Pakistan’s e-commerce constitutes only two percent of its retail market — Daraz CEO

Bjarke Mikkelsen, CEO of the e-commerce retail platform Daraz, speaks with Reuters during an interview in Islamabad, Pakistan, on November 24, 2021.. (REUTERS/File)
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Updated 26 November 2021
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Pakistan’s e-commerce constitutes only two percent of its retail market — Daraz CEO

  • Daraz has invested $100 million in Pakistan during the last three years and plans to invest at the same rate for the next few years
  • The platform is operating in Pakistan, Sri Lanka, Bangladesh, Nepal and Myanmar with about 20 million customers

ISLAMABAD: The top official of a major online shopping company said on Wednesday e-commerce only accounted for two percent of Pakistan’s retail market while adding that his company was trying to create digital literacy to bring nearly 50 million customers to its platform within the next few years.
According to official statistics, 88 percent of the country’s population has access to internet and broadband services. However, e-commerce remains in a nascent stage in Pakistan with modest retail sales, though there has been a noticeable surge in online vendors and payment facilities introduced by banks and cellular companies.
International e-commerce platforms and investors have been pouring in a lot of money in Pakistan as the government tries to promote online markets to provide employment to about 130 million people in the country in another 30 years.
“By now, e-commerce is only two percent of the retail market in Pakistan,” Bjarke Mikkelsen, the founder and CEO of Daraz Group, told Arab News in a wide-ranging interview. “We are off to a good start, but it is still just the beginning.”




Founder and CEO of Daraz Group, Bjarke Mikkelsen, center, during an exclusive interview with Arab News in Islamabad, Pakistan, on November 24, 2021. (AN photo)

Daraz is not just into e-commerce but also logistics, payment infrastructure and financial services.
It started its operations in Pakistan in 2015 and soon became one of the leading online marketplaces in the country.
The company is also operating in Sri Lanka, Bangladesh, Nepal and Myanmar – giving it access to over 500 million people in the context of accelerated digitalization.
In 2018, Alibaba Group, a Chinese e-commerce giant, acquired it to boost its operations in the South Asian market.
Daraz not only connects customers to sellers but also creates opportunities for over 100,000 small and medium enterprises and provides its 35 million monthly customers access to 50 million products across 100 categories.
The CEO of the company said his platform was working to change the perception and mindset of people regarding e-commerce since most of them usually considered online platforms as places where they could get substantial discounts.
“But now, they have understood that e-commerce is about providing services and … helping people lead an easier and more exciting life,” he said.
Mikkelsen said he had promised Alibaba 100 million customers in the next couple of years from the South Asian market, excluding India, as part of the company’s global vision of two billion consumers.
“Almost half of these [100 million customers] need to come from Pakistan,” he added.
Currently, Daraz has about 20 million users in the regional market. It has been growing at about 100 percent on a yearly basis for the last four years.
The Daraz official said his company had invested over $100 million in Pakistan in the last three years and planned to spend at the same rate for the next few years.
“We are doing this because we see a long-term opportunity here,” he explained. “It is not only about foreign investment; it’s about bringing in technology to the country as well.”
Mikkelsen said e-commerce trends in South Asia, excluding India, were similar in terms of growth, internet penetration and adoption of payment methods. “What makes Pakistan different is its talent and young generation,” he added.
He informed that Daraz was working “very closely” with the government to document the national economy since it wanted a digital environment where sellers were registered and paid their taxes.
“That’s the goal that we have put together with the government, and we are helping the government in educating our sellers, educating them how to become a seller and pay their taxes,” he said, adding that digital economy also provided better financing facilities to sellers which made it easier for them to enhance their outreach and access to technology.
“We can prove with data that becoming part of the registered economy is a good thing for sellers,” he continued while referring to a recent study his company jointly conducted with the World Bank.
The Daraz CEO said his platform was currently trying to improve and promote Pakistan’s local market while working on greater exports opportunities for its sellers as well.
“We are figuring out how we can help our sellers reach other markets,” he said.
Mikkelsen assured online users of “complete protection” of their data and information on Daraz, adding that government regulations should also encourage data privacy.
“Regulation is good,” he continued. “It is required for the industry to scale. However, it is important that it is done as a collaborative effort, making sure that private sector is really taken into account.”


Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

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Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

  • The development comes during Commerce Minister Jam Kamal Khan’s official visit to Oman
  • The minister reaffirms Pakistan’s commitment to boosting trade in industrial, logistics sectors

ISLAMABAD: Pakistani Commerce Minister Jam Kamal Khan has urged Oman to expand the reach of its deep-water port and free zone by connecting it through Pakistan to Central Asia and China to enhance regional trade cooperation, Khan’s ministry said on Tuesday.
The statement came during Khan’s three-day official visit to Oman where he spent his first day in the industrial hub of Sohar to discuss bilateral trade, investment and industrial collaboration between the South Asian nation and the Middle Eastern state.
Pakistan aims to leverage its strategic geopolitical position to enhance its role as a key trade and transit hub connecting landlocked Central Asian republics with the rest of the world. In recent months, there has been a surge of visits, investment talks and economic activity involving Gulf and Middle Eastern nations.
During his visit to Sohar Port, the Pakistani commerce minister was given a detailed briefing on the port’s state-of-the-art facilities and its role as a major trade and logistics hub.
“He emphasized the potential for enhanced trade cooperation, particularly in expanding Sohar Port and Free Zone’s reach through Pakistan to Central Asia and China,” the Pakistani commerce ministry said in a statement, following Khan’s meeting with Omani officials.
Khan, who was accompanied by Pakistan’s ambassador to Oman Naveed Safdar Bokhari and other officials, was presented with an overview of the integrated free economic zone and industrial city, highlighting Sohar Port’s strategic role in handling 80 percent of Oman’s international trade and industrial activities.
The commerce minister urged joint ventures between Pakistani and Omani businesses during his meeting with industrialists and business leaders.
“The minister reaffirmed Pakistan’s commitment to boosting trade with Oman, particularly in the industrial and logistics sectors,” the commerce ministry said.
Later, Khan was taken on a city tour where he offered prayers at the iconic Sultan Qaboos Mosque in Sohar.
Last August, Islamabad invited Oman to invest in Pakistan’s agriculture, mineral and IT sectors through the Special Investment Facilitation Council, a Pakistani civil-military body aimed at attracting foreign investment.
The South Asian nation has been making efforts to boost foreign investment in order to reduce its reliance on foreign debt to support its fragile $350 billion economy. There has recently been a surge in economic engagements between Pakistan and Saudi Arabia, United Arab Emirates, Uzbekistan, Azerbaijan and other nations.


Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

Updated 1 min 49 sec ago
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Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

  • The Wolf Prize is an international award granted in Israel to scientists, artists for achievements in ‘interest of mankind and friendly relations among people’
  • Lari, who works in the intersection of architecture and social justice, says declining the award was ‘the very least I could do’ given the situation in Gaza

KARACHI: Renowned Pakistani architect Yasmeen Lari has refused to accept the prestigious Wolf Prize 2025 in the field of architecture over the “continuing genocide” of Palestinians in Gaza, she confirmed on Tuesday.
The Wolf Prize is an international award granted in Israel since 1978 to living scientists and artists for their “achievements in the interest of mankind and friendly relations among people.”
It is awarded in six fields, including agriculture, chemistry, mathematics, medicine, physics, and an arts prize that rotates between architecture, music, painting and sculpture.
Lari, who works in the intersection of architecture and social justice, wrote to Wolf Foundation that she was grateful for the honor, but could not accept it “in view of the unfortunate continuing genocide in Gaza.”
“I declined the award because of the ongoing genocide in Gaza, a reason I explicitly stated in my response to them. Given the current situation in Gaza, accepting the award was out of the question,” she told Arab News.

