Aga Khan Foundation, KfW Bank sign partnership pact

LAHORE: The Aga Khan Foundation (AKF) and KfW Development Bank, in collaboration with the Aga Khan Rural Support Programme (AKRSP), have formalized their partnership to support entrepreneurial culture in Pakistan. The agreement, signed today at the AKF office, marks the official launch of the “Start-up Pakistan” initiative.

This groundbreaking project is expected to generate improved job creation, innovation, and economic resilience, positively impacting Pakistan’s entrepreneurial landscape. Earlier in the day, a KfW delegation, including Mr Stephan Opitz – Member Management Committee, Dr Bianca Clausen – Director Afghanistan, Pakistan, Iraq Cluster, and Mr Sebastian Jacobi – Director KfW Pakistan, visited the National Science and Technology Park (NSTP) housed at the National University of Science and Technology (NUST) to gain insights into Pakistan’s burgeoning start-up ecosystem. The delegation met with various green and technology-driven start-ups to understand the entrepreneurial landscape and identify areas where the collaboration could make the most significant impact.

Start-up Pakistan, a €10 million initiative funded by the German Government through KfW, aims to support start-up entrepreneurs by building capacities and models, developing business networks, and securing tailored capital for businesses with a special focus on youth and women entrepreneurs. Over the next five years, the project will support start-ups in diverse sectors such as education, health technology, sustainable tourism, and green building, prioritizing businesses that promote digitization and environmental sustainability.

Speaking on the occasion, Dr. Clausen emphasized the importance of this collaboration: “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 AKF, Pakistan added: “With Pakistan’s economic challenges and climate vulnerabilities, we are thrilled to embark on this flagship initiative to create an enabling environment for start-ups and businesses to grow and scale. AKF is excited to strengthen its decades-long partnership with Germany, which remains one of our top partners in the country.”

The agreement signed today solidifies the commitment of both KfW and AKF to fostering job creation, innovation, and sustainable growth in Pakistan. By targeting pre-revenue and post-revenue start-ups, this project aims to create over 2,500 direct jobs and support 1,500 entrepreneurs, 50% of whom will be women and youth. It also contributes 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.