Business

Broad prospects for e-commerce growth

Country ranked 46th largest e-commerce market worldwide

News Desk September 01, 2024

E-commerce will increase overall economic activity and lead to financial inclusion, economic empowerment and socio-economic uplift. photo: file

BEIJING:

Pakistan's e-commerce sector is rapidly ascending on the global stage, now ranked as the 46th largest market worldwide, according to data from the International Trade Administration.

This growth is fueled by a burgeoning middle class, widespread smartphone and internet usage, enhanced e-commerce infrastructure, and strong government support. Recent projections from Statista, a global data and business intelligence platform, highlight the impressive trajectory of the market. Pakistan's e-commerce revenue reached $5.2 billion in 2023, positioning it ahead of many other developing countries.

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

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

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

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

The expanding 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.