If we look into the economy of Pakistan, it’s not stable. There are multiple reasons for it, being politically unstable, local currency depreciation and inflation. Even it is expected that these factors will continue to affect the situation for the current and next year.

Inflation in Pakistan is about 23.84% and interest rate is about 16% as of Nov 2022 – EOY Roundup 2022

While if we look onto the current trading of pakistan, the exports are lower than the imports. Which significantly indicate the bad economical growth of country. Pakistan is dependent on its exports due to the massive demands as well as lack of industries to provide the essential resources.

The trade balance of Pakistan for the month of Dec 2022 was Rs. -643,560, indicating high imports and lower exports – Trading Economics

Since the situation of country keeps going down, steps should be taken in order to get things under control. But the question here arrises that what needs to be done?

For the growth of country’s economy and balancing the GDP, the Import vs Export ratio shall be maintained. Our exports shall be greater than the imports, this can be achieved through,

1. Increasing the exports
2. By reducing the imports

But how can this be achieved?

A country’s importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates. – Leslie Kramer | How Importing and Exporting Impacts the Economy | Investopedia

Increasing the Exports

For increasing the exports, new businesses shall be initiated in the market. But the business shall fill the gap existing globally in order to survive and be able to export. The target shall be global so that the business focuses on exports. This can be achieved through the following steps,

1. Identifying the need/gap and overall market strategy
2. Doing research and building a business case
3. Feasibility study and analysis
4. Seeking help
5. Target investors and sponsors, make a marketing and branding strategy
6. Start launching in small groups and increase market after success and good feedback
7. Target international communities and companies to make exports possible. This might be a difficult task but not impossible
8. Make continuous improvements and ensure success of the aims and goals

A country with a high demand of its goods tends to export more than it imports, increasing demands for its currency – Nick Lioudis | How the Balance of Trade Affects Currency Exchange Rates | Investopedia

Now, the main difficulty will raise where the business market has to be linked with International communities and companies. For a better approach, one can identify the local business dealing Internationally. Getting a deal to link with their clients and customers. But the market shall be same. Moreover, one can also check for government resources as both state and federal governments offer initiatives to boost sales and exports. But depends on the gap and problem being solved.

Decreasing the Imports

The second solution for stabilising the trading ratio can be through decreasing the imports. While, it will increase demands of the public, which may generate an alarming situation. But, here the gap and problem will get initiated. The gap becomes the new opportunity for those who need to initiate business and work for the betterment of Nation. Reducing imports and creating the products locally will reduce cost as well as increase nation’s economy. The question here arises that “What to not import?”

Some products, like the IT ones, cannot be stopped imported due to lack of industries in Pakistan enable to produce them. Moreover, to initiate a local business for it, will require a lot of investment and trust of consumers. Thus, those products shall be targeted which can be initiated in Pakistan and reduce the imports. The targeted product shall also be high in demand in order to fill the gap and sustain the business in market. Achieving which will require different steps:

1. Identifying the products that can be locally made or industry can be established
2. Identifying the gap and demand
3. Prepare an overall market strategy
4. Doing research and building a business case
5. Feasibility study and analysis
6. Seeking help
7. Targeting sponsors and investors
8. Building up a branding strategy, starting from small group
9. Comparison between existing imported product and local one
10. Win the trust of public and satisfy them through good quality
11. Increase your business to larger groups after successful and good feedback
12. Continue improvements in the business to remain sustain

If a country imports more than it exports, it runs a trade deficit. If it imports less than it exports, that creates a trade surplus. When a country has a trade deficit, it must borrow from other countries to pay for the extra imports. – Kimberly Amadeo | Imports and How they affect the Economy | The Balance

In this scenario, the main difficulty that businesses might face is the trust of consumers. As they would be dependent and more trustworthy on the imports due to their brands and good quality. Here, the business owners shall work on the strategy to gain the trust of consumers. It all depends on the marketing and branding. Also highlighting the comparison between the imported and their own product.

Startups and Entrepreneurs of Pakistan

During the COVID-19 pandemic in 2020–21, Pakistan’s startups and technology sector witnessed unprecedented growth and 2021 was found out to be a record breaking year.

