Booming Pakistani tech startups ecosystem as attracted attention in recent years. However, closer inspection reveals that these startups may not truly qualify as tech startups. This article explores the current state of the Pakistani tech startups. Furthermore, it evaluates how well they adhere to the fundamental attribute of scalability and tech-driven innovation.
Defining Tech Startups
Conventional tech startups are known for their focus on technology-driven products/services that bring innovative solutions to the market. They utilise disruptive technologies and have the potential to derange established industries or create entirely new markets.
Current Landscape of Pakistan Tech Startups
According to the Pakistan Startup Ecosystem Report 2021, there were over 800 active startups in the country. More than 40% of them founded between 2019 and 2021. Inspite of decline in COVID cases, Pakistan’s startup scene was perceived as growing in 2021. It, however, experienced its fair share of ups and downs in 2022.
Key Challenges Faced by Pakistani Tech Startups
1. Lack of Technological Innovation
True tech startups are distinguished by disruptive technological advancements. Instead of developing new technology in Pakistan, there is an emphasis on adapting current ones. This has limited the potential for exponential growth for the companies.
Daraz Vs FlipKart
Pakistani e-commerce firms, like Daraz, use already-existing technological solutions. They outsource to power their platforms.
However, Indian counterparts like Flipkart employ teams of software engineers and data scientists. They are constantly building and refining technological infrastructures in order to provide innovative features. They make use of AI, machine learning, data analytics, and cloud computing. This eventually led to improved consumer experiences that drive personalized recommendations, increase engagement and optimise supply chains.
Careem Vs OlaCabs
Careem Pakistan is another startup that resemble their Indian equivalents, Ola Cabs. However, the latter is known for its emphasis on technology innovation. For example, Ola Cabs recently pioneered Ola Electric for the adoption of electric vehicles and created sophisticated algorithms for ride-hailing.
Apparently, Indian entrepreneurs prioritize technology as a key differentiator. They make significant investments in their in-house tech teams. This is because Indian startups have access to a talent pool of qualified engineers and developers, who support intensive research and development operations.
2. Tech-Enabled, not Tech-Centric:
Thus, Pakistani tech startups are largely tech-enabled, not tech-centric, which means they use technology to enhance their workflows and business operations. The creation or development of novel technologies is not central to their primary economic strategy.
Bazaar, Dastgyr and EasyFresh are all tech startups but less than 5% of their orders are online. This implies startups still sell its products through conventional retail methods.
3. Outsourcing
Tech startups outsource to handle their operations. There are no qualified professionals due to poor quality of technical education and vocational training (TVET). Consequently, entrepreneurs find it difficult to innovate to qualify as legitimate tech startups.
In fact, Pakistan is constantly one of the worst performers in terms of TVET. UNESCO ranked Pakistan at 147th out of 188 countries, placing it in ‘’low human development’’ category. This implies that most people are unemployed because they are unskilled.
4. Growth & Scalability
Another feature of tech startups is their capacity for scaling. While some Pakistani tech startups have succeeded in scaling up on a regional level, they still struggle to go worldwide. The growth of these firms is hampered by restricted investment on R&D and lack of technical expertise.
(P.S. In a recent podcast episode, we explored the intersection of Pakistan and tech. You can learn more about the evolving tech landscape of Pakistan here: Technology and Us).
Nurturing a Tech-Driven Culture in Pakistan
1. Technical Knowledge
Integrating math and statistics across various disciplines is one thing. Emphasizing the relevance of these subjects in real-world scenarios is EXTREMELY crucial. This fosters intuition and to enhance one’s problem-solving abilities.
2. Equipping IBA Students for Problem-solving
Thus, students should use cross-disciplinary learning to act as agents of change. They can improve their analytical abilities and provide original solutions by drawing on mathematical and statistical insights from a variety of domains.
3. Tech & Research Access
A research-oriented culture within educational institutions involves promoting a mindset of curiosity, innovation, and entrepreneurship. Furthermore, individuals are motivated to explore new ideas, conduct meaningful research. Later, we can seek solutions to real-world challenges.
However, the World Bank estimates that Pakistan spends only 0.3% of its GDP on research and development (R&D), which is much less than the 3% global average.
4. Empowering Research Mindset
IBA students should advocate for a shift in educational paradigms, encouraging a research-oriented mindset that fosters curiosity and entrepreneurship. Finally, this will help students transcend the role of job seekers and become proactive problem solvers in the Pakistani tech startups sphere.
5. Collaboration between Industry & Academia
Limited collaboration between TVET institutions and the industry means that graduates often do not acquire the necessary technical or critical thinking skills that would make them employable. So, students must be actively look to bridge the gap between academia and industry by seeking opportunities for collaborations, and mentorship.
6. Interdisciplinary Approach
Interdisciplinary learning enables students to investigate links and interactions between many fields rather than seeing subjects in isolation. Students at IBA must strengthen their critical thinking abilities. This will make them have a more comprehensive understanding of real-world problems & encourage creativity. Additionally, it enables students to approach issues from diverse perspectives.
Conclusion
All in all, IBA students might have the power to influence the future of Pakistani tech startups. They can take the lead in bridging the gap by embracing interdisciplinary learning. Moreover, encouraging a research-oriented mindset helps. By working together, academia and industry gives one’s tools they need to spur innovation. Students have the power to transform Pakistani digital firms from ideas to reality. This can finally usher in an exciting period of development and growth.
