In the past decade, online shopping in Pakistan has undergone a significant transformation. With the increasing penetration of the internet, the growing use of smartphones, and a younger, more tech-savvy population, e-commerce has moved from being a niche market to a mainstream mode of shopping. Today, Pakistan is experiencing rapid digitalization, and online shopping has become a vital part of the retail landscape.
This article explores the current state, trends, and future estimates of online shopping in Pakistan, supported by statistics, insights from market research, and analysis of consumer behavior.
Online shopping in Pakistan was relatively unknown until the early 2010s. Before that, traditional brick-and-mortar stores dominated the retail industry. However, several key factors contributed to the rise of e-commerce in the country:
Increased Internet Penetration: According to the Pakistan Telecommunication Authority (PTA), as of early 2024, over 130 million Pakistanis have access to the internet. This massive user base has laid the groundwork for online platforms to flourish.
Smartphone Usage: With affordable mobile phones and packages, mobile internet users now comprise over 90% of the country’s internet population. This has made e-commerce platforms more accessible.
Youth-Driven Market: Pakistan has a median age of around 22 years. This young population is highly adaptable to technology and more likely to experiment with online shopping.
COVID-19 Acceleration: The pandemic was a major catalyst for online shopping. Lockdowns and restrictions forced consumers to shift to digital platforms for groceries, fashion, electronics, and even healthcare.
Government Support: Initiatives like the “Digital Pakistan” vision have encouraged digitization, entrepreneurship, and support for fintech startups, contributing to a better ecosystem for e-commerce.
Major Players in Pakistan’s Online Shopping Scene
Several platforms have emerged as dominant players in the Pakistani e-commerce market. These platforms vary from general marketplaces to niche stores and even international platforms catering to Pakistani customers.
Daraz.pk: Owned by Alibaba Group, Daraz is arguably the largest and most recognized e-commerce platform in Pakistan. It offers a wide variety of products including electronics, fashion, groceries, and more.
Foodpanda & Cheetay: While primarily known for food delivery, these apps have diversified into grocery and essentials delivery—an important branch of e-commerce.
HumMart & Metro Online: Supermarkets and retail stores have also embraced online platforms, offering customers delivery services for household items and groceries.
Brands’ Own Stores: Popular fashion brands like Khaadi, Sapphire, Alkaram, and Gul Ahmed have developed their own e-commerce websites and apps, which are widely used by consumers both in Pakistan and abroad.
Social Commerce: Many small businesses now operate via Instagram, Facebook, and WhatsApp, allowing them to reach niche audiences without large overhead costs.
Estimating the exact size of Pakistan’s e-commerce market is challenging due to the presence of both formal and informal sellers. However, several reports provide useful benchmarks:
According to the State Bank of Pakistan, the country’s e-commerce sector saw transactions worth over PKR 96 billion in FY2023, reflecting a 30% year-on-year growth.
Statista estimates that the Pakistani e-commerce market will reach approximately USD 7.67 billion in revenue by 2025.
With an annual growth rate (CAGR 2023–2027) of around 6.2%, the market volume is expected to exceed USD 10 billion by 2028.
These figures, while promising, only scratch the surface, as a large portion of online shopping happens through cash-on-delivery and untracked transactions on social media platforms.
Pakistani consumers have shown distinct preferences when it comes to online shopping:
Cash on Delivery (COD): Over 60% of online transactions are still done through COD, highlighting trust issues with digital payments.
Product Categories: Fashion, electronics, mobile accessories, cosmetics, and groceries are among the top categories.
Discounts and Deals: Shopping festivals like 11.11 (Daraz), Black Friday, and Eid sales attract a large chunk of the annual traffic.
Urban Dominance: Major cities like Karachi, Lahore, Islamabad, and Faisalabad dominate online shopping due to better logistics infrastructure and internet access.
Despite the growth, there are still challenges such as trust issues, poor customer service, fraud, and unreliable delivery services, especially in rural areas.
The growth of online shopping is closely tied to the development of financial technology (fintech) in Pakistan. In recent years, digital payment services have become more common:
JazzCash and Easypaisa are the leading mobile wallets in Pakistan, offering bill payments, mobile top-ups, and peer-to-peer transfers.
Raast, launched by the State Bank of Pakistan, is a government-backed instant payment system aimed at making digital transactions easier and safer.
Banking Apps: Many traditional banks now offer mobile apps that facilitate online purchases and transfers.
Despite these improvements, there’s still a long road ahead. Only about 20% of the population has access to formal banking, and digital literacy remains low in many parts of the country.
While the potential is huge, Pakistan's online shopping landscape still faces several roadblocks:
Trust Issues: One of the biggest hurdles is consumer mistrust due to poor product quality, misleading ads, and lack of reliable return policies.
Logistics and Infrastructure: Delivery delays, lack of proper addresses, and limited services in rural areas hinder smooth operations.
Digital Literacy: Many users, especially in older age groups or rural regions, are not fully comfortable using digital platforms.
Cybersecurity: Data breaches and lack of regulation can deter people from using online payment methods.
Inflation and Currency Devaluation: Economic instability affects consumer purchasing power and supply chain costs.
Despite these challenges, the online shopping sector in Pakistan is far from stagnating. In fact, several growth opportunities make the future of e-commerce in the country look bright:
Expanding to Rural Areas: With improvements in logistics and internet access, e-commerce can tap into underserved rural markets.
Rise of Q-commerce: Quick commerce (delivery within 30–60 minutes) is gaining traction, especially in grocery and pharmacy segments.
Global Outreach: Pakistani brands are now shipping internationally, allowing local businesses to reach overseas markets, especially the Pakistani diaspora.
Artificial Intelligence and Personalization: As platforms grow, AI-driven product recommendations and customer service chatbots are being integrated.
Women Empowerment: Online marketplaces offer an accessible platform for female entrepreneurs to run home-based businesses, promoting economic inclusion.
To sustain growth, government initiatives and policy frameworks will play a critical role:
Digital Pakistan Policy aims to improve digital infrastructure, support startups, and ensure inclusive access to technology.
Tax Incentives and Regulation: The government is working on e-commerce policies to formalize the sector and bring small businesses under the tax net without discouraging entrepreneurship.
Cybersecurity Laws: Strengthening cyber laws will help improve consumer trust and safeguard personal data.
Online shopping in Pakistan is no longer a novelty—it’s a fast-growing industry poised to redefine the retail landscape. With increasing internet penetration, improved logistics, and supportive government policies, the future of e-commerce looks promising. However, to fully realize this potential, challenges like trust deficits, poor logistics, and low digital literacy must be addressed. If these hurdles are overcome, Pakistan's e-commerce sector could very well become one of the largest in the region.