10,000 e-Rozgar Centers to be Established Across Pakistan by Interim Government

In a significant move to support Pakistan's flourishing freelancing community, the interim government has declared its intention to establish 10,000 'e-Rozgar centers' throughout the country, as announced by Dr. Umar Saif, the interim Minister for IT and Telecom, in a video message on the social media platform X.

Dr. Saif highlighted that Pakistan boasts a robust online freelancing community, with over 1.5 million individuals contributing to making it the world's second-largest online workforce. Despite this, freelancers encounter significant challenges, particularly the lack of proper workspace. This issue is particularly pressing as freelancers, earning an average of $10-20 per day, struggle to afford generators, equipment, and office rents.

To address this challenge, Dr. Saif revealed that the government plans to extend interest-free loans to the private sector, facilitating the conversion of real estate into co-working spaces, termed 'e-Rozgar centers.' These centers aim to accommodate up to 1 million freelancers, potentially contributing to the country's annual revenue of over $10 billion.

This initiative follows closely on the heels of the formal launch of the 'Pakistan Startup Fund' (PSF) by the interim government. Under the PSF, the government commits to investing up to Rs2 billion annually in the startup sector. Dr. Saif explained that the fund operates as equity-free capital, assisting startups in securing their first external investments.

Clarifying the PSF's mechanics, the interim minister emphasized that if a foreign venture capitalist (VC) evaluates a Pakistani startup for a $1 million investment, the VC only needs to invest $700,000. The Pakistan Startup Fund will then provide a grant of $300,000 to aid in closing the funding round. Importantly, the government refrains from taking any equity, shares, or board positions in the startups supported by the PSF.