Daraz, a leading online marketplace operating in Pakistan, has brought to the forefront significant issues related to cross-border payments. During a high-level meeting with Finance Minister Ishaq Dar on Wednesday, Ehsan Saya, Managing Director of Daraz, along with a delegation, discussed these operational challenges in detail.
(more…)Tag: e-Commerce
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Amazon registers over 6,000 Pakistani sellers
ISLAMABAD: Over 6,000 Pakistani sellers have been registered on Amazon platform, the leading global e-commerce giant, according to a press release issued on Tuesday.
This was revealed by Pakistani Ambassador to the United States Masood Khan in the press release issued from Washington DC.
He said that more than 6,000 sellers from Pakistan were registered last year on Amazon platforms after the leading global e-commerce giant opened seller registration for the country.
“This was a significant breakthrough for Pakistan providing much-needed international online business exposure to the country,” he continued.
“According to Amazon, these sellers have done good, steady business over the past few months. This is just a beginning, with a promise of huge expansion,” continued the Ambassador of Pakistan.
He said the volume of Amazon-supported businesses would grow exponentially with better networking and integration with US online platforms.
He was addressing a 35-member delegation of Washington Intergovernmental Professional Group (WIPG) who interacted with him at the Embassy on August 23, 2022.
WIPG helps professionals in maximizing their network, realizing their full potential and delivering value to various stakeholders. It also assists companies, associations and organizations to connect with the right kind of workforce to achieve organizational goals.
The delegation comprised former governor of Puerto Rico Luis Fortuno, WIPG President Nelson Garcia, economists, government officials, presidents and CEOs of corporations, entrepreneurs, investment fund managers, legal experts and diplomats.
The Ambassador said that better networking among Pak-US professionals, IT experts, businessmen, entrepreneurs and corporate leaders would create win-win solutions for the two countries and would help meet the growing needs of US economy.
“In past two decades, the two countries remained focused on tackling security issues in the region. These decades of lost economic and business opportunities for Pakistan need to be substituted with massive investment and commercial activities”, emphasized the Pakistan envoy.
Masood Khan said that with a 220 million population with its 100 million middle class, 130 million youth below the age of 30 years, 110 million mobile broadband subscribers and a tech savvy young human capital, Pakistan provides ideal conditions for the US investors and entrepreneurs to explore, invest and expand their businesses not only to Pakistan but to the Central Asia, West Asia, Middle East and North America.
Highlighting the remarkable growth of start-ups and tech sector in Pakistan during past few months, the Ambassador said that the tech sector of the country was taking off and poised to serve the entire region.
The Ambassador said that all efforts were being made to create strong linkages at all levels including government-to-government, business-to-business and most importantly people-to-people contacts.
Our diaspora, he said, is the most reliable and resilient connecting tissue binding the two countries and its people together.
We have to work together to further strengthen our partnerships in all possible areas including trade, investment, health, energy, climate change, green and renewable energy and agriculture.
The Ambassador thanked the Washington-based group for exploring ways to integrate Pak professionals with their peers in America.
Pakistan, he said, had a growing reservoir of a capable workforce. Later, the Ambassador responded to the questions of the participants about business opportunities in Pakistan, Pakistani exports to the US including rice and the security situation in South Asia.
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KCCI proposes sales tax exemption to e-commerce
Karachi Chamber of Commerce and Industry (KCCI) has proposed sales tax exemption to e-commerce retailers to promote online business transactions in the country.
The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) said that through Clause 3(1)(c) a new Clause (18A) under Section 2 whereby a definition of Online Market place has been inserted which brings the entire Online shopping and E-Commerce sector within the scope of 17 per cent Sales Tax and other levies.
READ MORE: Withholding tax on raw material import should be adjustable
The chamber said that a large number of educated youth and start-ups have found productive employment through E-Commerce and Online Sales in Pakistan.
By imposing high rate of Sales Tax at 17 per cent plus other taxes by new provision will cap the potential of E-Commerce and result in failure of many new entrepreneurs.
READ MORE: KCCI suggests VAT removal for commercial importers
The KCCI proposed online retailers having turnover less than Rs50 million should be exempt from sales tax to support the MSMEs, startups and women entrepreneurs conducting retail sales other than established brand products who are already in normal sales tax regime.
Giving rationale, the KCCI said that it will promote E-Commerce which has far more potential to increase the volume of online sales.
E-Commerce and start-ups have the capacity to employ educated youth, women entrepreneurs and contribute to GDP growth.
READ MORE: FPCCI demands CNIC condition withdrawal
Earlier, the chamber proposed that the withholding income tax at import stage on raw materials should be adjustable against actual liability.
