Scope of e-Shopping in Pakistan

Abstract

The number of Internet Users in Pakistan is growing very fast. According to Pakistan Telecommunication Authority (PTA), the total number of Internet Users in Pakistan is 18.5 million which include 643,892 broadband users and counting. There are more than 50 Internet Service Providers in Pakistan as of Nov 2009. A major development for broadband market is the introduction of DSL services by the incumbent PTCL) itself. PTCL has started offering its DSL services since June 2007 in various cities e.g. Islamabad, Peshawar, Lahore and Karachi. PTCL offered low tariffs for home users with free installation service. This has affected tariffs offered by other DSL operators as they have also lowered. In Pakistan, e-commerce is still in its infancy and faces many barriers to grow. The notable barriers are: unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power etc] limited user of internet hardly one per cent of the entire population have access to the internet], the issue of security of transactions on the internet, high prices, credibility of Online Stores, and last but not the least, consumer behavior. There is lack of awareness about e-commerce in Pakistani entrepreneurs. They are of the opinion that e- commerce means being able to make and receive payments through internet and any other activity through internet is not considered as e-commerce. This low level of understanding has led many Pakistani firms to give low priority to e-commerce due to unavailability of proper framework for the internet in the country. Most companies are eager to going to the digital world, but at present, due to absence of any policy framework and limited internet market, companies are holding their plans to start e-business until clouds of barriers as discussed are disappeared.