Pakistan’s e-commerce sector has moved past the hype cycle. After years of venture-backed experimentation, consolidation, and more than a few high-profile shutdowns, the market is now entering a phase defined less by fundraising announcements and more by operational execution. The platforms that survived the correction of 2022–2023 are the ones that figured out unit economics—and the ones building sustainable businesses around categories that Pakistani consumers actually buy repeatedly.
The Numbers Behind the Shift
According to the State Bank of Pakistan, e-commerce transactions reached PKR 289 billion in FY2024, reflecting year-on-year growth of approximately 30 percent. Statista projects the Pakistani e-commerce market to generate $7.9 billion in revenue by 2026, with user penetration reaching 48 percent. These figures, while impressive in isolation, still represent a fraction of total retail spending—estimated at $152 billion annually—which underscores the runway available for digital platforms.
What is more telling than aggregate revenue is the category-level data. Fashion and electronics dominated early Pakistani e-commerce, following the global pattern. But since 2023, grocery, health, beauty, and baby care have emerged as the fastest-growing verticals. These are high-frequency, repeat-purchase categories with strong basket-building potential—exactly the kind of transaction profile that supports profitable operations at scale.
Digital Payment Infrastructure: Finally Reaching Critical Mass
The payment landscape has undergone a structural transformation. The State Bank’s Raast real-time payment system, launched in 2022, has processed billions in transaction volume and established an interoperable framework that connects banks, fintechs, and mobile wallets. JazzCash and EasyPaisa collectively serve over 80 million accounts. Debit card penetration has improved, and “buy now, pay later” products from companies like QisstPay have introduced installment purchasing to a consumer base previously locked into cash transactions.
This matters for e-commerce profitability because digital payments reduce the operational cost of cash-on-delivery—historically Pakistan’s dominant payment method and a significant drag on margins. Platforms report that digital payment orders have 15 to 20 percent lower return rates compared to COD, and the data generated from digital transactions enables better inventory forecasting and personalised marketing.
The Multi-Category Platform Model
One of the more interesting strategic developments in Pakistani e-commerce is the rise of multi-category platforms that combine grocery, pharmacy, beauty, and household essentials under a single digital storefront. This model mirrors the supermarket or hypermarket experience but with the added advantages of doorstep delivery, digital payment, and algorithm-driven product recommendations.
Naheed.pk exemplifies this approach. Originally a Karachi-based retail chain, the platform has expanded its digital presence to offer everything from skincare products online Pakistan shoppers seek to pharmacy essentials, groceries, and baby care—all accessible through a single checkout. The economics of this model are compelling: average order values increase when consumers can bundle purchases across categories, delivery costs are amortised over larger baskets, and customer lifetime value rises with purchase frequency. For the consumer, it eliminates the need to visit multiple stores or apps for weekly household needs.
Logistics: Pakistan’s Persistent Challenge
Supply chain and last-mile delivery remain the most significant operational hurdles for Pakistani e-commerce. The country’s logistics infrastructure was built for wholesale and industrial distribution, not for individual parcel delivery to residential addresses. Major cities lack standardised addressing systems, and road congestion in Karachi, Lahore, and Rawalpindi creates unpredictable delivery windows.
Platforms are addressing these challenges through multiple strategies. Dark stores—small, strategically located fulfilment centres in residential areas—reduce the distance between inventory and consumer. Route optimisation software, adapted for local road conditions and traffic patterns, improves delivery efficiency. Some platforms have invested in proprietary fleets rather than relying entirely on third-party logistics providers, giving them greater control over service quality and delivery timelines.
Cold Chain and Perishable Goods
The grocery category introduces additional complexity around cold chain management. Dairy products, fresh meat, and frozen foods require temperature-controlled storage and transport—infrastructure that is still limited in Pakistan. Platforms competing in this space are investing in insulated packaging, refrigerated storage at fulfilment centres, and tighter delivery time commitments to ensure product quality upon arrival.
Competitive Landscape and Market Dynamics
Pakistan’s e-commerce market has consolidated significantly since the funding slowdown of 2022. Several quick-commerce and grocery delivery startups have either shut down or been acquired. The surviving players generally fall into three categories: horizontal marketplaces with broad category coverage, vertical specialists focused on specific niches like fashion or electronics, and omnichannel retailers that leverage existing physical infrastructure to support digital operations.
The third category has shown particular resilience. Retailers with established brand recognition, supplier relationships, and physical store networks have been able to acquire digital customers at lower cost than pure-play startups, while also offering click-and-collect options that reduce last-mile delivery expense. This hybrid model appears well-suited to a market where consumer trust in online transactions is still developing.
Outlook
Pakistan’s e-commerce sector is at an inflection point. The foundational elements—digital payment infrastructure, smartphone penetration exceeding 50 percent, and a young, increasingly connected population—are in place. The remaining challenges are operational rather than structural: logistics efficiency, cold chain investment, and regulatory clarity around consumer protection and data privacy.
The platforms most likely to capture disproportionate value in the next phase of growth are those that combine category breadth with operational discipline—delivering not just products, but a consistently reliable experience that earns repeat purchases. In a market where brand loyalty is still being formed, execution quality will be the differentiator.
