Understanding the power of reinvention in a rapidly changing world with Salman Iqbal, Founder and CEO, Denovonet

Interview by Sameen Mohsin

“Change is the only constant” – this is a phrase Salman Iqbal doesn’t just say in conversation; it’s a statement he embodies. Two years ago, Mr. Iqbal exited from a company he took 25 years to build from the ground up, not to rest or retire, but to build another company from scratch, this time within a completely new technology landscape. His tenacity and courage to continue reinventing himself to build start-ups and products that have a deep business impact for his clients is something that has the power to inspire a whole generation of entrepreneurs navigating the current landscape.

Mr. Iqbal’s Denovonet is currently housed at LCE and develops advanced, next-generation solutions leveraging Artificial Intelligence and Machine Learning technologies to enhance transaction monitoring processes for financial institutions.

We sat down with him to hear about his entrepreneurial journey and get his perspective on the new technologies he’s working with, as well as the mindset required to keep growing as a start-up founder.

Q — You started your career as an electrical engineer. Could you tell us more about your transition from pursuing a PhD in Electrical Engineering to become a founder of your own software company?

A — I got the opportunity to work in capital and financial markets, which was a complete 180-degree flip, because I was an electrical engineer by profession, with my undergraduate and PhD completely focused on tech. There was not an iota of learning towards business during my academics. But I wanted to do something completely different. I wanted to stay in Pakistan and contribute here.

Three years into doing a job focused on automating capital markets in Pakistan, our team accomplished some major objectives: replacing the manual trading floor with fully screen-based trading country-wide and contributing towards an electronic share depository, and developing a unified national clearing and settlement system. Most of the targets were accomplished, at least whatever I thought I would like to do, I had done. Teams were trained, and a very capable team was left behind to continue the progression. I thought that now was the time; I’ve got a good understanding of the financial sector, current business needs, and pain areas to design solutions that make their processes more capable and efficient. We deep dived, took measured risks and started a business venture. I had some investors on board so I started Softech Systems in 1998, which was the beginning of my 25-year journey building the company.

 

Q — You worked with a lot of international clients while leading Softech Systems, what was that experience like?

A — We were fortunate to work with some leading players in the tech industry. Early on, we had the opportunity to work as development partners with EFA Software Services, based in Calgary, Alberta, which developed capital market solutions. Our exposure to the Canadian market led to more breakthroughs, the most exciting being our partnership with Concept Wave, a Toronto-based company that developed and marketed product care and order catalogue solutions for leading telecom operators globally. Softech was fortunate to convince them of our ability to be their partners in development and implementation worldwide. We completed numerous implementations across several continents for leading telecom providers. The company was sold to Ericsson, the world’s leading telecom provider, and we continued working with them as well.

During our decade-long partnership with Ericsson, we collaborated on and implemented many solutions with some of the most prestigious telecom providers worldwide. Notable implementations include Turk Tel (Turkey), Ziggo (Holland), BMW (Munich), Hutchison (Hong Kong), Thai Tel (Bangkok), STC (Saudi Arabia), and Etisalat (Dubai). Most of this work was achieved through relationship building and personal networking. As pilots succeeded, we received larger and more challenging projects, strengthening our relationship with Ericsson. Additionally, we are very proud to have developed Pakistan and Ghana’s National Clearing and Settlement System. We also designed solutions in brokerage, online trading, and asset management sectors, which operate across many continents. Our teams got massive exposure working across different cultures and in so many different domains.

Q — You could have easily retired after exiting Softech Systems, why did you choose to go through the challenge of starting another company from scratch?

A — I dedicated 25 years to a company, driving its growth, delivering strong returns to investors, and achieving significant personal success. However, there came a point when the work began to feel static, repetitive motions without the momentum of new possibilities. Rather than continually trying to convince stakeholders to embrace a fresh vision, I decided to start with a clean slate. Having already explored various ventures in my entrepreneurial journey, I understood the challenges of building something from the ground up, but I was equally aware of the rewards in the form of personal nurturing, knowledge growth, and substantial upside if it succeeded.

Q — How is Denovonet positioned to help companies leverage AI/ML effectively?

A — Initially, our focus was on learning and experimentation, taking existing solutions and enhancing legacy systems with Artificial Intelligence and Machine Learning to make them more effective and productive. Today, our goal is to help businesses unlock the full potential of their data through AI, machine learning, and advanced analytics. We aim to transform complex data into actionable insights that drive smarter decisions, greater efficiency, and stronger returns. This means embedding intelligent technologies into everyday operations and fostering a data-driven culture that delivers lasting value. At present, we are developing high-accuracy anomaly detection for financial transactions, combining advanced rule-based methods with machine learning to provide deeper insights and better process efficiency reducing manual interventions.

Q — In your opinion how has AI changed the future of work and are current graduates equipped for this new landscape?

A — The future of work is changing in real, tangible ways—it’s not just speculation. We either learn and adapt to these new technologies, or we risk being left behind. The traditional approach to software development is fading fast. Much of the code that used to be written by software engineers is now being generated by AI, and the few gaps the technology has today will inevitably be closed shortly. This shift is transforming the job landscape: some roles will become obsolete, but entirely new opportunities will also emerge, provided we have the skills to seize them.

Take, for example, the role of prompt engineer—a job title that didn’t exist until recently. Its emergence signals how deeply companies intend to integrate AI into their operations. And it’s not just a “tech job.” A prompt engineer needs strong domain expertise as well. If the task is to generate financial models, you need a solid background in finance, not just technical know-how.

Unfortunately, most of our graduates are not ready for this multidimensional future of work. A few are, but often because they’ve taken the initiative to upskill themselves. In many universities, faculty members remain comfortable teaching outdated knowledge. As a result, graduates enter the job market with skills that are out of sync with the demands of emerging roles. To close this gap, both curricula and faculty training must be updated through targeted initiatives and national-level programs to prepare our workforce for the realities of tomorrow.

Q — How can the government and other stakeholders support AI adoption in the country?

A — The security implications of this technology are substantial. When dealing with data, particularly sensitive personal information such as health records or travel schedules, privacy concerns become paramount. This is why governments and organizations must prioritize the introduction of robust regulations, such as comprehensive data protection laws, to ensure that individuals feel confident their information will be used solely for its intended purpose and not shared with marketers or other unauthorized parties. Clear regulations, laws, and enforcement procedures are critical, and this remains a global challenge.

Another urgent issue is the need to tackle data bias. Many AI systems inherit biases from the data they are trained on, which can lead to discriminatory results. To prevent this, regulations must include measures to identify and remove bias, making sure that technology does not marginalize or demean specific communities. This might involve masking certain parameters and implementing practices that keep datasets as neutral and representative as possible.

 

Q — What advice would you give to entrepreneurs navigating today’s fast-changing landscape?

A — First, acknowledge that this technology is here to stay. Every organization ultimately exists to serve customers and drive sales, and if an AI-first solution proves more cost-effective and capable than a traditional one, consumers will choose it. Human intuition, while valuable, is limited compared to what AI can achieve with data. Traditional methods have their limits; to truly understand customers, AI and machine learning can uncover patterns and trends hidden within the data you already possess.

This represents a fundamental shift—AI agents are beginning to replace many traditional SaaS models. That change cannot be stopped, so it must be embraced. Re-educate yourself, stay informed, and be open to learning from those around you. Recognize your gaps and bring in the right expertise to realize your vision. You may have the domain knowledge and strategic insight, while others contribute deep technical skills. Together, you can create solutions that are not only relevant today but also resilient and competitive in the future.

August 13, 2025 Interviews, IT Comments Off on Understanding the power of reinvention in a rapidly changing world with Salman Iqbal, Founder and CEO, Denovonet
Rows of solar panels in a large outdoor solar energy farm under a clear blue sky, capturing sunlight for renewable electricity generation.

Cleantech Factsheet

Written by Mahnoor Abdul Basit

Clean technology, also known as cleantech, refers to products, services, and processes that use renewable materials and energy sources, reduce emissions and waste, and have a minimal impact on the environment. In Pakistan, cleantech is crucial for addressing environmental challenges, enhancing energy security, and fostering sustainable economic growth.

Pakistan’s Energy Landscape[1]

  • Pakistan’s energy sector relies heavily on fossil fuels. The country has a total installed power generation capacity of approximately 41,000 MW, with 65% of it coming from fossil fuel sources. (United Nations Development Program)
  • The demand for energy is rising by 8-10% annually, driven by population growth and urbanization. Despite a surplus capacity of 12,000 MW, the country is not able to supply grid-based electricity to over 23 percent of the population.
  • The country is facing significant energy challenges, including high costs and energy shortages.More than 40 million Pakistanis remain without electricity, and half the population lacks access to clean cooking facilities that use cleaner fuels or modern stoves.
  • Pakistan also faces environmental challenges including rising pollution levels, water scarcity, and high energy demands, driven by population growth and industrialisation.

