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PSEB works with its stakeholders which include State Bank, Ministry of Commerce and Planning Commission to create an ecosystem for financing and funding of the IT industry.
Venture Capital Fund
Linkages with SBP
VENTURE CAPITAL FUND
The Government of Pakistan (GOP) is fully committed to support the development and growth of the IT sector; it is mindful of the impediments caused through lack of financial facilities and is accordingly
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MD PSEB in Malaysia for VC Fund Joint Venture
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pursuing initiatives which can overcome these impediments. The IT industry in Pakistan which is mainly made up of small and medium enterprises continues to face various challenges one of which is the non-availability of financing. With the IT marketplace slowly but surely gaining maturity, the issue of non availability of financing options is a major obstacle to the growth of this industry in Pakistan. Literally all stakeholders are unanimous in their demand for opening up access to capital markets for the IT industry. The traditional form of business financing is usually not applicable to the IT industry given its high start up risk and substantial involvement of Intellectual Property based assets. Therefore, this sector is usually required to be serviced either through direct financing of the IT entrepreneurs or using other more risk prone developmental financing options including Venture Capital [VC] financing. Accordingly the Government through PSEB proposes to launch a venture capital fund which shall focus on supporting the IT sector.
In this regard the PSEB has decided to solicit proposals from Consulting Firms to assist the GOP in putting together an arrangement which enables it to act as a Venture Capitalist and invest in IT firms in order to promote innovation and employment. The tasks to be performed by the consultants shall include the definition of the overall structure, defining the operating frame work and identifying the arrangements to enable it to start operations as soon as possible. These tasks shall include the development and documentation of standard operating procedures for various activities included in the operation of the fund.
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LINKAGES WITH SBP
PSEB Senior officials are members of the State Bank IT Industry Finance task force which will help create an ecosystem for IT Company financing including Intellectual Property (IP) valuation, IP protection, supporting legislation, cash flow financing and venture financing.
State Bank of Pakistan (SBP) authorities are also being pursued to finalize and convene a cross-disciplinary task force on IT financing.
For further information please contact:
Mr. Talib Baloch
Director Finance
Pakistan Software Export Board,
2nd Floor, Evacuee Trust Complex,
F-5, Agha Khan Road, Islamabad, Pakistan
Tele: +92-51-9220811
Fax: +92-51-9204075
E-mail: tbaloch@pseb.org.pk
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