In South Asia there is rapid development in e-commerce. Especially in the countries of India and Bangladesh. Pakistan also wants to appear on the list of these rapid developers. But their pace towards the development is very low. It is because of the less affective policy and framework.
Pakistan’s inefficient e-commerce framework
Pakistan’s e-commerce policy framework aims to adopt measures which could be useful for overall development and betterment of e-commerce in Pakistan. However, the polices could also end up to be ineffective and short-sighted in nature. Since the existing e-commerce situation in the country is actually having a negative impact on the overall economy from a trade perspective.
I will be quoting some of the main reasons which are responsible for this inefficiency. First of all, the Bootstrapping and lack of funding opportunities. It implies that founders and entrepreneurs have to initiate companies by utilizing their own resources and capital. The Bootstrapping in Pakistan also involves strict regulations on business start ups. Due to which initiation of any business is a difficult task in Pakistan.
One another problem is the import marketing. For example, we import a lot of goods and services from China. Products like dry fruits, clothing, mobile phones, pets, watches, fashion accessories etc. are being imported from China using online retail services and are being sold to the local market using advertisements on social media platforms. This situation is alarming as it promotes imports in an already bleak economic situation.
Payment problem is also one of the primary reasons that contributes to inefficient e-commerce policy framework. As Pakistan is not a member of PayPal. The only major option is the Western Union which is considered as the unsafe of transferring capital by many foreigners. Rather other escrow services must be taken into account for transfer of money.
These problems must be dealt with expertise in order to ensure an efficient e-commerce policy framework.