Islamabad, Sep 1: Pakistan’s e-commerce market is currently the 46th largest in the world, and it is growing quickly on the international scene, according to the International Trade Administration, A growing middle class, widespread smartphone and internet usage, enhanced e-commerce infrastructure, and strong government support are the main drivers of this growth trajectory.
Recent forecasts from the world’s preeminent data and business intelligence platform, Statista, highlight the remarkable development of Pakistan’s e-commerce industry. With $5.2 billion in revenue in 2023, Pakistan surpassed many other developing countries in this sector. It is anticipated that the industry will continue to develop at a compound annual growth rate (CAGR) of 5.92% between 2024 and 2029. Revenue by the conclusion of this term is expected to be $6.711 billion, according to China Economic Net’s (CEN) study.
Pakistan stands out as a mobile-first country, since more than 80% of its internet users access the internet through smartphones. In e-commerce, where 58% of consumers made purchases through mobile devices in 2023 a percentage that is predicted to climb further this mobile dominance is also evident. DataSparkle data shows how users are becoming more and more engaged with mobile shopping apps. The number of monthly active users of these applications in Pakistan exceeded 16.6 million as of July 2024, indicating a sharp increase in the popularity of app-based shopping among consumers and the quick expansion of mobile e-commerce.
Both foreign and local platforms have been drawn to Pakistan’s e-commerce business due to its lucrative possibilities. In Pakistan, local platforms like Daraz, DealCart, and Savyour are flourishing alongside international behemoths like Amazon and Alibaba’s AliExpress. As of July 2024, DataSparkle reports that Daraz, a well-known South Asian e-commerce platform that Alibaba Group purchased in 2018, remained the market leader in Pakistan with over 7 million monthly active users. A number of foreign companies have also expressed interest in the growing sector; by mid-2024, platforms like Temu and SHEIN would rank among Pakistan’s top 15 shopping applications.
The e-commerce market in Pakistan has enormous potential, notwithstanding its current size. The industry is about to enter a phase of fast expansion propelled by supportive government policies, such as financing choices for e-commerce enterprises and tax advantages. Pakistan is well-positioned to surpass its regional peers, such as Indonesia, the Philippines, and Bangladesh, with further investments in infrastructure.
But as the industry expands, competition is also getting more fierce. E-commerce platforms are investing a lot of money to increase their market share in order to draw in customers. They are concentrating on important aspects like price, quality, shipping, customer support, and payment methods. For Pakistani consumers, pricing is still the most important factor to take into account.
The emergence of social commerce is another trend. Pakistan has 71.7 million active social media users as of January 2024, which offers a solid base for this new e-commerce channel. By the end of 2024, social commerce revenue is expected to reach $14.74 million, a noteworthy 30% annual growth that will consolidate its place in the e-commerce landscape, according to Statista’s prediction.
Global interest is being generated by Pakistan’s e-commerce market due to its enormous potential and quick expansion. With the changing face of the consumer, rising mobile device usage, growing social media influence, and more government support, Pakistan’s e-commerce industry is set to hit even bigger benchmarks and become a major force in the global digital economy.
