IMF’s $3 billion bailout program reignites funding hopes for Pakistani startups following 90 percent decline

In this photograph taken on May 24, 2019, Pakistani youngsters work at their desks at the National Incubation Centre (NIC), in Lahore, Pakistan. (AFP/File)
Short Url
Updated 12 July 2023
Follow

IMF’s $3 billion bailout program reignites funding hopes for Pakistani startups following 90 percent decline

  • Pakistani startups received about $28 million in the first half of the year as compared to $277 million in 2022
  • Startup monitors say the funding decline was in keeping with global slowdown and macroeconomic crisis at home

KARACHI: After suffering almost 90 percent funding drop in the first half of the current year, Pakistani startups are hoping for the revival of funding rush after the country got positive signals from the International Monetary Fund (IMF) in recent weeks, said startup monitors and advisers on Tuesday.

Pakistani startups raised about $375 million of global funding in 2021 which exceeded the overall financing received by them in the previous six years.

However, they only received around $28 million in the first half of 2023, including $5 million received in the second quarter, depicting a 90 percent decline in their funding, as compared to $277 million raised in the first half of 2022, according to Alpha Beta Core (ABC), a startup funding advisory firm, and Data Darbar, a startup and market tracking firm.

“This funding decline was aligned with the global slowdown coupled with macroeconomic crisis at home,” Khurram Schehzad, ABC’s chief executive officer, told Arab News. “The rupee-dollar parity issue, slow industrial activities, and high inflations created a context where investors chose to remain on the sidelines instead of putting their money in risky startup businesses.”

The number of funding breakthroughs has largely remained stagnant during the second quarter of the 2023. Major deals in this quarter include Fintech startups such as GoldFin securing $2 million and Neem raising $1 million.

In addition, smaller pre-seed and accelerator level deals were struck by Apollo Group, Qist Bazaar, OkayKer, and Pattern App, according to ABC.

Pakistan, which has been grappling with deteriorating economic conditions, finally reached a staff-level agreement (SLA) with the IMF last month over a $3 billion bailout program which rekindled startup funding hopes.

“The recent news of the IMF bailout is a welcome respite though, at least in the short term, in stemming some of the uncertainty,” Kalsoom Lakhani, co-founder and general partner at i2i Ventures, a funding company, said in a statement.

“I also think more startups will raise toward the end of this year (provided our relative respite holds and elections go as planned as well),” she continued, adding: “We definitely won’t reach our 2022 numbers, but here’s hoping 2H2023 finishes out better than the first half of this year.”

Schehzad agreed with Lakhani, saying the recovery would be gradual since “the IMF deal would improve investors’ confidence and help improve liquidity situation in the market.”

However, he noted the investors would adopt “pick and choose” strategy, instead of funding across the board.

“Now the investors are betting on smart startups or entrepreneurs – they will now pick and choose only smart startups which have shown resilience.”

Pakistani startup experts said the startup operating in ecommerce, fintech healthtech, agritech and education have substantial potential to attract funding from investors in the future.

However, Pakistani startups will have to go the extra mile, as a global slowdown combined with a tough national macroeconomic situation is definitely an uphill climb, according to i2i Insight, the research arm of i2i Venture.

Pakistani startups have raised approximately $953 million through 329 deals since 2015, according to i2i Insight.


Google expands creative AI tools in Pakistan with Veo 3 and Flow

Updated 7 sec ago
Follow

Google expands creative AI tools in Pakistan with Veo 3 and Flow

  • Users can now transform their favorite photos into vivid eight-second video clips with sound
  • The photo-to-video feature on Veo 3 requires users to upload images and describe the scene

KARACHI: Google has expanded access to its advanced video generation model, Veo 3, allowing users in Pakistan and over 150 other countries to create eight-second videos from photos with sound, the company said in a statement released Friday.

The move comes amid a global surge in interest in creative AI tools, with content creators using different platforms to generate video stories and bring still images to life. With Pakistan’s growing pool of digital creators, the rollout is expected to spur local innovation in short-form content.

