Pakistan’s E-commerce Spending Surges in 2023: ADB Report

Islamabad:The Asian Development Bank (ADB) has released its Pakistan Digital Ecosystem Report for 2023, revealing a record surge in online shopping by Pakistanis. The report highlights that Pakistanis spent a staggering \$10.42 billion on e-commerce, with \$5.45 billion spent on products and \$4.3 billion on services.

### E-commerce Expenditure Breakdown

Electronics led the charge in product spending, accounting for \$3.25 billion. Fashion followed with \$1.06 billion, while beauty products saw \$320 million in purchases. Food-related items and pharmaceuticals contributed \$170 million and \$110 million, respectively.

### Services Spending

Service-based purchases also saw significant expenditure. Pakistanis spent \$2.3 billion on airline tickets, \$240 million on train tickets, \$187 million on car rentals, \$690 million on hotels, and \$620 million on holiday packages.

### Subscription Media

The report further revealed that Pakistanis spent \$590 million on subscription-based media, including streaming services and digital entertainment platforms.

### Payment Methods

Interestingly, the report pointed out that over 90% of e-commerce transactions in Pakistan are made via cash on delivery. This indicates a lack of trust in online payment methods, as consumers remain hesitant to make payments in advance.

The ADB report underscores the rapid growth of Pakistan’s e-commerce market, while also highlighting challenges such as low trust in digital payment systems, which continue to be a barrier to the full potential of online shopping in the country.