Bilal Ahmed Rashid is an aspiring marketing analyst and an avid reader. He is an observant individual who loves to share his versatile opinions on ongoing issues.
To say that Pakistan’s economy is on the brink of collapse would not be an exaggeration. The lack of self-reliance, coupled with the rising unemployment and a rapid increase in the price level, proves that the economy requires several policies to alleviate these issues. However, the policies introduced were mostly fiscal and monetary. Since supply-side policies are resource-intensive and have a time lag, they are mostly seen as a last resort by the government. For a country to get itself out of an economic slump, it needs to invest in its intellectual labor that prioritizes innovation.
New businesses, also known as startups, play a pivotal role in revamping the economy of a country. They can also be initiators of a social revolution. By creating new job opportunities for women and religious minorities, startups partake in solving issues such as poverty and gender inequalities. By offering on-the-job training services, startups also boost the skills of their employees. This creates a culture where creativity and leadership are welcomed. A contemporary example of this can be Careem. Commenced in 2012, Careem had 1 million users and created several job opportunities for people who wanted to work part-time.
The Reasons Behind Technological Innovation in Pakistan
Innovation is also necessary for technological growth. As of 2025, Pakistan’s information technology (IT) sector is thriving and growing rapidly. Pakistan’s exports of information technology increased by 21% in 2025. The low and competitive costs, coupled with the diverse workforce, allow foreign companies and freelancers to outsource some of their technological services to Pakistan. Witnessing this growth, the government is increasing its investment in training, technology, and infrastructure of the IT sector to support its boom. The fact that 65 percent of Pakistan’s population is aged under 30 supports this technological revolution. A youthful, tech-savvy, and energetic population aids in generating new ideas and solidifying the nation’s presence in the global IT sector. Moreover, hyperinflation does not allow young people to solely rely on one source of income. Hence, there is a rising trend of remote work and freelancing in Pakistan. This has paved the way for professionals who want to work for foreign companies. A country that has almost 30,000 IT graduates annually, it is understandable why the sector is developing like no other sector.
The accessibility and affordability of smartphones, 3G, and 4G networks have allowed Pakistan’s citizens to work remotely and be active online. A startup named Qmobile made smartphones affordable and accessible for the average consumer. With marketing campaigns that represented the culture and daily errands of the average citizen, QMobile made smartphones a necessity in a short time. Another startup that contributed to the technological boom is an E-Commerce platform named Daraz. The success of Daraz proved the growing trend of virtual shopping and the need for convenience in shopping.
The government has also introduced some initiatives to create an environment that welcomes entrepreneurial ideas and innovations. Startup Pakistan is a place where new entrepreneurs can connect with investors and marketers and boost their business.
The Most Innovative Sectors
The Financial Technology Sector
It is a well-known fact that approximately 95 million Pakistani citizens have no bank accounts or financial literacy. Financial technology, more commonly known as fintech, utilizes virtual applications and tools to make banking services accessible and feasible for users. It streamlines all the processes involved in attaining financial services and makes banking easier and less time-consuming for users. The sector of FinTech is quite underestimated, as it does not receive the recognition it deserves for minimizing income and wealth inequalities in the country. For far too long, financial institutions and services were only accessible to a certain socioeconomic group who could afford to have bank accounts. Digital Wallet systems such as EasyPaisa and Jazzcash reduce the hassle of carrying cash. It is because of apps like these that the number of digital transactions has increased from approximately 5 billion in 2023 to almost 6.5 billion in 2025.
The Educational Technology Sector
Investment in the sector of educational technology became inevitable and necessary during the COVID-19 pandemic when all educational institutions were closed because of the lockdown. However, institutes situated in poverty-stricken areas lacked the technological infrastructure to conduct virtual learning. Moreover, even schools with a well-developed infrastructure struggled to maintain consistent attendance, weekly plans, and extracurricular activities for students in virtual learning. The need to invest in educational technology has intensified after these issues. In a country like Pakistan, where approximately 40 percent of students drop out of school, EdTech startups acted as saviors. Some prominent examples of EdTech startups are Edkasa, Knowledge Platform, Dot&Line, and Muse by Sabaq. According to certified data, EdTech startups initiated in Pakistan have managed to amass approximately 3 million USD. Though the sector is far from perfect, one cannot deny the influence it has had on bridging the educational gap between the rich and the poor.
The Health Technology Sector
More commonly known as HealthTech, the sector aims to utilize digital software to make medical services more accessible for citizens. This sector in Pakistan lacked significant investment, which is an alarming situation since the country has a high rural population that lacks access to medical resources. What HealthTech does is that it reduces the operational costs of running a full-time clinic or hospital. Startups like Sehat Kahani and HealthWire received significant funding. Sehat Kahani was an angel in disguise for internally displaced Afghan refugees. As of 2025, HealthWire has marked its presence in over 80 cities in Pakistan. Just like other sectors, the sector of HealthTech sector strives to reduce the disparities between all the classes in society.
Challenges and Way Forward
While the progress of these sectors is praiseworthy, there are specific barriers that cannot be ignored. Firstly, the volatility of the currency and the rising political riots increase the skepticism of foreign investors, and they often choose not to invest in Pakistani startups. Furthermore, power outages and unpredictable internet services prevent the efficiency of digital services. However, there is a light at the end of the tunnel. If the government works on regulations that alleviate the concerns of young entrepreneurs who wish to start a business, Pakistan will become the hub of innovation in South Asia.
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The views and opinions expressed in this article/paper are the author’s own and do not necessarily reflect the editorial position of Paradigm Shift.
