in Pakistani startups in the first five months of 2021, with fintech companies riding a wave of interest by overseas investors, according to data from Invest2Innovate Ventures, which supports early-stage enterprises in untapped developing markets.

Pakistani Internet platforms engaged in finance and business, or fintech companies, have fetched around $22 million, mostly in foreign funding, since January 2021, according to Alpha Beta Core, a tech-driven boutique investment banking and financial advisory services platform. These include recent deals by TAG Innovation, KTrade and Abhi who have raised $12.1 million in total in separate rounds.

Industry experts say Pakistan’s increasing mobile phone penetration and growing young population are major attractions for foreign funding in startups. Official data shows Pakistan has 85 percent teledensity with 183 million cellular, 98 million 3G/4G and 101 million broadband subscribers. 

The decrease in global air travel during the coronavirus pandemic has also provided an unexpected advantage for startups in Pakistan, cutting out the requirement that investors visit the country as part of the due diligence process, and making them more open to discussing deals remotely over Zoom or other video conferencing platforms.

Syed Amin Ul Haque, federal minister for IT, told Arab News fintechs were “gaining traction” in Pakistan due to government measures to create an “enabling environment,” including by increasing broadband connectivity and reducing taxes on telecoms. 

“IT enabling environment has been created in Pakistan through policy measures,” Haque said. “Withholding tax was 12.5 percent and now it has been approved by the cabinet to bring it down to 10 percent, Federal excise duty on SIM cards was 17 percent and now we have reduced it to 16 percent. All these measures will be part of the financial bill in the upcoming budget, to be implemented from first of July 2021.”

He said during the last 10 months of the current fiscal year, IT exports had increased by 46 percent, the minister said. 
 
Kalsoom Lakhani, founder and partner at Invest2Innovate (I2I) Ventures, told Arab News data collected by her firm showed Pakistani startups had already raised close to $85 million in funding. 

“Which means we have surpassed the total amount, $65.6 million raised in 2020, by the middle of the [current] year,” she said. “Most of the funding has been made in e-commerce... but a high number of deals in fintechs, mainly pre-seed and seed, were made.”

Khurram Schehzad, CEO of Alpha Beta Core, said the growth of fintech in Pakistan was because of a realization that the country’s growing retail, wholesale and trade sectors required a better financial ecosystem. 

“Pakistan is a highly under-tapped market as far as financial inclusion goes — only under 25 percent of the population is banked while cash is rampant for payments,” Schehzad told Arab News. “There is a massive retail, wholesale and trade sector which needs a financial ecosystem with ease and comfort … All these pain points, with a large middle class and tech-savvy population and youngsters, there is a need for solutions at various stages of the financial ecosystem”. 

TAG, Pakistan’s first digital financial super app, last week announced it had closed $5.5 million in a pre-seed round led by Venture Capitals Quiet Capital management and Liberty City Ventures from the United States and Fatima Gobi Ventures. The funding round is the largest ever pre-seed in the Middle East, North Africa and Pakistan region. 

“The funds will be utilized to give access to Pakistan’s large unbanked population through digital accounts,” TAG co-founder and CEO Talal Ahmed Gondal told Arab News. 

Ali Farid Khwaja, chairman of Karachi-based stock brokerage KASB Securities that owns and operates stock trading app KTrade, said the company wanted to “target 10 million mobile phone users to invest in Pakistani stocks within the next four years.”

“We will be spending money to educate how to become partners in the country’s mega corporations and connecting them with financial markets,” he said.

The KTrade app, which launched in 2019 and allows investors to trade in equities at the Pakistan Stock Exchange (PSX), has raised $4.5 million in a funding round spearheaded by Hong Kong based investment firm TTB Partners and New York based VC HOF Capital. German investor Christian Angermayer also participated in the round, according to the statement issued on Monday. 

Another Pakistani fintech, Abhi, a Karachi-based salary advance platform, this week raised $2 million in a seed round led by Vostok Emerging Finance. Village Global Village Global, a US-based venture capital firm focused on early-stage startups, also participated in the round, marking its first fintech investment in Pakistan. Other participants of the round included Sarmayacar, i2i Ventures, Zayn Capital, and Portman Wills, the co-founder of Wagestream, a London-headquartered financial wellness platform. 

To be launched in July, next month, Abhi will provide employees with salary advances based on accrued wages. 

“We have been working on this idea for the past three years and our core point was financial inclusion,” Omair Ansari, co-founder of Abhi, told Arab News. “We want to address pain points in the manual payments process and allow employees to access their salary in advance when they need it.”

The startup is currently conducting a three-month pilot run involving 20 companies from the pharmaceutical, textile, and retail sectors. 

