You can build a high-paying business with Profitable Startups Ideas In Pakistan with low investment. There is no doubt that Pakistan is a country of highly skilled professionals and abundant with a distinctive variety of raw materials and supply of goods. Despite the increase in inflation, Pakistan has remained an excellent place to live and start a business that can get profitable within a short time if chosen correctly according to the type you can handle best.
If you want to start a small business as a Pakistani business owner or overseas, be ready to explore profitable startup ideas in Pakistan, from founding a manufacturing company and exporting items internationally from Pakistan to taking advantage of consumer trends and new rising markets. Let’s look at some of the best prospects for Pakistan entrepreneurs to establish a firm. Here you will find some best profitable startup ideas in Pakistan to get you to the places you have dreamed of.
An overview of the Pakistan economy from a business perspective
The Pakistani economy has grown at 6% per year since 2000, which is higher than any other country in South Asia except India. This growth has been driven by strong exports, especially textiles, and a growing service sector. In addition, the government has invested heavily in infrastructure development, including roads, power plants, airports, and telecommunications networks.
Social entrepreneurship is a relatively new concept in Pakistan. It was first coined as “social enterprise” in 1996 when it described non-profit organizations that combine social goals with profit motives. Today, however, this definition is being expanded to include all types of not-for-profits that use commercial tools and techniques to solve social problems.
There are currently more than 80 registered social enterprises operating in Pakistan. They have created over 50,000 jobs, provided health care to 2 million people, and built over 1,500 schools. These numbers are expected to increase dramatically in the coming years.
Despite Pakistan’s many challenges, there are signs that the country is beginning to embrace social entrepreneurship. Several universities now offer courses in social entrepreneurship, and the government has increased funding for research into social innovation.
There are two significant obstacles to social entrepreneurship in Pakistan: lack of access to finance and lack of awareness about the benefits of social entrepreneurship. Many social entrepreneurs find it challenging to secure loans from banks because they do not meet the criteria required by financial institutions. In addition, few people understand how social enterprises operate or what their potential contributions might be.
However, these barriers are slowly starting to change. In 2014, the government announced plans to establish a national fund to provide microfinance loans to small businesses. This initiative should make it easier for social entrepreneurs to obtain credit.
Another challenge is the need for greater transparency in the governance structure of social enterprises. Currently, no laws govern them; instead, they rely on informal agreements between members. This makes it difficult to determine who owns what percentage of each company and prevents the formation of cooperative groups that could work together to expand their reach.
South Asia’s fastest-growing economy is Pakistan. However, the country faces significant challenges, including high poverty rates, weak infrastructure, corruption, political instability, low literacy levels, and poor health care systems. Despite these problems, Pakistan has made impressive economic progress over the past several decades. The GDP per capita doubled between 1980 and 2010, rising from $1,300 to $3,100.
The government hopes that these changes will lead to social entrepreneurs in Pakistan.
The Most Popular Startup Revenue Models
There are many different ways to generate revenue from a business. It’s not uncommon for profitable startups in Pakistan to try out several models before finding one that works best. Here are some of the most popular options:
SaaS (Software as a Service): This model offers software applications online. Users pay a monthly subscription fee to use the service. SaaS apps typically cost less to start up than other types of businesses. They don’t require any physical assets such as equipment or inventory. Instead, all the costs associated with running a business are covered through subscriptions.
P2P (Pay-to-Play): This model involves charging customers for products or services based on their value. For example, if you sell a product that helps people lose weight, you might set a premium price for your program. P2P businesses often have higher profit margins than those selling goods or services at wholesale prices.
Freemium: In this model, users get free access to certain features or functionality within an app, while others must pay a fee to unlock additional content. Freemium models allow developers to test new ideas without investing large amounts of money upfront.
Income Model: Some businesses make money by cutting another business’s profits. These types of companies are called affiliate marketing programs. Affiliate marketers earn commissions when someone buys something after clicking on a link provided by the affiliate.