“This new capability allows users to transform their favorite photos into vivid eight-second video clips with sound through a powerful photo-to-video feature built on Veo 3,” Google said.

To use the feature, users select “Videos” from the tool menu, upload a photo, and describe the scene and audio. The system then generates a video that can be downloaded or shared.

The tool is accessible through Gemini, Google’s AI-powered assistant that combines search, image generation and content creation features into a single interface.

These capabilities are also integrated into Flow, Google’s AI tool for filmmakers, which now supports speech, background audio, and sound effects.

Google also underscored its commitment to responsible AI development.

“All videos generated with Gemini include a visible watermark and an invisible SynthID digital marker to indicate they are AI-created,” it said.


Pakistan, UAE agree to ease visa process for Pakistani citizens

Updated 38 min 34 sec ago
Follow

Pakistan, UAE agree to ease visa process for Pakistani citizens

  • Mohsin Naqvi discusses enhanced security, anti-narcotics, and tech cooperation during Abu Dhabi visit
  • Pakistani interior minister briefed on crime prevention and public safety at UAE police operations center

ISLAMABAD: Pakistan and the United Arab Emirates (UAE) agreed to take “necessary steps” to facilitate visa issuance for Pakistani citizens during a high-level meeting between Interior Minister Mohsin Naqvi and his Emirati counterpart in Abu Dhabi, according to an official statement released on Friday.

The development comes amid growing concerns over visa delays and restrictions reportedly faced by Pakistani nationals seeking employment in the UAE. Last month, Deputy Prime Minister Ishaq Dar also raised the issue in a meeting with UAE Foreign Minister Sheikh Abdullah bin Zayed.

The UAE is home to over 1.5 million Pakistanis and remains a major source of remittances.

“It was also mutually agreed to ensure necessary steps to facilitate visas for Pakistani citizens, especially work visas,” the interior ministry said in a statement issued after the meeting. “The UAE Minister of Interior assured full cooperation in this regard.”

Naqvi said the fraternal relations with the UAE were valued by all Pakistanis. He also highlighted that a large number of them were playing a key role in strengthening the UAE’s economy.

“We want Pakistani citizens to be able to come to the UAE easily and easing visa policies will greatly benefit them,” he added.

During his talks with UAE’s Deputy Prime Minister and Minister of Interior Lt. Gen. Sheikh Saif bin Zayed Al Nahyan, both sides reaffirmed their commitment to deepening bilateral cooperation in multiple areas including security, anti-narcotics, anti-smuggling and preventing illegal immigration.

The discussion also included regional peace and the use of advanced technologies such as artificial intelligence to tackle security challenges.

Later, the Pakistani minister visited Abu Dhabi’s state-of-the-art police operations room, where he was briefed on crime prevention and public safety systems.

He expressed particular interest in the UAE’s advanced police monitoring model and praised the country’s use of technology for law enforcement.


Pakistan court suspends order seeking YouTube ban on government critics

Updated 11 July 2025
Follow

Pakistan court suspends order seeking YouTube ban on government critics

  • YouTube has warned 27 content creators their channels may be blocked if they fail to comply with a court order seeking to ban them
  • Digital rights groups warn the move could further erode free speech in Pakistan, where authorities face criticism for silencing dissent

ISLAMABAD: A Pakistani court on Friday suspended an order seeking to ban the YouTube channels of more than two dozen critics of the government including former Prime Minister Imran Khan, a defense lawyer said.

Alphabet-owned YouTube this week told 27 content creators that it could block their channels — including those of journalists and Khan and his opposition party Pakistan Tehreek-e-Insaf — if they failed to comply with a judicial magistrate court order seeking to ban them.

A regional communication manager for YouTube did not respond to a Reuters request for a comment.

The judicial magistrate court in Islamabad had said it was seeking the ban after the National Cyber Crime Investigation Agency criticized the channels in a June 2 report for “sharing highly intimidating, provocative and derogatory contents against state institutions and officials of the state of Pakistan.”

The decision to suspend the order was taken by an additional sessions judge, said Imaan Mazari, the lawyer for two of the YouTube content creators.

In Pakistan, an additional sessions judge is a judicial officer who presides over a sessions court, handling both civil and criminal cases.