Ansari believes the Pakistani startup market is increasingly on the radar of global venture capitalists and “looking much better now.” He plans to tap the improving conditions to expand in Pakistan and then take his venture abroad.

“After focusing first in Pakistan, we plan to expand to Bangladesh, Sri Lanka, UAE and Saudi Arabia,” Ansari said. “Overseas operations are expected to commence within the next two years.” 

Topics: Pakistan fintech

First batch of 633 Pakistani Hajj pilgrims to reach Jeddah today, ministry says

Updated 13 May 2025
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First batch of 633 Pakistani Hajj pilgrims to reach Jeddah today, ministry says

  • Pakistan launched its Hajj flight operation on Apr. 29 which will continue till May 31
  • Around 29,000 Pakistani pilgrims have already arrived in Saudi Arabia for pilgrimage
Updated 13 May 2025
SAIMA SHABBIR

ISLAMABAD: The first batch of 633 Pakistani Hajj pilgrims is set to arrive in Saudi Arabia today, Wednesday, via two separate flights from Islamabad under the Road to Makkah Initiative, the Pakistani Ministry of Religious Affairs said.

This year’s annual pilgrimage is expected to take place between June 4 and June 9, with nearly 89,000 Pakistanis expected to travel to Saudi Arabia under the government scheme and 23,620 Pakistanis through private tour operators.

Pakistan launched its Hajj flight operation on Apr. 29 which will continue till May 31. Pilgrims continued to leave for Madinah during the first 15 days of the operation until May 13 and now, they will land in Jeddah and travel directly to Makkah.

“Under this phase, the first PIA flight, PK-741, carrying 305 guests of Allah Almighty (intending pilgrims), is scheduled to land at King Abdulaziz International Airport at 10:10am while the second flight, PK-759, carrying 328 pilgrims, will arrive at 6:55pm,” the ministry quoted Pakistan’s Director-General Hajj Abdul Wahab Soomro as saying.

The Makkah Route Initiative is designed to streamline immigration processes by enabling pilgrims to complete official travel formalities at their departure airports. Initially tested in Islamabad in 2019, the program was later expanded to Karachi, benefitting tens of thousands of Pakistani travelers. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again.

Around 29,000 Pakistani pilgrims have already arrived in Saudi Arabia. Of them, 14,000 are currently in the holy city of Makkah and 15,000 in Madinah. For the first time, Pakistani Hajj pilgrims will have access to fully air-conditioned camps in Mina and will be accommodated in top-of-the-line hotels and buildings in the Azizia and Batha Quraish neighborhoods, according to the religious affairs ministry.

They will receive a specially designed bag containing the Pakistani flag, a QR code for identification, and relevant information. A mobile app will provide access to Hajj group information, training schedules, flight details, accommodation details, and live maps and locations during the pilgrimage.

In recent years, Saudi Arabia has also launched mobile apps like Nusuk, Hajj Navigator, Tawakkalna and Asefny to streamline Hajj services, with the aim to make the pilgrimage experience smoother by offering real-time guidance and ensuring pilgrim safety.

Topics: Hajj 2025

India rejects Trump’s claim his trade concessions de-escalated tensions with Pakistan

Updated 13 May 2025
AP
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India rejects Trump’s claim his trade concessions de-escalated tensions with Pakistan

  • The India, Pakistan militaries last week engaged in one of their most serious confrontations in decades
  • Trump told reporters on Monday he had offered to help both nations with trade if they agreed to de-escalate
Updated 13 May 2025
AP

NEW DELHI: The Indian government on Tuesday rejected US President Donald Trump’s claim that he helped broker a ceasefire between India and Pakistan in exchange for trade concessions.

Addressing a weekly news conference, Randhir Jaiswal, the spokesman for India’s foreign ministry, said top leaders in New Delhi and Washington were in touch last week following the Indian military’s intense standoff with Pakistan, but there was no conversation on trade.

“The issue of trade didn’t not come up in any of these discussions,” Jaiswal said, referring to the conversations held between US Vice President JD Vance and Indian Prime Minister Narendra Modi, as well as between US Secretary of State Marco Rubio and his Indian counterpart, S. Jaishankar.

Following Saturday’s understanding reached between India and Pakistan in what was a US-mediated ceasefire to stop military action on land, in the air and at sea, Trump told reporters on Monday that he offered to help both the nations with trade if they agreed to de-escalate.

“I said, ‘Come on, we’re going to do a lot of trade with you guys. Let’s stop it. Let’s stop it. If you stop it, we’ll do a trade. If you don’t stop it, we’re not going to do any trade’,” Trump said.

“And all of a sudden, they said, ‘I think we’re going to stop’,” Trump said, crediting trade leverage for influencing both the nations’ decision. “For a lot of reasons, but trade is a big one.”

