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Experts Urge Policy Support for Pakistan’s Coworking Sector to Boost Startups and IT Growth

  • July 14, 2025
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Pakistan’s coworking space sector has seen rapid growth in recent years, with over 210 spaces now operating nationwide, supporting freelancers, startups, and small businesses. With strong occupancy rates and increasing relevance in the digital economy, industry leaders are urging government intervention to support and regulate this crucial component of the tech and innovation ecosystem. Many believe that coworking spaces are central to the growth of Pakistan’s IT exports, startup activity, and freelance economy, especially in smaller cities.

Coworking spaces offer affordable, flexible work environments and eliminate many overhead costs associated with traditional office setups. They serve as enablers for early-stage tech companies, freelance professionals, and small enterprises by providing collaborative workspaces equipped with essential infrastructure like internet connectivity, meeting rooms, and IT support. This ecosystem encourages networking, mentorship, problem-solving, and product development in a shared community setting. Popular coworking hubs such as Daftarkhwan, COLABS, and The Hive have helped startups access investors, business services, and talent in a cost-efficient way.

WorkMore CEO Abid Beli, a pioneer in Pakistan’s coworking sector, emphasized the urgency for government-backed reforms. Speaking to Business Recorder, he called for the establishment of a unified policy, a one-window operation, and clear rules and regulations to streamline coworking operations. According to him, such support would reduce bureaucratic hurdles and encourage more tech firms to remain in Pakistan rather than relocating abroad. He also highlighted the challenges posed by excessive departmental interference, with demands for kickbacks and commissions adding to the operational burden on space operators.

Beli recommended that government officials should coordinate with industry associations such as PASHA and PSEB rather than directly contacting individual businesses. He noted that compliance and transparency are welcome, provided there is a formal structure and a supportive regulatory environment. He launched Pakistan’s first coworking space, The Incubator, in 2015, which helped spark the growth of similar spaces across cities including Karachi, Lahore, Islamabad, Multan, and Faisalabad. Karachi alone is home to 96 coworking locations.

National Incubation Centre (NIC) Karachi Project Director Syed Azfar Hussain also highlighted the benefits of coworking setups for startups and tech professionals. He explained that NICs and coworking spaces offer shared infrastructure without the burden of long-term leases, enabling innovation with lower costs and greater agility. Hussain urged the government to offer support through affordable infrastructure, tax incentives, and simplified registration procedures.

Government efforts have seen some momentum, with the Ministry of Information Technology & Telecommunication (MoITT) and Ignite supporting digital skills and startups through NICs, which also function as coworking spaces. On the provincial level, the Punjab Information Technology Board (PITB) has launched the ‘e-Earn’ initiative, which provides subsidized coworking environments for freelancers and remote workers across Punjab.

Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin added that coworking spaces foster digital entrepreneurship and significantly contribute to the visibility of the IT sector. He recommended subsidized utilities, simplified zoning, long-term leases, and financial support such as grants or soft loans to support coworking operators. He also encouraged partnerships with academic institutions and public agencies to further channel talent and resources into these collaborative hubs.

Source: Brecorder

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Related Topics
  • coworking spaces Pakistan
  • Digital Economy
  • freelancers
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  • IT sector
  • MoITT
  • NIC karachi
  • PASHA
  • PITB
  • PSEB
  • remote work infrastructure
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