Pakistan’s E-commerce Sector Ranks 46th Globally, Poised for Rapid Growth
BEIJING: Pakistan’s e-commerce sector has made significant strides, ranking as the 46th largest market in the world, according to the International Trade Administration. The sector’s growth is driven by a growing middle class, widespread smartphone and internet usage, improved e-commerce infrastructure, and robust government support.
Impressive Progress
Recent projections by Statista highlight the sector’s impressive progress, with revenue reaching $5.2 billion in 2023, surpassing many developing nations. The sector is expected to maintain its momentum, with a compound annual growth rate (CAGR) of 5.92% from 2024 to 2029, reaching $6.711 billion by the end of the period.
Mobile-First Nation
Pakistan’s distinction as a mobile-first nation is evident, with over 80% of internet users accessing the web via smartphones. This mobile dominance is also reflected in e-commerce, where 58% of users made purchases through mobile devices in 2023, a figure expected to rise further.
Growing Engagement
Data from DataSparkle highlights the growing engagement with mobile shopping applications, with over 16.6 million monthly active users as of July 2024, showcasing rapid growth in mobile e-commerce and increasing consumer acceptance of app-based shopping.
Lucrative Potential
The lucrative potential of Pakistan’s e-commerce market has attracted both international and local platforms, including global giants like Alibaba’s AliExpress and Amazon, as well as homegrown platforms like Daraz, DealCart, and Savyour.
Rapid Expansion
The expanding market has also piqued the interest of various international players, with platforms like SHEIN and Temu entering the top 15 shopping apps in Pakistan by mid-2024. Despite its current scale, Pakistan’s e-commerce market holds immense potential, driven by favorable government policies and infrastructure investments.
Emerging Trends
The rise of social commerce is another emerging trend, with Pakistan having 71.7 million active social media users as of January 2024. Statista predicts that social commerce revenue will reach $14.74 million by the end of 2024, marking a significant 30% year-on-year growth.
