What is E-commerce?
ecommerce refers to any commercial activity that takes place online. There is a lot of economic activity catered to. And directed from her internet and this comes under the umbrella of e-commerce. E-commerce has taken over the world by storm and has brought down geographical barriers. As well as To expand the outreach of businesses around the world. As well as E-commerce is a crucial part of the market in any industry because it provides cheap and efficient services while penetrating the existing market. The number of registered e-commerce businesses has grown 2.3 times in the past year alone, according to the State Bank of Pakistan and this number continues to grow.
How has the growth of E-commerce affected Pakistan’s economy?
Pakistani merchants have embraced e-commerce effects wholeheartedly as home-kitchens grow to immense popularity on food delivery services. As well as Retailers and small-scale businesses. Be it in the clothing industry, electronics, services, etc. are all utilizing social media platforms. And the internet to maximize the existing customer base and grow their businesses.
Small scale businesses could grow and cater to a global customer base with e-commerce effects. In FY18 the E-commerce industry of Pakistan was estimated to be worth PKR 99.3Bn. This was a remarkable 92% growth from the PKR 51.8Bn. That it was worth in FY17. As well as Pakistan has one of the largest untapped markets in the world of e-commerce. E-commerce has grown especially well in the country given that there are only 71.7 million broadband subscribers. And there is a large chunk of the population that doesn’t yet have proper access to 3G/4G subscriptions. With improved internet services and communication channels in place. Pakistan could grow into one of the leading countries when it comes to local and international ecommerce trade.
Successful in Pakistan
E-commerce has especially been successful in Pakistan. Because it provides small businesses with a cost-effective way to grow their businesses. E-commerce is a proven way to maximize profit with little to no investment.
E-commerce has helped cut down the unemployment rate in Pakistan. By offering opportunities to digitally skilled employees. With skills such as social media marketing, web development, and copywriting. More and more people are now working from home for international clients and making a decent living while doing so.
Through E-commerce it is predicted that the GDP of Pakistan will increase by 36 billion. And over 4 million jobs could be created by 2025. Although this would require that digital financial services are increased. And as well as there are more incentives for entrepreneurs from the government.
E-commerce is a great investment for the Government of Pakistan. As it can improve the GDP of the country. And as well as alleviate unemployment without enormous spending on infrastructural development.
E-commerce effects how the products are purchased. And sold nationally and internationally. Business communication and data sharing could be simplified to a mere click. This could provide efficiency for businesses by strengthening the supply chain.
Pakistan’s current annual ecommerce exports amount to $24B. E-commerce could also boost tourism in Pakistan. which is yet another industry that has immense potential. And remains untapped. With the help of the internet, Pakistan tour operators could facilitate tourists in booking flights, hotels. And promote the tourist locations. With the help of social media influencers, the outlook of Pakistan as terrorism-stricken land could be improved.