Pakistan to Invite PayPal, Alibaba to Start E-Commerce Services

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By Agence France-Presse | Updated: 26 November 2015 09:57 IST

Pakistan is set to invite global online payment giants PayPal and Alibaba to offer their services in the country, the IT ministry has said, after easing its e-commerce rules.

The move follows a decision by the global Financial Action Task Force to remove Pakistan from its list of high-risk and non-cooperative jurisdictions linked to money laundering.

Neither US-based PayPal nor Chinese e-commerce giant Alibaba (which operates a service called Alipay) currently work inside Pakistan, which had strict regulation until recently limiting online payments for services.

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Local vendors instead offer cash-on-delivery options.

Pakistan's junior minister for information technology Anusha Rahman said in a Monday statement that following the central bank's decision to announce new rules for e-commerce, the government would "solicit mechanism to coordinate with international e-commerce players such as PayPal, Alibaba etc encouraging them to establish their setup to enable e-commerce services in Pakistan."

Pakistan has a growing IT industry that mainly provides outsourcing services in the form of coding to major Western clients.

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IT exports, which account for around 10 percent of total services experts, are currently worth $2.2 billion (roughly Rs. 14,612 crores) annually, with the government aiming to increase the figure to more than $5 billion (roughly Rs. 33,213 crores) by 2017.

The country of about 200 million people launched high-speed mobile internet services last year, with the subscriber base now totalling around 18 million. There are also around 21 million broadband Internet subscribers, according to official figures.

 

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