Legal Framework for Startups in Pakistan

Startups play a very important role in the modern economy and are vital to its social and economic progress. As of 2019, their contribution to the global GDP is estimated at approximately $3 trillion. In addition to the creation of wealth and impact on GDP, startups also have a positive impact on employment. Data from the United States of America (US) show that startups that cross the 5-year threshold have a positive impact on employment despite the evidence that 75% of startups fail in their early years. In 2016 it was estimated that startups
account for over 21% of total employment in the OECD countries.

An important feature of startups is their contribution to innovation and competition in the economy through advanced and innovative technological processes and products and services. Such innovation is spurred by investments which high-performing startups attract from all over the world benefiting their parent countries through increased capital inflows. In 2019, there was approximately $300 billion worth of investments in startups by Venture Capitalists as a result of 32,800 deals. For the decade, the estimate is as high as $1.5 trillion.

Startup Ecosystem
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