Artificial Intelligence and the Future of Entrepreneurship in Pakistan

Written by Zainab Iqbal

AI Is No Longer Optional

Artificial Intelligence (AI) is rapidly changing how businesses operate, compete, and grow. The question is no longer whether AI will shape the future of entrepreneurship, but whether Pakistan is prepared to build its own AI-driven solutions or rely on technologies developed elsewhere. This article examines the country’s current AI landscape, identifies key sectors where AI can address real development challenges, and assesses the readiness of Pakistan’s start-up ecosystem to support AI-driven innovation. It also highlights the policy and institutional steps needed to build a competitive, AI-ready entrepreneurial environment.

Artificial Intelligence has moved from being a futuristic concept to an everyday business necessity. Globally, AI is transforming how companies produce, distribute and market products. AI is expected to contribute USD 15.7 trillion to the global economy by 2030, [1]making it one of the most significant economic drivers of this decade.

For emerging economies like Pakistan, this shift presents both urgency and opportunity. AI adoption is no longer about keeping pace with global trends; it is about ensuring economic relevance. Without adopting AI, countries risk becoming dependent on foreign technology instead of developing their own innovations, limiting their ability to create domestic industries, skilled jobs, and technological leadership.

The Current State of AI in Pakistan

Pakistan’s AI ecosystem is still at an early, but promising stage. The country has a growing pool of software engineers, data scientists, and freelancers, supported by a strong IT exports sector. Pakistan’s IT and IT-enabled services export crossed USD 2.2 billion in the first half of the current fiscal year 25/26 [2] showing consistent annual growth. While not all this growth is AI-driven, it provides a foundation upon which AI-based enterprises can be built. Universities such as NUST, FAST, and LUMS have introduced AI, data science, and machine learning programs, and several start-ups are applying AI in fintech, healthtech, and e-commerce verticals.

Investing in AI education is a beginning, however, most AI efforts focus on using and adapting existing tools rather than developing new, original systems and this has consequences to how Pakistan is ultimately participating in the global AI ecosystem. A large share of AI models today are trained on predominantly Western datasets, meaning the languages, contexts, and realities of the Global South are often underrepresented. This can lead to systems that are biased or less effective in local settings. To address this, Pakistan needs to invest in building local data ecosystems and data lakes that reflect its own population and needs. Countries like India and Bangladesh have already begun taking steps in this direction by developing national data initiatives to support AI innovation, offering useful models for Pakistan to follow.

How is Pakistan’s Start-up Ecosystem engaging with AI?

Pakistan’s start-up ecosystem has matured significantly over the past decade, with incubators, accelerators, and venture funds now at a position to be contributing towards growth. However, readiness for AI-driven entrepreneurship remains uneven. While the number of incubators and Business Incubation Centres (BICs) has grown, most continue to focus on general entrepreneurship support, such as pitch-preparation, business development, and fundraising, rather than advanced technical capabilities. As a result, access to critical AI enablers, including high-performance computing infrastructure, GPUs, cloud computing credits, proprietary datasets, and AI-specialized mentors, remains limited for early-stage founders.

At the same time, the global AI landscape is rapidly shifting toward more advanced systems such as agentic AI, tools that can take actions and complete tasks autonomously rather than simply generate responses. Companies like Microsoft are leading this shift by integrating AI “copilots” across products and enabling businesses to build custom AI agents, signaling a move from assistance to automation and even generation.[3]

Encouragingly, Pakistani founders are beginning to engage with these frontiers. For example, Pakistani-born Asad, who founded LTV.ai at 19 to provide AI-driven customer communication for e-commerce brands, raising seven figures in venture funding from firms like Protagonist and OVO Fund. Sualeh Asif from Karachi co-founded an AI coding startup as Chief Product Officer, now reportedly valued for a potential $60 billion SpaceX acquisition, making him Pakistan’s 4th richest entrepreneur. The Pakistani duo Saad Jangda and Hamza Jawaid built Bazaar Technologies, an AI-powered grocery e-commerce platform in Karachi that was acquired by Canva to strengthen its AI creative suite capabilities. Kashif Ali founded TaxGPT, an AI automation startup for tax and accounting that raised $4.6 million this year. Together, these founders demonstrate Pakistan’s growing capacity to build globally competitive AI companies across e-commerce, coding, fintech, and creative technology.

Such examples show that while ecosystem support may still be catching up, Pakistani entrepreneurs are already building globally relevant AI solutions—an advantage that can be further leveraged through stronger infrastructure, funding, and institutional support, while also fostering wider spillover effects, greater handholding from seasoned entrepreneurs, and targeted public-backed institutional and governance support to scale impact across the broader tech ecosystem.

The Cost of Delayed AI Adoption

One of the most common concerns surrounding AI is job displacement. In Pakistan, where employment generation is a major development concern, these fears are valid. However, technological change historically reshapes jobs rather than eliminating them entirely. AI creates demand for new roles such as data analysts, AI trainers, product managers, and domain specialists. The real risk for Pakistan lies not in AI adoption, but in delayed adoption, which leaves workers unprepared for global labor market shifts. For entrepreneurs, this delay also means a limited pool of locally trained talent with the skills needed to build and scale AI-driven solutions, making it harder to innovate and compete. It can force start-ups to rely on external tools or expertise, reducing their ability to create high-value, original products. At the same time, delayed adoption represents a missed opportunity to use AI as a tool for solving local challenges. Without early experimentation and investment, entrepreneurs are less likely to develop solutions tailored to Pakistan’s needs, reinforcing dependence on imported technologies instead of building local innovation. Urgent reworking of Pakistan’s educational systems is critical to address this skills gap, including emphasizing the role of vocational education institutes like PSDF and TEVTA to upskill workers who lack formal education, ensuring a broader labour force can transition into AI-relevant roles and contribute to the country’s innovation ecosystem.