Clean Tech Opportunities

a) Renewable Energy:

Solar, Wind, and Hydropower: Pakistan has immense potential for harnessing renewable energy, with solar and wind energy resources particularly abundant.

b) Sustainable Agriculture:

Pakistan’s agriculture sector is crucial to its economy, but traditional farming practices are resource-intensive and contribute to environmental degradation.

Precision Agriculture: Implementing cleantech solutions like sensors, drones, and AI can optimize water usage, reduce pesticide dependence, and increase yields.

Agro-solar Technologies: Dual-use systems that combine agriculture and solar energy can enable farmers to produce crops and generate electricity simultaneously.

c) Water Management:

Water scarcity is a significant issue in Pakistan, with inefficient water use in agriculture, pollution of freshwater sources, and mismanagement of water infrastructure.

Cleantech Solutions: Smart irrigation systems, water recycling, and desalination technologies can be key to managing water resources sustainably.

Hydrological Monitoring: Using IoT sensors and data analytics to track and manage water distribution in real-time.

d) Waste Management:

With increasing urbanization, waste generation has surged, leading to landfills overflowing and mismanagement of hazardous waste.

Circular Economy Practices: Encouraging recycling, upcycling, and waste-to-energy technologies can reduce landfill dependence and generate additional resources.

Biomass Energy: Using organic waste to generate bioenergy can contribute to both waste reduction and clean energy production.

 

Benefits of Clean Tech for Pakistan

Economic Growth and Job Creation: Transitioning to cleantech industries, including renewable energy, waste management, and water efficiency, could open new sectors and create jobs.

Environmental Protection: Clean tech can reduce Pakistan’s carbon footprint, slow deforestation, and prevent resource depletion, contributing to global environmental goals.

Resource Efficiency: Cleantech solutions, especially in agriculture and water management, can promote sustainable resource use, preventing future scarcity issues.

 

Challenges Faced:

Policy and Regulatory Barriers: Lack of streamlined policies, slow regulatory approvals, and inconsistent incentives impede CleanTech adoption.

Financial Constraints: High upfront capital costs, limited access to green financing, and lack of venture capital interest in CleanTech startups hinder growth.

Infrastructure Limitations: Inadequate grid infrastructure for renewable energy integration and outdated distribution systems.

Public Awareness: Limited understanding of CleanTech benefits among businesses and consumers slows the adoption of sustainable technologies.

Skills Gap: Lack of technical expertise in CleanTech innovation and maintenance impairs the sector’s scalability.

 

Government Initiatives:

Alternate and Renewable Energy Policy 2019: Targets 30% renewable energy by 2030 and offers tax incentives to CleanTech investors.(Government of Pakistan. Alternative and Renewable Energy Policy 2019).[2]

Net Metering Regulation: Allows consumers to sell surplus electricity generated from renewable sources back to the national grid.

Green Financing by State Bank of Pakistan: Offers concessional loans for renewable energy projects through various green financing schemes.

Pakistan Clean Green Initiative: Focuses on promoting sustainable urban development, water conservation, and tree plantation.

Electric Vehicle Policy: Tax exemptions and subsidies encourage local EV manufacturing, with up to 50% exemption from duty and taxes on import of HEVs ( Hybrid Electric Vehicles) . The policy aims to transition 30% of new vehicles to electric power by 2030.[3]

 

Trends and Opportunities:

The CleanTech sector in Pakistan is witnessing rapid evolution, spurred by advancements in technology and growing public awareness of environmental concerns. One emerging trend within the sector is the increasing focus on urban sustainability initiatives. Cities such as Karachi, Lahore, and Islamabad are adopting CleanTech solutions to address urban pollution, traffic congestion, and waste management issues. Smart cities powered by renewable energy, integrated waste-to-energy solutions, and sustainable infrastructure are becoming focal points for both government and private sector collaboration. For instance, several CleanTech startups are now focusing on creating smart waste management systems that use AI, IoT sensors, and data analytics to optimize waste collection, recycling, and disposal, reducing landfill reliance.

In addition, the agriculture sector in Pakistan is poised for transformation through CleanTech innovations such as vertical farming and aquaponics, which offer resource-efficient solutions to feed a growing population with minimal environmental impact. These technologies, which combine agriculture with aquaculture, not only conserve water but also provide a sustainable alternative to traditional farming. Moreover, the increased availability of affordable solar-powered water pumps is revolutionizing irrigation practices in rural areas, helping farmers reduce dependency on costly and polluting diesel pumps.

As part of Pakistan’s CleanTech future, the country’s burgeoning electric vehicle (EV) market holds significant promise. With government policies promoting EV adoption and manufacturing, Pakistan’s potential as a key player in the electric mobility market is on the rise. By supporting the local production of EVs, Pakistan is positioning itself to capitalize on global trends toward electric transportation while reducing its dependence on fossil fuels. The development of EV infrastructure, including charging stations and battery recycling facilities, will be key to realizing the full potential of this green transition.

 

The Future of Clean Tech in Pakistan:

Collaborative efforts between government bodies, the private sector, and international organizations are essential to drive the cleantech agenda forward. Innovations such as blockchain in energy distribution, AI in water management, and bio-based technologies in agriculture are likely to shape the next decade of cleantech development in Pakistan.

In Pakistan, emerging technologies like blockchain and artificial intelligence (AI) are increasingly being explored to address the country’s pressing energy and water challenges. Blockchain has the potential to decentralize the energy market by enabling transparent peer-to-peer (P2P) trading of excess electricity generated from solar panels, especially important in urban areas adopting rooftop solar through net metering. It can also streamline billing systems, improve grid accountability, and verify the authenticity of green energy sources, supporting Pakistan’s goal of increasing renewable energy to 30% by 2030. On the other hand, AI is proving to be a powerful tool in improving water management across sectors. In agriculture, which consumes over 90% of the country’s freshwater, AI-driven systems can analyze real-time weather, soil, and crop data to optimize irrigation schedules, significantly reducing water waste. In urban settings, AI can help monitor and detect pipeline leakages, predict consumption trends, and manage distribution systems more efficiently. Projects in provinces like Punjab and Sindh are beginning to integrate these technologies into smart farming and water governance frameworks, showing promising potential for scaling. Together, blockchain and AI represent critical tools in building a more sustainable, data-driven approach to energy and water resource management in Pakistan. Engaging local communities and raising awareness about clean technologies will accelerate adoption at the grassroots level.

Clean tech is no longer an option but a necessity for Pakistan. The country’s environmental challenges, coupled with economic and social opportunities, present a case for urgent and widespread adoption of clean technologies across energy, agriculture, water, and waste management sectors.

 

Conclusion:

In conclusion, the current scenario of CleanTech in Pakistan is marked by remarkable progress and growing recognition of its critical role in addressing environmental challenges and ensuring sustainable economic growth. As global climate concerns intensify, Pakistan is witnessing a surge in CleanTech initiatives aimed at renewable energy, waste management, water conservation, and carbon reduction. The sector is benefiting from increased investments, both local and international, along with policy incentives provided by the government to encourage green innovation.

The emphasis on public-private partnerships, international collaborations, and research-driven approaches is accelerating Pakistan’s transition toward a greener future. By fostering entrepreneurship and creating an ecosystem conducive to sustainable practices, CleanTech in Pakistan has immense potential to address pressing environmental issues while contributing to economic resilience.

 

Notable CleanTech Start-ups and Companies:

 

Reon Energy: Specializes in solar energy solutions for commercial and industrial clients.

Pantera Energy: Provides end-to-end solar power solutions, including residential and industrial projects.

EcoEnergy: Focuses on providing off-grid solar energy solutions to underserved areas.

Baykee Solar: A tech-driven solar platform offering affordable solar financing solutions.

TrashIt: Promotes recycling and composting to encourage sustainable living habits and waste reduction.

EcoPak: Offers biodegradable packaging solutions to replace single-use plastics, aiming to reduce environmental pollution

Breathe IO: Develops IoT-based portable air monitors and purifiers to improve indoor air quality, addressing urban air pollution challenges.

Jaan Pakistan: Focuses on affordable energy solutions for low-income communities, including solar thermal cookers to reduce reliance on solid fuels.

MyWater: Offers eco-friendly water purifiers utilizing advanced filtration technologies to provide sustainable drinking water solutions.

Code Green PK: An eco-friendly eCommerce platform offering reusable and sustainable products to promote zero-waste lifestyles.

SWAP BEV: Focuses on electric vehicle solutions, contributing to the development of sustainable transportation in Pakistan.

Concept Loop: Develops technology-driven solutions aimed at enhancing energy efficiency and reducing environmental impact.

 

LUMS Center for Entrepreneurship (LCE) has also launched various cleantech startups focusing on sustainable solutions for energy, waste, and water management.

Aabshar: Tackles water scarcity, Aabshar has created an optimizing nozzle that reduces up to 98% of water wastage. The nozzle is easy to attach and also saves electricity consumption by 60%, working to reduce CO2 emissions over time.

