Before IK was removed, there was venture capital flowing in and startup culture was taking off.
With a massive young, English-speaking population and a fast-growing, tech-savvy middle class, Pakistan has all the ingredients for a thriving start-up ecosystem. So why is it only now starting to live up to its entrepreneurial potential, and how big can it get?
www.mckinsey.com
The problem is political & economic stability, but also the
lack of talent in Pakistan and risk-averse culture.
I've spoken to people there and seeing some of the technologies stacks they are just learning now, they are considerably behind.
AI/ML and big data technologies have changed the scene so much that I feel even India is behind now. Compare China's product-driven software industry, led by giants like Alibaba and Tencent, to India's service-driven software industry and you'll see India is behind.
Then there is the lack of risk taking culture. Remember, the US wouldn't have been the powerhouse it is today without the entrepreneurial culture that encourages risk-taking.
Bill Gates dropped out of one of the best schools, Harvard, to go on to found Microsoft. Who in Pakistan is willing to take such a risk?
Don't worry about money, there is a lot in the undocumented informal economy driven by real estate & retailers who escape tax net. I see some of these
people from Pakistan doing Umrah multiple times a year, driving brand new Landcruisers & Hilux, etc. Living in the US, I cannot afford this lifestyle.
Money is there, the risk-takers are not, and that's why real estate is a parasitic industry of Pakistan, eating its capital, but not contributing to productivity.