The concept of minimum withholding tax on import of raw materials may be phased out.
Further, distinction should be made between importers of finished goods and raw materials who mainly cater to the industry and are fully documented.
Giving rationale to the proposals, the KCCI said commercial importers who are a major source of revenue will be able to resume their business and contribute to revenue as well as promotion of SMEs.
READ MORE: FBR urged to wave further tax on providing CNIC number
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FBR asked to facilitate startups, e-commerce
ISLAMABAD: Federal Board of Revenue (FBR) has been asked to facilitate startups and e-commerce across border exporters in the country.
Special Assistant to the Prime Minister (SAPM) on E-Commerce, Senator Aon Abbas Buppi on Tuesday issued the directives at a meeting with FBR Chairman Dr. Muhammad Ashfaq.
The SAPM also stated that startups is a growing economy and this segment needs all the facilitation by the government to promote digital economy and promoting e- Commerce, said a press release issued here.
READ MORE: FBR slashes sales tax rates on petrol, HSD
Aon Abbas Buppi specifically asked to abolish minimum turnover taxes for new startups to provide a conducive business environment for them.
SAPM discussed with the FBR chairman to offer facilitation for startups and e-Commerce cross border exporters, Chairman FBR agreed to work on proposals from SAPM and assured that FBR will work along with the Ministry of commerce to create a conducive environment for the e-commerce ecosystem.
Meanwhile Special Assistant to the Prime Minister (SAPM) on E-Commerce said the government has built the first e-commerce university in the country and is pursuing a revolutionary program to provide skilled labor in the sector.
READ MORE: FBR to re-notify property values on February 01
The e-commerce university will start its work by March 2022, which will provide affordable and quality education to the students. The country needs standard e-commerce university time.
He said that the government of Pakistan Tehreek-e-Insaf (PTI) has introduced the first e-commerce policy in October 2019, which would create new avenues of employment opportunities for the youth of the country.
Aon Abbas said that E-Commerce policy provides communities with a guideline on how they can take advantage of this innovative opportunity.
He said the country currently has more than 50 percent youth population for whom there would be huge job opportunities in the e-commerce sector.
READ MORE: FBR extends date for filing sales tax return
SAPM said that Prime Minister Imran Khan has given us a target to open 10 million new jobs through the e-commerce sector.
He said that 10,000 new companies have to be opened and 10,000 new people have to be trained to create more manpower in this sector.
He said that at present the global market for e-commerce is $30 trillion, of which Pakistan’s share is very small.
It has $4 trillion in Business to Business and $4 trillion in Business to Companies trade.
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foodpanda demonstrates Pandafly drone at Dubai Expo
KARACHI: foodpanda has exhibited Pandafly drone at the Pakistan Pavilion in Dubai expo. foodpanda Pakistan’s leading food delivery company and is also the largest e-commerce platform.
The event is a testament to foodpanda’s commitment to grow and innovate through adoption of disruptive technology, as well as showcase the tremendous support and an enabling environment offered by the Government of Pakistan for continued growth and investment in the technology sector.
The use of these disruptive technologies by foodpanda, and other companies, in the future will mean faster deliveries over longer distances. Further customers living in peri-urban and remote areas will especially benefit through enhanced choice and competitive pricing.
Speaking at the event in Dubai, Nauman Sikandar Mirza, CEO of foodpanda stated: “We are very excited to be present at the Pakistan Pavilion to showcase our state of the art drone for food delivery.
“The support from the Government of Pakistan has been tremendous and our presence at this event has shown it to the world that Pakistan is open to testing innovative technologies and encourage investment in the technology and e-commerce sector.”
Hassan Afzal Khan, Pakistan’s Consul General in Dubai was also present at the event. Expressing his views, he said, “E-commerce and the use of technology to serve the citizens is definitely the future.
foodpanda’s use of innovative technologies for food delivery is highly impressive, and featuring it at the Dubai Expo was indeed a great idea. We wish foodpanda all the best in now turning this pilot project into a regular operational service.”
Also present at the event was Dr. Erfa Iqbal, Chairperson Punjab Board of Investment and Trade. While sharing her thoughts she said, “I am delighted to see that through e-commerce we are able to increase the overall economic activity and bring in financial inclusion, economic empowerment and socioeconomic uplift of the country and foodpanda is at the forefront of it. With this disruptive technology we are paving way for deliveries of the future where speed and convenience of customers are ranked at the highest level. As a country we still have a long way to go and thus, we need to keep on advancing on our efforts to create favorable business environment and make such technological revolution possible.”
The event was also attended by dignitaries, representatives of the media, corporate stakeholders from the MENA region, some celebrities and social media influencers.