PakVitae: Developing affordable water filtration systems for rural areas, addressing Pakistan’s water contamination issues.

Suftech Innovations: Upcycles metallised plastic waste into reusable plastic, promoting a circular economy.

Bamboo Bliss/ HUME: Eco-friendly bamboo products promoting a plastic-free lifestyle.

MetaFashion: Sustainable denim brand blending tradition with eco-friendly practices.

PakVitae: Focused on providing clean drinking water, PakVitae develops affordable, gravity-based water filtration systems using nanotechnology. Their solutions are used in both rural and urban settings to address water contamination and access issues.

Gamma Green Recycle: Incentivizes recycling by offering cash rewards, helping to establish a circular economy for waste in Pakistan.

SE Drop: Focused on combating urban water waste, SE Drop develops natural, plant-based disinfectant and anti-legionella nozzle systems for municipal and industrial pipelines.

Raftar Technologies: Promotes sustainable transport solutions by optimizing urban delivery and minimizing emissions through data-driven routing.

Trash Masti: Pakistan’s first online waste‑management platform, offering door‑to‑door collection for residential and commercial clients, e‑waste and hazardous‑waste disposal, composting, recycling, and even waste‑to‑energy services.

 

The LUMS Center for Entrepreneurship (LCE) plays a pivotal role in Pakistan’s CleanTech startup ecosystem, nurturing and supporting numerous innovative ventures. Our ongoing efforts include hosting a diverse array of CleanTech startups, fostering collaboration, and forming robust partnerships with environmental organizations, research institutions, and industry leaders to drive sustainable solutions.

For further details on LCE’s initiatives and contributions in the CleanTech domain, or to be added to the list of promising CleanTech startups, please contact our team at lce@lums.edu.pk.

 

[1] United Nations Development Program (UNDP). Energy Investments: Powering Businesses & Communities. Development Advocate, vol. 11, no. 2 (June-July 2024). https://www.undp.org/sites/g/files/zskgke326/files/2024-07/dap_-_volume_11_issue_2_-_energy_investments_-_powering_business_and_communities.pdf.

[2] Government of Pakistan. Alternative and Renewable Energy Policy 2019. Islamabad: Government of Pakistan, 2019. https://climate-laws.org/document/alternative-and-renewable-energy-policy-2019_991c.

[3] Ministry of Climate Change, Pakistan. Pakistan’s First National Electric Vehicle Policy (2019). Islamabad: Ministry of Climate Change, 2019. https://mocc.gov.pk/SiteImage/Policy/EV%20Policy%20Final.pdf.

 

 

 

August 7, 2025 Cleantech, Factsheets Comments Off on Cleantech Factsheet
A group of women entrepreneurs seated in a circular arrangement during a workshop at the LUMS Centre for Entrepreneurship. The room features a modern design with a yellow accent wall, a large projector screen, and a mural made of numbers forming a portrait. Bottled water and notebooks are placed on the tables as participants engage in the session.

Threading Change: Women Leading in Pakistan’s Textile Sector

Insights from Phase 1 of the Women Leadership Programme

Written by Mahjabeen Bilal

The textile industry in Pakistan is one of the largest export-led industries in the country, employing 40% of  the workforce[1]. It is a key player in Pakistan’s economy and significantly contributes to 60% of the country’s exports and industry growth, accounting for the largest skilled workforce that includes women; however, there is a limited talent pool of women available for hiring in the textile industry due to systematic irregularities and underutilisation of the female workforce. Most women hold blue-collar positions, which offer limited scope for financial development in addition to limited opportunities for mobility in terms of career opportunities and professional growth.

Women in Pakistan face a variety of socioeconomic, political, and cultural barriers to their development, which significantly impact their quality of life. Historically, the textile industry has faced challenges regarding gender equality, working conditions, and recognition of women’s labour. As part of the Women Leadership Programme, supported by GIZ Pakistan and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the LUMS Centre for Entrepreneurship (LCE) is collaborating with factories across Punjab to improve women’s career mobility, focusing on imparting soft skills on leadership, creating agents of change that can support greater gender-sensitive decision-making, and encouraging more females to join the industry.

The GIZ Women Leadership Programme (WLP) is designed to equip participants with the practical skills, strategies, and confidence needed to step into leadership roles. This project offers trainings that are a structured yet interactive learning experience, focusing on real-world problem-solving, financial decision-making, negotiation tactics, team management, and workplace equity. Through engaging discussions, hands-on activities, and industry-relevant case studies, participants will gain insights that go beyond theory, helping them take actionable steps toward professional growth. The training provides a platform to connect, learn, and develop leadership capabilities that will drive both individual success and broader industry change.

During Phase 1 of the project, the LCE team conducted onsite needs assessments with textile industry employees and provided an awareness session to higher management. The aim of the needs assessment activities was to understand both top-down and bottom-up challenges to women’s career growth. Insights from these activities informed the instructional design and development of the training content. The aim was to integrate these learnings to create tailored leadership curricula that addressed locational, cultural, educational, and industry-specific challenges that these women face.

Phase 1 covered five cities: Karachi, Lahore, Multan, Faisalabad and Sialkot. There were 110 women, and 55 executives across 31 factories participated in the need assessment surveys and focus groups onboarded from  the aforementioned cities in this program.

Our needs assessment activities provided us with nuanced insights relevant to the textile industry with an added layer of city-specific context. The focus groups highlighted issues such as lack of confidence and  lack of autonomy in male-dominated environments entrenched in cultural stereotypes. Women shared that prejudices regarding work-life balance and what is culturally expected of women often constrain their career growth. These challenges are not isolated but are situated within a broader socio-economic context where this intersection of gender, labour, and culture plays out. For example, caregiving and domestic responsibilities are disproportionately placed on female family members, which impacts their work-life balance. Women also spoke about the gender bias involved in the promotional processes and raised concerns regarding psychological safety, due to which many women reported having internalised insecurities regarding the way they present themselves at work.

“Self-doubt is real. We don’t even ask for promotions because we feel we’re not good enough.” — Textile Worker, Lahore

Similarly, the workshops with the textile executives provided important insights into the kind of barriers women have to face in their career advancement, including organizational culture, harassment, and the presence or absence of mentorship programs. Individuals from decision-making roles spoke about how company culture is significantly determined at the “top” and relies heavily on the leadership’s attitude towards women’s development. Executives from larger, export-oriented firms suggested greater exposure and willingness to invest in women’s professional development, while representatives from mid/smaller companies spoke about the “Seth” (male company founder) culture dominating decision-making. Executives reported that investing in leadership training for women led to measurable improvements in their performance as well as the overall workplace morale and culture.

“Women tend to be more focused and exhibit higher productivity.” — Executive Workshop, Sialkot

“Women in leadership roles tend to exhibit higher levels of commitment and empathy.” — Executive Workshop, Lahore

The findings from the needs assessment surveys showed a high interest in career growth across cities, with 100% of the women in Karachi expressing interest in leadership roles. Across cities, participants stated their main motivation for job mobility was financial benefits. Additional motivators included learning, skill acquisition, and appreciation. The main systematic barriers identified were a vacuum in mentorship, unclear promotion policies and career pathways, and a lack of developmental support.

Through our primary research surveys, it was found that women have limited participation in managerial positions, due to which, overall, there was a low interest in technical or skill training. Participants were more inclined towards training that helps them acquire soft skills such as emotional intelligence to help overcome insecurities and be more resilient; effective communication and negotiations to communicate effectively and assert themselves; and lastly, conflict resolution and workplace navigation to help navigate the conflict and prejudice in the workplace. These skills were  perceived to help them communicate more effectively and strengthen their positions in the workplace.  By focusing on these trainings, LCE’s Women Leadership Programme expects to put in place immediate micro interventions by overcoming bottlenecks and hopes to facilitate short- term behavioural changes to influence organizational culture in the long run.

The LCE team faced operational and cultural barriers to women’s participation during the training through this phase of the program. This included factories not releasing female employees for trainings due to either cultural constraints or lack of availability. City-to-city barriers and the size of the textile company were also a determinant of participation—smaller companies showed more resistance to sending in women without male guardians; others did not have enough workforce to spare female workers to go attend these sessions. It was also found that institutional biases were present when it came to factories investing in future leadership trainings, which posed as a challenge due to the lack of diversity amongst participants.

While soft skills development is essential to empower women to navigate barriers at the workplace, considering the top-down culture of the textile industry, sustainable change eventually depends on macro interventions through long-term policy reform. Company executives need to invest in organizational structures that support women’s career progression, alleviate the socioeconomic barriers to entry, and provide opportunities for capacity-building that in turn lead to an environment where women can excel. Yet, interventions such as the LUMS Women Leadership Programme supported by GIZ play an important role in bringing about cultural change—by exposing participants to tailored capacity building training on soft skills, individual agents of change are empowered. Participants will learn how leadership skills can be effectively utilised to advocate for more diverse, enabling work environments thereby acting as role models within their respective companies and social circles at large.