Where Can AI Solve Pakistan’s Real Problems? Focus Areas for Upcoming Founders

Agriculture: From Guesswork to Precision

Agriculture in Pakistan has traditionally relied on experience and seasonal patterns, making it vulnerable to climate variability and crop disease. AI is changing this by enabling data-driven, real-time decision-making. For example, computer vision tools can analyse images of crops (taken via smartphones or drones) to detect early signs of disease that may not be visible to the human eye. This allows farmers to intervene earlier, reducing crop loss.

Similarly, AI-powered weather and soil analytics combine satellite data with local conditions to recommend when to irrigate, fertilise, or harvest, rather than relying on fixed schedules. In countries like Vietnam and India, such systems are already helping small farmers increase yields while reducing input costs by optimizing water and fertilizer use[4]. For Pakistan, where resources are limited and climate risks are rising, this shift from reactive to predictive farming could significantly improve productivity.

Financial Access: Rethinking Creditworthiness

A major barrier to financial inclusion in Pakistan is the lack of formal credit histories. Traditional banks rely on documented income and collateral, excluding a large portion of the population. AI changes this by introducing alternative credit scoring models.

Instead of relying solely on bank records, AI systems analyse patterns in mobile phone usage, digital transactions, bill payments, and even spending behaviour to assess creditworthiness. This allows fintech companies to evaluate risk for individuals and small businesses who would otherwise be invisible to the formal financial system.

In practice, this means a small shop owner or freelancer, without formal documentation can access loans based on behavioural data. Similar models have already been successfully deployed in countries like Kenya and India, significantly expanding access to credit. For Pakistan, this represents a shift from exclusion to inclusion, powered by data that already exists but has not traditionally been used.

Turning AI into an Advantage for Pakistan

These examples highlight that AI’s real value lies not in abstract potential, but in solving problems differently, by making decisions more precise, predictive, and accessible. However, scaling such solutions requires the right ecosystem. Pakistan must invest in AI skills and applied research, enable access to local datasets, and upgrade incubators to support technically complex ventures. Public–private data partnerships will be critical to ensure that start-ups can build solutions grounded in local realities.

With the right support, AI can help Pakistan move beyond incremental improvements and unlock entirely new ways of addressing long-standing challenges, turning structural constraints into opportunities for innovation

Rules, Ethics, and Trust in AI

As AI increasingly shapes decisions in finance, healthcare, education, and governance, clear rules and ethical safeguards are essential to build public trust and enable responsible innovation. Issues such as data privacy, algorithmic bias, transparency, and accountability directly affect adoption and investment decisions.

Pakistan’s proposed Regulation of Artificial Intelligence Act, 2024 introduces several key components. It establishes a National Artificial Intelligence Commission to oversee regulation, mandates human oversight in critical decision-making, and emphasizes transparency and accountability in how data is collected, stored, and used. It also focuses on equitable access to AI technologies and aims to strengthen data governance, cybersecurity, and public service delivery through AI. These provisions signal an intent to balance innovation with safeguards, particularly by ensuring that AI supports, rather than replacing human judgment.

However, what makes Pakistan’s position distinct in the global AI ethics and security debate is its development context. While advanced economies are focused on regulating frontier AI risks, Pakistan must simultaneously address more foundational issues, such as limited local datasets, underrepresentation of regional languages, and dependence on foreign-trained AI models. This creates a risk of systems that are biased, less accurate, or misaligned with local needs.

For Pakistani lawmakers, this means prioritizing a different set of concerns. Beyond high-level principles, there is a need to enable the creation of local data ecosystems, ensure safe and practical data-sharing frameworks for start-ups, and enforce transparency in AI-driven decisions, particularly in areas like lending, public services, and healthcare. Equally important is building institutional capacity to implement these rules, rather than leaving them as policy statements.

Ultimately, Pakistan’s challenge is not just to regulate AI, but to do so in a way that supports local innovation while addressing its own structural constraints, ensuring that AI systems are not only safe and ethical, but also relevant and inclusive for its population.

Conclusion: Building an AI-Ready Entrepreneurial Ecosystem

AI is no longer optional, it is reshaping how economies grow, compete, and innovate. For Pakistan, the real opportunity lies not just in following global trends, but in using AI to solve local challenges and strengthen its entrepreneurial ecosystem. Success will depend on how effectively entrepreneurs, institutions, and policymakers invest in skills, infrastructure, and responsible innovation today. With the right approach, Pakistan can move beyond relying on imported technologies to building its own solutions, creating jobs, expanding opportunity, and building a more competitive and resilient economy for the future.


[4]  NEWS WIRE. “AI-Driven Farming Crucial for Pakistan’s Climate Resilience, Food Security: Experts.” The Nation, May 2, 2025. https://www.nation.com.pk/02-May-2025/ai-driven-farming-crucial-for-pakistan-s-climate-resilience-food-security-experts.

[3] “12 Companies Driving the Agentic AI Revolution.” Medium, November 25, 2025. https://medium.com/@vito.rallo/12-companies-driving-the-agentic-ai-revolution-a427d1cb572f.

[2] Business Recorder. “Pakistan’s IT Exports Cross $2.2 Billion Mark in 1HFY26, Freelancers Add Momentum.” January 20, 2026. https://www.brecorder.com/news/40403100/pakistans-it-.

[1] PricewaterhouseCoopers. “The Potential Impact of AI in the Middle East.” PwC, n.d. https://www.pwc.com/m1/en/publications/potential-impact-artificial-intelligence-middle-east.html.

