Broad prospects for the development of e-commerce

BEIJING:

Pakistan’s e-commerce sector is rapidly rising on the global stage, now ranking as the 46th largest market globally, according to data from the International Trade Administration.

This growth is fueled by a rising middle class, widespread smartphone and internet usage, improved e-commerce infrastructure and strong government support. Recent forecasts from Statista, a global data and business intelligence platform, highlight the market’s impressive trajectory. Pakistan’s e-commerce revenue is set to reach $5.2 billion in 2023, placing it ahead of many other developing countries.

The market is expected to continue expanding at a CAGR of 5.92% from 2024 to 2029, with revenue expected to reach $6.711 billion by the end of this period.

Pakistan stands out as a mobile-first nation, with over 80% of internet users accessing the internet via smartphones. This dominance of mobile is evident in e-commerce, where 58% of users made purchases using mobile devices in 2023 – a number that continues to grow.

Data from DataSparkle highlights the growing engagement with mobile shopping apps. As of July 2024, the number of monthly active users of these apps exceeded 16.6 million, indicating the rapid growth of mobile e-commerce and increasing consumer acceptance of app-based shopping.

The lucrative potential of Pakistan’s e-commerce market has attracted both international and local platforms. Global giants such as Alibaba’s AliExpress and Amazon are entering the market, while domestic platforms such as Daraz, DealCart and Savyour are also thriving. Daraz remains the top choice for online shoppers in Pakistan, with over 7 million monthly active users as of July 2024, according to DataSparkle.

The growing market has also attracted interest from various international players, with platforms such as SHEIN and Temu entering the top 15 shopping apps in Pakistan by mid-2024.