 

[1] https://ebiz.punjab.gov.pk/textile

 

 

July 23, 2025 Article Comments Off on Threading Change: Women Leading in Pakistan’s Textile Sector

LCE Signs MoU with MDX Innovation Hub, Middlesex University Dubai, to Foster Cross-Border Entrepreneurship

The LUMS Centre for Entrepreneurship (LCE) is proud to announce the signing of an MoU with the MDX Innovation Hub at Middlesex University Dubai. This partnership marks a significant milestone in fostering regional collaboration and expanding the international footprint of start-ups in Pakistan and the Middle East.

As interest in the Middle Eastern market continues to grow among mature Pakistani start-ups—particularly those in the tech sector—this partnership comes at a strategic time. Many start-ups have already made inroads into the region, highlighting the growing potential for cross-border entrepreneurship.

With this MoU, both institutions aim to strengthen connections between academia and the start-up landscape, enabling long-term growth through shared learning and actionable opportunities.

“The signing of this MoU between Middlesex University Dubai’s Innovation Hub and LUMS Centre for Entrepreneurship marks a significant step forward in fostering cross-border collaboration between academic institutions in the UAE and Pakistan,” said Professor Fehmida Hussain, Head and Founder of the MDX Innovation Hub.

“By joining forces, we are creating a platform that leverages the unique strengths, resources, and entrepreneurial ecosystems of both countries. This partnership reflects our shared commitment to nurturing innovation, empowering future leaders, and building a more connected and resilient startup landscape across the region.”

The MoU outlines a broad framework of cooperation, including:

  • Joint research and entrepreneurial projects focused on cross-border challenges and opportunities.
  • Knowledge exchange through co-hosted workshops, guest lectures, and co-branded content that amplify regional insights.
  • Start-up-focused events and competitions held in Lahore and Dubai to build innovation networks across borders.
  • Short-term exchange programmes for start-ups, offering founders immersive experiences in local markets to gain direct insight and build partnerships.
  • Collaborative contributions to LCE’s Knowledge Hub through articles, podcasts, and case studies that capture learnings and trends from both ecosystems.

These efforts aim not only to support mid-to-late stage startups exploring international growth, but also to enable students, faculty, and industry leaders to participate in shaping a future-ready entrepreneurial ecosystem.

Jazib Zahir, Director of LUMS Centre for Entrepreneurship, added, “LUMS Centre for Entrepreneurship is pleased to initiate collaborations with Middlesex University Dubai. We’ve found synergies in our priorities around curriculum design, knowledge sharing across geographies, and the pursuit of ventures—particularly in technical spaces. We look at this agreement as a way to give our stakeholders, particularly incubated ventures, access to additional resources and exposure.”

The MoU further reaffirms LCE’s commitment to enabling meaningful cross-border opportunities for startups while aligning with MDX Dubai’s mission to build impactful and inclusive innovation ecosystems.

Together, we look forward to shaping the next chapter of entrepreneurship between Pakistan and the UAE.

June 10, 2025 Press Release Comments Off on LCE Signs MoU with MDX Innovation Hub, Middlesex University Dubai, to Foster Cross-Border Entrepreneurship

Understanding the Investment Climate of Pakistan

Written by Mahnoor Abdul Basit

Pakistan’s investment climate can be difficult to navigate for national and international stakeholders alike. This article provides a targeted overview of the aspects that influence the investment space of the entrepreneurial ecosystem, providing valuable insights from both investors and startups. Understanding these dynamics is essential for early-stage ventures looking to secure funding, scale operations, and make informed strategic decisions. By exploring historical trends, current economic indicators, and future projections, it highlights the opportunities and challenges of investing in Pakistan and gives tips on maneuvering through its evolving economic landscape.

Overview of Pakistan’s Investment Climate

Historical Context:

Pakistan’s investment landscape has evolved over the years, shaped by periods of economic liberalization, foreign capital inflows, and policy-driven shifts. While the 1990s marked a phase of privatization and deregulation, the early 2000s saw a rise in foreign direct investment (FDI) driven by improvements in macroeconomic stability and investor-friendly policies. However, external shocks, political instability, and inconsistent economic policies have repeatedly disrupted sustained growth.

Over the past decade, FDI trends in Pakistan have followed a cyclical pattern, influenced by global economic shifts, domestic policy changes, and geopolitical dynamics. The early 2010s witnessed an influx of investment, particularly in energy and infrastructure, catalyzed by the China-Pakistan Economic Corridor (CPEC), which brought in billions of dollars. However, FDI declined post-2018 due to external debt concerns, political uncertainty, and a deteriorating business climate. According to the State Bank of Pakistan (SBP), FDI inflows peaked in 2017 at approximately $2.8 billion before witnessing a decline, reaching $1.5 billion in 2022. The Covid-19 pandemic further slowed global capital movements, impacting investment inflows into the country.[1]

While there have been periods of increased inflows, recent trends indicate a concerning decline. In January 2024, Pakistan experienced a net FDI outflow of $173.2 million, marking a six-year high and reflecting growing investor apprehension amid political uncertainty and economic instability. Although there was a 32% increase in net FDI to $904 million during July–October FY25 compared to the same period the previous year, the inflows remain modest relative to the country’s needs.[2]

Beyond CPEC, sectors such as telecommunications, financial services, manufacturing, and technology startups have historically attracted substantial investment. The telecom sector, particularly with the entry of foreign players like Telenor and Jazz, received significant FDI in the early 2000s. The banking sector saw interest from international financial institutions, while manufacturing—especially in textiles and consumer goods—remained a key area for investment. In recent years, venture capital investment in Pakistani startups has gained traction, with over $350 million raised in 2021 alone, marking a shift toward technology-driven economic activity.[3]

Despite these promising developments, Pakistan has struggled to fully leverage its investment potential due to a lack of economic branding. Unlike regional competitors, the country has not effectively marketed its economic strengths—such as a young, globally competitive workforce and strategic trade access to East Asia, South East Europe, and the Middle East. Instead, geopolitical narratives of instability have overshadowed the real opportunities available, especially for its growing entrepreneurial ecosystem.

The line graph above illustrates Pakistan’s FDI inflows from 2010 to 2023.

Current Economic Indicators:

GDP Growth: the Pakistani economy is projected to grow at 2.5% in FY2025, with improvements expected in the services and agriculture sectors.[4]

Inflation stood at 23.41% in FY2024 as compared to the previous year but is expected to improve as fiscal measures take effect, such as tax reforms, subsidy rationalization, and investment-friendly policies. The government has introduced tax incentives for businesses, including reduced corporate tax rates and exemptions for Special Economic Zones (SEZs), to attract investment. Additionally, energy sector subsidies for industries, along with export rebates and duty drawbacks, aim to boost economic activity. Public spending on infrastructure projects under the Public Sector Development Program (PSDP) and CPEC initiatives is also expected to stimulate growth. Furthermore, fiscal consolidation measures, including IMF-backed policy adjustments and debt management strategies, are likely to enhance macroeconomic stability and investor confidence.

Currency Stability: The Pakistani Rupee has stabilized recently following an IMF bailout and improved remittance inflows, with an increase of 24% in foreign exchange reserves as compared to the previous year. This improvement is driven by higher worker remittances, a narrowing current account deficit, and stringent fiscal measures aimed at stabilizing the economy.

Key Industries of Opportunity:

  1. Tech Startups

Pakistan’s tech startup ecosystem has seen unprecedented growth in recent years, driven by a young, digitally literate population and increasing investor interest. In 2022, Pakistani startups raised over $350 million in funding despite global economic slowdowns, showcasing the resilience and potential of the sector.

Pakistan’s freelancing sector is a key driver of the tech economy, contributing over $1 billion annually. In FY24 (July 2023 – March 2024), freelancers generated $350.15 million in foreign exchange earnings. The average monthly income ranges from PKR 40,058 to PKR 62,498, depending on skills and experience. With a 27% increase in earnings in recent years, Pakistan ranks among the fastest-growing freelancing markets globally, strengthening its position in the digital economy.[5]

This rapid digital transformation is not only evident in the rise of individual freelancers but also in the growth of tech-driven startups that are reshaping the local ecosystem. Notable examples include:

Airlift:

Airlift was a Lahore-based startup that initially launched as a mass transit service, offering affordable, app-based bus rides. During the pandemic, it pivoted to quick commerce, delivering groceries and essentials within 30 minutes. In 2021, it made headlines by securing $85 million in Series B funding, the largest single private investment in Pakistan’s startup history.

However, despite its rapid rise, Airlift shut down in 2022 due to a series of financial and operational challenges:

Over-Reliance on External Funding – Airlift’s aggressive expansion into quick-commerce required heavy subsidies and high burn rates, making it dependent on continuous funding rounds. When the global funding climate tightened, it struggled to secure capital.