Entrepreneurship Decoded: How Women Founders Can Build Confidence, Negotiation Skills & Leadership Presence

A Conversation with Amna Awan, Head of Operations LCE

[Written by Sameen Mohsin]

Building a start-up requires more than just a strong idea, it demands the confidence to advocate for it, the clarity to negotiate its value, and the presence to lead through uncertainty. For many women founders, the challenge is not capability but how that capability is communicated in high-stakes moments. This is often compounded by the fact that women have to navigate additional barriers and expectations to reach the same stage. Yet, they continue to build with resilience, intent, and impact.

In this inaugural edition of Entrepreneurship Decoded, we explore these themes through a conversation with Amna Awan, Head of Operations at the LUMS Centre for Entrepreneurship. Drawing on her experience across corporate and development sectors, including roles at JazzCash, Karandaaz, UNDP, and USAID, Amna shares practical insights on how founders can approach negotiation more strategically, build a strong leadership presence, and navigate self-doubt in high-pressure environments. The discussion unpacks what it takes to show up with both confidence and clarity, and how women founders can more effectively advocate for the value they bring to the table.

From your experience across corporate and development sectors, do you observe differences in how women founders approach negotiations compared to men? What patterns stand out?

I like to look at this at different levels. In general, women tend to be very effective negotiators when they are negotiating on someone else’s behalf. For example, when they are negotiating for their family or their employer, they often perform very well.

However, when it comes to negotiating for their own interests, many women tend to be more hesitant in asking for what they deserve. Preparation is rarely the issue. Women usually come extremely well prepared, with the relevant research and data in hand. But they may be less assertive in pushing their position and may prioritise relationship management over securing the most favourable terms. As a result, they might walk away from a less lucrative deal.

Men, on the other hand, tend to prioritise their own interests more directly. They also tend to understand that relationships often work out better in the long run when all parties feel satisfied with the outcome.

How can founders prepare strategically before entering investor or client negotiations to reduce anxiety and strengthen their position?

Preparation makes a significant difference. Founders should begin by understanding the investor; their interests, preferences, and investment patterns. Looking at their existing portfolio can offer valuable insights into what they are looking for.

Beyond that, founders need to show a strong grasp of the market. This includes having data on market demand, the competitive landscape, and ideally some information about their own customers. Even if you only have a small number of early users or buyers, that still strengthens your case considerably.

Practice is equally important. What appears as passion on stage is often the result of a lot of practice. So founders should practice their pitch many times for their delivery to appear natural and confident.

Additionally, if there are areas where a founder feels less confident, whether financial modelling, legal structures, or technical aspects, it is perfectly reasonable to seek guidance from experts. The important thing is to ensure that the pitch deck and overall narrative are complete and well thought through.

Despite strong preparation, women founders still receive a smaller share of funding globally. What factors contribute to this gap?

Unfortunately, there is limited data specifically on women founders and fundraising in Pakistan. However, reports such as the Invest2Innovate Startup Ecosystem Report do provide some insight. According to the report, women-founded or co-founded start-ups received around 18.75% of total start-up funding in Pakistan between 2015 and 2024, and closed relatively few deals per year during certain periods.

This suggests a mismatch. On one hand, investors may still have reservations. On the other hand, women founders may not always pitch themselves as aggressively as their male counterparts. There are several factors at play; a smaller pipeline of women-led start-ups, differences in negotiation styles, and the fact that the investment community itself is still largely male-dominated.

For instance, in many investor summits we see very few female investors present. Women-led start-ups often receive more support from angel investors or donor-backed funds, where there is slightly greater representation of women. Traditional investment houses, however, are still dominated by men.

What are some common negotiation mistakes early-stage founders make, regardless of gender, that women should be particularly mindful of?

At an early stage, founders are often still refining their business model and may not be completely certain about the value they are offering or the terms they should accept in return. This can make negotiations challenging, especially when pitching to investors for the first time.

It is perfectly acceptable to pitch to a large number of investors, and it is normal that many conversations will not lead to a deal. However, when a deal does materialise, founders should avoid the temptation to move too quickly.

Sometimes, after a long search for investors, founders feel relieved to finally receive interest and may agree to terms too quickly. It is important to carefully negotiate aspects such as equity ownership, investment structures, and the level of control you want to retain in your company.

Consulting legal experts who specialise in investment deals can also be extremely helpful in structuring agreements that protect your long-term interests.

Leadership presence is often described as intangible. In practical terms, what does strong leadership presence actually look like?

In professional settings, people tend to evaluate others based on two key traits: confidence and warmth. Both are essential for making a strong impression.

Warmth helps you connect with your audience. It allows you to listen, respond thoughtfully to questions, and build rapport with the people you are interacting with. At the same time, you also need to demonstrate competence. This means showing that you understand your market, that you are familiar with the deals happening in your industry, and that you have done your homework.

Investors and partners are ultimately trusting you with their resources and their time. They want confidence that you can deliver on your promises and grow the value of what they invest in. Strong leadership presence therefore comes from balancing both dimensions, being approachable and relatable while also communicating expertise.

In male-dominated rooms, whether with investors, policymakers, or corporate leaders, what mindset shift can immediately change how a founder shows up?

Confidence is key. By the time you walk into the room, you have developed your idea, researched your market, and prepared your pitch. The focus then should be on communicating that work clearly and confidently.

There is a saying in negotiations that it is not just what you say, but also “how you arrange the furniture.” In practical terms, this means thinking about what supporting evidence you are bringing to the conversation, your data, your market insights, expert opinions, and customer validation.

Another important mindset shift is to see the conversation as one between equals. Investors are not simply giving money out of generosity. They are looking for opportunities to generate value, and you are offering them that opportunity.

How important are data and preparation in building confidence during high-stakes conversations?

Data is extremely important, but it needs to support a clear story. If there is too much data without a narrative, even experienced professionals can struggle to follow what you are trying to communicate.

A strong pitch answers a few key questions; why does this problem matter to you, why should it matter to the consumerm, what their needs are and why should investors care about this opportunity?

