Muhammad Umar Shabbir
E-commerce is no longer just a global trend; e-commerce has become a shift that has changed how people deal with businesses, goods, and services. Millions of people in Pakistan are changing the way they shop, trade, and make a living as a result of this relatively new but rapidly shifting trend. The development of internet connections throughout urban and semi-urban areas, the expanding availability of reasonably priced smartphones, and the growing desire of the younger generation to use technology have all contributed to Pakistan’s extraordinary digital transformation during the past ten years. Even though e-commerce nowadays is responsible for a small portion of Pakistan’s retail industry, its rate of growth indicates that it may eventually play a significant role in the country’s future economic structure. E-commerce presents opportunities for diversity, job development, entrepreneurship, and engagement into the global economy in addition to convenience.
Platforms such as Daraz, Foodpanda, Yayvo, and Telemart currently dominate Pakistan’s e-commerce market. These businesses have made significant investments in technology, logistics, and infrastructure to offer a more smooth shopping experience. However, thousands of tiny businesses and entrepreneurs who sell directly through social media platforms like Facebook, Instagram, TikTok, and WhatsApp are the true driving force behind the industry. With the help of social media and electronic payments, it is not unusual for a home-based vendor in Lahore to connect with clients in Karachi, Islamabad, or even small towns. This trend shows e-commerce in Pakistan is not limited to big corporations; rather, it is enabling small businesses and individuals to enter the market with comparatively low barriers to entry.
The way that consumers feel about shopping online has also changed a lot. Many Pakistanis used to be cautious to trust internet vendors out of concern about poor quality goods, fraud, or delayed delivery. The lack of trust prevented the sector from growing as rapidly as it would have in other nations. But the COVID-19 pandemic turned out to be a game-changer. Even the most suspicious consumers were forced to attempt internet shopping for necessities like groceries, medications, and clothes when physical marketplaces were shut down because to lockdowns. What began as a necessity soon became a habit. Numerous people came to understand that shopping online was not only practical, but also gave them the opportunity to compare costs, save time, and acquire goods that might not be offered in their local marketplaces. Online buying has become a commonplace part of urban consumer life as a result of this behavioural shift, which has remained even after the pandemic.
The diverse population of Pakistan is another element contributing to the rapid spread of e-commerce. Pakistan is one of the youngest countries in the world, with around 64 percent of its people under 30. Younger individuals are naturally technologically aware and open to trying out new buying techniques. They purchase devices from internet retailers, follow fashion influencers on Instagram, and depend more and more on apps for entertainment, dining, and travel. In addition to being a consumer base, this younger generation is also a force of digital entrepreneurs who are starting their own business with the help of online resources. Pakistani Generation Z are changing what it means to run a business, from YouTubers selling items to garment brands that operate entirely on Instagram.
The widespread use of cellphones is another factor contributing to the steady growth of e-commerce. The number of low-cost cellphones has increased rapidly over the past five years, giving millions of individuals who previously had no means of connecting to the internet access. Due to significant cost reductions brought about by government support for local smartphone manufacturing, middle-class and lower-class households may now afford them. Because of this, e-commerce is no longer just for the wealthy; it is slowly making its way to people in smaller cities and even rural areas, although with a more limited reach. Ten years ago, it would have been unthinkable for individuals to get food, clothing, and household goods with only a few clicks thanks to mobile apps.
Another area in which Pakistan has made major progress is digital payments. Cash on delivery was used for the vast majority of transactions in the early days of e-commerce, which caused issues for both consumers and sellers. While buyers frequently hesitated to finish orders, sellers had to deal with high return rates and inefficient operations. However, the emergence of fintech services like Easypaisa, JazzCash, Sadapay, and NayaPay in recent years has started to change how people shop. Another potential game-changer is the State Bank of Pakistan’s Raast payment system, which facilitates quick and safe digital payments. Digital wallets and payment gateways are becoming more popular, especially with younger and urban consumers, even though cash on delivery is still the most common method. Pakistan will progressively shift to a cashless economy as trust in these systems increases, which will speed up the expansion of e-commerce.
Even with these encouraging developments, there are still obstacles in the way. Since many consumers are still concerned about becoming a target to fraud or receiving poor products, earning trust is still one of the largest challenges. Stricter quality standards, improved regulation, and accessible platforms are all necessary to gain the trust of customers. The lack of digital literacy in many regions of the nation is another obstacle. Millions of individuals in rural areas still struggle with basic digital skills, while young people in urban areas are at ease using internet platforms. E-commerce growth will continue to be unequal and focused in urban areas if this gap is not closed. Another major challenge is infrastructure. The smooth growth of online retail is complicated by poor logistics networks, frequent power failures, and unreliable internet connectivity in remote areas.
Government regulations will be very important for deciding how this industry develops in the future. The National E-Commerce Policy and initiatives to enhance digital financial services have already been implemented by the government. However, both domestic and foreign players are still discouraged by confusing cross-border trade laws, complicated taxation schemes, and uneven regulations. It will be crucial to strike the correct balance between innovation and regulation. Overregulation puts the industry at risk of suffocation, while underregulation exposes it to consumer mistrust and exploitation. Therefore, policymakers need to provide an atmosphere that protects consumers, promotes investment, and supports startups.
E-commerce in Pakistan has a bright future, but there are several obstacles to overcome. On the one hand, the nation offers a youthful and vibrant population, rising smartphone usage, expanding use of digital payments, and a flourishing culture of entrepreneurship. However, in order to maintain growth, trust, lawmaking, infrastructure, and digital literacy issues need to be carefully addressed. Pakistan’s e-commerce market has the potential to expand into a multibillion-dollar industry within the next ten years provided companies keep innovating, the government establishes an encouraging policy environment, and consumers confidently adopt the digital change. More significantly, it has the potential to change lives by facilitating trade, opening doors for small business owners, connecting rural markets to urban areas, and further merging Pakistan into the global digital economy. E-commerce, in many ways, is about changing how Pakistanis engage with the world, build value, and shape their future in the digital age. It is not simply about buying and selling things online.
The Writer is pursuing Business Studies at University of Hertfordshire , United Kingdom.