Economic Downturn & Inflation – Rising inflation and a depreciating rupee increased operational costs, while reduced consumer spending hurt revenues.

Expansion Beyond Market Capacity – The company expanded operations into South Africa, stretching resources too thin instead of consolidating its home market.

Unit Economics & Profitability Issues – High logistics costs and discounts meant negative margins per order, making the business unsustainable in the long run.

Investor Hesitation – The 2022 global tech downturn made venture capitalists more cautious, and Airlift failed to secure its next funding round, forcing a shutdown.

Airlift’s downfall serves as a cautionary tale for Pakistani startups. It underscores the importance of profitability over rapid scaling, adapting to economic realities, and ensuring financial self-sufficiency rather than relying solely on venture capital.

Bykea:

Bykea is a Karachi-based startup that provides bike-based ride-hailing, delivery, and payment services through its mobile app. Launched in 2016, it caters to Pakistan’s middle and lower-income segments, offering affordable transportation, parcel delivery, and cash-based financial transactions. Bykea managed to secure $10 million in funding in 2022 to expand its mobility and logistics services.

With internet penetration exceeding 36% and a growing e-commerce market (valued at $4 billion in 2022), the tech sector continues to attract significant domestic and international investment.

  1. Agriculture

Agriculture remains a cornerstone of Pakistan’s economy, contributing 23% to GDP and employing 38.5% of the labour force. Modernization efforts, such as precision agriculture and smart irrigation systems, are improving productivity.[6]

Key Crops & Exports: Pakistan is the 4th largest producer of cotton and a leading exporter of rice. Additionally, sugarcane is a major crop, supporting the large domestic sugar industry, though challenges like inefficiencies and price volatility persist.

Agriculture Transformation Plan: This government initiative promotes mechanization, digital farming, and subsidies to boost crop yields. Agri-tech startups like Tazah are also leveraging technology to streamline supply chains and reduce waste.

Halal Meat Potential: With a large livestock population, Pakistan has significant untapped potential in halal meat exports. While the country exports to the Middle East and Southeast Asia, it has yet to fully capitalize on the $2 trillion global halal food market. Investments in modern slaughterhouses, cold chain logistics, and quality certifications could help Pakistan establish itself as a major supplier to Europe, Central Asia, and Africa, where demand for halal-certified meat is rising.

  1. Textiles

The textile industry is a cornerstone of Pakistan’s export economy, accounting for over 60% of total exports, valued at approximately $19 billion in FY2023. Leading textile firms such as Style Textile ($522 million), Interloop Ltd. ($423 million), Nishat Mills Ltd. ($381 million), Artistic Milliners ($330 million), and Gul Ahmed Textiles ($302 million) have played a crucial role in driving this growth. Pakistani manufacturers supply products to major global brands, including Zara, H&M, C&A, Bestseller, Adidas, Next, Mango, and Forever 21. Government incentives such as duty drawbacks, subsidized utility rates, and export refinancing have strengthened the sector, while the EU’s GSP+ trade incentive has further boosted demand. The rise of sustainable fashion and organic cotton trends also presents new investment opportunities. With a strong infrastructure and increasing global demand, Pakistan remains a key player in the international textile market.

  1. Clean Tech

With rising energy demand and environmental concerns, Pakistan is focusing on clean tech as a critical sector for investment. The country boasts an estimated potential of 50,000 MW from wind energy and 2.9 million MW from solar energy. Key initiatives include:

  • The Jhimpir Wind Corridor, where over 1,000 MW of energy is being generated from wind projects.
  • The Quaid-e-Azam Solar Park, with a capacity of 1,000 MW, is one of the largest solar projects in the region.
  • The Alternate and Renewable Energy Policy 2019 aims to generate 30% of electricity from renewable sources by 2030.
  • International investors, including China and the UAE, are actively participating in clean tech projects, signaling the sector’s potential for high returns and sustainable growth.
  • Pakistan’s electric vehicle (EV) sector is experiencing significant growth, driven by both local initiatives and international collaborations. Chinese manufacturers like Changan and BYD have announced plans to introduce EVs into the Pakistani market. Notably, BYD is partnering with Hub Power’s subsidiary, Mega Motor, to establish Pakistan’s first EV assembly plant by 2026, aiming to position the country as a key automotive export hub targeting regions such as Africa and South Asia.

In support of this evolving landscape, Lahore University of Management Sciences (LUMS) has inaugurated an E-Mobility Research and Development Center. This center focuses on advancing EV technologies to address environmental challenges like air pollution and climate change, aligning with national goals for EV adoption by 2030.

LUMS also  hosted the 2nd Symposium on Battery Electric Vehicles (BEVs) in collaboration with HEC Pakistan, the World Bank, and IFC, focusing on ‘Accelerating the Electric Mobility Transition in Pakistan.’ The event brought together policymakers, academics, and industry leaders to discuss progress, challenges, and strategies for advancing EV adoption in line with global trends.

  • Rawana, a startup in the Idea Launch cohort at LUMS Center for Entrepreneurship (LCE), is revolutionizing last-mile delivery with electric vehicles, promoting sustainable urban transportation through efficient and eco-friendly mobility solutions.
  • Voltshare Technologies, part of the Slingshot Accelerator cohort at LUMS Center for Entrepreneurship (LCE), is connecting EV drivers to real-time charging stations, reducing range anxiety and supporting Pakistan’s growing electric mobility ecosystem.

Government Initiatives:

The Pakistani government has implemented several strategic measures to attract investment and improve the business climate:

Tax Reforms & Incentives: The government has introduced tax amnesty schemes, reduced corporate tax rates for IT exports, and exemptions for startups to encourage business formalization and attract FDI. In the latest budget, IT and freelancing sectors were granted tax exemptions and incentives to boost Pakistan’s digital economy.

Special Economic Zones (SEZs) under CPEC: Pakistan has established nine SEZs, including Rashakai, Allama Iqbal, and Dhabeji SEZs, aimed at attracting both local and foreign investors by offering tax holidays, duty-free imports on machinery, and infrastructure support. These SEZs are positioned to boost manufacturing, particularly in automobile, textile, and pharmaceuticals. However, bureaucratic delays and inconsistent policies have slowed their full potential.

Ease of Doing Business Reforms: Pakistan improved its ranking in the World Bank’s Ease of Doing Business Index from 136th in 2018 to 108th in 2020 before the rankings were discontinued.[7] Key reforms included simplifying business registration through the SECP, introducing online tax filing systems, and reducing approval times for construction permits and electricity connections. However, challenges remain in contract enforcement and dispute resolution, deterring long-term foreign investment.

While these initiatives signal progress, policy inconsistency, political uncertainty, and economic volatility remain key challenges in fully leveraging these reforms to attract sustainable investment.

Regional and International Investment Trends:

Pakistan’s strategic location provides access to South Asia, Central Asia, and the Middle East, making it a potential investment hub. Recent trends show growing FDI in technology, renewable energy, and infrastructure, particularly through CPEC-driven SEZs and fintech expansion. However, macroeconomic challenges and policy uncertainty continue to impact investor confidence.

Globally, investment trends are shifting toward sustainable development, digital transformation, and AI-driven innovation. Countries are prioritizing green energy, supply chain diversification, and smart manufacturing to mitigate economic volatility. Pakistan must align with these global trends to attract long-term, high-value investments.

Key Challenges:

Economic Instability: Persistent fiscal deficits, external debt obligations, and currency fluctuations create economic uncertainty, impacting investor confidence.

Political and Security Concerns: While political transitions and regional tensions have historically posed challenges, improving security metrics offer hope for a more stable business environment.

Regulatory Framework: Complex bureaucratic processes, unclear tax policies, and inconsistent regulations remain major hurdles for local and foreign investors.

Expert Opinions:

To understand the evolving investment landscape in Pakistan, we gathered expert insights on investor priorities, market opportunities, and key factors that drive funding decisions.

Hammad Umer, an experienced investment manager and head at Inistor, highlighted the evolving priorities in the investment space: “Investors are now more conscious of valuations and selective in their investments. Governance practices play a crucial role in building trust and attracting funding.” He advised entrepreneurs to collaborate, explore new opportunities, and adopt a strategic vision for long-term growth.

He also underscored the potential of cleantech, stating, “Sectors like mobility and alternative fuels hold significant promise, though they remain underdeveloped. However, with the government introducing favorable energy policies, there is a strong opportunity for innovation and growth in these industries.”

With nearly three decades of experience in software development and technology services, Dr. Salman Iqbal, founder of Denovonet, pointed to IoT innovations in healthcare as a promising investment area. He shared that his company developed a smart diaper that alerts caregivers via text message when it needs changing. His advice to startups: “Focus on the problem you want to solve and assess its long-term monetization potential.”

He also emphasized the transformative potential of emerging technologies, stating, “The next major shift will be in generative AI. As more innovators explore its applications, it will become a powerful tool for problem-solving and delivering value to customers. Prompt-based AI, in particular, offers new opportunities to enhance efficiency and improve everyday experiences.”

