KARACHI: Truck It In, a Karachi-based marketplace providing online trucking solutions, on Tuesday announced a $3 million extension to close the “largest pre-seed round for the world trucking industry” at $4.5 million.
The extended round was led by Global Founders Capital (GFC) and Fatima Gobi Ventures (FGVs), joined by Germany-based Picus Capital, an early-stage technology investment firm, and a Pakistani firm, Zayn Capital. Previous pre-seed investors included Deosai Ventures, Zayn Capital and +92 Ventures.
Truck It In, which connects shippers and truckers online, has achieved the feat in just over four months since its inception.
“We have extended the round considerably and this is now the largest pre-seed round for this industry in the world,” Raza Afzal, the co-founder of Truck It In, told Arab News.
The startup has partnered with strategic investors that are helping it tap into their local supply chains and leverage their regional connections for the next growth phase.
“We have been blessed to be joined by top regional and international strategic investors, who have experience of building similar companies, have strong financial muscle, and are leading supply chain heavy conglomerates in Pakistan,” Afzal said.
The startup is providing solutions to supply chain challenges faced by Pakistani businesses and helping them save up on operational costs.
“We’re at the very early stages of transforming a critical industry and aim to help over 3 million businesses save $1 billion annually in supply chain inefficiencies,” Muhammad Sarmad Farooq, the chief executive officer and co-founder of Truck It In, said in a statement on Tuesday.
“Our long-term aim is to streamline and digitize the logistics sector to create a ripple effect across the economy.”
The company says fresh funds will be utilized to expand its services and product features that will help it reach the next level.
“In only a few months since launch, we have seen an overwhelming market response to Truck It In’s offering,” said Tito Costa, a partner at Global Founders Capital.
In recent months, Pakistan’s startup landscape has witnessed a huge rush of investment, mainly coming from global fund providers.
Around $200 million have been invested in Pakistani startups in 2021 and the amount is expected to cross over $300 million by the end of the year as these ventures continue to gain global attention, according to various capital fund observers.
Pakistani startup bags largest pre-seed round for trucking industry in the world, founder says
https://arab.news/6znn9
Pakistani startup bags largest pre-seed round for trucking industry in the world, founder says
- Truck It In announces $3 million extension to close the round at $4.5 million in just over 4 months
- Pakistani startups look poised to attract around $300 million investment by the end of current year
Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’
- Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
- Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says
KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.
Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.
The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.
“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.
The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”
With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.
According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.
“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”
Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.
“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.
“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.
