Pakistan e-commerce market ascends to prominence, ranks 46th worldwide — report

01 September 2024

Published in: Arab News

Pakistan’s e-commerce sector is rapidly making its mark on the global stage and is currently ranked as 46th largest market in the world, Pakistani state media reported on Sunday, citing the International Trade Administration (ITA) data.
The ITA is an agency in the United States Department of Commerce that provides practical information to help Americans select markets and products with the help of three sub-units, Industry and Analysis (I&A), Global Markets (GM) and Enforcement and Compliance (E&C).
Pakistan’s recent growth in e-commerce was fueled by a burgeoning middle class, widespread smartphone and Internet usage, improved e-commerce infrastructure, and robust government support, the state-run APP news agency reported.
“In 2023, the market generated $5.2 billion in revenue, positioning Pakistan ahead of many other developing nations,” the report read. “The sector is expected to maintain its momentum, with a compound annual growth rate (CAGR) of 5.92 percent from 2024 to 2029.”
Pakistan’s distinction as a mobile-first nation was evident, with over 80 percent of Internet users accessing the web via smartphones, according to the report. This mobile dominance was also reflected in e-commerce, where 58 percent of users made purchases through mobile devices in 2023 — a figure that is expected to rise further.
As of July 2024, the number of monthly active users of mobile shopping apps in Pakistan surpassed 16.6 million, showcasing rapid growth in mobile e-commerce and increasing consumer acceptance of app-based shopping, according to DataSparkle, which provides data insight services for enterprises, app developers, investors and research institutes.
“The lucrative potential of Pakistan’s e-commerce market has attracted both international and local platforms,” the APP report said. “Global giants such as Alibaba’s AliExpress and Amazon are making inroads into the Pakistani market, while homegrown platforms like Daraz, DealCart, and Savyour are also thriving.”
The expanding Pakistan e-commerce 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, it added.