“Our submission is that the order has no legal basis. It was a one-sided decision without giving defense a chance to be heard,” Mazari said.

She also said the magistrate court had no jurisdiction over the matter.

The next hearing in the sessions court is on July 21.

In Pakistan’s judicial system, cases start at civil and judicial magistrate courts and appeals are heard in high courts and the Supreme Court.

Digital rights campaigners say that any ban would further undermine free speech in Pakistan, where the authorities are accused of stifling newspapers and television, and social media is seen as one of the few outlets for dissent.


Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

Updated 11 July 2025
Follow

Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

  • The Pakistan Steel Mills has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses
  • Both sides discussed plans to modernize the major steel complex on the sidelines of the recent INNOPROM Annual Industrial Forum in Yekaterinburg

ISLAMABAD: Pakistan and Russia have signed a protocol to restore and modernize the Pakistan Steel Mills (PSM) in Karachi, Pakistani state media reported on Friday.

The development comes days after the two sides discussed plans to modernize the major steel complex and expand industrial cooperation on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg.

INNOPROM, Russia’s largest annual industrial trade fair, brings together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

The protocol was signed at the Pakistan Embassy in Moscow by Pakistan’s Secretary of Industries and Production Saif Anjum and Russian General Director of Industrial Engineering LLC Vadim Velichko, reaffirming the long-standing industrial partnership.

“The project aims to restart and expand steel production [in Pakistan], marking a new chapter in bilateral cooperation,” read a report on Radio Pakistan broadcaster.

The PSM, once Pakistan’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Moscow is also expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi, Russian Consul-General Andrey B. Fedorov told Arab News this month.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.
Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.


Pakistan rain death toll rises to 90 as authorities issue fresh flood warning

Updated 11 July 2025
Follow

Pakistan rain death toll rises to 90 as authorities issue fresh flood warning

  • Heavy rains have also damaged at least 343 houses nationwide
  • Relief operations underway in affected areas, authority says

KARACHI: The death toll from monsoon downpours in Pakistan rose to 90 after three children died in rain-related incidents in the eastern Punjab province, the National Disaster Management Authority (NDMA) said on Friday, amid fresh alert about possible flooding between July 13 and July 17.

Punjab has reported 32 deaths, including 18 children, while the northwestern Khyber Pakhtunkhwa province has recorded 30 deaths, 14 of them children, since the start of monsoon in late June.

The southern province of Sindh has reported 16 deaths and the southwestern Balochistan province has logged 11 fatalities. One man lost his life in Azad Jammu and Kashmir.

“The total number of 90 deceased include 45 children, 29 men and 16 women,” the NDMA said in a report on Friday, adding that another 158 people were injured in incidents across the country.

“Minor flooding is ongoing at Tarbela, Taunsa and Guddu Barrages, while moderate flooding continues at Kalabagh and Chashma.”

Heavy rains have also damaged at least 343 houses nationwide. Of them, 109 were destroyed and 234 incurred partial damages, according to the NDMA.

Flood relief operations have been underway in affected areas, with authorities distributing tents, ration bags, blankets, sandbags, quilts, gas cylinders, mattresses, kitchen sets, mosquito nets, plastic mats, hygiene kits and food packets to affected families.

A total of 24 relief camps have been set up in Punjab and two in Sindh, providing shelter to 176 people, whereas around 245 people have been rescued in 21 operations carried out across the country.

FLOOD ALERT

Taunsa Barrage located on Indus River in Punjab’s Dera Ismail Khan district “may experience moderate flooding,” the NDMA said in a fresh alert on Friday.

There is a risk of minor flooding at Marala and Khanki along the Chenab River and at Nowshera along the Kabul River. Flooding is also expected in the Swat and Panjkora Rivers as well as their adjoining streams.

The NDMA has advised people to exercise caution and avoid crossing streams, bridges and floodwaters.

Pakistan has also rolled out a location-based SMS alert system to warn citizens living in flood-prone areas about imminent weather threats.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt triggered catastrophic floods that affected 33 million people and killed more than 1,700.