Pakistan’s e-commerce sector reached a valuation of $7.7 billion in 2024, with retail e-commerce contributing $5.4 billion. Despite a forecasted annual growth rate of 17%, small and medium-sized enterprises (SMEs) face challenges in tapping into the global market. These obstacles include unreliable internet, digital payment issues, and a lack of consumer trust.
While digital payment adoption has improved, online transactions remain slow. A preference for cash-on-delivery, especially in urban areas, is still prevalent. This preference stems from skepticism about online shopping, worsened by incidents of undelivered products. Experts argue that a lack of secure, user-friendly payment systems is hindering e-commerce growth in Pakistan.
Pakistan’s internet infrastructure also holds the sector back. The country ranks 97th globally in mobile internet speed. Rural areas suffer even more, with poor connectivity affecting website access and causing delays in product uploads. These issues result in lost sales and cancellations, further undermining Pakistan’s e-commerce potential.
Government efforts, such as the Digital Pakistan Policy and the National E-Commerce Council, aim to address these issues. However, progress has been slow, and rural entrepreneurs lack access to necessary e-commerce tools. To fully benefit from the global e-commerce boom, experts agree that Pakistan must improve internet access and logistics infrastructure.