Pakistani architect Yasmeen Lari speaks during an interview with Arab News at her office in Karachi on July 20, 2024. (AN Photo/File)

The development came as Israeli fire killed eight people in the Gaza Strip in the past 24 hours, Palestinian officials said on Tuesday, even as a fragile ceasefire with Hamas has largely held. Israel last week suspended supplies of goods and electricity to the territory of more than 2 million Palestinians as it tries to pressure Hamas to accept an extension of the first phase of their ceasefire, which ended on March 1.
Israel wants Hamas to release half of the remaining hostages in return for a promise to negotiate a lasting truce. Hamas instead wants to start negotiations on the ceasefire’s more difficult second phase, which would see the release of remaining hostages from Gaza, the withdrawal of Israeli forces and a lasting peace. Hamas is believed to have 24 living hostages and the bodies of 35 others.
Israel’s war on Gaza, which began after Oct. 7, 2023 attacks by Hamas, has killed more than 48,000 Palestinians, a majority of them women and children. The 15-month Israeli military campaign has laid waste to the Gaza Strip, destroying hospitals, schools and entire residential neighborhoods.
“Declining the award was the very least I could do,” Lari told Arab News.
Lari is known for her socially conscious works on humanitarian grounds and for catering to the spatial needs of Pakistan’s most marginalized communities. She co-founded the Heritage Foundation of Pakistan with her husband, Suhail Zaheer Lari, in 1980, and has constructed over 50,000 sustainable self-built shelters and over 80,000 ecological cooking stoves using natural materials like mud, lime, and bamboo.
The philanthropic architect, who advocates that traditional construction techniques can lead to low-impact carbon-neutral buildings, was awarded the prestigious Royal Institute of British Architects Royal Gold Medal in 2023 for her humanitarian work.


Pakistan police arrest three after father commits suicide over forced marriage of minor girl

Updated 11 March 2025
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Pakistan police arrest three after father commits suicide over forced marriage of minor girl

  • The 11-year-old was forcibly given in marriage by a village council in Dera Ismail Khan to settle a dispute
  • Police say neither the girl’s father nor villagers reported the incident on time to help prevent it

PESHAWAR: Police have arrested three suspects and members of a local Panchayat (village council) in connection with the forced marriage of a minor girl under Vani, a tribal custom used to settle feuds, in a remote area of Khyber Pakhtunkhwa, according to a senior police official and a local elder.

The incident, which took place in the Bhagwani Shumali area of Paharpur, the main town in Dera Ismail Khan district, involved an 11-year-old girl from a low-income family being forcibly given in marriage to resolve a dispute last Friday.

Vani is an illegal practice where minor girls are handed over as compensation in cases involving murder or allegations of illicit relations.

Gohar Ali, Superintendent of Police (SP) for the Paharpur region, told Arab News that police acted swiftly upon receiving audio messages from the girl’s father, whom he identified only by his first name, Adil, and who died by suicide following the Panchayat’s decision.

Adil, a local barber, ingested poisonous pills after recording distressing audio messages naming the accused.

“The police immediately launched raids, rescued the minor girl and handed her over to her family,” the police officer said. “Three main suspects identified by the deceased person have been arrested, along with two members of the Panchayat. Additionally, Rs600,000 [$2,144] extorted from Adil by the makeshift council has been recovered,” the police officer added.

Malik Inayatullah, a local elder and chairman of the village peace committee, told Arab News he witnessed how the entire incident unfolded.

“The deceased left behind six daughters, including the one given to the rival family under the custom of Vani, and had no male child,” he said.

“The decision of the Panchayat is regretful,” Inayatullah continued. “It has not only robbed a young girl of her future but also cost her father his life. We have already extended our support to the girl’s family and will provide all possible help to rebuild their lives.”

The local elder said the dispute began when a local landlord accused Adil’s nephew of having illicit relations with the daughter of an influential figure in the area.

The latter convened the Panchayat before abducting Adil, subjecting him to torture and forcing him to sign a stamp paper agreeing to give his daughter in Vani to settle the matter.

“Neither Adil nor any villagers reported the incident to the police [on time], which could have prevented this tragic outcome,” police officer Ali said.

He said police were now investigating the case from multiple angles to ensure justice is served to the aggrieved family.


