Best Business Ideas in Pakistan with a Small Investment in 2021

pakistan small investment

IT is an understood fact of life, more so for Pakistan as a developing economy in comparison to anywhere else, that, one must set out from their homes and try to earn money from an early age or after completing graduation for we all have to contribute or even manage independently our household expenses. This is where a crucial decision comes into play as an individual is faced with the choice of either working as an employee or starting their own business.

Challenges for individuals in post Covid-19 era

Pakistan, as one of the growing economies in South Asia, is at a critical juncture as it tries to heal from post Covid-19 repercussions along with the rest of the world. Many Small and Medium-sized Enterprises (SMEs) have cropped up in Pakistan and a large majority of the urban population in cities as well as rural areas, which traditionally rely on agriculture, have begun small businesses to contribute to their lifestyle and expenses.

Which is why, we can see there is a need for independent small businesses in Pakistan which will not only benefit and reward the owners of the business but also the developing economy of the country. This comes with a basic but important challenge: the investment/capital needed to start the small/medium enterprise. 

But, here’s where the fun begins. Even with little investment one can begin their own business as long as an idea along with the feasibility/business plan is in play.

SMEs and different businesses with small investment in Pakistan

There are numerous examples of SMEs in Pakistan that are operating successfully. In fact, there are chances that even you might know a few people who have set up their own small businesses.

And while the list of businesses may vary, these are some of the best business ideas that can be

These include: social media/Online/Digital Marketing Agencies, Home Based Cooking, Custom Shirts & Accessories, Travel agency, tourism agency, real estate, Personal Training, Mobile shop, home tutoring and more. These ideas are some of the best business ideas in Pakistan for 2021 and beyond as they require little investment with the amount needed for starting the business ranging from Rs. 1 lac to 5 lacs to pay off initial expenses and support the business in its infancy and starting year(s).

Downsides of running a business

The downsides of such businesses are the fact that once started many problems can present themselves to the detriment of the owners. First of all, the business model must be in compliance with the corporation and tax laws of Pakistan such as pre-incorporation statutory filings as well as tax code compliance. The business may have to be registered separately with its own bank account, sales tax certificate, NTN etc. Once these are done yearly returns and audits must be conducted to make sure the business continues to grow and improves its credibility in the eyes of the major regulatory authorities in Pakistan. 

Opportunity for small investors?

The advantages of such businesses, however always outweigh the negative aspects. Once the business is in compliance and is stable then the sky is the limit as far as revenue/profit generation is concerned. As the business grows the remuneration and dividends will increase and the business will become even more rewarding for the owners. There are many success stories in Pakistan of businesses that started with low investment and have now even attracted the eyes of venture capitalists and investors from abroad.


In conclusion we must mention that businesses whether small or large are worth the initial headache as they become ultimately very rewarding and fruitful for the owners as well as the investors and partners. 

Exit mobile version