In today’s modern age of startups, those within the space science and technology sector are now realizing that they are contributing to other related fields. As the overall environment for startups differs from the rest of the world, let’s have a look at some of the major factors that affect the space companies and startups in Pakistan.
Scope of work and applications
The Space startup finds its scope in multi-disciplinary applications. The complex nature of the work of a space startup is unique in itself. On top of that, the work environment for Space Science & Technology startups in Pakistan offers various opportunities and challenges. In general, startups ranging from information technology to farming applications, are facing hindrances related to financial, legal, and security challenges. But the space sector has to face a unique set of challenges.
Questions for Starting up in Space sector
Just like others, the budget for a space startup is typically based on the following aspects:
- Outcome (Purpose, Deliverables)
- Capital cost (Equipment, Manpower)
- Operating cost
- Cost to breakeven
So, when a space startup is planning to kick off its business in Pakistan, it needs to address the above questions at the very start before its operations begin. Now, the answer to these questions can be found by detailing the factors below:
Venture capital
The very basis of a startup, venture capital, is not easily available for the space sector because fewer capitalists and investors in Pakistan are willing to work with space startups.
There are fewer opportunities to secure government support and the approach to recognize the space sector as an industrial business sector is still in its initial phase. Also, securing foreign investment is a challenge on its own due to many legal and security restrictions.
Finances or Budget allocations
Once a space startup secures a venture, budget allocations, and running finances are huge challenges. This is because of the operational costs (energy costs, equipment maintenance, etc.). It is hard to keep financial matters in check for the startup to get succeed.
Security challenges
Businesses and startups are facing uncertainty on the security situation in Pakistan. Considering the sensitive nature of the space sector, the business environment is not stable presently, which challenges the viability of starting a new space startup without financial security.
Legal restrictions
There are many fields of aerospace, aviation, space science, and technology where the laws are very rigid, which makes it difficult for a new space startup to operate. The hindrances faced in legal matters are a constant challenge. This applies to both the import of hardware, equipment, and other operational procedures as well.
Technological challenges
The space sector in Pakistan is in the growth phase, where relevant technology and trained manpower are not readily available for space startups. Moreover, the cost of importing relevant equipment, hardware, and devices is skyrocketing. Several international regulations also become a hindrance when it comes to the import of hardware and raw materials if the startup aims to produce sensitive defense equipment.
Contribution to the Global Space Sector
The global space sector is progressing leap and bound; government agencies and private space companies are playing a huge role in furthering mankind’s dream of space exploration. To be exact, private space companies and startups are contributing more to further innovation in space science and technology.
However, space startups in Pakistan are far behind their regional counterparts when it comes to innovation and advancement. The factors mentioned earlier and many others are the main reasons for this lack of competitiveness that hinder Pakistani startups from contributing to the global space sector.
The Way forward?
In recent years, we have observed some positive developments in the Pakistani space sector that have improved the business environment for space startups and companies. These include steps taken by the government to provide different opportunities where space startups can start their work.
The most notable is the NASTP (National Aerospace, Science and Technology Park), which is the initiative of the Pakistan Air Force to provide an ecosystem of essential elements required to nurture design, research, development, and innovation in the aviation, space, IT, and cyber domains. This is a big step forward to create opportunities for joint work between industry, academia, and the government, turning it into a technology ecosystem in the country.
The Institute of Space Science and Technology Islamabad has provided space startups with different opportunities to work with them and create a local industry for satellite manufacturing by organizing Cubesat manufacturing competitions throughout the country. This has enabled many space startups to recognize the opportunities and challenges to grow their businesses.
To keep building on these steps, there is an urgent need to reform the laws, work on creating space technology hubs, allocate venture capital, and adopt space science and technology as a modern industry. At the same time, we need to train personnel who can help to bring more innovation to the space sector.
References:
More from the author: History of Space Exploration
Muhammad Hassan Qazi is a Co-Founder of RaheQamar and an avid Space enthusiast. He is a Post-Graduate in Aerospace Engineering & has researched numerous Space technology projects. Hassan believes Pakistan has the talent and resources to contribute to the Global Space Industry actively. He is working in STEM and striving to promote Space science & tech. in Pakistan