The militaries of India and Pakistan had been engaged in one of their most serious confrontations in decades since last Wednesday, when India struck targets inside Pakistan it said were affiliated with militants responsible for the killing of 26 tourists last month in Indian-administered Kashmir.

After India’s strikes in Pakistan, both sides exchanged heavy fire along their de facto border, followed by missile and drone strikes into each other’s territories, mainly targeting military installations and air bases.

The escalating hostilities between the nuclear-armed rivals threatened regional peace, leading to calls by world leaders to cool down tempers.

Trump said he not only helped mediate the ceasefire, but also offered mediation over the simmering dispute in Kashmir, a Himalayan region that both India and Pakistan claim in entirety but govern in part. The two nations have fought two wars over Kashmir, which has long been described as the regional nuclear flashpoint.

New Delhi also rejected Trump’s offer for mediation on Tuesday.

“We have a longstanding national position that any issues related to the federally controlled union territory of Jammu and Kashmir must be addressed by India and Pakistan bilaterally. There has been no change to the stated policy,” Jaiswal said.

Topics: Pakistan India Ties Donald Trump

Schools reopen in Azad Kashmir after Pakistan-India ceasefire

Updated 13 May 2025
AFP
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Schools reopen in Azad Kashmir after Pakistan-India ceasefire

  • The truce was reached after four days of intense exchanges of fire as the old enemies targeted each other
  • Attendance remained low at schools in border towns of Azad Kashmir where fighting displaced several families
Updated 13 May 2025
AFP

CHAKOTHI: Schools reopened in Pakistan-administered Kashmir on Tuesday after some of the residents of border villages returned home, following a ceasefire between India and Pakistan.
The truce was reached after four days of intense exchanges of fire as the old enemies targeted each other’s military installations with missiles and drones, killing dozens of civilians.
In the border town of Chakothi near Line of Control (LoC), attendance was thin at schools as many people, who had moved to safer places due to Indian shelling, were still slowly coming back to the area.
“For the past many days, my school remained closed due to [cross-border Indian] shelling,” said Junaid Munir, a 6th-grader.
“Today, it is open. I have to study and get ahead [in life].”
The military confrontation began on May 7, when India said it launched strikes on nine “terrorist infrastructure” sites in Pakistan and Azad Kashmir, following an attack on Hindu tourists by militants in Indian-administered Kashmir’s Pahalgam town that killed 26 men last month.
Islamabad denied any links to the attack and called for a neutral investigation.
A local school principal said some residents were waiting for a more definitive peace solution before considering to move back to their border town homes.
“Some of the children, two or three girls, have arrived so far. But [most] parents and the rest of the people have obviously shifted elsewhere,” said Naveed Akhtar, who heads a school in Chakothi.
“That’s why children are not here. The message [about reopening of schools] has been conveyed to them, and, God willing, very soon these children will return to school and our academic system will resume.”
Syeda Zohra Kazmi, who studies in 7th grade, said some mortar shells had partially damaged her home, but she insisted on attending classes as the school reopened on Tuesday.
“There was shelling outside our residence as well, and some shells landed on our house,” she said. “As the schools got reopened today, I said I will go to school. I am not afraid of shelling.”

Topics: Pakistan India Ties

Indian border villagers want recompense for damages in Pakistan clashes

Updated 13 May 2025
Reuters
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Indian border villagers want recompense for damages in Pakistan clashes

  • Villagers in border areas return home after military conflict
  • Residents seek compensation for damaged homes, livelihoods
Updated 13 May 2025
Reuters

JAMMU/SRINAGAR: Nuclear-armed rivals India and Pakistan are maintaining a ceasefire that ended four days of intense military clashes, but many in the Indian-administered part of disputed Kashmir are demanding compensation for damages from cross-border firing.

Hundreds of villagers evacuated their homes as the rivals targeted each other’s military installations with missiles and drones, killing about 70 civilians, after New Delhi struck what it called terrorist camps across the border.

Many returned to find their homes destroyed or roofless.

“Where will we go with our kids? We don’t have anywhere to live and anything to eat,” said Roshan Lal, from the village of Kot Maira in Akhnoor in the district of Jammu, about 7 km (4 miles) from the de facto border.

The shelling had left his home uninhabitable, the 47-year-old added.

“I want to ask Prime Minister Narendra Modi’s government for justice,” he said. “We need compensation for the damages.”

In the nearby village of Pahari Wala, farmer Karan Singh said he buried seven cattle in his field, while his family are living in makeshift shelters.

“I left the village when the conflict began,” he said. “We don’t have a place to stay.”

In Salamabad, a border village in the Kashmir Valley, shelling injured Badrudin Naik and his six-year-old son, but both returned home after five days.

