Pakistan’s technology ecosystem is gaining global attention as digital adoption increases, startup activity accelerates, and a tech-savvy population enters the workforce. Research indicates that the foundations for a robust innovation landscape are forming. A report titled “The Rapid Rise of Pakistan Tech,” from inDrive and Dealroom.co, highlights the country as a promising market within the global “New Frontier” of startup ecosystems, boosted by experienced operators and investors.
The report notes that the combined enterprise value of Pakistani startups has surpassed $4 billion, reflecting a 3.6-fold increase since 2020, outpacing markets like India and technology hubs such as New York and Dubai. There has also been significant growth in startup activity, with 518 startups expected to emerge between 2021 and 2025, predominantly in sectors like fintech, transportation, and marketing.
Digital infrastructure is critical to this potential, with smartphone ownership at roughly 68% and mobile broadband coverage at about 81%, although active mobile internet usage ranges from 23% to 29%, indicating further growth opportunities. Connectivity has improved, with around 190 million active mobile SIM connections and 45.7% internet penetration, equating to approximately 116 million users.
Pakistan’s demographic profile is favourable, with about 59% of the population aged 15 to 64 and a median age of around 21–22, providing a capable workforce for digital services. Despite this positive outlook, a notable capital gap remains, with startup funding at around $57 million compared to India’s $3 billion.
The report emphasises opportunities for early investors, particularly in supporting women-led startups, which are underfunded despite their potential. Pakistan submitted 288 applications to the Aurora Tech Award in 2025, showcasing a commitment to sectors like EdTech, AI, health technology, and sustainability.
Overall, the findings reflect a global shift in innovation, with technology entrepreneurship expanding beyond traditional centers, as emerging ecosystems generate significant enterprise value and attract an increasing share of global venture capital.