Earlier in November, foodpanda launched the successful pilot project to test food delivery through Pandafly, the customized drone. Carried out in association with the Government, using a first of its kind drone built locally for commercial purposes in partnership with Woot Technology, the test flight took place in the F-9 Park Islamabad.
A food package weighing approximately 2.5 kgs was flown over 500m by the drone – with first and last mile of the delivery conducted by foodpanda’s very own riders.
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Pakistan offers huge potential for e-commerce: PM Imran
ISLAMABAD: Prime Minister Imran Khan has said that Pakistan offered huge potential for e-commerce which will generate employment opportunities and help in economic growth.
The prime minister expressed these views in a meeting with Group CEO of Daraz (online E-Commerce platform) Bjarke Mikkelsen.
The Prime Minister Imran said that the government is providing full support to foreign investors under the ‘ease-of-doing-business’ policy.
CEO Daraz Bjarke Mikkelsen expressed interest in further investment and expansion of e-commerce in Pakistan.
Advisor Finance Shaukat Tarin, Chairman Special Technology Zones Authority Amir Hashmi, Senator Aon Abbas Bappi, MD Daraz Ehsan Saya and Emmad Khan from Daraz were present during the meeting.
About Daraz
Daraz is the leading online marketplace in South Asia, empowering tens of thousands of sellers to connect with millions of customers. Daraz provides immediate and easy access to 10 million products in more than 100 + categories and delivers more than 2 million packages every month to all corners of its countries.
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Mobilink Bank, Daraz facilitate women entrepreneurs
KARACHI: Mobilink Microfinance Bank Limited (MMBL) and Daraz Pakistan have joined hands to facilitate MMBL borrowers specifically women entrepreneurs, by enabling them to become sellers on Daraz.
Through this collaboration, MMBL and Daraz will provide adequate opportunities to promote Small and Medium Size Enterprises (SMEs), more so now as the e-commerce platform is going through an all-time boom via the 11.11 sale.
Both the organizations are firmly committed to promoting women’s financial inclusion through the provision of enabling digital financial ecosystem that contributes directly towards empowering this underserved, yet influential segment, which comprises almost half of the country’s population.
MMBL’s flagship program, Women Inspirational Network (WIN), and Daraz’s Ibtida would together provide an incredible boost to our joint mission of upskilling women entrepreneurs and provide them easy access to digitally equipped growth opportunities.
Sharing his enthusiasm, Ehsan Saya, Managing Director at DarazPakistan, said: “We strongly believe women are not only the cornerstone of our society but instrumental in securing a better future for Pakistan. One of the most amazing things about our platform is how easily female entrepreneurs can sell their products all over Pakistan – empowering them is the epitome of uplifting communities.”
This partnership will allow freshly onboarded MMBL female sellers to be charged zero per cent commission for the first three months, giving them ample time to set up their businesses.
Moreover, female sellers from Daraz will be able to apply for MMBL loans at concessional rates.
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MCB Bank, UnionPay ink pact for e-Commerce
LAHORE: MCB Bank Limited has entered into an agreement with UnionPay International (UPI) to further facilitate e-Commerce businesses partnered with MCB e-Gate with access to UnionPay International’s globally recognized payment services.
Under this agreement, MCB Bank will be enabling partner eCommerce businesses to access UnionPay International as a payment scheme in the MCB eGate internet payment gateway service. Going forward,all eCommerce businesses that utilize the MCB eGate service will be able to receive patronage from UnionPay International Debit and Credit Cardholders who will now be able to conduct online payment transactions on their platforms.
The agreement was signed between Muhammad Azam Naeem, Business Head, Digital Banking, MCB Bank and Nadeem Haroon, Country Manager, UnionPay Pakistan at MCB House, Lahore. Shahzad Ishaq, Group Head, Consumer & Digital Banking, MCB Bank, Jasim Ahmed Waheed, Department Head Acceptance, Digital Banking, MCB Bank, Umer Qasim, Product Manager eCommerce and Payment Gateway, Digital Banking, MCB Bank, Kashif Ali, Ali Abbas and Mehtab Haider from UnionPay International were also present at the ceremony.
Speaking at the occasion, Shahzad Ishaq said: “at the heart of all our digital initiatives is enhancing customers’ access to payments, convenience and ease of doing transactions. Simultaneously, we would enrich the value proposition provided to Bank’s eCommerce merchants.
“Through our agreement with UnionPay International, our partnering eCommerce merchants stand to benefit from the potential business with over 12 million UnionPay cardholders in Pakistan.”
