According to the International Trade Administration (ITA), Pakistan’s e-commerce industry is expanding quickly on the international scene, now standing as the 46th largest market globally.
A growing middle class, extensive smartphone and internet use, improved e-commerce infrastructure, and robust national support are the main drivers of this expansion. Recent forecasts from the international data and business intelligence portal Statista demonstrate the market’s remarkable growth trend.
Businesses can choose appropriate foreign markets and goods with the assistance of market insights provided by the U.S. Department of Commerce’s ITA department. Pakistan’s state-run news agency APP stated that the country’s expanding middle class, increasing smartphone and internet usage, improved e-commerce infrastructure, and strong government support have all contributed to the country’s e-commerce growth.
Pakistan’s e-commerce industry made $5.2 billion in revenue in 2023—more than many other developing countries combined. From 2024 to 2029, the industry is expected to expand at a compound annual growth rate (CAGR) of 5.92%.
Over 80% of Pakistan’s internet users access the web via cellphones, making their country a mobile-first nation. Mobile devices accounted for 58% of e-commerce transactions in 2023; this percentage is predicted to rise. According to data supplier DataSparkle, there will be over 16.6 million active monthly users of mobile shopping apps in Pakistan by July 2024, suggesting significant development in mobile e-commerce.
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Pakistan’s e-commerce industry has attracted platforms from both domestic and international markets because of its profitable opportunities.
Along with growing local platforms like Daraz, DealCart, and Saviour, the rich potential of Pakistan’s e-commerce business has attracted global giants like Alibaba’s AliExpress and Amazon. By the middle of 2024, foreign competitors like Temu and SHEIN had also made their way into Pakistan’s top 15 shopping applications.
DataSparkle, a data and analytics platform for emerging markets, reports that as of July 2024, Daraz, a prominent South Asian e-commerce platform that Alibaba Group purchased in 2018, continues to be the preferred option for online shopping in Pakistan, with over 7 million monthly active customers.
Some foreign businesses have also expressed interest in this growing sector; by mid-2024, platforms like Temu and SHEIN would rank among Pakistan’s top 15 retail applications.
The e-commerce market in Pakistan has enormous potential, notwithstanding its current size. Favourable government policies that offer financing choices and tax incentives to e-commerce enterprises are enabling the sector to begin a phase of rapid expansion.
Pakistan is expected to catch up to its regional competitors, the Philippines, Bangladesh, and Indonesia, with further investment in infrastructure.
But increased competition also comes with the market’s expansion.
E-commerce platforms are investing heavily in growing their market share in order to draw in customers. They are focussing on important aspects like cost, quality, shipping, customer support, and payment methods. For Pakistani consumers, pricing remains the most important aspect to take into account among these considerations.
The emergence of social commerce is another trend. Pakistan had 71.7 million active social media users as of January 2024, offering a strong base for this new e-commerce channel.
According to Statista, income from social commerce is expected to reach $14.74 million by the end of 2024, representing a noteworthy 30% annual growth and further establishing the platform’s position in the e-commerce space.
Pakistan’s e-commerce industry is garnering attention from around the world due to its enormous potential and quick expansion.