Success Stories and Investment Trends

International Firms: Companies like Coca-Cola have made billion-dollar investments in Pakistan, showcasing confidence in its consumer market.

Local Startups: Success stories like Bykea and Careem illustrate how tech-driven innovation can thrive despite economic challenges.

Renewable Energy Projects: The Jhimpir Wind Corridor and other initiatives have attracted international partnerships, underscoring clean energy’s potential.

What Investors Look For:

  • Scalability: Startups in e-commerce, fintech, and healthcare that leverage technology for rapid growth are particularly attractive.
  • Market Size: With a population exceeding 240 million, Pakistan offers a vast consumer base, especially in urban centers.
  • Growth Potential: High-growth industries like clean energy, agri-tech, and digital financial services align with both local needs and global investment trends.

Actionable Advice for Investors:

Form Strategic Partnerships: Collaborating with local businesses helps investors navigate regulatory challenges and gain market insights.

Understand the Business Culture: Personal relationships and trust play a crucial role in securing long-term business success in Pakistan.

Leverage Government Incentives: SEZs offer tax benefits and simplified regulations, particularly for manufacturing and tech sectors.

Plan for Market Challenges: Investors should prepare for currency fluctuations and bureaucratic hurdles with diversified portfolios and localized risk assessments.

Startup Lessons:

The investment climate in Pakistan is evolving, creating new opportunities for startups. However, many entrepreneurs struggle with raising capital, navigating regulations, and achieving long-term growth.

Muhammad Umer Hassan and Talha Dar, founders of Markhor 3D, a STEM-focused hardware startup, shared their experiences:

  • Many investors favored quick-return software startups over hardware ventures.
  • Political instability and foreign policy challenges deterred international investors, including one from China.
  • Despite multiple rejections, they shifted focus to self-funding, revenue generation, and strategic partnerships.
  • Their persistence paid off when angel investor Bilal Ahmed came on board, emphasizing the importance of finding the right supporters.

Key Takeaways for Startups:

  • Understand Investor Expectations: Demonstrate scalability, profitability, and clear business models to attract funding.
  • Utilize Funding Effectively: Investments should be allocated to product development, market expansion, and operational efficiency.
  • Leverage Local Ecosystems: Engage with incubators like LUMS Center for Entrepreneurship (LCE), for mentorship and funding opportunities.
  • Adapt to Funding Challenges: With global funding markets tightening, startups must explore local venture capital, crowdfunding, and alternative revenue streams.
  • Stay Resilient: Persistence, adaptability, and a strong vision are crucial for long-term success.

Pakistan’s startup ecosystem is at a pivotal moment, with increasing venture capital inflows, digital transformation, and government initiatives fueling growth. However, strategic navigation, strong governance, and adaptability are essential to overcoming investment challenges. For investors and entrepreneurs alike, Pakistan presents both risks and immense opportunities, making it a market worth watching.

  1. Conclusion

Pakistan’s investment climate is evolving, driven by a combination of strategic reforms and emerging opportunities. The government has introduced investor-friendly policies, including tax incentives, simplified regulatory frameworks, and the development of Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC), which offer duty exemptions and infrastructure support. Efforts to stabilize the economy through fiscal consolidation and improving ease of doing business rankings have further enhanced investor confidence. Moreover, the growing focus on sectors like renewable energy, technology, and value-added agriculture reflects a shift towards modernization. With a young, tech-savvy population, increasing urbanization, and a rising middle class, Pakistan is positioning itself as a dynamic regional hub for trade and investment.

[1] State Bank of Pakistan, Summary of Foreign Investment in Pakistan, 2024, https://www.sbp.org.pk/NetinflowSummary

[2] Dawn, November 19, 2024. https://www.dawn.com/news/1873377.

[3] Ministry of Information Technology & Telecommunication. Yearbook 2021–22. Government of Pakistan. Accessed May 19, 2025. https://www.moitt.gov.pk/SiteImage/Downloads/MoITT-YB-21-22.pdf.

[4] Asian Development Bank. “ADB Forecasts Pakistan’s Economy to Grow 2.5% in FY2025, as Reforms Take Effect.” News release, April 9, 2025. https://www.adb.org/news/adb-forecasts-pakistan-economy-grow-2-5-fy2025-reforms-take-effect.

[5] Mettis Global. “Freelancers’ Remittances Reach $350.2m in July–March FY2024: Survey.” Mettis Global News, June 12, 2024. https://mettisglobal.news/freelancers-remittances-reach-350-2m-in-july-march-fy2024-survey/.

[6] Finance Division, Government of Pakistan. Pakistan Economic Survey 2023–24: Chapter 2 – Agriculture. https://www.finance.gov.pk/survey/chapter_24/2_agriculture.pdf

[7] State Bank of Pakistan. “Ease of Doing Business (EODB) Index.” https://www.sbp.org.pk/FS/Ease/Ease-r.html

 

May 21, 2025 Article, Investment Comments Off on Understanding the Investment Climate of Pakistan

Embracing the Flexicurity Work Model: Lessons from Denmark’s Productivity Paradigm

By Mahnoor Basit.

In recent years, the traditional 9-5 work model has undergone a profound transformation with the emergence of hybrid work arrangements. This shift reflects a global trend towards greater flexibility, autonomy, and work-life balance in the workplace. As organizations adapt to the changing needs of employees and technological advancements, the flexicurity work model has gained traction as a viable alternative to the conventional office-based structure.

The Flexicurity model of work is an approach that seeks to combine labor market flexibility with security for workers. It originated in Denmark but has gained attention worldwide as a potential solution for balancing the needs of both employers and employees in a rapidly changing economic environment.

Drawing on insights from Denmark’s progressive approach to work, this essay explores the evolution of the flexicurity work model, its potential benefits and drawbacks, and the implications for the future of work. Additionally, this article explores Pakistan’s readiness, suitability, and feasibility for adopting the flexicurity model.

The Rise of Hybrid Work Models:

Hybrid work models, blending remote and in-person elements,  synergize with the Flexicurity model by promoting adaptable work arrangements while ensuring employment security and social protections for workers.

The COVID-19 pandemic accelerated the adoption of hybrid work models globally. A recent article in the McKinsey Quarterly titled “Hybrid work: Making it fit with your diversity, equity, and inclusion strategy” (McKinsey Quarterly, April 20, 2022) revealed that more than four out of five survey respondents who worked in hybrid models over the past two years preferred retaining them going forward and over half of employees expressed a desire for more flexible, hybrid virtual-working models, where they can sometimes work on-premises and sometimes remotely

From an economic viewpoint, the hybrid work model can lead to both cost savings and increased expenses for businesses. On the cost-saving side, companies can reduce overhead costs related to office space, utilities, and maintenance. Employees might save on commuting expenses and gain more personal time, potentially leading to greater job satisfaction and retention. However, businesses may need to invest in advanced technology and cybersecurity measures to support remote work, which can be costly. Additionally, potential productivity losses due to communication challenges and the need for effective management strategies can impact overall economic efficiency.

Denmark’s Hybrid Work Culture:

The emergence of hybrid work models has transformed the traditional employment landscape, challenging the relevance of conventional 9-5 jobs. Denmark, renowned for its robust economy and progressive work culture, offers valuable insights into the efficacy of hybrid work arrangements and their impact on productivity.

Denmark has long been at the forefront of innovative work practices, emphasizing flexibility, autonomy, and work-life balance. Denmark’s economy, ranked third globally in productivity while boasting the fewest actual hours worked, challenges traditional notions of work efficiency The Danish workforce benefits from a culture that values trust and encourages remote work arrangements.

According to a report by Statista, in 2022, around 34 percent of Danish employees had worked from home at least once in the last four weeks. That was higher compared to the previous years and mainly due to the effects of the coronavirus (COVID-19), leading many people to work from home and changing how people work, establishing a hybrid model in some sectors and .

Denmark is renowned for its innovative flexicurity model, which effectively combines labor market flexibility with social security. This model allows employers to hire and dismiss employees with relative ease while providing robust social safety nets, such as unemployment benefits and retraining programs, to support workers. The flexicurity approach aims to foster a dynamic labor market, promote high employment rates, and ensure economic stability, thereby balancing the needs of both employers and employees. Denmark’s flexicurity model is managed through public policies that combine flexible labor laws with strong social security systems. The government facilitates easy hiring and firing while providing robust unemployment benefits and retraining programs. Active labor market policies enhance skills and employability, and ongoing social dialogue among the government, employers, and unions ensures balanced and adaptable labor market policies.

