The government-backed National Incubation Centre (NIC) network is transforming Pakistan’s startup ecosystem. Since its launch in 2017, the NIC network has incubated more than 2,250 Pakistani startups. Furthermore, these ventures generated Rs. 36.3 billion in revenue. Consequently, they created over 185,000 jobs across the country. These startups also attracted Rs. 34.7 billion in local and international investments.
Minister for Information Technology and Telecommunication Shaza Fatima Khawaja recently shared these figures with the National Assembly. She highlighted that the government provides crucial financial and technical assistance. Specifically, the Ignite-National Technology Fund empowers technology-based startups. Moreover, women increasingly participate in the tech economy. Currently, women lead about 31% of the incubated startups. This equals approximately 700 ventures.
Govt Expanding the NIC Network to Incubate More Pakistani Startups
Ignite established eight National Incubation Centres. These currently operate in Islamabad, Lahore, Karachi, Peshawar, Quetta, Rawalpindi, Faisalabad, and Hyderabad. They offer free incubation facilities to aspiring entrepreneurs. Additionally, these centers provide mentorship, co-working spaces, and specialized laboratories. Startups also gain access to legal and financial advisory services, business development support, and investor networks.
Recently, the government expanded this infrastructure. The ninth NIC commenced operations in Sialkot last month, in July 2026. Therefore, the government ensures geographically distributed access to startup support across Pakistan.
Boosting Growth with Dedicated Funding
To address financing constraints, the government introduced several dedicated funding instruments. These initiatives target startups at various development stages to mitigate investment risks and bridge funding gaps.
| Funding Initiative | Target Audience | Key Offerings |
| Pakistan Startup Fund (PSF) | Early-stage startups | Equity-free grant of up to 30% of the total investment round. |
| Ignite Acceleration Programme | Seed-stage startups | Up to Rs 5 million in seed funding via NICs in Islamabad, Lahore, and Karachi. |
| Spark and Elevate Programmes | Researchers, innovators, and startups | Grants for fourth industrial revolution technologies (Launching FY2026-27). |
| Pakistan Venture Fund | Growth-stage startups | Capital mobilization for startups moving beyond the seed stage (Launching FY2026-27). |
Recently, the latest round of the PSF investment grant selected three new startups.
Focus on AI, Gaming & Animation
The Ministry of IT and Telecommunication (MoITT) actively pursues a comprehensive strategy. It aims to develop a self-sustaining startup ecosystem. Hence, the government combines incubation, seed funding, venture capital, and market access.
Meanwhile, the ministry established Centres of Excellence in gaming and animation. These centers became operational in November 2025. They develop specialized talent and nurture startups in the creative technology sector.
Similarly, the National AI Innovation Hub supports artificial intelligence startups. Established under the National AI Policy 2025, this hub provides essential infrastructure. Startups access computing power, structured development pathways, and a marketplace to showcase and commercialize AI solutions. Ultimately, the government remains focused on promoting emerging technologies, women-led entrepreneurship, and investment-led scaling.
