Islamabad, June 22, 2025: In a significant revelation, official government data confirms that Pakistanis are spending more than $1 billion annually on online shopping, with a substantial chunk going to international digital giants such as Facebook, Google, Netflix, Alibaba, and others.
According to the newly released budget documents, over 42.6 million digital transactions were made by Pakistani users in the past year, amounting to a staggering Rs317 billion. This sharp rise in foreign e-commerce spending in Pakistan has prompted the government to take regulatory action.
Breakdown of Pakistan’s Online Spending
The report details how Pakistani users are actively engaging with foreign platforms:
- Rs12.31 billion on Facebook for ads and digital services
- Rs5.94 billion on Google, including apps and cloud services
- Rs5.14 billion on Apple and iTunes purchases
- Rs4.49 billion spent on China’s AliExpress
- Rs2.79 billion paid to Netflix for streaming subscriptions
- Rs2 billion on Alibaba, another Chinese e-commerce leader
- Rs1.82 billion on fast-growing platform Temu
- Rs1 billion on Shopify for e-commerce and tools
- Rs281 billion+ spent collectively on other foreign sites
This spending pattern shows Pakistan’s digital economy is booming, particularly in cross-border e-commerce.
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Govt Imposes 5% Tax on Foreign Online Vendors
To capture revenue from this rapidly growing digital sector, the federal government has introduced a 5% tax on foreign online vendors in the 2025 budget. This tax aims to create a level playing field for local and international digital sellers, while also ensuring Pakistan benefits economically from the massive online outflow.
The move is part of a broader strategy to formalize digital commerce and curb unchecked foreign remittances. With online shopping becoming mainstream, the e-commerce economy in Pakistan is now a major area of focus for fiscal reforms.
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