Pakistan Banks Association Plans Equity Fund for Startups

Realizing the need for and importance of thriving startups for the banking sector at large, the Pakistan Banks Association (PBA) is now looking to create a private equity fund—among some other considerations—to draw money into emerging businesses.

Zafar Masud, CEO of The Bank of Punjab and PBA Chairman, practically spelled it out on VCast Online, stating in a nutshell that startups – while risky bets – are essentially future clients. If fintech, SMEs, or agribusinesses take off, banks get more lending opportunities. Hence, Win-win.

Therefore, aiming to drive financial inclusion, support small businesses, and fuel economic growth, a private equity fund would give startups the capital they desperately need to scale, innovate, and help modernize Pakistan’s economy.

Right now, early-stage funding is a challenge for many startups. Banking sector-led investments as a solution could bring much-needed cash into fintech, digital banking, and agritech resulting in a financial landscape that is more dynamic, tech-driven, and ready for the future.