Denmark’s Economic Performance:

Contrary to conventional wisdom, Denmark’s productivity remains robust despite fewer actual hours worked. Denmark is the seventh-most productive country in the world when considering GDP per hour worked. On average, Danish employees work approximately 37.2 hours per week. This ranking reflects Denmark’s efficient use of labor and its focus on productivity. Additionally, Denmark has performed exceptionally well in business efficiency, productivity, and management practices, which contributed to its high competitiveness. Moreover, Denmark has the shortest average workweek of just 37.2 hours for full-time employees of the OECD member countries. This places Denmark among the top-ranking nations in productivity. The country’s Gross Domestic Product (GDP) per hour worked ranks among the highest globally, highlighting the effectiveness of hybrid work arrangements. (2024 World Population Review).

The Relevance of Traditional 9-5 Jobs:

In light of Denmark’s success with hybrid work models, the relevance of traditional 9-5 jobs may be called into question. While some industries and roles may still require fixed working hours, the broader trend suggests a shift towards greater flexibility and autonomy. Employers are increasingly recognizing the benefits of allowing employees to customize their work schedules, leading to improved retention rates and employee engagement. Studies have found that employees with the flexibility to work remotely report higher job satisfaction and productivity levels.

Challenges and :

While hybrid work models offer numerous benefits, they also present challenges.

Benefits:

  • Flexibility: Remote work allows employees to have greater control over their schedules, enabling them to balance work and personal commitments more effectively.
  • Cost Savings: Employers can save on office space, utilities, and other overhead costs associated with maintaining a physical workspace.
  • Increased Productivity: Many employees report being more productive when working remotely, as they can focus without interruptions and avoid commuting time.
  • Expanded Talent Pool: Remote work opens up opportunities for employers to hire talent from anywhere in the world, leading to a more diverse and inclusive workforce.
  • Work-Life Balance: Remote work offers employees the flexibility to create a better balance between their professional and personal lives, leading to higher job satisfaction and well-being.

Challenges:

  • Communication Challenges: Remote work can hinder communication and collaboration among team members, leading to misunderstandings and decreased productivity.
  • Social Isolation: Remote workers may feel isolated and disconnected from their colleagues, leading to feelings of loneliness and decreased morale.
  • Work-Life Boundaries: Remote work blurs the boundaries between work and personal life, making it difficult for employees to disconnect and recharge.
  • Technology Issues: Remote work relies heavily on technology, and technical glitches or internet connectivity problems can disrupt workflow and productivity.
  • Lack of Oversight: Employers may struggle to monitor and manage remote workers effectively, leading to concerns about accountability and performance.

Adapting Denmark’s flexicurity model to Pakistan’s economy:

The Danish model’s combination of flexible labor laws and comprehensive social security policies could offer significant benefits, such as increased job mobility and economic stability. However, implementing such a model in Pakistan necessitates addressing specific economic and cultural contexts.

Promoting flexicurity in Pakistan involves several steps:

First, there needs to be a substantial effort to formalize the informal economy, which constitutes a large part of Pakistan’s labor market. Formalizing this sector would require extensive reforms, including better labor regulations, incentives for businesses to register formally, and enforcement of labor laws. This transition could lead to more stable employment conditions and better worker protections, aligning with the flexicurity model’s principles.

Second, developing robust social safety nets is crucial. This includes establishing comprehensive unemployment benefits and retraining programs to support workers during job transitions. Only after these foundational steps can flexicurity be gradually introduced.

Thirdly, incorporating flexicurity into Pakistan’s economy must align with cultural norms and practices. Pakistani culture highly values job security, and abrupt changes may face resistance. Therefore, policies should be designed to ensure that workers feel secure and supported during transitions.

Relevance to Entrepreneurs and the Startup Community:

For entrepreneurs and the startup community, adopting flexicurity can foster a more dynamic and innovative business environment. Flexible labor laws help startups adapt quickly to market changes, while robust social security systems ensure that employees feel secure, even in high-risk ventures. Startups can also offer greater flexibility to employees through remote work options, reducing office costs, traffic pollution, and transportation expenses. This flexibility can enhance employee satisfaction and productivity.

However, there are drawbacks to consider. Remote work can lead to communication challenges, reduced team cohesion, and potential issues with monitoring employee performance. Additionally, the initial costs of establishing strong social security systems and robust digital infrastructure can be high for startups.

In summary, while the Danish flexicurity model offers valuable insights, its adaptation to Pakistan requires a phased approach, starting with formalizing the informal economy and building strong social safety nets. For startups, this means gradually implementing flexible labor policies while ensuring that employees are supported through comprehensive social benefits. This balanced approach can encourage entrepreneurial activity and innovation, driving economic growth and contributing to a more resilient and dynamic labor market in Pakistan.

Lessons Learned from Denmark:

Denmark’s experiences offer valuable lessons for countries seeking to adopt hybrid work models. Firstly, fostering a culture of trust and autonomy is essential for the successful implementation of flexible work arrangements. Denmark’s social welfare system, which provides support for workers beyond the workplace, contributes to a sense of security and well-being among employees.

Secondly, investing in technology and infrastructure is crucial for enabling remote work effectively. Denmark’s robust digital infrastructure and widespread access to high-speed internet facilitate seamless communication and collaboration among remote teams.

Thirdly, prioritizing work-life balance and employee well-being is integral to maintaining productivity in a hybrid work environment. Denmark’s generous parental leave policies and emphasis on leisure time underscore the importance of striking a balance between work and personal life.

Reimagining the Future of Work:

As we look to the future, it is clear that traditional 9-5 jobs are no longer the norm. Instead, organizations must embrace flexibility and innovation to thrive in a rapidly changing world. According to a report by Global Workplace Analytics, employees save between $600 and $6,000 per year by working at home half the time.[1] Furthermore, a study by Stanford University found that remote workers were 13% more productive than their in-office counterparts.[2] These statistics underscore the growing preference for remote work and highlight the shift towards hybrid work models in the future. With remote work offering significant cost savings for employees and increased productivity for organizations, it’s evident that the traditional office-based model is being redefined. As organizations continue to adapt to this trend, embracing hybrid work arrangements will be essential for staying competitive in the evolving landscape of work.

Denmark’s embrace of hybrid work models serves as a beacon for countries navigating the changing dynamics of the modern workplace. Pakistan’s adoption of hybrid work models can draw valuable lessons from the flexicurity model used in Denmark and other Nordic countries. By prioritizing flexibility, autonomy, and work-life balance, Pakistan can achieve high levels of productivity while fostering a more inclusive and adaptable work culture. The flexicurity model, which combines labor market flexibility with social security, can be particularly beneficial for Pakistan as it navigates the changing dynamics of the modern workplace.

To implement this model successfully, Pakistan must address key challenges such as communication and cybersecurity. Ensuring robust cybersecurity measures will protect sensitive information in a hybrid work environment, while effective communication strategies will maintain cohesion and collaboration among remote and in-office employees.

As Pakistan evolves towards a hybrid work model, embracing the principles of flexicurity can guide organizations in maximizing productivity and employee satisfaction. By learning from Denmark’s experiences, Pakistan can navigate the transition to hybrid work models successfully, creating a resilient and dynamic workforce prepared for the future.

 

 

 

 

 

 

 

 

 

March 27, 2025 Article Comments Off on Embracing the Flexicurity Work Model: Lessons from Denmark’s Productivity Paradigm
The image may depict a professional setting with women engaged in discussions, working on laptops, or presenting ideas

Fact Sheet: Women in Startups and Business in Pakistan

Written by Mahnoor Basit.

Overview:

Women’s entrepreneurship has become a significant global trend, garnering substantial research interest over the past few decades. In Pakistan, women are making notable progress in the startup and business sectors, driving economic growth and social development. Despite numerous challenges, their resilience and innovation are creating a more inclusive entrepreneurial ecosystem.

As Pakistani start-ups continue to flourish, the role of women in this space becomes increasingly crucial. Various Pakistani incubators and accelerators in Pakistan are actively working to support and empower female entrepreneurs, ensuring they have access to the resources and mentorship necessary for success.

Key Statistics:

  • Female Labor Force Participation: As of 2023, Pakistan’s female labor force participation rate is approximately 24%. This means that about 24% of women aged 15 and above are either employed or actively seeking employment. This is lower compared to global standards but shows gradual improvement. (World Bank Data)
  • Women-led Startups: Women-led startups represent about 10% of the startup landscape in Pakistan, a relatively low percentage highlighting the need for increased support and resources. (Women Entrepreneurs and SMEs in Pakistan, International Labour Organization, 2020)
  • Entrepreneurship Gender Gap: Only 1% of females are entrepreneurs compared to 21% of males. Moreover, according to Invest2Innovate’s report, gender disparities are prevalent in the startup ecosystem, and only 1.4% of all investments raised during the past seven years were based on women-run startups, further highlighting the gender gap.
  • Entrepreneurial Activity: Out of over 5 million small and medium enterprises in the country (State Bank of Pakistan, 2022), only 8% are owned by women, with a significant presence in micro, small, and medium enterprises. (Asian Development Bank)

Women are actively participating in Pakistan’s growing startup ecosystem, particularly in sectors like technology, e-commerce, education, and fashion. Pakistani incubators and accelerators in Pakistan are beginning to provide platforms that foster female-led businesses, but challenges remain.

