Amir Khan

A State Bank of Pakistan report has revealed that $8.93 million has been remitted out of Pakistan using video chat apps over the past two years. A senior official from the Ministry of Industries and Production told WealthPK that two types of apps – financial and video chat apps – have been successful in capturing the attention of Pakistan’s large smartphone user base.

A recent report by Data Darbar – a web portal tracking data of tech industry – revealed that the top eight chat room apps in Pakistan were downloaded approximately 157 million times between January 2018 and June 2023. This growth gained momentum during the Covid-19 pandemic, with installations reaching a peak of 12.1 million in the third quarter of 2020. The number of downloads has remained consistently above eight digits until the third quarter of 2022.

The Ministry of Industry and Production official explained that the leading video chat app in Pakistan was Likee, a Singaporean app with over 819 million downloads worldwide, of which 52.7 million were from Pakistan. “Bigo Live, also a Singaporean app, is a close second. However, China’s Snack Video has been the most popular app since January 2021, with more installations than the other two combined.” The SBP report said that an outflow of $8.93 million through these apps prompted the Pakistan Telecommunication Authority to consider banning them. However, no action has been taken as yet. A report by Data.ai – a provider of app analytical data - revealed that consumers spent over 548 billion hours on live-streaming apps in 2021. It said the live-streaming market was projected to reach $4.26 billion by 2028.

The popularity of these apps can be attributed to a number of factors, including gamification, which enhances user engagement, satisfaction and loyalty. Users can purchase virtual currency (beans) for as low as Rs300 to buy gifts for hosts, encouraging interaction. These apps allow content creators, predominantly female, to earn substantial income while maintaining anonymity through face-morphing features. Many streamers, often based in smaller towns, earn more than they would in jobs commensurate with their academic qualifications or the local labour market. It’s essential to note that the popularity of such apps is not unique to Pakistan but rather a global phenomenon, especially in developing countries. The apps analysed in the report have collectively garnered over 1.7 billion downloads worldwide during the review period.

Credit: INP-WealthPk