Bewakoofi’: One of Pakistan’s top VCs on why country is not making brands like India

Pakistanis are not making big brands like India because of an ‘older generation of Seths’ lack of vision and inability to think beyond their small ponds, lamented one of Karachi’s top venture capitalists.

Seth in Pakistan refers to those who run first-generation businesses. Omar Abedin, founder of PTH Venture Studio who has also headed Karachi’s National Incubation Center, was sharing his view with Startup Pakistan podcast.

“Among the 50 top global brands India has, their 50th brand will be bigger than the biggest company in Pakistan,” Abedin said. “Now you can argue that they (India) are a 1.4 billion economy and we are 250 million but we should be 1/5th their size right,” he said.

How does a small country like Sweden, much smaller than Karachi, produces more brands than us?, he asked. “While they think beyond themselves, we (Pakistan) have limited ambitions. When we are still struggling with basics such as water, sewerage, to expect Seths to back venture capitalists is beyond the limits of bewakoofi (stupidity),” he said.

Abedin is, however, hopeful of the next generation of business leaders who are interested in the tech investing landscape. “It is not going to happen overnight, I am cautiously optimistic,” he added.

Pakistan, according to a Nikkei Asia report, is pushing an ambitious plan to transform its fledgling IT sector into a core export industry, in a bid to replicate India’s rise. The report adds that the country has managed to overcome significant challenges to achieve its goal of fostering an industry worth between $10 billion and $18 billion, including a habit of shutting off the internet to curb unrest and dissent.

In November last year, the country unveiled its first-ever IT export strategy, aiming to reach $15 billion in six years, from the current $2.6 billion. The strategy report and other government statements have also given the $10 billion to $18 billion range.

Pakistan’s economic crisis has accelerated the departure of tech professionals, who previously enjoyed steep pay raises when venture capital companies poured millions of dollars into local tech startups, following the expansionary fiscal policies then-Prime Minister Imran Khan introduced to accelerate post-pandemic growth.