All of your data points should reinforce that story. Market validation is also very powerful. Even if your venture is at an early stage, evidence that a few customers are willing to pay for your product or service significantly strengthens your case.

Imposter syndrome is frequently discussed among high-achieving women. How can founders manage self-doubt while still making bold decisions?

If a woman and a man have reached the same professional level, the woman should take pride in that achievement because we know that in many cases, women have had to overcome additional obstacles and navigate more barriers along the way.

Men often do not hesitate to claim credit or pursue opportunities they believe they deserve. Women should also recognise the effort they have invested in reaching that stage and feel confident in claiming the opportunities that follow.

Research across different settings also shows that women often bring strong qualities to leadership roles. They tend to be conscientious, inclusive in their decision-making, and highly diligent in delivering results. These qualities create real value for any organisation or investor they work with.

What role does mentorship or sponsorship play in helping women founders build confidence and credibility?

Mentorship can make a tremendous difference, and this is also an area where the playing field is not equal between men and women. From a young age, men tend to have greater exposure to professional circles, larger networks, and more chances to exchange knowledge and expertise.

Women sometimes have fewer avenues to access those networks. That is why mentors can be so valuable. Both male and female mentors can help founders identify blind spots, strengthen their pitch, and share insights from their own experiences.

Learning from others is incredibly valuable, understanding what worked for them, what didn’t, what questions investors asked, and which deal structures proved beneficial in the long run.

One important thing to remember is that many experienced professionals are actually happy to mentor or advise founders. Giving advice is one way people contribute back to the ecosystem. So founders should not hesitate to reach out and ask for guidance.

It may take a few conversations to find someone whose advice resonates with you, but once you do, that relationship can become an incredibly valuable source of support.

How Entrepreneurship Centres Are Powering Today’s Economy

Written by: Zainab Iqbal

Overview

This article explores how entrepreneurship centres are shaping economic growth globally and examines their role within Pakistan’s evolving start-up ecosystem. It outlines the contributions of Business Incubation Centres (BICs), the challenges limiting their impact, such as declining investment, weak industry academia linkages, and limited sector specific support as well as the opportunities emerging across high-potential sectors like SaaS, agritech, fintech, and healthtech. It also highlights global trends, including deep-tech incubation, AI-focused accelerators, and venture studios, offering a roadmap for how Pakistan can strengthen its entrepreneurship infrastructure and build a more innovative, export-oriented, resilient economy.

Why Entrepreneurship Centres Matter for Growth

In modern economies, entrepreneurship isn’t just about starting businesses, it’s a powerful engine driving jobs and innovation, Entrepreneurship centres (incubators, BICs, accelerators, university-linked innovation hubs, venture studios) serve as the vital infrastructure that connects talent, ideas, capital, industry and markets.

Over the past decade, Pakistan has seen a growing number of Business Incubation Centres (BICs), in universities and as independent hubs, offering start-ups support ranging from mentorship and business-model advice to investor readiness and networking. These BICs have helped transform many early-stage ideas into prototype ventures and, in some cases, market-ready start-ups. This increased institutional support has enabled a start-up culture, giving founders safer environments to experiment, fail fast, learn, and iterate.

Globally, small and medium enterprises (SMEs), often nurtured via entrepreneurship centres, contribute to economic growth. In the United States, for example, small businesses have created the majority of net new jobs in recent decades. A background summary estimates that 13 million jobs were created by small businesses since 1997.[1]

This number highlights that small enterprises, often early-stage ventures supported by incubators, remain critical job creators, driving employment expansion, absorbing young or returning workers, and generating resilient economic activity. By enabling entrepreneurship, ECs thus support one of the most stable sources of job creation worldwide.

BIC’s In Pakistan: Progress, Challenges, And What Needs to Be Done

However, despite this progress, several structural challenges limit the full potential of BICs in Pakistan:

  • Dramatic decline in start-up investment: Pakistan’s start-up ecosystem saw a steep funding collapse in 2023, with total investment falling to USD 75.6 million, a 77.2% year-on-year decline. Deal volume also dropped by 47.9%, with 37 deals recorded during the year. More than half of all funding came in the last quarter of 2023 (October to December), which alone saw 15 deals worth USD 38.6 million. The average investment amount start-ups received in each funding deal fell sharply to USD 2.4 million, down 60% from 2022, reflecting a significant pullback from investors and a tightening of available capital in the ecosystem.[2]
  • Unstable investor sentiment and capital drought: Investor sentiment in Pakistan’s start-up ecosystem has weakened drastically, resulting in an acute shortage of capital. In the first half of 2024, start-ups managed to raise only USD 3 million, a 92% year-on-year decline, representing the largest drop among all emerging markets. Deal activity also plunged, with just five deals closed, a 77% reduction compared to the same period last year.[3] This sharp contraction reflects broader global shifts toward safer investments such as,  government treasury bills, Pakistan Investment Bonds (PIBs), real estate, and safe-haven assets such as gold, amid high interest rates, leaving Pakistani start-ups with limited access to early-stage funding and creating significant pressure on BICs and founders trying to scale and sustain their ventures. Many incubators remain oriented toward general start up training rather than facilitating deep-tech incubation, technology transfer, or industry-driven research. Without strong institutionalised tech-transfer offices or research commercialization pipelines, promising research often doesn’t translate into commercially viable ventures.
  • Weak Links between academia/research and industry: Incubators focus primarily on general start-up training, while structured pathways to commercialise university research remain limited. Universities such as LUMS generate applied research in areas including AI, data analytics, energy systems, and embedded technologies, much of which hold strong commercial potential. However, without dedicated technology transfer processes, IP support, and industry pilot opportunities, research outcomes often do not progress into spin-offs or market-ready products. Strengthening collaboration between research labs, incubators, and industry partners can help unlock this potential and accelerate commercialisation.
  • Limited sectoral and infrastructure support: For fields like agritech, biotech, climate-tech, deep tech, or regulation-heavy sectors (health, education), the absence of specialised labs, long-term support structures, or domain-specific mentorship limits meaningful growth.
  • Low participation from women and underrepresented groups: Women remain significantly underrepresented in Pakistan’s entrepreneurial ecosystem. While women make up nearly half of the population, only around 23–25% participate in the labour force, and just about 1% are entrepreneurs.[4] This gap reflects structural barriers such as limited access to finance, markets, and targeted support programmes, which continue to restrict women’s participation in business and reduce overall equity and diversity in entrepreneurship.
  • Poor post-incubation scaling support: Many start-ups “graduate” from BICs but struggle to scale because of limited access to follow-on funding, export-market linkages, regulatory support, or global exposure.