Best Startups Ideas in Pakistan for Youth
The best profitable startup ideas in Pakistan target the local market. For example, to start a company selling mobile phones, you should first look at the local market. If you don’t find enough customers, creating a new venture may not be worth it. On the other hand, if there is a strong demand for your product, you will likely succeed regardless of where you shop.
The following list includes some of the top profitable startup ideas in Pakistan:
- Mobile Phone Repair Services: Pakistan’s smartphone market is one of the fastest-growing. As more people buy cell phones, more people need repair services. An excellent way to enter the market is to establish a mobile phone repair center near universities. You could even open multiple locations around major cities.
- Food Processing & Service Providers: Pakistan is home to many small and medium-sized enterprises (SMEs) that produce fresh fruits and vegetables. However, these SMEs often lack the capital needed to expand operations. One solution is to partner with larger firms that can invest in equipment and hire workers. Another option is to specialize in particular crops.
- Online Shopping Marketplaces: Pakistan has a booming e-commerce industry. According to the World Bank, the country had $3 billion in annual online shopping revenue in 2017. This number is expected to increase over the next decade.
- Fashion Designing: Fashion design is a popular career choice among young women in Pakistan. It requires little training and allows women to earn decent wages while working part-time. It is one of the highest-paying jobs for women in Pakistan.
- Retail Businesses: Retail businesses offer goods and services to consumers. They range from large department stores to small convenience stores. Most Pakistani retailers are family-owned and operated.
- Tech Companies: There is a high demand for technology skills in Pakistan. According to the International Telecommunication Union, the country ranks third worldwide in broadband subscriptions. Because of this demand, there are opportunities for technology companies in Pakistan.
- Medical Equipment Manufacturing: There are several medical device manufacturing companies in Pakistan. These companies provide everything from stethoscopes to MRI machines.
- Telecom Companies: Telecom companies offer voice and data communication services. They include cellular carriers, Internet service providers, and satellite TV providers.
- Education Services include tutoring centers, private schools, and educational consulting services. The sector offers a wide variety of employment options and comes with risks due to the highly competitive nature of the field.
These are Pakistan’s most profitable startup ideas and are in high demand.
General Startup Statistics In Pakistan
The government has made it easier for profitable startup ideas in Pakistan by reducing the number of licenses required. It has also reduced getting a grant from $10,000 to just $1,500. In addition, the government has provided funding for new startups through its Startup Fund program.
In 2018, the total number of active startups was 1,829, up from 992 in 2016. There were 6,077 registered startups in 2018, compared to 4,066 in 2016.
Startup activity increased in all provinces except Baluchistan. Punjab accounted for more than half of all active startups in 2018, followed by Sindh and Khyber Pakhtunkhwa.
The top industries for startups in 2018 were information technology, media & entertainment, healthcare, financial services, and education.
Small Business Owner Statistics In Pakistan
The number of profitable startup ideas in Pakistan has increased from 1,000 in 2010 to 20,000 today. This increase occurred when the country’s GDP growth rate slowed. The average annual growth rate of the Pakistani economy was 7% between 2000 and 2015. However, since then, it has declined to 3%.
According to the World Bank, the unemployment rate in Pakistan stood at 5.3% in 2017. This means that about five out of every 100 people looking for work do not find any job.
Pakistan’s population is expected to reach 200 million by 2050. As the population grows, so does the need for jobs.
In Pakistan, micro, small, and medium-sized companies (MSMEs) are estimated to number over 2 million. The majority of these enterprises employ fewer than ten people.
The SBAP estimates that there are currently around 50,000 formal small businesses in Pakistan. Of those, only 25% are women-owned. SMEs play an essential role in developing economies like Pakistan despite the challenges. They provide employment opportunities for millions of people and generate billions of dollars in revenue each year.
Startup Failure Rate Statistics in Pakistan
The success rate of profitable startup ideas in Pakistan varies from industry to industry. The highest rates of startup failure come from the IT sector (30%), followed by the telecom sector (20%), and then the healthcare sector (10%).
