Faculty of Management Sciences

www.iqraisb.edu.pk

Course: Multi-national
Perspective on Management
(MPM)
Course Code MGT 604, Credit Hours: 3.
2014
Instructor:

Hammad Bashir

Office:

Ist Floor, CIE Building, NUST,

Email:

hammadbashir@Iqraisb.edu.pk

Contact no:

Fall:

H-12, Islamabad

0321-5296546 Off No: 051-90856316

Student:

SADEEQ ULLAH IHSAN

ROLL #

20312

CLASS:

MS(Management Sciences)

E-COMMERCE IN PAKISTAN
E-Commerce is one of those terms which are getting more buildup in the present
time of modernization and innovation, it remains for Electronic Commerce. E-trade is an
exceptionally hot issue nowadays. After the unrest of Internet, more nations are getting included
in it. As web is getting better known in the whole world including Pakistan the movement
towards the electronic business is likewise being seen. Such high and regular utilization of web
has brought a ton of progress in the ways of life of the individuals and in particular in the
business and advertising methodologies of the business persons. Similarly, as with this internet
facility, the whole world has transformed into a worldwide town and everything is in the reach of
populace now. E-commerce for the most part alludes to the business which is generally done
through the web via online facility. It incorporates offering, purchasing, promoting and reaching
purchasers and clients through web. In the more detail we can portray E-business is utilizing the
systems and devices of web in ones business for a few purposes like offering a retail shop on the
web, such as picking an item from going by the online store and after that making payment on
the web. Request can be set for a few items and they are conveyed to the entryway steps of the
client and payment is possible with money. The pattern of e-business can be seen as the quickest
developing business of the world. Web is a standout amongst the most critical and fundamental
constituent of the E-Commerce and as far as E-trade in Pakistan is concerned, there are a few
investigates which are generally directed, uncovering the way that countless of Pakistan are nor
offices with the web as possibly they are not mindful of this need or this may be past their
affordability.
In any case, Most of the physical exercises have plunged into the web. It is hence,
essential to have online vicinity and ideally, a framework to manage the client on the web, which
is alluded to as e-commerce. The thought of e-business isn't new. While e-commerce has turned
into a customary piece of life in developed nations, its roots are just now starting to create in
nations like Pakistan. Through the years we have seen little startups, focusing on internet,
showcasing/offering their items and getting popularized among the masses by means of online
networking. There is no reason why Pakistan can't join in tomorrow's computerized future.
Admittedly, we still don't have an enormous e-retailer along the lines of Amazon and e-Bay, yet
there are people/ organizations who are striving to take business to the digital world with the goal
that they can achieve a more extensive market and encourage more buyers. The most widely
recognized and famous manifestations of e-commerce are business-to-consumers (B2C) and
business-to-business (B2B). Business-to-government (B2g) and government-to-Citizens (G2c)
are different structures, running on the web yet with low stream. Then again, the utilization of
previous two still commands the web. Pertinent to mention here, that in the event that we utilize
any sort of electronic gadgets in getting requests and sending lists, in the same way as phone, fax
or whatever other such instruments, we should be applying e- business/e-commerce procedures.
However, the genuine feeling of e-business is the business on the web of which there are
distinctive modes, such as opening a retail store on web, where all exchanges are carried out on

line, from determination of item to payment of bills. The blast of the web shopping in Pakistan is
at its introductory stages and will look to achieve more prominent statures in the nearing future.
As indicated by Google's 2009 insights, 18.5 million Pakistanis are constant web clients, a rate
which was around 0.01% in 1995. These figures are an empowering element for the rising online
purchase portals in the nation and aiming to earn handsome money from this potential rich and
gainful field. Yet we must concede that Pakistan is still a developing nation and on its way
towards the road of technology. The web is overarching like dim cloud on Pakistan and it will hit
the Pakistan economy absolutely sooner rather than later. Individuals are getting aware of the
Importance of business on the web and this will prove great in the support of Pakistan. Banks are
assuming a paramount role in expanding the attention to e-Commerce in Pakistan, such as
presenting Debit Cards for web use and paying bills specifically from bank account while sitting
at home & so on. But still, Pakistan needs accelerated development in the sector right now.
Admittedly, keeping our nation's present position, it is a developing concept and
we are still accustomed to the same old methods for purchasing things - setting off to the market,
visiting shops, bargaining to get a decent arrangement, and returning with the product. This
pattern is quickly changing; clients and organizations are switching to e-commerce, on the
grounds that it certainly gives a shiny new knowledge of buying and selling. Obviously, there are
reasons as to why organizations aren't completely switching to e-business, and thats because of a
few impediments. Firstly, there's a critical absence of awareness among the masses with regard to
e-business. An overwhelming majority considers web exchanges as a risky activity while most of
us hesitate to take a stab at something new. In fact, e-trade is very convenient. Since we haven't
tried/attempted it yet, we are constantly reluctant in doing so. This is because of the apprehension
of being misled over the web or not getting the right item without going to the genuine market,
or looking at the advantages of buying from a shop, instead of buying online. Albeit, ECommerce is still in its early stages & facing numerous barriers. The significant obstructions are:
Misconception about e-trade, Mistrust, Literacy rate, traditional nature of society, Poor
distribution channels, improper infrastructure [telephone line of stem lines of steam age, power
failures], less clients of web i.e. hardly one percent of the whole populace have internet access,
the issue of transaction security, high bandwidth rates & access to internet services and to wrap
things up the monopoly of the PTCL. When business will take activity, clients will be pulled in
towards it, and that is the way the utilization of e-trade will rise. A solid observation from
Government on Cyber Crime can bring about a significant improvement. The introduction of
Paypal service in USA and Europe has played a vital part for provision of a more secure way to
shop through online retail locations, which is still not available in Pakistan. The Pakistani
individuals have reservations utilizing their charge card, offering/sharing data on the web and all
the complexities with regard to online transactions. Resultantly, the early part of the last decade
few e-business sites failed in capturing the attention of public at large.
Recently, SBP has put a split on the barriers when it approved the Merchant ID
accounts to encourage online transactions. Anyhow, there is still far to go. E-commerce offers

unmatched savings in terms of transaction costs, the cost reduction (on delivery, advertising &
promotions), Speedy correspondence between buyer & seller, reducing supply chains,
minimizing transport deterrents, and physical impediments of time and space are eliminated. The
electronic trade gives huge chances to numerous organizations to build closer relations with their
current clients and suppliers online to help attain customer retention. Its utilization by
stakeholders can essentially decrease expenses while giving another advantageous channel for
client administration. Associations can build enduring relations with their stakeholders by giving
online service. In nutshell, there is potential for increased revenue due to the extensive spread
factor. Moreover, e-commerce helps in lowering the running costs of business, permitting access
to a wider market and time saving for the client. It is noteworthy that some little organizations
survive due to moving onto the Internet. Almost all branches of banks in urban zones are
currently modernized. Numerous banks offer online funds transfer from abroad and inside the
country, purchasing cell telephone and web cards through your online wallet and other small
online transactions. Further, all banks now offer mobile phone banking, where clients can pay
utility bills through their cell telephones. Furthermore, cash can be sent to any city within
minutes now. This is all the development of E- commerce in Pakistan.
To Conclude, another undesirable aspect of Pakistan is that here the fraud,
extortion and theft ratio is one of the highest in the whole world, restraining the individuals to
open their online businesses. So until & unless the web security and internet accessibility is not
increased/ expanded, the E-commerce can't prevail in the country.