What Needs to Change (and How to Do It)

To unlock the full potential of BICs in Pakistan, stakeholders must consider several institutional reforms and strategic interventions:

  • Introduce blended financing instruments: combining grants, concessional loans, and equity, to cushion against global investment cycles and reduce dependency on volatile VC funding. Similar blended finance models have been used in emerging markets in Southeast Asia, where donor-backed grants support early experimentation while concessional loans and equity are introduced at later growth stages, helping start-ups survive VC downturns.[5]
  • Establish Technology Transfer Offices (TTOs): inside incubators/universities, paired with shared R&D labs and corporate-industry partnerships. This can help convert academic research into market-ready ventures. University consortia such as the UK’s SETsquared [6]partnership show how structured TTOs and industry engagement can significantly increase faculty-led spin-outs and research commercialisation.
  • Develop sector-specific incubators: (especially for agritech, biotech, climate tech, AI, deep-tech), equipped with necessary lab infrastructure, regulatory guidance, and long-cycle financing. Dedicated agritech and deep-tech incubators in countries like Singapore and South Korea have enabled startups to navigate complex regulation and long development cycles more effectively than generalist incubators.[7]
  • Design inclusion-focused incubator tracks:  e.g., women-only cohorts, rural micro-hubs, digital incubators, flexible scheduling, and collaborate with financial institutions to ensure accessible credit and mentorship. Women-focused incubation programmes and digital cohorts in emerging markets have consistently shown higher retention and venture formation by addressing mobility, time, and financing constraints faced by women founders.
  • Offer post-incubation growth and export support: such as growth accelerators, corporate procurement pilots, international soft-landing programmes, and global market-access facilitation. Export-oriented accelerators supported by OECD member countries have helped start-ups enter international markets early, particularly in SaaS and digital services, even when domestic demand remains limited.[8]

If implemented, these can transform BICs from early-stage support units into full-fledged engines of innovation, growth, and economic resilience.

Start-up Enablers & High-Potential Sectors in Pakistan

Even amid a downturn in funding, several sectors in Pakistan continue to show strong potential, especially when supported by well-structured start up enablers.

SaaS, IT Services, and Global Digital-Services Exports

Pakistan’s expanding pool of technical talent and competitive cost base position it well for SaaS and digital services exports. With support for export-ready product development, international market access, and clear IP and legal frameworks, Pakistani tech start-ups can scale beyond domestic markets and earn resilient foreign exchange. Companies such as Afiniti and Systems Limited demonstrate how Pakistani firms can successfully serve global clients. Entrepreneurship centres can further enable this growth by helping founders navigate international sales, compliance, pricing, and customer discovery, while connecting them directly with overseas buyers.

Fintech and E-Commerce

Fintech and e-commerce remain among the most active sectors in Pakistan’s start-up ecosystem but continue to face challenges such as regulatory uncertainty, low digital trust, and high customer-acquisition costs. Clearer regulations, incentives for digital payments, and stronger financial-literacy initiatives can help unlock growth. Local ventures are increasingly building solutions suited to Pakistan’s realities. KalPay, a graduate of the LCE Incubator, shows how Buy Now, Pay Later (BNPL) models can expand consumer credit through merchant partnerships and alternative credit assessments. Yet many people without bank records or formal income proof remain excluded from basic financial services, creating opportunities for platforms that use alternative data and simplified digital on boarding to advance financial inclusion and scale sustainably.

Logistics & Mobility

Given Pakistan’s infrastructure constraints and wide geography, logistics and mobility start-ups have real potential, particularly in urban transport, freight, delivery, and supply-chain optimisation. However, high capital needs, fuel price volatility, and regulatory fragmentation (inter-provincial, municipal) remain big challenges. Support can come via “logistics-as-a-service” models, EV transition funding, and regulatory harmonisation across provinces.

Agritech & Rural-Focused Innovation

Agriculture remains a backbone of Pakistan’s economy. Start-ups offering precision farming, digital advisory, supply-chain solutions, rural fintech, and smart-input distribution can revolutionize productivity and income. Success will require practical, on-ground support such as offering farmers combined services, affordable credit, reliable advisory, and access to markets, along with small rural incubators, partnerships with agricultural extension departments, and programmes that make digital devices cheaper and easier to use.

HealthTech and EdTech

Digital health and education solutions, especially telemedicine, remote learning, skill-based edtech, hold long-term promise. But to flourish, they need regulatory clarity (for telehealth, online education), compliance support, partnerships with institutions (hospitals, schools), and investment in trust-building among populations.

Artificial Intelligence (AI) and Tech Integration

Artificial Intelligence is emerging as a high-potential growth area across Pakistan’s tech ecosystem, supporting innovation in sectors such as SaaS, fintech, health, agriculture, and logistics. With growing technical talent and access to cloud-based tools, start-ups are increasingly integrating AI into products and services. However, wider adoption depends on reliable, uninterrupted internet access, affordable computing resources, and data availability. With the right support, AI can act as a powerful enabler of productivity and technology integration across the economy.

