ISLAMABAD: Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on Monday formally inaugurated The Innovation Hive at the United States Educational Foundation in Pakistan (USEFP), describing the initiative as a new milestone in Pakistan-US cooperation in information technology and startups.
The minister cut the ribbon at the inauguration ceremony, which was attended by US Embassy Charge d’Affaires Natalie Baker, CEO Stewart Pakistan Dr Mazhar H. Qureshi, USEFP Director Alumni Affairs Mazhar Awan and other dignitaries.
Speaking at the ceremony, Shaza Fatima thanked the US Embassy and USEFP and said The Innovation Hive was “not merely a building or an office” but a strong bridge that would provide Pakistani entrepreneurs direct access to the US market and investors without leaving the country. She said the platform would also create wider opportunities for young people to move forward.
Highlighting the historic ties and economic cooperation between Pakistan and the United States, the minister said the US remained Pakistan’s largest export market, accounting for around 20 per cent of Pakistan’s total exports in fiscal year 2025-26.
She said bilateral trade crossed $8 billion in 2025. Under the Pakistan-US trade agreement of July 2025, US import duties on IT services, textiles and other sectors had been reduced, while Pakistan had abolished the 5pc digital services tax as a goodwill measure, she added.
The minister said the total enterprise value of Pakistan’s venture capital-funded startups had crossed $4 billion. She added that startups raised $74.2 million in funding in 2025, while funding for women-founded or co-founded startups increased from $5.5 million in 2024 to $10.1 million in 2025.
She said The Innovation Hive would serve as a permanent channel to connect Pakistani talent directly with the US market, mentorship and alumni network.
Referring to major institutions and initiatives of the Ministry of IT and Telecommunication, Shaza Fatima said Ignite had supported more than 2,350 startups through nine National Incubation Centres and helped create over 185,000 employment opportunities.
She said the Pakistan Startup Fund provided up to 30pc funding without any government equity, helping restore the confidence of US investors. She added that the Special Technology Zones Authority offered 10-year tax and customs incentives to technology and artificial intelligence companies.
Addressing entrepreneurs at the end of her speech, the minister said: “The US market you want to reach is no longer across the ocean; its address is now in Islamabad. This bridge reflects the shared commitment of both countries.”
At the conclusion of the ceremony, the federal minister also visited different sections of USEFP, where she was briefed on the initiative.
