Supporting the coworking industry crucial for startups, IT sector

The coworking landscape in Pakistan has matured dramatically in recent years, boasting hundreds of spaces, high occupancy rates, and vibrant communities.

Experts say promoting the industry can help foster the IT industry and boost remittances. According to them, the government must initiate a one-window operation to grapple with issues being faced by the industry entrepreneurs.

Why are coworking spaces important?

Coworking spaces help freelancers, startups, and small businesses grow—especially in smaller cities. They’re more than just shared offices; they’re places where ideas and businesses are born.

They offer affordable and flexible workspaces that help reduce overheads and focus on growth. Tech companies find their footing in collaborative coworking spaces such as Daftarkhwan, COLABS, and The Hive, where they gain access to mentors, investors, and a supportive community.

These shared environments encourage creativity, problem-solving, and faster product development.

For startups and freelancers, this means saving capital for product development. Freelancers also benefit from a professional setting, which enhances credibility with clients and reduces isolation.

These spaces foster a sense of community, enabling valuable networking, mentorship, and collaboration opportunities. Tech companies especially value access to investor networks, business support services, and talent pools often available in coworking ecosystems. Furthermore, coworking environments encourage knowledge sharing across disciplines—critical for tech-driven problem solving.

Need for government support

Talking to Business Recorder, one of the pioneers in the industry, WorkMore CEO Abid Beli, said the government unrgently needs “to form a unified policy, call for one-window operation and form some rules and regulations to deal with issues of the industry people with a view to bolstering up the industry.”

If the government ensures easy processing of remittances for IT companies, there will be much more white money, he said, adding that if facilities are given to tech companies, the national economy will grow at an extraordinary pace.

According to him, one of the issues faced by the industry is government department officials demanding kickbacks and commissions: “Within a year, I had to face around 17 officials of the various departments.”

Instead of visiting individual entrepreneurs, Beli believes officials must come through government approved organisations or associations such as the Pakistan Software Houses Association (P@SHA) and the Pakistan Software Export Board (PSEB) where the coworking spaces are registered. Business leaders are eager to abide by all rules and regulations, once the government announces them.

IT companies are also relocating their businesses to foreign countries for want of proper implementation of justice, rules, law and order, he said.

If there is a petty issue, it cannot be fixed without a “source” on the inside.

“Without a source, no work can be done in the country,” he said, adding that such problems should not arise, especially if the company is paying its taxes.

Beli said he launched the first coworking space called The Incubator in 2015 in the country after which more spaces began to mushroom.

There are currently more than 210 coworking spaces in the country including 96 in Karachi, while other cities like Lahore, Islamabad, Multan, Faisalabad and other smaller cities also have them.

In Karachi, spaces are available almost everywhere: from Shahrah-e-Faisal, Defence, Clifton and Nazimabad to Gulistan-e-Jauhar and Gulshan-e-Iqbal.

“There is still growth in the industry, but it is slow,” Beli said.

Meanwhile tech veteran and National Incubation Centre (NIC) Karachi Project Director Syed Azfar Hussain said tech companies and freelancers often prefer coworking spaces because they offer flexible, cost-effective, and resource-rich environments ideal for innovation and collaboration.

Unlike traditional offices, coworking spaces and incubation centers like NIC Karachi provide shared infrastructure—high-speed internet, meeting rooms, and IT support—without long-term leases or heavy upfront costs.

Hussain said the government should support entrepreneurs running coworking spaces by providing affordable infrastructure, tax benefits, and easier access to funding and registrations.

Government efforts

At the federal level, initiatives of the Ministry of Information Technology & Telecommunication (MoITT) and Ignite have promoted digital skills and startup growth—and the NICs also serve as enabling coworking spaces as essential startup hubs.

At the provincial level, the Punjab Information Technology Board (PITB) has taken steps to promote innovation and entrepreneurship. It has launched ‘e-Earn’ coworking spaces - a government-backed network of subsidized coworking spaces designed for freelancers, remote workers, and small businesses across the province.

Hussain said coworking spaces are vital for nurturing innovation, especially in the tech world. Student loan platform Edufi is one example of a successful startup using the power of community.

Beyond Pakistan, many local startups tapping into global coworking hubs like WeWork or Factory Berlin have expanded their reach, built international networks, and secured cross-border investments.

Talking to Business Recorder, Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin said that as hubs for creativity and collaboration, coworking spaces drive digital entrepreneurship and play a vital role in boosting the growth and visibility of the information technology sector.

Echoing the thoughts of Beli and Hussain, he said the government should provide subsidized utility rates, tax incentives, and affordable long-term leases to coworking space operators.

“Simplified business registration and zoning policies will further ease the establishment of these spaces. Low cost financial support through grants or soft loans can help improve infrastructure and accessibility. Reliable internet, uninterrupted power supply, and public transportation access should be prioritized.”

“Additionally, collaboration with universities and public agencies can channel talent and resources into these hubs.”

“These measures will empower coworking entrepreneurs to expand their capacity and strengthen the overall digital economy ecosystem,” he said.