James Yang, General Manager UnionPay International Middle East, also added: “UnionPay has the world’s largest cardholder base issued across 70 countries and regions. Providing security and effortless convenience for all of our customers is key when looking to the future. Supporting both merchants and consumers, UnionPay International invests significantly in technology and innovation to deliver a range of leading products, all adhering to the highest standards of security and protection.”
MCB Bank is one of the largest and most innovative banks in Pakistan. The Bank operates a strong and vast network of Over 1,400 branches and over 1400 ATMs in Pakistan and 11 overseas branches. With a customer base of over 7 million, MCB leads the banking & financial services sector in Pakistan and customers across the globe have 24/7 access to MCB Bank via our innovative and accessible Digital Banking Services.
UnionPay International (UPI) is a subsidiary of China UnionPay focused on the growth and support of UnionPay’s global business. In partnership with more than 2400 institutions worldwide, UnionPay International has enabled card acceptance in 180 countries and regions with issuance in 70 countries and regions. UnionPay International provides high-quality, cost-effective and secure cross-border payment services to the world’s largest cardholder base and ensures convenient local services to a growing number of global UnionPay cardholders and merchants.
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International payment gateway setup discussed
ISLAMABAD: Finance Minister Shaukat Tarin on Tuesday presided over a meeting on the establishment of Pakistan International e-payment gateway (IPG).
The IPG will pave the way for financial inclusion and payment digitization which is a sub-component of the 09-pillars of the E-Commerce policy.
Federal Minister for IT & Telecommunication Syed Amin-ul-Haque, Adviser on Commerce Abdul Razak Dawood, CEO NITB Syed Hussain Abbas Kazmi, Secretary Commerce, senior policy analyst and other senior officers participated in the meeting.
Dr. Reza Baqir, Governor State Bank of Pakistan (SBP) joined the meeting through a video link.
A consultative session was held with all relevant stakeholders to identify gaps between payment solutions available domestically and its integration with international payment gateway solution providers to promote e-commerce.
The Adviser on Commerce briefed the participants about the current digital financial landscape in the country.
SBP governor outlined steps being taken for the financial inclusion of domestic banks.
Federal Minister for IT and Telecom assured full facilitation in the provision of enabling environment to the service providers as needed under IPG.
In his remarks, the Finance Minister directed the authorities to follow best international practices and devise a way forward for implementing an international payment gateway ensuring transparency and due consultation with key stakeholders both in public and private sectors.
The Finance Minister constituted a 04-member Committee headed by the Secretary of Commerce and comprising representatives of the Ministry of Commerce, Finance Division and Federal Board of Revenue (FBR).
The Finance Minister further directed to seek input from the President, Pakistan Banking Association (PBA) and leading market players from the private sector to understand their requirements and present a framework for further deliberation after 04 weeks.
In his concluding remarks, the Finance Minister stated that Government will be the facilitator and regulator in a journey towards implementing IPG. The establishment of an international e-payment gateway will improve consumer confidence in E-Commerce through global connectivity
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Foodpanda to deliver medicines through pandago
LAHORE: Enhancing the e-commerce avenues, Foodpanda has partnered with Servaid Pharmacy to deliver medicines and other pharmaceutical products via pandago, a rider on demand service.
A signing ceremony took place in Lahore, attended by Raafay Munir, Head of New Verticals foodpanda, and Tahir Abbas, Chief Commercial Officer Servaid.
Under the strategic partnership, foodpanda’s wide network of more than 50,000 riders will enable Servaid to deliver medicines and other pharmaceutical products in real time through pandago which is a logistics-as-a-service solution for businesses.
Raafay Munir, Head of New Verticals foodpanda, while sharing his views on the partnership said, “We are delighted to be partnering with Servaid as our strategic partner for pandago. With foodpanda’s strong logistical network, pandago will allow Servaid to grow their business while ensuring seamless deliveries by requesting a rider via pandago.
“We are committed to ensure the well-being of our communities, their health and safety and this partnership will definitely benefit the end user, especially amidst such testing times.”
He added further: “While speed and convenience have become top priorities of customers in changing times, we aim to bring forth enhanced accessibility and value by drastically reducing the delivery duration per order to under 30 minutes.”
Tahir Abbas, Chief Commercial Officer Servaid stated, “We are excited to partner with foodpanda and reach out to a wider customer base as our deliveries are being taken care of. This strategic collaboration is in-line with our vision of serving the customers in these testing times and prioritising their health and well-being, delivering lifesaving medicines to their doorstep real-time.”
Foodpanda is stepping up response to provide value added services through e-commerce by partnering with companies such as Servaid who share a common vision of serving the customers in a fast paced environment with little to no avenue unturned.