The e-commerce sector of Pakistan is rapidly growing in the past few years. This growth is due to the increasing use of the internet and smartphones. Moreover, the rise of social media and the increase in online shopping in Pakistan have made a big difference in economic growth. Further, with the growth of e-commerce in the country, the economic benefits are also expanding. The Importance of E-commerce in Economic Development in Pakistan cannot be overstated.
The expansion of online shopping in Pakistan is generating new economic conditions and extending innovations among sellers. Further, the continuous e-commerce expansion and activities result in more online shopping experiences. The focused customer experience also increases the accessibility of online shopping demand and regulations. Specifically, the growth of e-commerce makes sellers spot their products distinctively and create a friendly experience for the customers.
In this article, we will shed light on the benefits and challenges of e-commerce in Pakistan and its role in economic growth.
E-Commerce Boosting the Economy
E-commerce in Pakistan is expanding the economy with the rise in productivity, enhanced innovations, and a friendly shopping experience. It becomes easy for buyers to shop anytime, anywhere, without geographical limitations because of e-commerce. E-commerce can also assist the government with services like healthcare, education, and social welfare services at low cost.
There are many emerging online shopping websites in Pakistan offering a user-friendly platform for shopping. CyberMart is also one of the best online shopping websites in Pakistan, with every necessary product in its online store. You can buy everything from modern fashionable attire to groceries and electronics.
Intensity of the Internet and Smartphones Usage
We have witnessed a rise in the use of the internet and smartphones in the past few years in Pakistan. As per a survey report, there are 97 million internet users in Pakistan, which represents 38.7% of the population. Moreover, one of the reports from GSMA, predicts that the number of smartphone users in Pakistan is increasing from 11.36 million in 2020 to almost 161 million by 2025.
E-Commerce Promotion from the Govt. of Pakistan
The launching of the e-commerce framework from the government of Pakistan in 2019 is playing a part in the progress of the e-commerce sector. Further, the purpose of this framework is to take some measures to support e-commerce in the country. These measures are simplifying the tax system, improvement in logistics infrastructure, and providing training to e-commerce entrepreneurs.
The Covid-19 Pandemic Increases E-Commerce Activities
The time duration of the Covid-19 pandemic has speeded up the progress of e-commerce in the country. When we were facing the initial wave of the pandemic, a 35% increase in e-commerce sales was recorded by the Telecommunication Authority.
Advantages of E-Commerce for Economic Development in Pakistan
Many advantages of e-commerce lead to economic growth. These advantages are,
Rise in Opportunities for Employment
The success of e-commerce creates many new employment opportunities in Pakistan. Moreover, websites regarding online shopping in Pakistan need employees to manage different duties. These are managing orders, processing payments, and handling customer service inquiries. Additionally, e-commerce establishes many new businesses, which results in new employment options in the country.
Encouraging Medium and Small Businesses
The boost of e-commerce also encourages enterprises on both medium and slight levels. It is favorable for businesses in rural areas and small online stores in Pakistan. Moreover, SMEs, s can sell their quality products and services to potential customers across Pakistan. As a result, it increases the sales and revenues of these small and medium enterprises. CyberMartPK is the world best online marketplace allowing small sellers to boost their retail business. Further, sellers can create their accounts with CyberMartPK and sell items with their respective profits.
The Convenience of The Customers
The importance of e-commerce in economic development in Pakistan is evident. E-commerce gives customers an effortless and one-stop shopping experience from the comfort of their homes. It is particularly beneficial for customers in rural areas where there is limited access to physical stores. Furthermore, e-commerce platforms offer unlimited products, providing various options while shopping.
Increased Competition
E-commerce offers a wide chance for businesses to compete with other online shopping businesses. Small businesses can also have a chance to compete with large businesses with vast resources. Moreover, large e-commerce platforms such as Shopify and CyberMart offer a comprehensive potential audience to businesses. Businesses can reach a large customer base to enhance their retail business.
Efficient and Cost Effective
Online shopping in Pakistan is reducing the cost of operations with more efficiency through auto processes. Further, it certainly reduces the need for physical stores or infrastructure and increased demand for online stores in Pakistan. Businesses can reach large numbers of customers to increase their sales and revenues.
Challenges to E-commerce in Pakistan
No doubt, e-commerce has numerous advantages, but there are also some challenges to the e-commerce industry. Let us shed light on these challenges.
Limited Internet Access
Access to the internet is relatively low in many cities of Pakistan. As per a report, only 35% of the population has access to the Internet. Indeed, this means a large number of people can’t do online shopping, and it discourages e-commerce in Pakistan.
No or Low Trust in Oline Transactions
Most people fear online shopping in Pakistan because of security issues regarding online transactions. These are those customers who are not familiar with e-commerce technologies.
Issues with Infrastructure
The infrastructure of Pakistan is not suitable for e-commerce progress. The logistics and delivery systems in the country are still not developed. It causes a challenge for e-commerce to deliver products on time through cost-effective ways.
Pakistan’s E-Commerce and Its Future
Although there are many challenges in the way of e-commerce success in the country, the future looks excellent. The government of Pakistan is taking initiatives for the improvement of internet access and infrastructure. It will lead to further improvement in e-commerce in the country, and people will have access to more customers.
Final Words
Finally, we can say that e-commerce is an essential sector for economic development in Pakistan. Despite harsh challenges, Pakistan is making progress in the e-commerce industry. Renowned companies and governments are collaborating to support online shopping in Pakistan by tackling the challenges. Pakistan can reap significant benefits with the development of e-commerce. These advantages can be a high rate of employment and fast access to goods and services for customers. Importance of E-commerce in Economic Development in Pakistan.
