Rapid Growth of 94% Witnessed in E-Commerce in Pakistan


E-Commerce in Pakistan witnesses a sharp boost of 93.7 percent in 2018, according to report by State Bank of Pakistan.

The key reason behind the impressive performance of e-commerce in Pakistan is wide range of internet accessibility.

The online market has seen a boom in 2018 because of the services sector, which contributes 60 percent to the GDP. The contribution of e-commerce accounts for 52 percent in 2018.

The data has been compiled by the State Bank of Pakistan through digital transactions including credit/debit cards, prepaid cards, mobile wallets, and inter bank fund transfers.

According to the market estimates, the cash on delivery transactions constitute 90 percent of the total volume and make 60 percent of the Business to Consumer (B2C) e-commerce.

The Cash on Delivery is considered to be the main hurdle in the growth of the e-commerce in Pakistan. This is because of lack of trust on the buyers side on the seller sites, as they are satisfied with the products they receive.

This trust deficit is the reason people refrain to pay through online payment methods. This trust deficit has although improved over the past few years, but still exists.

Mass level of digitalization has rendered to go beyond the middle man. This factor is paving way for the progressing e-commerce in Pakistan.

As for the business-to-business sector, large-scale investments are being made. However, B2C is growing at a relatively faster rate because of the large internet penetration in far-flung areas where online connectivity was not a thing before.

According to the details, there are 153 million cellular subscribers, which exceeds 73% of the 207 million population.

Out of this, over 73% are 3G/4G subscribers accounting to 61 million, and 63 million subscribers are total internet subscribers.

4G is however, expected to reach remote areas of Pakistan. The authorities plan for a 5G network launch in next two years.

With the growth of e-commerce in Pakistan, the international investors has shown a keen interest in Pakistan.

Alibaba acquired Daraz from the European internet company, Rocket Internet in May 2018.


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