Hajra Naz
Pakistan ranks 46th globally in e-commerce, according to the International Trade Administration.
Reasons for Growth
A rising middle class fuels this growth. Widespread smartphone and internet use play a key role. Improved e-commerce infrastructure supports it. Strong government backing also contributes.
Revenue and Future Projections
Statista, a top data and business intelligence platform, highlights Pakistan’s e-commerce progress. In 2023, the sector earned $5.2 billion, placing it ahead of many developing countries. It is expected to grow at a rate of 5.92% annually from 2024 to 2029, with revenue projected to reach $6.711 billion by then, according to China Economic Net (CEN).
Mobile Usage and E-Commerce
With more than 80% of internet users getting to the internet through cell phones, Pakistan is a versatile first country. Mobile devices will make 58% of e-commerce purchases in 2023.
Growth in Mobile Shopping
Data from DataSparkle shows that by July 2024, more than 16.6 million people in Pakistan were active users of mobile shopping apps, reflecting fast growth in this area.
Market Competition
Pakistan’s e-commerce potential has attracted both global and local companies. International players like Alibaba’s AliExpress and Amazon are entering the market, while local platforms such as Daraz, DealCart, and Savyour are also successful. Daraz, acquired by Alibaba in 2018, leads with over 7 million monthly users as of July 2024. International platforms like SHEIN and Temu have also become popular, entering Pakistan’s top 15 shopping apps by mid-2024.
Future Expansion
Pakistan’s e-commerce sector, though still growing, has immense potential. Favorable government policies support this growth, including tax breaks and financing options. Ongoing infrastructure improvements are also helping. Pakistan aims to compete with regional leaders like Indonesia, the Philippines, and Bangladesh.
Rising Trends and Competition
The market is getting more competitive. E-commerce platforms are investing heavily to attract customers. They focus on price, quality, logistics, service, and payment options. Price is crucial for Pakistani consumers. By January 2024, there will be 71.7 million active users on social media. Revenue from social commerce is projected to reach $14.74 million by 2024. This addresses a 30% expansion from the earlier year.
Conclusion
With its rapid growth and significant potential, Pakistan’s e-commerce market is catching global attention. As consumer habits change and mobile and social media use grows, the sector is set to achieve even more success and become a major player in the global digital economy.
