In Pakistan, telecommunication is essential for boosting e-commerce. E-commerce relies significantly on efficient communication links to enable transactions between consumers and sellers because it involves purchasing and selling goods and services online. The internet, a crucial instrument for conducting e-commerce, is now more accessible to individuals in Pakistan because of advancements in telecommunication.
The following are some ways that telephony has boosted e-commerce in Pakistan:
Enhanced internet accessibility: Pakistani citizens can now readily and economically access the internet thanks to advancements in telecommunication. This has made it possible for more people to engage in e-commerce through online buying and setting up their own online enterprises.
Better channels for communication: Telecommunication has made it possible for buyers and sellers to communicate more effectively, which is essential for successful e-commerce transactions. This includes messaging services like chat, email, and mobile messaging that make it simple for customers to ask questions about items, place purchases, and get support from vendors.
Telecommunication has facilitated the development of online payment systems in Pakistan, which have made conducting e-commerce transactions simpler and safer for customers. These payment methods, which support safe and practical transactions, include internet banking, e-wallets, and mobile money.
Delivery and logistics: Telecommunications have contributed to the improvement of Pakistan’s delivery and logistics services. This includes the creation of online systems that let vendors manage their inventory and deliveries and the use of GPS technology to track shipments.
The development of online payment systems, increased internet access, better communication channels, and improved delivery and logistics services have all contributed to the promotion of e-commerce in Pakistan.
Telecommunication and E-commerce in Pakistan
The social, economic, and environmental dynamics around the world have undergone remarkable change as a result of industrial revolutions. The world has experienced incredible growth through the previous three industrial revolutions, but the fourth industrial revolution, which is about to begin, will reshape social and developmental facets of life. Since the early 1990s, when cellular mobile phones first became available, Pakistan Telecom has made significant strides in achieving the milestones required to capitalize on the fourth industrial revolution. E-Commerce is a crucial driver of digitization among many other advances in numerous economic sectors.
The telecom industry is the backbone of modern communications. It provides the infrastructure for voice, video, and data transmission, which are essential to a thriving economy. Businesses that depend on these services need all the help they can get in order to stay competitive, and those that want to stay competitive will need to adapt as well. One way to do this is through new technology that makes it easier for customers to interact with your business and vice versa.
Up from 250,000 in 2004, Pakistan had 153 million cellular subscriptions in 2018 together with 61 million 3G/4G data subscriptions. The previous four years have seen a dramatic growth in the telecom business. The transition of Pakistan into the digital century is currently being led by all of the country’s telecom carriers.The number of memberships skyrocketed, significantly contributing to the digitization effort. We are all aware of how the Internet advances our ability to work, live, enjoy ourselves, and interact with people around the world. Hence, all telecom businesses that offer internet services aid Pakistan’s march toward digitization both directly and indirectly.
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Regulations on the Framework for Payment System Operators (PSO) and Payment Service Providers (PSP) have been prepared and authorized by the State Bank in order to boost e-Commerce and financial services in Pakistan. The Ministry of Commerce has also established a “e-Commerce Policy Board.” Such actions have attracted some major international e-Commerce players to Pakistan, including Alibaba, which will serve as a global marketplace for domestic goods and foster e-Commerce there. According to the PTA annual report 2017, Pakistan’s e-Commerce market is currently worth $60–100 million (2015) and is projected to grow by ten times, or up to $ 1 billion, by 2020.The consumer behavior in Pakistan has altered significantly as a result of numerous Business to Consumer (B2C) start-ups in the private sector. Although though the e-Commerce sector has grown significantly over the past several years, it still relies heavily on cash, as evidenced by the fact that 95% of e-Commerce transactions are completed on a cash-on-delivery basis. Internet retailers like olx.com, daraz.pk, shophive.com, homeshopping.pk, and goto.com, among others, have established the model for many new enterprises in Pakistan. The prospects for e-Commerce have been further enhanced by the concept of discounts and promotional deals on numerous occasions. Several user-friendly websites have been developed based on the idea of online buying and selling that allow users to post their movable or immovable items for sale.
About 41 million of Pakistan’s 200 million citizens have access to the internet, and only 5 million of them shop online through the country’s 2000 e-retailers.
The market size and numbers are modest when compared globally, yet they have growing potential. The software industry is progressing easily in terms of Business to Business (B2B) e-Commerce. It wants to reach a target of $5 billion by 2020 with a size of roughly $530 million.
Role of different Telecom companies in e-commerce
According to the most recent data from the GSMA and World Bank, a 1% increase in mobile phone subscriptions accelerates GDP growth by 0.28 percentage points. The upside is that by providing jobs for women, unskilled employees at home, people living in remote locations, and others who lack formal education, the digital economy is giving Pakistan a blueprint for inclusive and sustainable prosperity.
Jazz has provided several insights that have aided in the digital transformation. You may pay all of your utility bills from your couch with a Jazz Cash Mobile account. It also enables you to buy train tickets in addition to that. In order to manage employee transportation and increase worker agility, Jazz has teamed with Careem.
Additionally, Telenor is the first operator to introduce branchless banking with Easypaisa for the 85 percent of the population that is neither fully nor adequately banked in the nation. By removing obstacles to advancement, Easypaisa online payment has advanced the nation’s e-commerce sector. Similar to how Zong has been quite active in providing several mobile services to help its subscribers. Zong currently has the most extensive 4G coverage in the nation, delivering a variety of services with extremely fast broadband connectivity.
In addition, to quickly transform the IT and allied sectors of Pakistan’s economy, the Ministry of Information Technology and Telecommunications (MoIT) developed the Digital Pakistan Policy. This policy’s main goal was to take into account a comprehensive knowledge-based economy and the rapidly changing role of information technology (IT) across all spheres of socioeconomic growth. Also, the policy gave local business owners and organizations the chance to develop the essential skills, reputation, and experience needed to compete globally. Also, the digital ecosystem in Pakistan was initiated by the Ministry of IT and PTA with the active participation of all stakeholders.
Pakistan’s digitization push has benefited greatly from ongoing sustainable development, expedited digital initiatives, research and developments, Software Technology Parks, subsidized bandwidth, international marketing, international certifications, internships, and training. Additionally, there are other incentives that have a big impact on Pakistan’s digitization. These incentives include tax exemptions for startups, 100% equity ownership, 100% profit repatriation, and tax breaks for IT and ITeS export revenues. These are a few of the areas where the Pakistani digital drive has been accelerated.
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Although Pakistan is making every attempt to compete worldwide in the fourth industrial revolution, there are still several obstacles that must be overcome. It is necessary to ensure consumer and seller safety for e-commerce transactions in terms of the caliber and dependability of the products as well as payments. To enhance online sales and business opportunities, it is also necessary to offer secure, low-cost internet connectivity throughout the nation. To the satisfaction of users and in accordance with international standards, the overall e-Commerce infrastructure needs to be developed and made reliable.