Pakistan has a large internet user population, with over 66 million users, although only a third of the population has access to the internet. The increasing adoption of smartphones, the growth of the middle class, and the government's initiatives to promote digitalisation and entrepreneurship are expected to drive the growth of e-commerce in Pakistan.
Pakistan's e-commerce sector continues to attract significant investment from local and international players. The UAE has plans to invest USD1 billion in the Pakistani economy, with a particular focus on e-commerce infrastructure.
While there has been considerable developments in online platforms, last mile delivery remains a challenge in Pakistan. Most sellers use local courier arrangements for the delivery of their products, which comes with pricey fees, thus putting off consumers.
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Retail E-Commerce
Retail e-commerce is the sale of consumer goods to the general public via the internet, wherein consumers purchase goods online through a web platform. Please note that this includes sales through mobile phones and tablets (i.e. m-commerce). Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. The definition of retail e-commerce is agnostic as to where actual payment takes place; if an order is initiated online, it is considered to be an e-commerce transaction, even if the order is ultimately paid for in-store (or elsewhere). As a result, all "click-and-collect" and "collect-at-store" transactions are counted as e-commerce sales. E-commerce excludes sales of (a) consumer-to-consumer (C2C) and business-to-business (B2B) sales, although please note that sales between businesses and consumers (i.e. B2C sales) on sites such as eBay are included; (b) sales of motor vehicles, motorcycles and vehicle parts; (c) tickets for events (sports, music concerts, etc.) and travel; (d) sales of travel and holiday packages; (e) revenue generated by online gambling sites; (f) returned products/unpaid invoices; and (h) internet sales from direct selling companies, as these are tracked in Direct Selling market sizes/shares. Please note that all "homeshopping" sales - i.e. sales of consumer goods to the general public via mail order catalogues, TV shopping and direct mail - are also now classified as retail e-commerce sales.
See All of Our DefinitionsThis report originates from Passport, our Retail E-Commerce research and analysis database.
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