E-Commerce: Growing Sector in Pakistanâ€™s Declining Economy Pakistanâ€™s economy has taken quite a hit in the past few years with security threats, extremism and power shortages. Due to these reasons there has been a significant drop in foreign investment, and many flourishing industries have taken quite a strong hit from the lack of power.
Amongst these circumstances, there has been one industry that has been flourishing and that is Ecommerce. In the past few years, ecommerce has grown exponentially in terms of size and revenue. At this point is taken to have been tapped to about $10 million dollars, but industry statistics predict it to be a billion dollar industry. With the large population of Pakistan and an under-saturated online retail market, many feel that this market stands to grow exponentially. Currently, there are several online shopping sites in Pakistan which are making huge revenues out of their social media and digital marketing campaigns. There is still a lot of room for other retailers and e-commerce portals to grow and compete in this market. Also online shopping and real estate sector have become more acceptable and culturally relevant in Pakistan. The early adopters have been mostly young college going and working individuals, from the 25-34 age bracket. This cultural trend is proliferating across all age brackets and online retailers are expecting people of all age brackets to participate. Most online retailers are counting on 3G network to become available in Pakistan; expecting it to create a 40% increase in online shopping in Pakistan in the next few years; this figure is at par with the increase India and Bangladesh experienced with the introduction of 3G network in aforementioned countries. In Pakistanâ€™s dwindling economy, development of industry is important for revival. While power shortage continues to be in issue, progress in some form or manner is essential to move forward. E-commerce is one such sector which promises to be an industry that will continue to flourish and hopefully revive the retail market as well as foreign investment in Pakistan.
Published on Jan 16, 2014
E-Commerce is the fastest growing sector in Pakistan's declining economy and this is a great article about it.