Top Government Schemes for Startups & Freelancers in Pakistan

In recent years, Pakistan’s digital economy has witnessed exponential growth. This surge has largely been fueled by the rise of startups and the increasing number of freelancers. Recognizing this trend, the Government of Pakistan has introduced several schemes and initiatives to encourage entrepreneurship, support innovation, and promote self-employment in the country. These programs span financial aid, skill development, incubation support, tax reliefs, and infrastructure development. In this article, we will explore the top government schemes tailored specifically for startups and freelancers in Pakistan.

1. Kamyab Jawan Program (Youth Entrepreneurship Scheme)

The Kamyab Jawan Program, launched under the banner of Prime Minister’s Youth Program, is one of the most impactful initiatives for young entrepreneurs in Pakistan. Its Youth Entrepreneurship Scheme (YES) component offers interest-free loans and subsidized financing to aspiring business owners, including freelancers who want to scale their operations.

Under this scheme:

• Loans ranging from PKR 100,000 to PKR 25 million are available.

• The program is divided into three tiers based on the loan amount.

• The National Bank of Pakistan (NBP) and other partner banks are involved in disbursements.

What makes it attractive for freelancers and startups is its flexible repayment plan and the opportunity to formalize freelance businesses into registered enterprises. It also promotes inclusivity by ensuring that at least 25% of loans go to women entrepreneurs.

2. DigiSkills Training Program

The DigiSkills.pk Training Program, initiated by the Ministry of Information Technology & Telecommunication, is Pakistan’s largest online training program for freelancers. The platform provides free training in digital skills that are crucial for succeeding in the online gig economy.

Key features include:

• Courses in freelancing, digital marketing, graphic design, SEO, content writing, and more.

• Over 2.5 million enrollments since its inception.

• Mentorship and performance tracking to improve skill development.

Freelancers can use this platform to build in-demand skills, establish a portfolio, and begin working on international freelancing platforms like Upwork, Fiverr, Freelancer.com, and others. For startups, DigiSkills can be a valuable HR pipeline or training tool for employees.

3. National Incubation Centers (NICs)

One of the flagship initiatives for tech startups in Pakistan is the establishment of National Incubation Centers (NICs). Operated under Ignite – National Technology Fund, and backed by the Ministry of IT and Telecom, NICs are innovation hubs that provide mentorship, funding access, and working space.

NICs are currently located in:

• Islamabad

• Lahore

• Karachi

• Peshawar

• Quetta

Startups accepted into these centers get access to:

• State-of-the-art coworking spaces

• Business mentors and industry experts

• Investor networking opportunities

• Legal and marketing support

This ecosystem helps entrepreneurs transform ideas into scalable business models. Many successful Pakistani startups, such as Bykea, Airlift, and Tajir, have roots in NIC programs.

4. Pakistan Software Export Board (PSEB) Programs

The Pakistan Software Export Board (PSEB) is a government body responsible for promoting IT exports and supporting IT-enabled businesses. It offers multiple schemes to freelancers and startups alike.

Major initiatives include:

• Freelancer registration incentives, where registered freelancers receive official recognition and tax benefits.

• Certification subsidy programs that reimburse up to 70% of international certification costs for IT professionals and startups.

• Development of Software Technology Parks (STPs) for cost-effective office space.

PSEB’s certification and registration support is highly beneficial for freelancers looking to enhance credibility and compete globally. For startups, these incentives translate into reduced operational costs and enhanced market access.

5. State Bank’s Refinance Scheme for Freelancers and SMEs

In a significant move to empower freelancers and small startups, the State Bank of Pakistan (SBP) launched a refinance scheme tailored for the digital economy. The initiative includes concessional financing to facilitate IT and IT-enabled services (ITeS).

Highlights include:

• Loans at as low as 3% markup rate annually.

• Credit limit of up to PKR 10 million for freelancers and PKR 25 million for SMEs.

• Financing for equipment purchase, working capital, and business expansion.

This scheme enhances liquidity and allows independent professionals and micro-startups to invest in the tools and infrastructure needed to grow their businesses sustainably.