What Global Trends Mean for Pakistan and What Should Be Adapted

Globally, entrepreneurship centres are evolving rapidly. There is a shift toward deep-tech incubationventure studiosAI-centric accelerators, and export-oriented start up models. The essence: ECs are no longer just support hubs for random founders, but strategic infrastructure labs, funding mechanisms, global market pipelines, and institutional bridges between research and commercialization.

For Pakistan, this evolution means BICs must grow beyond training and mentorship. They must become research-enabled, industry-linked, export-oriented platforms. They must align their programmes with global demand, support long-cycle innovations, and embed inclusion (gender, rural, underserved sectors) into their mandate.

Conclusion: Toward an Innovation-Driven Economy

Entrepreneurship centres are arguably the single most powerful institutional lever to build a resilient, innovation-driven economy in Pakistan. If we strengthen BICs, build deep-tech infrastructure, enable sector-specific incubation, stabilise funding flows, and facilitate global linkages, we can unlock start up potential across SaaS, agritech, fintech, health, logistics, and more.

The transformation will not be easy; it requires coordinated action from universities, investors, government, regulators, and ecosystem builders.

By investing in entrepreneurship centres as national infrastructure, Pakistan can move beyond surviving, towards thriving as a knowledge-driven, globally competitive economy.

References

[1] “What Does Entrepreneurship Do for Job Creation? | Economic Impact Catalyst,” n.d. https://www.economicimpactcatalyst.com/blog/entrepreneurship-job-creation.

[1] Business Recorder. “Pakistan’s Startup Funding Falls 77.2% in 2023.” January 1, 2024. https://www.brecorder.com/news/40281509.

[1] BR web desk. “6 Months of 2024: Pakistan’s Startup Funding Falls 92%, Amounts to Measly $3mn.” Business Recorder, July 10, 2024.

[1] Jalal, Asif. “From Kitchens to Corporations: Pakistan’s Women Entrepreneurs Creating New Narratives.” Associated Press of Pakistan, February 2, 2025.

[1] IFC. “The Role of Blended Finance in an Evolving Global Context,” n.d. https://www.ifc.org/en/insights-reports/2025/role-of-blended-finance-in-an-evolving-global-context.

[1] SETsquared. “SETSquared Partnership | The University Enterprise Collaboration.” SETsquared, December 23, 2025. https://www.setsquared.co.uk/.

[1] “Global Deep Tech Ecosystems: Catalyzing Innovation for Sustainable Development.” UNDP, 2025.

[1] OECD. “Incubation and Acceleration Tools for Entrepreneurship Promotion.,” n.d. https://www.oecd.org/en/about/projects/incubation-and-acceleration.html.


[1] “What Does Entrepreneurship Do for Job Creation? | Economic Impact Catalyst,” n.d. https://www.economicimpactcatalyst.com/blog/entrepreneurship-job-creation.

[2] Business Recorder. “Pakistan’s Startup Funding Falls 77.2% in 2023.” January 1, 2024. https://www.brecorder.com/news/40281509.

[3] BR web desk. “6 Months of 2024: Pakistan’s Startup Funding Falls 92%, Amounts to Measly $3mn.” Business Recorder, July 10, 2024. https://www.brecorder.com/news/40312224.

[4] Jalal, Asif. “From Kitchens to Corporations: Pakistan’s Women Entrepreneurs Creating New Narratives.” Associated Press of Pakistan, February 2, 2025. https://www.app.com.pk/national/from-kitchens-to-corporations-pakistans-women-entrepreneurs-creating-new-narratives/?utm_source.

[5] IFC. “The Role of Blended Finance in an Evolving Global Context,” n.d. https://www.ifc.org/en/insights-reports/2025/role-of-blended-finance-in-an-evolving-global-context.

[6] SETsquared. “SETSquared Partnership | The University Enterprise Collaboration.” SETsquared, December 23, 2025. https://www.setsquared.co.uk/.

[7] “Global Deep Tech Ecosystems: Catalyzing Innovation for Sustainable Development.” UNDP, 2025.

[8] OECD. “Incubation and Acceleration Tools for Entrepreneurship Promotion.,” n.d. https://www.oecd.org/en/about/projects/incubation-and-acceleration.html.

Spaces that Inspire: Rethinking Coworking and Incubation Design in Pakistan

Written by Mahjabeen Bilal

Cities are economic hubs with industries supported by large, culturally diverse labour forces. Often tagged as ‘engines of growth,’ urban metropolises act as the backbone of entrepreneurial economic activity. The quality of this economic activity relies heavily on the well-being and productivity of the workforce. While labour productivity is determined by a multitude of factors, aspects of the ‘workspace’ are often neglected and even understudied in the Pakistani context.

The physical and psychosocial features of people’s work environments have a significant impact on their well-being and performance. This is also true for the entrepreneurial ecosystem, including workspaces for start-ups. Start-up founders are known for their passion and determination, often translating into long working hours, extended periods spent in brainstorming and ideating on laptops, team meetings, and networking. There is a constant cycle of hustle, where a conventional 9 to 5 schedule is rarely observed, as start-up founders juggle multiple roles and switch gears constantly to maintain steady momentum. Yet, start-up founders seldom have office space of their own. In Pakistan, several founders opt for coworking spaces and start-up incubation labs to build their enterprises, and these spaces become their ‘office’ for the duration of their initial business development.

 

University-Based Incubators: Bridging Academia and the Market

Incubators at Higher Education Institutes are playing a pivotal role in economic growth, innovation, and entrepreneurship throughout the world.

In Pakistan, university-based incubators are being recognised as a critical platform that bridge the connection between academic knowledge and the market by supporting start-ups. While significant effort and progress have been made in other aspects, such as managerial, organizational, and training frameworks, the ergonomic design is often overlooked.

