Pakistan’s technology sector is steadily emerging as a promising global player, driven by rising digital adoption, a young workforce, and accelerating startup activity, according to a new report by inDrive in collaboration with Dealroom.co.
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The report, titled “The Rapid Rise of Pakistan Tech,” highlights how the country is gaining recognition as part of the global “New Frontier” of startup ecosystems, with strong growth indicators despite funding challenges.
According to the study, the combined enterprise value of Pakistani startups has surpassed $4 billion, marking a 3.6-fold increase since 2020. This growth rate outpaces several established markets, including India and major global tech hubs such as New York, Paris, and Dubai over the same period.
Startup formation has also surged significantly. Between 2011 and 2015, 121 startups were established, rising to 317 between 2016 and 2020, and reaching 518 during 2021–2025. Key sectors driving this expansion include fintech, transportation, and marketing.
Digital infrastructure growth remains a major catalyst. Smartphone penetration has reached approximately 68%, while mobile broadband coverage stands at around 81%. However, active internet usage remains relatively low, between 23% and 29%, indicating substantial room for further growth in digital services.
Pakistan’s demographic advantage further strengthens its outlook, with nearly 59% of the population within the working-age bracket and a median age of around 21–22 years. This creates a large, tech-savvy workforce capable of sustaining innovation and entrepreneurship.
Despite these gains, the report identifies a significant funding gap. Total startup investment in Pakistan stands at around $57 million, compared to nearly $3 billion in India. This shortfall, however, presents an opportunity for early-stage investors and global operators to shape the ecosystem’s next phase.
The report highlights growing international interest, including investments by inDrive Ventures in local startups such as Krave Mart, demonstrating how global expertise can support scaling and operational efficiency in Pakistan’s urban markets.
Women-led startups were also identified as a high-potential but underfunded segment. Pakistan contributed 288 applications to the Aurora Tech Award 2025, reflecting increasing participation in sectors like artificial intelligence, health technology, education, and sustainability.
Globally, the report places Pakistan within a broader shift where innovation is expanding beyond traditional tech centres. Emerging ecosystems now account for over $2 trillion in enterprise value and attract around 11% of global venture capital.
Overall, the findings suggest Pakistan’s tech ecosystem is entering a critical growth phase, supported by expanding connectivity, an evolving startup base, and increasing engagement from global players.
