The e-commerce sector of Pakistan has grown extensively in 2018 and has performed better than ever before as people have switched more towards using internet and digitalisation. Extensive internet accessibility has made the way for nearly 100 per cent surge in the sales of both local and international merchants.
In the financial year 2018, the sales reached Rs40.1 billion from Rs20.7 billion in the financial year 2017, which for sure is an encouraging growth of 93.7 per cent as per the State Bank of Pakistan (SBP) report which was published in the month of October.
The online market also witnessed an increase this year because of the services sector, which has now contributed 60 per cent to the gross domestic product (GDP), showing an increase from the earlier 52 per cent.
This is the data that has been compiled by the central bank via digital transactions like debit or credit cards, mobile wallets, prepaid cards and interbank fund transfers (IBFT). But the market approximates that the cash on delivery (COD) settlements are nearly 90 per cent of the total volume and are about 60 per cent of the total volume of B2C e-commerce.
e-commerce in Pakistan is thriving as digitalisation has made it possible to bypass the middleman, who used to consume most of the business profits. The leading brands of smartphones, clothes, food and electronics have built websites for connecting with their customers.
Pakistan has got 153 million cellular subscribers, which is more than 73 per cent of the entire population of 207 million, out of which 61 million are 3G/4G subscribers with the total count of internet subscribers at 63 million.
It is also anticipated that the 4G technology would be expanding in the remote areas of Pakistan. Besides that, bringing the 5G technology is also on cards, which would further be enhancing the internet accessibility for people.
The growth of e-commerce has also captured the international buying interest that has led to Alibaba acquiring Daraz.pk.
As per reports, Alibaba is forming its entire e-commerce infrastructure which includes an online marketplace, online payment system and its own logistics system, which indicates that the nation for sure is catchy for the investors.