2021 was a record-breaking year, with technology startups raising $350 million, while over $227 million was raised in the first half of 2022; Pakistani startups have raised $322 million in 2022 so far. – Hamna Tariq and Uzair Younus | Pakistan sees growing culture of innovation amid tech startup boom | Atlantic Council

This shows how powerful are the startups. Pakistan has number of creative and innovative people especially young generation. But, the lack of guidance and support forces them to either do jobs which they aren’t interested into, or apply for International opportunities and education. The only reason to apply Internationally is to get out of the country as they don’t find any good opportunities here.

Pakistan’s brain drain situation has aggravated this year, as more than 750,000 educated youth chose to seek employment overseas mainly because of uncertain economic and political situation amid a shrinking job opportunities in the country. – The Express Tribune – 2022

Each year, thousands of graduates complete their degrees with defending a Final Year Project based on some gaps and innovation. But, due to lack of guidance and support, they are not able to work on it further and launch it in market. Either they join a secure job or apply in International opportunities. Each year thousands of ideas are being ignored and neglected. Although, current situation of Pakistan shows an unstable economy, but it doesn’t mean that the businesses couldn’t be survived.

Despite the macroeconomic landscape and uncertainty, in 2022, corporations, investors, and other stakeholders still showed confidence in and support of Pakistan’s startup potential. This was seen through a wave of collaborations on various fronts – both local and international. More broadly, this sheds light on how far the ecosystem has progressed since its nascence nearly a decade ago. Greater digital maturity, more enabling policies and increased capacity for innovation and disruption have spearheaded this welcome change. – EOY Roundup 2022

But how can this be achieved?

Startup Incubation and Support Centers

Startups incubation and support centers are the main hubs for the new startups and entrepreneurs to work and initiate a business. These incubation center have national and international linkages which can help nourish the ideas and bring investors to support the startups. It may be hard, but not possible, for the new entrepreneurs to survive in the current market on their own, as they have to find supports and gain investments on their own. These centers train them, support, bring companies and investors in their loop and help them grow their ideas.

The future for startups in Pakistan looks promising, as the country has a large and growing population of young, educated people who are increasingly turning to entrepreneurship as a career path. Additionally, the government is taking steps to support the startup ecosystem by establishing technology parks and incubators and providing funding and other resources to help startups get off the ground. – Nabil Tahir | Boom to bust: Pakistan’s startup story | The Express Tribune

Startups and Entrepreneurs is the only way for the Growth of Nation

As discussed earlier, in order to get sustained and build a strong economy, nation shall focus on initiating new businesses and ventures to support them and fill the current gap existing in Pakistan. These startups and Entrepreneurs are the future of Pakistan, which will help the nation to grow and build an economically strong environment. Startups, being small entities, play a dominant role in economic growth. The reason behind this is that they generate jobs, which means lower unemployment rates, and lower unemployment means an economy that is refining and improving. Startups also generate competition and inspire individuals to be more pioneering and inventive because new entrepreneurs have novel ideas to present, which stirs even more innovation and creativity. Startups help in economic stability through,

1. Employment Creation
2. Wealth Creation
3. Upgrade Standard of Living
4. Better GDP
5. Research and Development
6. Develop Talent Pool

Startups don’t just create jobs from that company but the most successful startups give hope, create community, and build the future. I’d put more weight on those 3 than the literal jobs that a startup creates. In this new world post-covid start ups don’t need to be based in San Francisco anymore and I think you will find wildly successful companies in new cities that will create this hope, community, and eco-system around it that will build the future. – Ariel Katz, Chief Executive Officer and Co-Founder, H1

Conclusion

Although startups are small businesses that necessitate more opportunities to grow, they certainly contribute to a country’s prosperity on many levels, whether the country’s economy has been developed, developing, or improving from a crunch. The government of developing countries needs to participate more in research and development to fuel the next startup boom. Government shall create a system so that youngsters find opportunities in Pakistan rather than going outside for their secure future. These Incubation Centers are the main hub that can support and help youngsters to grow their own businesses creating opportunities for themselves as well as others. Thus, government shall focus on creating more hubs to target maximum startups and entrepreneurs making sustainable development for the future of Pakistan.