ISLAMABAD: Caretaker Minister for IT and Telecom Dr Umar Saif on Tuesday launched the firstever Pakistan Start-up Fund (PSL) worth Rs2 billion to attract venture investments and position local start-ups as significant players on the global stage.

Ignite National Technology Fund will take charge asthe executingbodyofthePSFandensuretransparency through anindependent steering body overseeing the operations.

Addressing the inaugural ceremony, Dr Umar Saif said that the government will allocate up to Rs2bn for PSL every year, and the fund is structured as equityfree capital to help close a venture capital round for a start-up.

The PSL was designed to help a startup raise its fir st external investment.

The minister said that $800 million has been investedinPakistanistart-upsin the lastfouryears.

Under the system, the PSL will give 30pc grant for the investments of the total requirement for the startup.

`The PSF is designed to lower the risk for international investors to invest in Pakistani start-ups, we hope to create a value of at least Rs50 billion per year in the start-up ecosystem in Pakistan`, the caretaker minister said.

He added that the fund represents a transformative initiative in the realm of entrepreneurship and technologicalinnovation.

`Pakistan Start-up Fund will accelerate economic growth and innovation in the country, and it will underwrite the risk of Venture capitalists by providing equity-free grants to start-ups as the last cheque in an investment round,` the caretaker minister said.

He added that the fund will connect innovative start-ups, venture capitalists and investors, while the IT ministry will be supporting technological innovation and entrepreneurship.

The country has over 4,000 active startups supported by eight National Innovation Centres.