PM expresses satisfaction over progress as IMF in Pakistan for first review of loan program

Updated 17 min 46 sec ago
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PM expresses satisfaction over progress as IMF in Pakistan for first review of loan program

  • An IMF mission is currently in Pakistan to analyze Islamabad’s progress on key conditions as part of first review of its $7 billion program
  • Shehbaz Sharif says the program is vital to Pakistan as its federal reserves, inflation, banking system and policy rate are all linked with it

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday expressed satisfaction over Pakistan’s progress regarding an ongoing International Monetary Fund (IMF) program and macroeconomic stability in the country.
The South Asian country, which has faced an economic meltdown in recent years, is treading a long path to economic recovery under a $7 billion IMF program it secured in Sept. last year.
An IMF mission is currently in Pakistan to analyze Islamabad’s progress on key conditions as part of first review of the facility. A successful review will result in the release of around $1 billion to Pakistan as second installment under the program.
Speaking to his cabinet members, Sharif said the ongoing negotiations with the IMF were “satisfactory” and moving forward in a good manner.
“The IMF mission is here [in Pakistan]. The foreign minister and his team, and other ministers are holding talks with it,” the prime minister said in televised comments.
“I believe this program is important for our growth because our federal reserves, inflation, core inflation, your banking system, lowering of policy rate, all these are linked with this.”
Finance Minister Muhammad Aurangzeb last month said they were confident of meeting targets of the IMF program. Pakistan was able to build some trust with the IMF by completing a short-term, nine-month program last year.
Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions.
Sharif said Pakistan’s growth was vital to meeting these conditions and for that, agriculture, industries, commerce, finance, IT, mines and minerals and maritime sectors were of great significance, hoping his cabinet’s members would transform their ministries to this effect.
“A complete transformation of railways is required. Similarly, there is huge potential in maritime,” he said.
“There would be a review of our ministries every three months, I will sit with you and the results of the review will be presented before the nation.”


Pakistan sets sights on record $36 billion remittances this year

Updated 11 March 2025
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Pakistan sets sights on record $36 billion remittances this year

  • Pakistan recorded year-on-year growth of 38.6 percent in remittances with record inflows of $3.1 billion in February, central bank said on Monday
  • Among factors driving up remittances are reforms to curb illegal foreign exchange trading and incentives implemented by the central bank

KARACHI: Pakistan hopes to receive record $36 billion remittances this fiscal year through June, the finance minister said on Tuesday, as the South Asian nation seeks to boost its foreign exchange reserves in line with the tough conditions of an International Monetary Fund (IMF) loan program.

The lender wants Islamabad to increase its foreign exchange reserves to a level that can finance three months of imports. Presently, the country holds $11 billion reserves, providing two months of import cover.

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments.

Pakistan recorded year-on-year growth of 38.6 percent in remittances with record inflows of $3.1 billion in February, the central bank said on Monday.

“In this fiscal year [2024-2025], we will again complete it at an all-time high,” Finance Minister Muhammad Aurangzeb said in a televised speech. “At this moment, our estimate is that about $36 billion remittances inflow will come into the country.”

In February 2025, according to central bank data, Pakistan received its highest inflows from Saudi Arabia, $744.4 million, followed by the UAE, which contributed $652.2 million. Remittances received from the United Kingdom and the United States stood at $501.8 million and $309.4 million respectively.

“Cumulatively, with an inflow of $24 billion, workers’ remittances increased by 32.5 percent during July to February FY25 compared to $18.1 billion received during July to February FY24,” the central bank said in a statement. 

Among factors driving an increase in remittances are reforms that have curbed illegal foreign exchange trading and incentives implemented by the State Bank of Pakistan. Decreased global inflation rates have encouraged Pakistani migrants to send more money back home. 

Families in Pakistan are also relying more on financial support from relatives working abroad due to inflation at home.

Pakistan’s consumer inflation rate slowed to a near decade low of 1.5 percent in February, largely due to a high year-ago base. That was below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May 2023.

The central bank’s policy committee said on Monday it expected inflation to fall further before gradually inching up and stabilizing within the state bank’s 5-7 percent target range.

The state bank kept its forecast of full-year GDP growth at 2.5 percent to 3.5 percent and said it expected economic activity to gain further momentum.

Pakistan’s economy grew by 0.92 percent in the first quarter of the fiscal year 2024-25 which ends in June.

On Monday, the central bank unexpectedly halted its easing cycle, keeping its key policy rate at 12 percent, saying there could still be price risks including from an escalation in global tariffs even though inflation was falling for now.