6. SECP Startup Facilitation and Company Registration

The Securities and Exchange Commission of Pakistan (SECP) has launched several reforms to simplify company registration and improve the ease of doing business. These steps particularly benefit startups and freelancers looking to formalize operations.

Key features:

• Online company registration through eServices.

• Fast-track approval for tech startups.

• Legal and regulatory support for incorporation.

• Facilitation desks and chatbots for real-time assistance.

The SECP has also introduced sandbox regulations to allow fintech startups to test products without undergoing the full regulatory burden initially. This is a major boost to the innovation ecosystem in Pakistan.

7. Ignite’s Startup Grant Programs

Ignite, under the Ministry of IT, manages several startup grant programs for early-stage ventures and tech entrepreneurs. These grants are non-equity based and aim to:

• Support prototyping and product development.

• Provide seed funding up to PKR 10 million.

• Encourage R&D and commercialization.

Applicants are evaluated based on innovation, scalability, and team potential. This makes Ignite grants ideal for idea-stage startups struggling to access private funding.

8. e-Rozgaar Training Program

A collaborative initiative between the Punjab Information Technology Board (PITB) and the Youth Affairs Department, the e-Rozgaar Program provides in-person and online training for freelancers across Punjab.

Salient features:

• Courses in technical, creative, and non-technical freelancing domains.

• Dedicated labs in over 40 cities.

• Specialized tracks for women and students.

This government-led initiative ensures that youth in even the most remote areas of Punjab can participate in the digital economy and generate income through freelancing.

9. Tax Exemptions for Freelancers and Startups

To promote IT exports and digital services, the Federal Board of Revenue (FBR) offers tax exemptions to both registered freelancers and startups.

Benefits include:

• 100% income tax exemption for registered IT freelancers till 2026.

• Zero sales tax on export of services in certain provinces like Sindh and Punjab.

• Simplified tax filing and reduced withholding tax.

These tax reliefs help increase profit margins, attract investment, and encourage freelancers to enter the formal economy. However, registration with PSEB and SECP is often necessary to avail these benefits.

10. Pakistan Innovation Fund and Research Grants

For startups involved in R&D-intensive areas such as biotechnology, AI, clean energy, or fintech, the Pakistan Innovation Fund provides a valuable source of funding and support.

These grants aim to:

• Foster indigenous innovation.

• Bridge the gap between academia and industry.

• Fund proof-of-concept and prototype development.

Applicants can be individuals, university researchers, or registered startups. This scheme is crucial for encouraging deep-tech entrepreneurship in Pakistan, which traditionally faces funding constraints.

11. NAVTTC’s Skills for All Program

The National Vocational and Technical Training Commission (NAVTTC) offers the Skills for All (Hunarmand Pakistan) program, which includes training in digital and freelance skills.

Key features:

• Training in e-commerce, virtual assistance, UI/UX design, Amazon VA, Shopify development, etc.

• Stipends for trainees.

• Focus on underprivileged regions and marginalized communities.

This program ensures that the country’s youth bulge is skilled for future opportunities and supports a sustainable freelancing ecosystem.

12. Startup Pakistan Initiative

Launched under the Prime Minister’s Kamyab Jawan Program, Startup Pakistan is a national movement aimed at fostering entrepreneurial mindset among youth.

Objectives include:

• Training 1 million students in entrepreneurship.

• Establishing startup incubators in universities.

• Building a national startup ecosystem that supports ideation, growth, and international expansion.

This initiative will play a vital role in transforming Pakistan’s educational institutions into innovation hubs and equipping students with business acumen.

Conclusion

Pakistan is undergoing a digital transformation, and its youth are at the heart of this change. With a growing number of freelancers and an increasingly vibrant startup culture, government schemes play a crucial role in enabling success. From financial support and tax relief to incubation centers and skill-building programs, the landscape has never been more favorable.

Entrepreneurs and freelancers who proactively leverage these government initiatives can accelerate their growth, tap into global markets, and contribute to Pakistan’s economic development. As awareness of these schemes grows, so will Pakistan’s reputation as a rising digital economy.

Whether you’re a solo freelancer, a student with a big idea, or a tech enthusiast ready to disrupt the market—Pakistan’s government is laying the foundation, and the time to build is now.