Pakistan government is seeking to set up 10,000 co-working spaces for freelancers across the country, Caretaker Information Technology Minister Dr. Umar Saif announced on January 10, hoping the initiative would help freelancers generate $10 billion annually for the country.
To help set up these co-working spaces, the government will issue interest-free loans to the private sector to help them convert their real estate into E-Rozgaar centers.
With around 1.5 million freelancers working online, Pakistan has the second-largest online workforce in the world, Dr. Saif said in a video message. The minister highlighted that freelancers in Pakistan face difficulties in performing tasks due to frequent power outages at homes and a lack of dedicated working spaces.
“Hence, the government is now going to establish 10,000 E-Rozgaar centers,” Saif said. “For this, we are issuing interest-free loans to the private sector so that they can convert their real estate into co-working spaces or E-Rozgaar centers.”
These co-working spaces will have state-of-the-art facilities to help freelancers work with peace of mind.
Pakistan Startup Fund
Earlier on Tuesday, the interim government established the Pakistan Startup Fund to invest Rs2 billion in Pakistani startups every year.
The minister said the fund was structured as an equity-free capital that would help startups close venture capital (VC) rounds and help them secure their inaugural external investments. The PSF is structured to offer a 30% annual grant for startup ventures to help them begin their operations.
“Today we launched the Pakistan Startup Fund (PSF) which will invest up to Rs 2 Billion every year in Pakistani startups,” Saif wrote on social media platform X, formerly Twitter.
“If you are a startup in Pakistan and a foreign VC is evaluating your startup for a $1 million investment, the VC only needs to invest $700k — the Pakistan Startup Fund will give you a grant of $300k to help close the round.”
Pakistani startups raised more than $70 million during the year ended December 31, 70% less than capital raised in the previous two years.
“With PSF we hope to create a value of at least Rs 50 Billion per year in the startup ecosystem in Pakistan,” said Dr. Saif.