Aga Khan Foundation, KfW Bank partner to boost entrepreneurial culture in Pakistan
The agreement, signed on Friday at the AKF office, launches the "Start-up Pakistan" initiative, a transformative project set to drive job creation, innovation, and economic resilience in the country. PHOTO: EXPRESS
The Aga Khan Foundation (AKF) and KfW Development Bank have formalised a new partnership aimed at promoting entrepreneurial culture across Pakistan. The agreement, signed on Friday at the AKF office, launches the "Start-up Pakistan" initiative, a transformative project set to drive job creation, innovation, and economic resilience in the country.
The €10 million initiative, funded by the German government through KfW, will focus on building capacity, fostering business networks, and providing tailored financial support to start-ups. Special emphasis will be placed on youth and women entrepreneurs. Over the next five years, the project will target sectors including education, health technology, sustainable tourism, and green building, prioritising businesses that promote digitisation and environmental sustainability.
Earlier in the day, a KfW delegation visited the National Science and Technology Park (NSTP) at the National University of Science and Technology (NUST) to engage with Pakistan’s burgeoning start-up ecosystem. The delegation, which included Stephan Opitz, Member of the KfW Management Committee, and Dr Bianca Clausen, Director of the Afghanistan, Pakistan, Iraq Cluster, met with various green and technology-driven start-ups to identify areas for impactful collaboration.
Dr Clausen expressed her optimism about the partnership, stating, "We are thrilled to work alongside AKF and other key partners to strengthen Pakistan’s start-up ecosystem. This initiative will create opportunities for youth and women to innovate and build sustainable businesses, contributing to the economic well-being of communities across the country."
Akhtar Iqbal, CEO of AKF Pakistan, highlighted the significance of the collaboration given the country's economic challenges and climate vulnerabilities. "We are excited to embark on this flagship initiative to create an enabling environment for start-ups to grow and scale. This agreement strengthens our longstanding partnership with Germany, which remains one of our top supporters in Pakistan," he said.
The initiative aims to create over 2,500 direct jobs and support 1,500 entrepreneurs, with 50% of them being women and youth. It will also contribute to Pakistan’s alignment with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 8 for Decent Work and Economic Growth and SDG 5 for Gender Equality.
The agreement solidifies the commitment of both KfW and AKF to fostering innovation, job creation, and sustainable growth in Pakistan.