Islamabad welcomed a high-powered delegation from Chinese e-commerce giant Alibaba Group this week, as Pakistan looks to harness its growing digital footprint to strengthen exports and widen the reach of local businesses. The six-member team, led by James Dong, Alibaba’s President of International Markets, met Prime Minister Shehbaz Sharif on Thursday at the Prime Minister’s Office to explore avenues for deepening Alibaba’s engagement with Pakistan’s evolving online retail ecosystem.
During the meeting, Prime Minister Sharif underscored the pivotal role e-commerce could play in driving the country’s ambition for an export-led economy. Acknowledging that nearly 300,000 Pakistanis are already using global e-commerce platforms like Alibaba to sell locally produced goods, Sharif directed authorities to immediately constitute a committee tasked with developing a comprehensive roadmap for accelerating e-commerce growth across Pakistan.
He emphasized that Pakistan’s rising Internet connectivity — with teledensity surpassing 80 percent — is reshaping consumer behavior and compelling many traditional retailers to pivot toward online models. However, despite this surge in digital adoption, e-commerce transactions still account for less than 1 percent of Pakistan’s total retail activity. Sharif pointed to this as both a challenge and an opportunity, urging efforts to onboard more Pakistani entrepreneurs and manufacturers onto global platforms to diversify and increase the country’s export earnings.
James Dong praised Pakistani businesses for playing an instrumental role in driving cross-border trade through e-commerce. He highlighted that approximately 300,000 locally crafted Pakistani products are currently available on Alibaba’s platforms, with textiles emerging as the most popular category among international buyers. Dong also conveyed Alibaba’s keen interest in offering technical training to aspiring Pakistani entrepreneurs and traders to bolster their participation in the digital marketplace.
The Prime Minister’s Office noted that Dong’s proposal to equip Pakistani businesses with advanced e-commerce skills was welcomed, as it complements Pakistan’s vision of using digital channels to unlock new global markets for its products. The meeting concluded with a mutual commitment to deepen cooperation and develop concrete initiatives that would allow more Pakistani goods to reach global consumers through Alibaba’s vast network.
Meanwhile, Pakistan’s latest federal budget, passed on June 26, reflects the government’s growing recognition of the e-commerce sector’s scale and potential. New tax measures introduced in the budget include an 18 percent sales tax on goods delivered by courier services for foreign e-commerce platforms, a 5 percent fixed income tax on digital retailers, and a sharp cut in the duty-free threshold on imported parcels from Rs5,000 to Rs500. These changes aim to bring more digital transactions into the formal tax net while leveling the playing field for domestic businesses.
Analysts believe that the convergence of increasing local participation on international platforms like Alibaba, supportive government policies, and new regulatory frameworks will be crucial in shaping Pakistan’s digital commerce trajectory. As Pakistan moves to expand its share of global online trade, collaborations with established players such as Alibaba could accelerate efforts to embed small and medium enterprises deeper into international supply chains, fostering sustainable economic growth rooted in digital innovation.