Ergonomic design seeks to enhance comfort, efficiency, and safety by tailoring designs to fit the physical and cognitive needs of the users. This article will explore how the spatial and ergonomic needs of incubators in Pakistani HEIs should be designed to facilitate creativity, learning, and collaboration by looking into the spatiality and spatial orientation in coworking settings in Pakistan. It offers evidence-based recommendations for ergonomic design to deal with “invisible challenges” that help increase the overall productivity of the workforce.

Ergonomics refers to the technology of work that understands and improves human interactions while incorporating biological sciences, including psychology, anatomy, and physiology, aimed at human efficiency while minimizing the risk of injury. Ergonomics considers the dimensions of the body, the application of forces the expenditure of energy, the effects of the physical environment, and information processing and decision making[1]. Ergonomics is not only restricted to physical adjustments but also includes psychological factors, such as how individuals interact with their environment. Meanwhile, ergonomic design seeks to enhance comfort, efficiency, and safety by tailoring designs to fit the physical and cognitive needs of the users. One of the key aspects of ergonomic design is the application of anthropometric data, including measurements and statistics related to human body dimensions. Ergonomic design principles are essential in creating furniture in an office and workspace that fits the needs of each individual, leading to increased productivity. comfort and reduced stress levels[2].

As Pakistan’s entrepreneurial ecosystem familiarises itself with incubation centres, it is fostering a culture of innovation by providing start-ups with resources to turn their ideas into viable products and prototypes. It is important to consider the long-term interests of the start-up and consider the capacity of incubators at an intermediate stage. Networking is essential for collaboration and the acceleration of any entrepreneurial venture. Coworking spaces and labs serve as catalysts for networking within your local entrepreneurial ecosystem. For this reason, incubators in Higher Educational Institutions need to consider the design of their workplace in a way that enables productivity as well as interaction

With around 250 coworking spaces and at least 30 incubation centres across Pakistan, there is a significant shift in the entrepreneurial ecosystem of the county, these spaces offer a collaborative work environment along with amenities like mentorship and trainings for growing start-ups. As these centres look towards building spatial capacity to cater to the need of start-ups, the design element of these spaces is often overlooked and they fall short in infrastructural planning and design due to the lack of integration of cultural contexts.

“State-of-the-art” spaces are usually technology-driven, they follow a generic template without contextual spatial considerations and have a hostile infrastructural design that creates a stressful, fast-paced environment, which doesn’t necessarily mean hyper productivity but alienation from the community, around. This mitigates the whole point of a coworking open-layout space. It has been shown that offices that are not designed to optimize surveillance and efficiency using bright lights, and prioritize spatial zoning, to reduce noise levels and other distractions, promote individual well-being and growth while boosting morale and employee output.

Young entrepreneurs in Pakistani higher education institutes often move from flexible informal schedules to more structured hours that typically involve prolonged sitting and sedentary behaviour, which is “any waking behaviour characterised by an energy expenditure ≤1.5 metabolic equivalents (METs), while in a sitting, reclining or lying posture[3],” which leads to fatigue and reduced productivity. This behaviour has been linked to many negative health outcomes such as muscle discomfort, cardiovascular risks and metabolic issues, as well as fatigue[4]. Integrating organisational culture into office spatial design can positively influence employees’ psychological well-being and reduce fatigue. Workspaces that embed cultural elements like separate prayer areas for women and daycare can significantly enhance employee well-being and shows how integrating organizational culture into office spatial design can positively influence employee’s psychological cognition (Hu & Zhang, 2022). One of the significant findings from this study shows that workspaces embedding cultural elements significantly enhances employee’s wellbeing and engagement. This highlights that working spaces in BIs should be built while keeping in mind the ergonomics to enhance the cognition and productivity of employees.

“In this space, ideally, you should have events for the community. You should have separate spatial zones for networking and gaming, like the already present common room.” – Fareed, Resident at the LCE Coworking space

 

The Problem

Spatial design is not just limited to aesthetics but is essential for productivity as ergonomics influences cognitive performance, reduces stress, and improves the productivity of workers. Businesses that adopt ergonomic interventions see a 25% improvement in productivity on average. A study done by CSRC Global on “Business Incubators in Pakistan: State of the Art and Future Outlook” supports the role of spatial design in business incubation centres in Pakistan, highlighted effective business incubation centres provide not only administrative and technical support but also a social and collaborative environment that supports entrepreneurial success. The study emphasises that well-designed incubation spaces promote interaction and networking, resulting in reducing isolation and stress. The physical layout of these centres includes open workspaces, communal areas and informal meeting spots which encourage social connectivity and peer support, enhancing mental well-being and confidence.

“Co-working spaces allow for more collaboration with people around us, rather than being in a single office space. The best thing to have happened here was that I came across so many women entrepreneurs and their stories, they were amazing, and I realised that age, race, and gender didn’t matter- all that did was their passion. The mentorship we give each other is invaluable. People come to us, we go to them, and we help each other out.” – Quratulain, Resident at the LCE Coworking Space.

This social dimension of spatial design is crucial in start-ups and sustaining entrepreneurs’ motivation and productivity. Many Pakistani business incubators and universities are still evolving to meet these needs, effectively suggesting that improving spatial design and facilities can substantially increase their impact to better assist young entrepreneurs in managing psychological and physical challenges of structured working hours. It has been shown that office workers with optimized daylight conditions performed 10-25% better on cognitive function tests than those workers had poor lighting conditions. Another study revealed that air conditions in working spaces, such as low ventilation and increased levels of indoor air pollutants, reduce cognitive performance by 50% in comparison to those individuals that are in well-ventilated spaces[5],[6]. Another major factor includes temperature regulation; multiple studies show that thermal comfort is different for both genders which can make it hard to accommodate both in the same space. Data reveals that “men are at their cognitive best at 68-69 farenheight while women’s cognitive peak is from 70-72.” [7].

