ISLAMABAD: Prime Minister Shehbaz Sharif met a delegation of the Chinese e-commerce giant Alibaba Group on Thursday, directing authorities to form a committee to further promote e-commerce in Pakistan.
Pakistani financial analysts say the country’s growing Internet penetration — with over 80% teledensity — was already fueling e-commerce, despite the fact that it still accounts for less than 1% of the overall retail market. This has also forced several retailers to shift to digital platforms.
A six-member Alibaba Group delegation, led by the group’s president of international markets James Dong, called on PM Sharif to discuss promoting e-commerce in the South Asian country. During the meeting, Sharif noted that 300,000 Pakistanis are currently selling locally produced products on e-commerce platforms such as Alibaba Group.
“The prime minister directed the formation of a committee to develop a roadmap for further promoting e-commerce in the country,” the Prime Minister’s Office (PMO) said in a statement.
Pakistan Prime Minister Shehbaz Sharif gestures during a meeting with six-member delegation of Chinese e-commerce giant Alibaba Group at the Prime Minister’s Office in Islamabad on July 10, 2025. (Handout/PMO)
Sharif also instructed authorities to take steps to increase the number of Pakistani businesses selling their products on e-commerce platforms, noting that e-commerce is a major means of increasing exports significantly.
“E-commerce is a vital element in realizing the government’s vision of an export-led economy,” the prime minister said.
Dong praised the key role of the Pakistani business community in promoting international trade via e-commerce, the PMO said. He noted that around 300,000 locally made Pakistani products are currently being sold on Alibaba’s website.
“He also noted that Pakistani textile products are the most in-demand and best-selling items on the Alibaba platform,” the PMO said.
Dong expressed “strong interest” in providing technical training to entrepreneurs in e-commerce to increase the number of Pakistani traders on Alibaba’s platform.
Realizing the growth and importance of e-commerce platforms in the country, Pakistan’s government imposed fresh taxes on international e-commerce giants in its recent federal budget.
The new measures, introduced through the budget passed on June 26, include an 18% sales tax on goods delivered by courier companies on behalf of foreign platforms, a 5% fixed income tax on digital retailers and a reduction in the duty-free threshold for imported parcels from Rs5,000 to Rs500 ($18 to $1.80).
