Navigating Entrepreneurial Potential in Pakistan with LIFT Pakistan
Entrepreneurship in Pakistan is accelerated as a positive image of Pakistan is manifested to the world. But the business in Pakistan is still behind its contemporaries. In this article, we will discuss the business potential, problems related to entrepreneurship, and its solution.
To give entrepreneurs a JumpStart in Pakistan, JumpStart Pakistan is arranging one of the biggest entrepreneurial conferences in Pakistan called LIFT Pakistan 2021 for four days from 15th – 18th December 2021 at Pak-China Friendship Center, Islamabad. The conference aims to bring startups, SMEs, investors, and entrepreneurial minds all across Pakistan under one roof.
In Pakistan, approximately 140 million people are below 30. Youth plays an important role in the progress of one’s country. The youth of Pakistan is now breaking the stereotype in many fields; the same goes with the business. They are using advanced technology to start their business and bringing in new ways of doing business. Several young people started their business from scratch and now they are leading big companies. All these 140 million people can’t participate in the business, but some want to start. A handful number of entrepreneurs are working in Pakistan and are producing employment in the country.
The government has worked tremendously to assist the startups and provide a more secure business environment to the business community. Previously, As we know that the peace condition for one and a half-decade was disastrous, the security forces and govt worked together to stabilize the economy, and we can safely claim that Pakistan now holds massive business potential. Some key factors that accentuate business potential in Pakistan are:
1. Natural resources
Abundance of natural resources translates into an abundance of a business ideas. As we know, Pakistan has fertile land, gold mines, silver, and precious stones in Baluchistan, a favorable climate, and many more things, making it a resource-rich country.
2. Human resource
Pakistan has tremendous human resources. The new generation is fully trained to innovate business channels and tackle any sort of business problem. If this Human Resources is managed effectively by empowering them and offering them a conducive business environment, the entrepreneurship environment can flourish.
3. Economic system
There is a mixed economic system in Pakistan where both Private and government sectors coexist and play their role in the progress. This is the most suitable economic system for a business, where startups can find their way.
4. Economic policies
The economic policies in Pakistan include fiscal policy, labor policy, price policy, etc. have an impact on the economic condition. Few of them are very suitable and progressive, but simultaneously, there is a need for improvement. Several taxation policies, for instance, discourage many startups.
5. Technological development
The new era has brought new technology to the country, which is also helping to support the business culture and improve production. The tech-savvy youth is finding ways to develop innovative businesses around these technologies and automating most of the business operations.
6. Market situation
The market situation in Pakistan is very stable. It is an indicator that there is market potential that startups and businesses must tap into. Many investors look forward to investing in the stock of Pakistan because they believe businesses have potential in the respective country.
With the new era of Pakistan, there is hope that Pakistan will achieve more in increasing business activity. The government is providing more and more opportunities to the public who are starting their own businesses. However, so it’s a bit difficult to lift Pakistan with a flick of the finger.
There are a few factors that discourage investors and pose hurdles in the way of startups.
1. Brand registration
If you go through the brand registration process in Pakistan, the lengthy processes coupled with red-tapism in Pakistan discourage people to the point that they think about quitting business ideas.
2. Lack of support
Despite government initiatives, the small businesses in Pakistan are still facing a lack of support. The policies are targeted to assist only the large-scale business. If the small businesses are given an equal chance, then they may play a key role in enhancing employment in the country. New policies should be introduced for the small business sector.
Corruption is also one of the prevailing issues faced by the business community. Both small- and large-scale businesses are affected by this. The government is taking steps to eliminate corruption, but these are not enough.
4. High taxes on the businesses
The corporate tax rate in Pakistan is 29% in the year 2021, which is comparably less than the past, which was 33%, but it’s more than many other developing nations. The taxation policy is not conducive for startups. If taxes are reduced, then the investors will take more interest in the business activities.
5. Loan problems
The interest rate in Pakistan is approximately 11% which is considerably high for the public. Many people who aim at taking a loan for doing business are also discouraged by the interest rate. If the government manages to reduce the interest rate, it can be more attractive for the people to participate in the business.
With few encouraging and discouraging factors, it is safe to that the entrepreneurship potential in Pakistan is on the boom.
Through these four-day conference held in Pak-China Friendship Center Islamabad, we aim to generate 100 billion dollars for Pakistan and give nearly 200 plus startups a JumpStart.
As a nation, we all need to play our part in LIFTing Pakistan and steering it towards a prosperous future.