Startup Failure Rate in Pakistan By Industry
- Telecom Sector: 19%
- IT Sector: 29%
- Healthcare Sector: 10%
- Education Sector: 5%
- Retail Sector: 9%
- Food Processing & Services Sector: 12%
- Manufacturing Sector: 13%
- Transportation Sector: 6%
- Finance Sector: 7%
- Real Estate Sector: 8%
- Media Sector: 4%
- Construction Sector: 3%
- Agriculture Sector: 1%
Things to consider before starting a Startup in Pakistan For Overseas
The government has made it easier for people to start businesses by reducing taxes and offering incentives. In addition, many banks provide loans at lower interest rates than those offered by international lenders.
However, there are still some things you should keep in mind when considering starting your own business in Pakistan.
- Taxes: Taxes vary depending on where you live. For example, you will likely pay more tax than someone residing in Lahore if you reside in Karachi. You can find out what type of taxes you need to pay by contacting the local municipality. You can get information about how much tax you owe by visiting the SBAP website.
- Business Licenses: Business licenses cost between $500-$800. You may need a permit if you plan to operate a restaurant, bar, or store.
- Insurance: Insurance is required for all types of businesses. It covers losses due to fire, theft, employee injury, and lawsuits.
- Banking: Banks charge different fees for different accounts. For example, checking accounts usually carry minimal monthly service charges, while savings accounts carry high monthly payments.
- Credit Cards: Credit cards are not widely used in Pakistan. However, they do exist. Most credit card issuers require customers to open a bank account first.
- Labor Market: Labor market conditions in Pakistan are improving. As a result, wages have increased.
- Government Regulations: Government regulations vary across provinces. For example, in Punjab province, you must register your business with the SBP within 30 days.
- Language Barrier: Pakistanis speak Urdu as their native language. English is also commonly spoken.
- Weather: Pakistan’s climate varies significantly throughout the year. The temperature ranges from -20°C to 50°C.
Top 10 most profitable Startups ideas in Pakistan for Overseas
After the pandemic, many people have gone through unemployment and ruined running businesses. The Covid-19 outbreak ate all the revenues people made, and now there is much hustle in the streets to get it all set with new profitable startup ideas in Pakistan that can be practiced so the losses can be restored with some startups.
Here Techspot has listed about ten best profitable startup ideas in Pakistan for overseas that can help them decide which business they can try to get better profits. This will help them decide on the best startup business to make all their hopes come true.
Company for solar energy production
This is the era of technology, and you cannot resist how much technology has covered more than the needs of humankind in these times. With the burning electricity rates, it has become difficult for some small communities to get through the electricity shortage. To turn your business into an innovative idea, you can start your business of solar energy production.
You can buy solar panels from china that you could get at cheaper rates. Solar energy can be sold in your residential community first per kilowatt. You can profit from supplying your residence and later expand according to your budget and profits.
2. Water treatment System Company
Some areas in Pakistan are affected by low-quality and unclean water. You can install a water treatment system that can provide a better quality of water that can be used. You can start this profitable startup idea in Pakistan on a low scale and provide clean water to the group of houses near your residency. Starting it at a standard scale will allow you the investment with minimum resources as a more extensive water treatment system requires more significant parts to install water treatment and thus acquire a large amount of investment for a startup, which is not recommendable.
3. Tourism Company
Establishing a local tourism company can be a profitable startup in Pakistan. As Pakistan is enriched with beautiful spots that are the center of tourist attraction worldwide. By starting your own tourism company, you can get good profits as the tourism rates of Pakistan are boosted after the lockdown. The people worldwide have started again to visit the enchanting places of this heavenly piece of earth. So this is not about money but adventure to the wonderland too.
4. Investment in Real Estate
If you are really up to opting for some profitable startup idea in Pakistan, then going for real estate is the best. Investing in real estate is beneficial in all aspects. When you invest in real estate, you support and create an asset for yourself. The prices of residential or commercial plots keep increasing, which can get you huge profits when you are ready to sell them. As a profitable startup idea, starting as an investment in real estate is an excellent option to make better money already in the start.
