Pakistan’s e-commerce sector is quickly gaining prominence on the global stage, now ranked as the 46th largest market in the world, according to data from the International Trade Administration (ITA), as reported by Pakistani state media on Sunday.
The ITA, a U.S. Department of Commerce agency, offers practical insights to help American businesses select suitable markets and products. It operates through three sub-units: Industry and Analysis (I&A), Global Markets (GM), and Enforcement and Compliance (E&C).
Pakistan’s recent e-commerce growth has been driven by a rapidly expanding middle class, widespread smartphone and internet adoption, improved e-commerce infrastructure, and strong government support, according to the state-run APP news agency.
“In 2023, the market generated $5.2 billion in revenue, placing Pakistan ahead of many other developing nations,” the report stated. “The sector is expected to continue its growth, with a compound annual growth rate (CAGR) of 5.92 percent from 2024 to 2029.”
Pakistan’s status as a mobile-first nation is evident, with over 80 percent of internet users accessing the web via smartphones. This mobile dominance is reflected in e-commerce as well, with 58 percent of users making purchases through mobile devices in 2023—a figure expected to rise further.
As of July 2024, the number of monthly active users of mobile shopping apps in Pakistan exceeded 16.6 million, highlighting rapid growth in mobile e-commerce and increasing consumer acceptance of app-based shopping, according to DataSparkle, a provider of 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 noted. “Global giants like Alibaba’s AliExpress and Amazon are making inroads into the Pakistani market, while homegrown platforms such as Daraz, DealCart, and Savyour are also thriving.”
The growing Pakistani e-commerce market has also drawn interest from various international players, with platforms like SHEIN and Temu entering the top 15 shopping apps in Pakistan by mid-2024, the report added.