Challenges Faced:

  • Access to Finance: Women entrepreneurs in Pakistan often face difficulties securing funding and investment due to traditional financial institutions’ risk aversion and gender biases. Limited collateral and lack of financial literacy impede access to loans and credit.
  • Societal Norms and Cultural Barriers: Societal expectations and traditional gender roles in Pakistani society restrict women’s ability to engage in entrepreneurial activities. Moreover, family responsibilities and mobility restrictions also pose significant challenges.
  • Lack of Networking Opportunities: Networking events and professional associations are often male-dominated, limiting women entrepreneurs’ access to mentorship and business connections.
  • Regulatory and Legal Barriers: Complex regulatory requirements and lack of awareness about business laws hinder women from formalizing and scaling their businesses.
  • Education and Training: Limited access to business education and professional training hinders the growth potential of women entrepreneurs.

Government Initiatives:

  • Women Entrepreneurs Finance Initiative (We-Fi): In collaboration with international partners, We-Fi aims to enhance access to financial services for women entrepreneurs. We-Fi and IFC are helping to strengthen the venture capital ecosystem and increase funding opportunities for high-potential women-led businesses in Pakistan.
  • Prime Minister’s Youth Business Loan Scheme: Offers low-interest loans to young entrepreneurs in Pakistan, with specific provisions for female entrepreneurs. The goal is to facilitate the establishment and expansion of women-led businesses.
  • Kamyab Jawan Program: Provides both financial and technical support to young entrepreneurs in Pakistan, with a particular focus on encouraging women to enter the entrepreneurial sector.

Success Stories:

  • Jehan Ara: President of P@SHA and founder of The Nest I/O, a technology incubator that supports young entrepreneurs in Pakistan, including many women-led startups.
  • Kalsoom Lakhani: Founder and CEO of Invest2Innovate, which supports Pakistani start-ups through its accelerator program, with a strong focus on women-led startups.
  • Sidra Qasim: Co-Founder of Markhor and Atoms, renowned for their innovative approach to footwear and entrepreneurship.

Notable Women-Led Startups and Entrepreneurs:

  • Invest2Innovate (i2i): A venture capital fund that supports early-stage Pakistani start-ups, particularly those led by women.
  • Sehat Kahani: A telemedicine platform co-founded by Dr. Sara Saeed Khurram and Dr. Iffat Zafar, connecting female doctors with patients across Pakistan.
  • She Loves Tech Pakistan: A global initiative supporting women-led tech startups through competitions and accelerators in Pakistan.

Way Forward:

  • Policy Advocacy: Advocate for policies that create a more enabling environment for women entrepreneurs, such as tax incentives, simplified registration processes, and legal support.
  • Enhance Access to Finance: Increase funding opportunities for women-led startups through dedicated grants, low-interest loans, and venture capital.
  • Provide Targeted Training and Mentorship: Develop more business training programs focused on skills development for women and establish mentorship networks connecting experienced entrepreneurs with aspiring female business owners.
  • Promote Awareness and Change Social Norms: Run awareness campaigns to challenge stereotypes and encourage family and community support for women entrepreneurs. Moreover, highlight the success stories of female entrepreneurs to inspire others.

By fostering a supportive environment for Pakistani start-ups and young female entrepreneurs in Pakistan, we can drive a more inclusive and thriving economy. Pakistani incubators and accelerators in Pakistan must continue prioritizing women’s inclusion in the entrepreneurial space to ensure a more diverse and sustainable future.

 

March 12, 2025 Factsheets Comments Off on Fact Sheet: Women in Startups and Business in Pakistan

Ask The Expert: All Your Legal Questions Answered

Welcome to Ask the Expert—LCE’s series where we bring you insights from industry professionals to answer your most pressing questions. In this episode, we bring you the Legal FAQs, where we address essential legal questions for start-ups.

Mohammad Saddam Pasha, Legal Counselor at LCE, Advocate High Courts of Pakistan and Partner at AUC Law will walk you through the critical legal aspects of launching and scaling your business. Whether you’re deciding on the right legal structure, registering your start-up, securing intellectual property, or understanding compliance and funding regulations, this session has you covered. Get the clarity and expert insights you need to navigate the legal landscape with confidence and build a strong foundation for your entrepreneurial journey, only at LCE!

Click the link below to watch the video now.

February 25, 2025 Interviews, Videos Comments Off on Ask The Expert: All Your Legal Questions Answered
A group photo of Daniel Castro and his team, as well as the LCE team

Challenges of IP Protection in a Big Data Environment: Insights for Pakistani Start-ups by Daniel Castro
The recent session on the Challenges of IP Protection in a Big Data Environment, led by Daniel Castro, offered a compelling exploration of how the data-driven era is reshaping intellectual property (IP) frameworks and innovation strategies. Daniel Castro, a globally recognised authority on technology and data policy, serves as Vice President at the Information Technology and Innovation Foundation (ITIF), USA, and Director of its Center for Data Innovation. With a rich professional background that includes serving on the U.S. Commerce Data Advisory Council and conducting IT audits for government agencies, Daniel brought unparalleled expertise to the discussion.
Daniel Castro sitting and delivering his talk
The session illuminated how the exponential growth of big data—characterised by its unprecedented volume, velocity, and variety—is redefining the very nature of innovation, collaboration, and ownership. Daniel highlighted the practical challenges organisations face in protecting intellectual assets in this complex environment, from navigating data ownership disputes to addressing issues of privacy, security, and ethical governance. He stressed that traditional IP frameworks, which were designed for physical or easily definable assets, are increasingly being tested by the intangible and shared nature of big data ecosystems.
Beyond the challenges, Daniel also explored the opportunities that big data presents for driving innovation for Pakistani start-ups. These include enhancing decision-making processes, enabling the development of new data-driven products and services, and fostering cross-sector collaboration. However, heunderscored the critical importance of striking a balance between promoting innovation and ensuring robust IP protection mechanisms. Daniel called for modernised IP policies that adapt to the realities of the digital economy, emphasising the need for strategic foresight to navigate the interplay between open data, competitive advantage, and ethical considerations.
A group photo of Daniel Castro and his team, as well as the LCE team
The session was a must-attend for professionals and organisations keen on safeguarding their intellectual assets and staying ahead in the rapidly evolving digital landscape. Daniel’s insights provided a roadmap for rethinking IP strategies to not only protect but also leverage data as a catalyst for sustainable growth and innovation.
January 9, 2025 Events, IT Comments Off on Challenges of IP Protection in a Big Data Environment: Insights for Pakistani Start-ups by Daniel Castro

Empowering Entrepreneurs in Pakistan: LCE Launches New Incubator and Accelerator Programmes

The LUMS Centre for Entrepreneurship (LCE) has recently launched its inaugural cohorts for two flagship programmes: the LCE Idea Launch Incubation Programme and the Slingshot Accelerator Programme. This is a significant step towards the Centre becoming a premier incubator and accelerator in Pakistan and reaffirms its commitment to building a thriving entrepreneurial landscape by supporting both early-stage and revenue-generating Pakistani start-ups.

The LCE Idea Launch Incubation Programme offers vital support to entrepreneurs who are just beginning their entrepreneurial journey. This incubator programme provides essential resources such as co-working space, access to the Makers Lab for prototyping, training modules, and valuable networking opportunities with experienced entrepreneurs and industry leaders.

For revenue-generating start-ups ready to scale, the Slingshot Accelerator Programme offers a comprehensive set of resources including strategic mentorship, investor connections, hands-on workshops, and tailored guidance. This programme enables the start-ups to focus on revenue growth, expansion, and investment readiness, solidifying LCE’s role as a premier accelerator in Pakistan.

A key highlight for participants in both the Idea Launch and Slingshot programmes is the Investor Summit, where they will pitch to a panel of investors, founders, and venture capitalists. This event offers an invaluable platform for Pakistani start-ups to secure funding, build partnerships, and gain insights for accelerated growth.

With 25 start-ups in the Idea Launch Incubation Programme and 10 start-ups in the Slingshot Accelerator, the inaugural cohorts represent a diverse range of industries, from education tech and AI to sustainability and finance. These start-ups are set to address some of Pakistan’s most pressing challenges, driving impactful change across the country.

LCE’s robust involvement with the LUMS community has been instrumental to the success of its programmes. Faculty, students, and alumni have contributed significantly, whether as participants, mentors, or guest speakers, bridging academic insights with real-world entrepreneurial initiatives. LCE plans to continue its support through events, demo days, and workshops designed to help a diverse range of start-ups to grow their ventures.

By empowering Pakistani start-ups through its incubation and acceleration initiatives, LCE reinforces its mission of fostering an innovative, resilient, and inclusive ecosystem for entrepreneurs in Pakistan.

 

November 4, 2024 Uncategorized Comments Off on Empowering Entrepreneurs in Pakistan: LCE Launches New Incubator and Accelerator Programmes