Menstruating individuals are disproportionately impacted and their productivity compromised. All these environmental factors contribute to the overall cognition, productivity, and well-being of the employees, revealing that ergonomics plays a key role in and should be integrated into Business Incubators.

 

Global Practices

Incubators around the world have become places that go beyond their traditional function of finding funding and mentorship; they have become hubs for innovation and creative problem-solving. Globally, as incubators transcend their traditional roles, they have embraced spatial considerations to foster collaboration and creativity, which has had an impact on the overall well-being and success of the start-up communities. Sweden, Japan, and Singapore are case studies for built space and its impact. Scandinavian incubators follow Nordic design principles – simplicity, functionality, and user well-being, and incorporates cultural practices like “fika” (informal coffee breaks) and adds soft design interventions into the institutional design, helping create relaxed communal zones that improve collaboration and long-term retention[8]. Japanese incubators prioritise efficiency through creating an environment that promotes mental clarity. Shibuya QWS Tokyo used spatial zoning to reduce an overload of audio-visual stimuli, for this they use privacy pods, acoustic panelling, and ambient lighting, as studies show that reduced sensory stimulation reduces fatigue and improves focus by up to 35% (SAITO et al., 2019). Japanese incubators use modular furniture that is designed based on the national average anthropometric data. Japanese incubators follow a human centric design which include zen gardens and incorporation of natural elements such as plants or water vies which help in managing stress levels[9]. Lastly, Singapore takes up an intersectional approach towards design where they prioritise inclusivity and cutting edge functioning smart ecosystem. Incubators like BLOCK71 use IoT-enabled lighting, sleeping pods, prayer rooms, flexible lab spaces, and gender-inclusive restrooms. Additionally, due to Singapore’s mandated green mark certification for buildings, there is better air quality and focus on improving the environmental health of the workplace[10].

 

Recommendations for Pakistan

Pakistan can learn from global best practices while tailoring local solutions. The concept of employee happiness has been studied in western countries through culturally specific lenses, which cannot be well implemented into Pakistani cultures. Entrepreneurial labs and coworking spaces in Pakistan must promote diversity and inclusivity, and while designing interventions to enhance productivity and performance, it is essential to make employees feel valued at the workplace to build morale. For this, it is important to integrate their personal values into the design and promote community building.  Culturally adaptive design, such as prayer areas and tea areas for short breaks can provide restorative downtime to start-ups as well as an opportunity to socialise informally. This design is also a step towards spatial zoning, as the needs of the constantly developing urban start-ups have evolved beyond open-space layout design, as it does not provide a sustainable work environment.

Spatial zoning allows the user to opt for focus zones, networking zones, and quiet zones, depending on their need throughout their workday. Ergonomic infrastructural design beyond the “one-size-fits-all” furniture that incorporates anthropometry, and adjustable design allows users to work comfortably for long periods. Since start-ups have unconventional work hours, with many of them working through the night, environmental well-being becomes an important factor.

Lack of diversity is another problem that persists in Pakistan. Inclusivity measures like space accessible to people of all disabilities should be factored in when designing workspace, which not only is beneficial for disabled people, but makes the space more functional for all users. Amenities for menstruating individuals, like comfortable chairs and heating features, should be made available.

Well-ventilated spaces with maximised natural light have been shown to improve cognitive function and reduce fatigue. Green design that incorporates nature in the interior, such as outdoor working spaces and rooftop gardens, can reduce stress. Lastly, the Higher Education Commission Pakistan and its partner organisations need to establish developmental guidelines that can serve as a capacity building blueprint made with the support of architects, health experts, and policymakers to create an environment that is not only functional but supportive and conducive to long-term entrepreneurial success.

 

Conclusion

Ergonomic design and spatial considerations are essential for productivity and promoting innovation and wellbeing. With Pakistan’s urban entrepreneurial ecosystem rapidly progressing to keep up with entrepreneurial trends and accommodating a generationally diverse group of entrepreneurs, it is important to move away from the one size fits all mindset and integrate adaptive design principles that prioritize both physical and mental wellbeing of founders and employees. Infrastructural models that integrate culturally relevant design into spatial zoning of workplaces, like prayer rooms or focus pods, help achieve a balance between focus and networking, foster collaboration and enhance creativity.

Drawing lessons from global practices, incubators in HEIs in Pakistan must tailor local solutions to create a human-centric environment that is inclusive, functional, and culturally responsive. These measures would ensure a steady development of the relatively new entrepreneurial ecosystem in Pakistan by focusing on spaces that support innovation and collaboration, especially because the success of start-ups is directly proportional to the environment that nurtures it. And when entrepreneurs thrive in their environments, the ecosystem and the economy thrive with them.

 

[1] https://doi.org/10.1080/00140139.2018.1502817

[2]https://ehs.oregonstate.edu/sites/ehs.oregonstate.edu/files/pdf/ergo/ergonomicsanddesignreferenceguidewhitepaper.pdf

[3] https://www.sedentarybehaviour.org/what-is-sedentary-behaviour/

[4] Sedentary behavior: emerging evidence for a new health risk – PubMed

[5] Is CO2 an indoor pollutant? Direct effects of low-to-moderate CO2 concentrations on human decision-making performance – PubMed

[6] A systematic review of ventilation conditions and airborne particulate matter levels in urban offices – PubMed

[7] Quantitative measurement of productivity loss due to thermal discomfort – Welcome to DTU Research Database

[8] Frontiers | Outdoor Office Work – An Interactive Research Project Showing the Way Out

[9] 渋谷川流域の住宅地における暗渠上路地の空間構成

[10] https://maisonoffice.vn/en/news/green-mark-certification/