Muhammad Saleem

Crossborder e-commerce has a great potential to bring the much-needed forex exchange to Pakistan. However, multiple challenges like the absence of an affordable logistics infrastructure, efficient payment gateways, and strict regulations hinder the growth of this sector. Talking to WealthPK, Aaisha Nasir, who deals in handicrafts, said the e-commerce sector could play a key role in earning foreign exchange, but the absence of an international payment gateway was a major stumbling block. She said only 1 to 2 percent of local customers paid digitally. On the contrary, international clients are not ready to trust the Pakistani systems and demand international online payment systems like PayPal. It is the government’s responsibility to provide services so that the local products could gain success internationally. Scores of Pakistani entrepreneurs have to set up their accounts on Amazon, eBay and other platforms to tap into the potential of international customers. Consequently, she said, they had to bear huge monthly expenses.

To strengthen our national economy, she said the rulers had to introduce merchant-friendly policies and affordable transportation of products to international clients, particularly in the US, the UK, Canada and Australia. “Without giving a boost to our national economy, we would continue to face immense pressure in ensuring jobs for our youth. Like the textile sector incentives, the government must introduce facilities for the e-commerce sector to boost exports,” she said. Aaisha Nasir emphasized that the international clients were highly concerned about their data privacy, and we must assure them through the government actions that placing orders on the Pakistani platforms would protect their data in accordance with the international laws. Crossborder e-commerce is the future and must cash in on the situation, she said. Mohsin Ali, who is earning through digital marketing, told WealthPK that the government was claiming that Pakistan’s digital infrastructure was expanding by leaps and bounds, but the measures being taken by the rulers to control the social media will be counterproductive.

During a couple of days, he said freelancers and other businesses attached to the digital world faced difficulties due to the slow internet speed. Nobody seems ready to tell why the internet speed is fluctuating. He said the government’s decision to restrict the social media expansion will backfire and people earning through the digital world would suffer. “Building trust in online shopping is crucial for success, but we are losing the ground after years of hard work. We are trying to persuade the government to encourage digital payments to broaden the tax net. Only tax collection and businesses can help Pakistan get rid of the current economic crisis. Like other sectors, cross-border e-commerce has immense potential to create jobs,” he said. He urged the policymakers to address the cash culture, digital divide, and regulatory challenges. Policymakers can easily pave the way for a digital payment culture through e-commerce, and they should sit with the people engaged in the e-commerce business and guide them on how to educate and incentivize customers to use digital payments. Mohsin Ali said e-commerce was a goldmine and that Pakistani products had the potential to compete internationally.

Credit: INP-WealthPk