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Pakistan’s e-commerce sector is experiencing a digital revolution, reaching a staggering $10.42 billion in 2025, according to the Asian Development Bank’s (ADB) Pakistan’s Digital Ecosystem: A Diagnostic Report (July 2025). With projections estimating growth to $12 billion by 2027 at a 17% CAGR, Pakistan is poised to become a key player in the global digital economy. But what’s driving this boom, and what challenges must be addressed to sustain it? This article dives into the ADB’s findings, unpacking the opportunities, hurdles, and strategies for businesses, SMEs, and women entrepreneurs to thrive in Pakistan’s e-commerce landscape.

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For the first time, key players and operations in the eCommerce ecosystem are formally defined in Pakistan’s Sales Tax Act, 1990, including:

• E-Commerce: Sale or purchase of goods/services over digital networks (websites, apps, online marketplaces).
• Online Marketplace: Platforms facilitating digital orders from multiple sellers to multiple buyers.
• Payment Intermediary: Entities like banks, fintech apps, or payment gateways processing financial transactions.
• Courier: Any entity delivering goods and collecting cash on behalf of sellers (includes logistics companies, ride-hailing, and food delivery platforms).

Final Finance Bill 2025: What It Means for Pakistan’s eCommerce Sector: The Government of Pakistan has officially approved the Finance Bill 2025, ushering in a sweeping set of reforms across income tax, sales tax, customs, and digital services regulation. Among the sectors most directly impacted is eCommerce — which now faces new compliance requirements, tax liabilities, and structural definitions under law. Here’s a detailed look at the key updates for...

Pakistan’s Digital Shift: 20 Game-Changing Updates You Should Know in June 2025.1. What Is the Role of PEA and CAP in Fighting E-Commerce Taxes in Pakistan? The Pakistan E-Commerce Association (PEA) and Chainstore Association of Pakistan (CAP) have taken a united stance against the sudden and harsh taxation policies targeting online sellers in the Finance Bill 2025–26. Both organizations have conducted press conferences in Lahore and Karachi, attended by major...