Inviting global players

Experts feel the regulatory system, financial and legal, needs to be strong enough to support e-commerce segment

Pakistan is looking to invite giant players like Amazon, PayPal and eBay to the country’s e-commerce segment, tapping into what, potentially, could be a game changer for the economy. However, as in most steps Pakistan intends to take, we can only expect a slow walk to the final stage — hampered by several obstacles along the way. This is not needless pessimism on our part. One only has to look at the developments in Pakistan in recent years in cyberspace and we can see that the country has been unable to, so far, bring to the table a comprehensive and balanced cybercrime bill. Additionally, the ban on YouTube seems like it will never end, which is disheartening, to say the least.

The government has made a few sincere efforts, starting with the spectrum auction it held in 2014 that brought the much-awaited 3G and 4G services to Pakistan. Work on the cybercrime bill has been under way, but concerns over its scope and methodology have gained traction. Inviting global players is not going to be an easy task. Experts feel the regulatory system, financial and legal, needs to be strong enough to withstand shocks and support the e-commerce segment. In a country where financial inclusion leaves much to be desired, cynics are right when they feel that a lot of work needs to be done. Pakistan has seen quite a bit of foreign investment leave its shores and, more often than not, it is the lack of a regulatory framework, and sometimes overregulation, which has caused companies to exit. Governments have been unable to strike the right balance between giving exemptions and ensuring necessary checks. There is a fine line between the two and Pakistan tends to fall into one or the other a bit too much. Anusha Rahman, minister of state for information technology, is optimistic that the country would be well-positioned to invite these companies within a few weeks. We don’t doubt the intention. Pakistan is a huge market and foreign companies know that. But putting in place the required policies and the regulatory framework is a tough ask and will require some doing on part of all stakeholders.

Published in The Express Tribune, November 27^th,  2015.

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