The Commerce Division pointed out that extensive consultations had been held to prepare the draft of e-commerce policy, which was essential to elicit cooperation and collaboration with foreign payment gateways. PHOTO: FILE
ISLAMABAD: The government has decided to develop linkages with the one-woman, one-bank account initiative under the e-commerce policy.
Considering draft of the e-commerce policy, the cabinet members in a recent meeting suggested that the e-commerce policy may be linked with the one-woman, one-bank account initiative, which complements e-commerce initiatives apart from promoting women empowerment and financial inclusion.
During discussions, the cabinet members emphasised the importance of a payment gateway for effective roll-out of e-commerce in the country. It was pointed out that while some foreign online payment companies were interested, the State Bank of Pakistan should come up with a clear-cut policy.
They, however, felt that the SBP did not seem to have the capability to find a solution to the payment gateway problem.
It was argued that the payment gateway was essentially a market access issue and needed to be tackled diplomatically as well. At the same time, the e-commerce policy was the need of the hour and should be approved.
It was also suggested that the format of e-commerce policy draft needed to be improved to turn it into a policy document, which should not contain recommendations but a definitive policy of the government.
The Commerce Division pointed out that extensive consultations had been held to prepare the draft of e-commerce policy, which was essential to elicit cooperation and collaboration of foreign payment gateways.
The role of the State Bank of Pakistan as a regulator delineated its main function, which was regulation rather than creating a payment platform, it said.
The emergence of e-commerce platform has paved the way for inclusive trade and economic development. Global e-commerce has been growing exponentially for the past two decades and recorded sales growth of 13% in 2017 with estimated sales of $29 trillion.
In addition to that, the number of online shoppers grew 12% and reached 1.3 billion.
E-commerce in Pakistan is at a nascent stage with modest internet retail sales despite 161 million cellular subscribers, 70 million 3G and 4G subscribers, 72 million broadband subscribers and tele-density of 76.56% as of July 2019.
However, it is an emerging sector with a noticeable surge in the recent past in online vendors, e-commerce platforms and online payment facilities introduced by banks and cellular companies.
According to SBP figures, excluding cash-on-delivery sales, annual e-commerce sales stood at Rs18.7 billion by the end of June 2018 while the total size of Pakistan's e-commerce market in 2018 was Rs99.3 billion. The number of registered e-commerce merchants has risen 26 times and e-commerce payments have surged 23 times in a span of just 12 months.
Published in The Express Tribune, October 19th, 2019.
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