Zaidi urges startups to look beyond venture capital, study local success models

Former Federal Board of Revenue chairman Syed Shabbar Zaidi on Saturday urged Pakistani entrepreneurs to rethink their funding strategies and focus on diverse investment avenues instead of relying solely on venture capital.

Speaking at a session titled “Securing Capital and Global Survival for Pakistani Startups” at the Institute of Business Administration (IBA) Karachi, Zaidi said investors are ultimately driven by returns, and startups must structure their models accordingly to attract sustainable financing.

He cautioned founders against adopting only Western startup narratives, saying Pakistan’s entrepreneurial ecosystem should instead draw lessons from successful local examples operating within domestic constraints.

Zaidi also pointed to structural challenges in Pakistan’s financial environment, noting that a significant portion of capital remains outside formal channels, which affects access to financing for legitimate startups.

The session, organised by the Center for Entrepreneurial Development (CED), brought together student founders, alumni, and industry participants, who engaged the former FBR chief on taxation, regulatory compliance, and cross-border expansion strategies.

CED Director Dr Lalarukh Ejaz said Zaidi’s experience across public policy and corporate sectors offered valuable insights for entrepreneurs navigating a difficult economic landscape.

IBA officials said the institution continues to support startups through incubation, mentorship, and investor linkages as part of its broader entrepreneurship ecosystem.