February 2026 marks a turning point for Pakistan’s startup ecosystem as the Ministry of IT & Telecommunication (MoITT) launches a dual strategy to accelerate innovation and scale. The Pakistan Startup Fund (PSF) and Indus AI Week 2026 combine capital and visibility, offering founders equity-free funding and a platform to showcase AI-driven solutions.
Pakistan Startup Fund (PSF): Equity-Free Capital to Scale Startups
The PSF, managed by Ignite – National Technology Fund, operates on a “Last Cheque” model, bridging gaps after startups secure most of their funding from private investors. This government-backed, non-dilutive funding mechanism is designed to de-risk startups and attract further private investment.
Key Features of PSF:
- Grant Size: 10%–30% of total investment
- Funding Range: USD 50,000 – USD 1,000,000
- Equity-Free: Founders retain full ownership
- Sector Focus: AI, Machine Learning, Export-Oriented Tech Startups
PSF funding strengthens negotiations with venture capitalists, enabling founders to scale globally without sacrificing control.
Indus AI Week 2026: Platform for Exposure & Growth
Indus AI Week (Feb 9–15) offers startups a nationwide stage to showcase innovation and network with investors, corporates, and policymakers.
Highlights Include:
- Startup Pavilion (Feb 9–10): 30 AI startups receive fully sponsored booths and international exposure.
- Investor Spotlights & Matchmaking: Curated sessions with 50+ local and global investors to secure lead funding.
- Uraan AI Techathon 1.0: Hackathon-like event signaling technical and execution excellence to PSF and investors.
- AI for HER: Top 10 women-led AI startups showcased, connecting female founders with gender-lens investors.
How Founders Can Capitalize:
1. Secure a Lead Investor: PSF provides up to 30% equity-free funding if private capital is first secured.
2. Apply for Startup Pavilion & Techathon: Prioritize working products, live demos, and clear use cases.
3. Recruit Talent: Utilize the Jobs & Talent Fair to hire AI engineers and data scientists, fulfilling PSF performance requirements.
Event & Application Timeline:
- Startup Pavilion Application: End of Jan 2026, indusai.gov.pk
- VC & Investor Networking: Ongoing, startupconnect.pk
- Indus AI Summit: Feb 9, 2026, Jinnah Convention Center, Islamabad
- Startup Expo: Feb 9–10, 2026, Islamabad Sports Complex
The combined power of PSF and Indus AI Week 2026 presents a rare opportunity: government-backed equity-free capital, international exposure, and strategic networking. For Pakistani founders, February 2026 is a launchpad to scale startups globally.
