The new USEFP initiative aims to connect Pakistani entrepreneurs with U.S. markets, investors, mentorship and alumni networks from Islamabad.
ISLAMABAD: Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on Tuesday inaugurated “The Innovation Hive” at the United States Educational Foundation in Pakistan (USEFP), marking a new initiative to strengthen collaboration between Pakistani startups and the U.S. technology ecosystem.
The minister formally inaugurated the facility by cutting the ribbon at a ceremony attended by Natalie Baker, Chargé d’Affaires at the U.S. Embassy, Dr. Mazhar H. Qureshi, CEO of Stewart Pakistan, Mazhar Awan, Director of Alumni Affairs at USEFP, and other dignitaries.
Addressing the gathering, Khawaja thanked the U.S. Embassy and USEFP team for establishing the facility, saying the Innovation Hive was more than a building or office space.
She said the initiative would provide Pakistani entrepreneurs with direct access to U.S. markets and investors without requiring them to leave Pakistan, while creating additional opportunities for young talent.
Highlighting economic ties between Pakistan and the United States, the minister said the U.S. remained Pakistan’s largest export market, accounting for approximately 20% of the country’s total exports in fiscal year 2025-26.
She said bilateral trade exceeded $8 billion in 2025. Under the Pakistan-U.S. trade agreement reached in July 2025, U.S. import duties were reduced on IT services, textiles and other key sectors, while Pakistan eliminated a 5% digital services tax.
Khawaja also highlighted growth in Pakistan’s startup ecosystem, saying the enterprise value of venture capital-backed startups had crossed $4 billion.
According to figures shared by the minister, Pakistani startups raised $74.2 million in funding in 2025, while funding for female-founded or co-founded startups increased from $5.5 million in 2024 to $10.1 million in 2025.
She said the Innovation Hive would operate as a permanent channel connecting Pakistani talent with U.S. market opportunities, mentorship and alumni networks.
The minister also outlined several initiatives of the Ministry of IT and Telecommunication. Ignite, she said, had supported more than 2,350 startups and generated over 185,000 jobs through nine National Incubation Centers.
The Pakistan Startup Fund, meanwhile, seeks to reduce barriers to U.S. investor participation by offering up to 30% equity-free funding without government board seats, she said.
The Special Technology Zones Authority provides technology and artificial intelligence enterprises with a 10-year tax and customs exemption package, according to the minister.
“The U.S. market you are trying to reach is no longer across an ocean; it now has an address in Islamabad,” Khawaja said, describing the Innovation Hive as a bridge reflecting the shared ambitions of Pakistan and the United States.
At the conclusion of the event, the minister toured various sections of USEFP and received a briefing on the facility and its operational setup.
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