“I am happy to return,” he said. “But my house is damaged. My two uncles’ houses were completely destroyed. We want a permanent peace as it is we on the border who suffer more.”

Hindu-majority India and Muslim Pakistan, which both rule part of Kashmir, but claim it in full, have fought two of their three wars over the region and engaged in several smaller clashes over the decades.

Teams have fanned out in the region to assess damage to homes, shops and other facilities, said a senior local government official, who sought anonymity as he was not authorized to speak to media.

“Today our teams have gone to the areas which were affected,” he said, adding, “The government will decide the amount of compensation.”

On Monday, Modi warned Pakistan that New Delhi would target “terrorist hideouts” across the border again if there were new attacks on India. Pakistan denies Indian accusations of supporting militants who attack India.

Standing in front of the cracked wall of his Pahari Wala home, Joginder Lal said Modi should ignore US President Donald Trump, who announced the ceasefire, saying Washington had played a role in halting the fighting.

“We want to take full revenge against Pakistan,” the 60-year-old added.

Topics: Pakistan India Ties

Former Pakistan PM Khan’s sons urge Trump administration to play role for father’s release

Updated 13 May 2025
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Former Pakistan PM Khan’s sons urge Trump administration to play role for father’s release

  • Khan has been in jail for nearly two years on a slew of charges he says are politically motivated
  • Pakistani authorities deny Khan’s claims, accusing him and his party of leading violent protests
Updated 13 May 2025
Kashaf Rehman

ISLAMABAD: The sons of former prime minister Imran Khan have urged United States (US) President Donald Trump and the international community to help free their jailed father, appealing to “people of influence” to press for his release.

Khan has been in jail for nearly two years on a slew of charges that he says are politically motivated. His Pakistan Tehreek-e-Insaf (PTI) party has held frequent protests demanding his release and frequently agitated against the Pakistani government over what it says were rigged general elections in Feb. 2024 and a campaign to subdue PTI supporters since his ouster from the PM’s office in April 2022.

Pakistani authorities deny Khan’s allegations, accusing the ex-premier and his party of leading violent anti-government protests in the past, particularly in May 2023 and Nov. 2024. On May 9, 2023, frenzied mobs across the country carrying flags of Khan’s party attacked government and military installations, while a protest in Nov. to demand Khan’s release killed four troops during clashes, officials say. The PTI denies instigating followers to violence and accuses the military and its political rivals of resorting to rights abuses against its supporters. They both deny the charges.

During a rare interview, conducted by entrepreneur, business influencer and citizen journalist Mario Nawfal, Khan’s sons, Kasim Khan and Sulaiman Khan, spoke about the alleged “suppression of democracy” in Pakistan, a lack of basic facilities for Khan in his prison cell. They said he was being kept on “trumped up charges,” and called on the Trump administration and the international community to press Islamabad for his release.

“Anyone who looks into it a little can kind of see that,” Suleiman said. “In terms of a message to the Trump administration, we’d call for any government that supports free speech and proper democracy to join the call for our father’s release, and especially the most powerful leader in the world.”

The former cricket-star-turned politician, who was believed to have been brought into power by Pakistan’s powerful military, fell out with the generals. His party accuses the military, which has ruled Pakistan for nearly have of its history and holds sway in politics even when not in power, of colluding with Khan’s rivals to keep him out of politics. The military and Khan’s rivals deny this.

In Dec. 2024, Khan’s party held negotiations with the government to ease political tensions in the country. However, talks broke down in Jan. after the PTI pulled away, accusing the government of not fulfilling its two principal demands of forming judicial commissions to investigate the 2023 and 2024 protests. The government rubbished the PTI’s allegations, accusing the party of “unilaterally” abandoning talks without waiting for the government to respond to its demands.

Sulaiman said there was a tradition of “dynastic politics” in Pakistan, dominated by two main parties, and his father wanted to break away from that tradition.

Khan’s elder son, Kasim, said they just wanted the international community to see what had been going on in Pakistan and “hopefully take action.”

“We’d love to speak to Trump or try and figure out a way where he would be able to help out in some way because at the end of the day, all we are trying to do is free our father, bring democracy in Pakistan and just ensure his basic human rights,” Kasim said.

The calls from Khan’s sons for his release came a day before the hearing of a petition in the Islamabad High Court seeking Khan’s release on parole, which was filed by his party’s chief minister in the northwestern Khyber Pakhtunkhwa province.

Besides speaking with Nawfal of their time with Khan and family interactions, Sulaiman also appealed to “people of influence” around the world to speak for their father’s release.

“I think that would be huge, just to create a bit more noise because it’s definitely gone a bit quiet recently,” he said.

“We would love people to reach out to us if they have some influence or potential to help with this situation.”

Topics: Ex-PM Imran Khan Imran Khan sons

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