Pakistan’s e-commerce sector is rapidly making its mark on the global stage, now ranked as the 46th largest market in the world, according to the International Trade Administration. This growth trajectory is underpinned by a burgeoning middle class, widespread smartphone and internet usage, improved e-commerce infrastructure, and robust government support. Recent projections by Statista, a leading global data and business intelligence platform, underscore the impressive progress of Pakistan’s e-commerce sector. In 2023, the market generated $5.2 billion in revenue, positioning Pakistan ahead of many other developing nations. The sector is expected to maintain its momentum, with a compound annual growth rate (CAGR) of 5.92% from 2024 to 2029. By the end of this period, revenue is anticipated to reach $6.711 billion, as reported by China Economic Net (CEN). 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 that is expected to rise further. Data from DataSparkle highlights the growing engagement with mobile shopping applications. As of July 2024, the number of monthly active users of these apps in Pakistan surpassed 16.6 million, showcasing rapid growth in mobile e-commerce and increasing consumer acceptance of app-based shopping. The lucrative potential of Pakistan’s e-commerce market has attracted both international and local platforms. 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. Daraz, a leading South Asian e-commerce platform acquired by Alibaba Group in 2018, continues to dominate the Pakistani market, boasting over 7 million monthly active users as of July 2024, according to DataSparkle. 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. The sector is entering a phase of rapid expansion, driven by favorable government policies that include tax incentives and financing options for e-commerce businesses. With ongoing infrastructure investments, Pakistan is poised to catch up with regional counterparts like Indonesia, the Philippines, and Bangladesh. However, the market’s growth is accompanied by increasing competition. To capture consumer interest, e-commerce platforms are making substantial investments to expand their market share, focusing on key factors such as price, quality, logistics, service, and payment options. Among these, price remains the most critical consideration for Pakistani consumers. Another emerging trend is the rise of social commerce. As of January 2024, Pakistan had 71.7 million active social media users, providing a strong foundation for this new e-commerce avenue. Statista predicts that social commerce revenue will reach $14.74 million by the end of 2024, marking a significant 30% year-on-year growth and solidifying its role in the e-commerce landscape. With its vast potential and rapid growth, Pakistan’s e-commerce market is drawing global attention. As consumer behavior evolves, mobile device usage increases, social media influence expands, and government support strengthens, Pakistan’s e-commerce sector is poised to achieve even greater milestones, establishing itself as a formidable player in the global digital economy.