5. Organic farming
As a profitable start in Pakistan, organic agriculture is a good option. After getting in touch with the media, which has explained the hazardous methods of traditional agriculture. Many farmers have now moved to the side of organic agriculture. This startup is a better option to start a farm that can get you huge profits and the benefits of pure goods.
6. Digital marketing
The fast pacing of digital world has gained much importance in every field of work as it now provides many E-learning websites, E-commerce, etc. The digital world is moving forward by enveloping every kind of facility in it. It has much significance in the circle of marketing. Digital marketing is the main target of many businesses now. Every brand or company prioritizes digital marketing as it is more interactive with the customers and better for their brand marketing.
So digital marketing is most required in the market, which makes this option a pretty profitable startup idea. If you start your digital marketing services, there is a surety of getting good profits from this business.
7. Development of an app
After the deadly virus outbreak, people learned to spend their time at home productively. The pandemic upgraded the digital world by making them do every task online without any physical interaction, but this caused many profits. It is always better to work at home according to one’s own time and schedule than a 9-5 job. If you are looking for a profitable startup idea in Pakistan that can help your finances while staying at home, you can go for the app development business. It has been recorded that about thirty-three billion new apps were installed during the lockdown, causing high profits for the app developers.
8. Business of import-export
Import and export are suitable options for profitable startup ideas in Pakistan. After the pandemic, the imports and exports of Pakistan have been disturbed, but now is the perfect time to start your own import and export company. By initiating your own business, you can get work from Pakistani labor at cheap rates and profit by exporting your goods and products. You need to produce quality products to gain profits from your targeted market of Europe, as they prefer quality first.
If you plan to start your export business, some best export businesses in Pakistan include the export of cotton, leather, textiles, minerals, and oils.
9. Manufacturing of textiles
The textile industry of Pakistan has started to bloom as the textile shipments have risen over 3.5 percent reaching 4.9 billion dollars. The new export business owner has been promised the best profits with textile and cloth manufacturing as it will provide the best startup profit.
The textile manufacturing business is recommended for a profitable startup, which is done in a wide range to manage the profits.
10. Brokerage firm
Business is something that requires you to risk your time investments. But if you are resilient enough, you can take your business to the heights. One of Pakistan’s best and last profitable startup ideas is starting your brokerage firm. Brokerage firms work as equity agents for broking that buyers and sellers bring. After the deal is made between the seller and buyer, the brokerage firm gives the commission, which earns a lot of profit. This mainly acts as a mediator between the seller and buyer, making both parties in contact.
To get the profits, you need some investments, and if you are, you must invest a significant amount in this business idea. The possibilities are that you might get more profits out of it. Brokerage firms offer the best and big profits to your company. This way, you can work overseas while residing in your own country and making significant amounts in dollars.
Being an enthusiastic Pakistani entrepreneur, many options for starting your business can start giving you profits after some time of running the business. You need to focus on the strategies that can keep your business in a running position and not cause it to reduce to rubble.
Another thing to be kept in mind is that the kind of business you are about to start should be the one you are interested in and know about completely. Half knowledge is always harmful to any plan you are about to execute. Here we have provided you with many profitable startup ideas in Pakistan. If you are interested and any idea matches your mind’s fascination, you can pick it from here to put it into reality.
Profitable Startups Ideas In Pakistan For Overseas FAQs
.Q1: What is the best business to start in Pakistan?
Ans: There is no sure answer to this question as it depends on various factors, including the specific industry or markets, geographical location, and other intangibles. However, some potential business sectors that are likely to be profitable include financial services, telecommunication companies, and construction firms.
Q2: Is it possible for a foreigner to start a business in Pakistan?
Ans: In Pakistan, foreign investors can form wholly foreign-owned private limited companies (LLCs). A minimum of two shareholders is required to register this type of business.
Q3: What are the most successful small businesses in Pakistan?
Ans: The most successful small but profitable startup ideas in Pakistan are those that can increase and create a strong base of customers. Successful small businesses in Pakistan typically focus on providing high-quality services or products at affordable prices and employ a wide range of marketing strategies to reach their target audience.