By Muskan Naveed ISLAMABAD, Oct 27 (INP-WealthPK)- A paradigm shift has been observed in the e-commerce landscape of Pakistan which has been further fueled by the Covid-19 pandemic. E-commerce is essentially the sale and purchase of goods through electronic mediums. While the startup ecosystem is getting a boost in Pakistan in general, e-commerce may be one of the phenomenally well-performing sectors. One of the reasons for the recent boom of the e-commerce streams in Pakistan is the ease of doing internet-based businesses. Pakistan has improved in terms of doing business. On the World Bank’s index, Pakistan’s ranking rose from 136 to 108 in the year 2021. The government of Pakistan has been taking initiatives – like the Kamyab Jawan programme - to foster entrepreneurship. However, a lot of obstacles still exist. The cost of doing business is high although Pakistan is one of the cheapest countries and has been a hub of outsourcing for developed countries. The legal and regulatory framework adds to the problems of small business owners who do not have sufficient resources to compete with large businesses. One of the roadblocks for startups is the informal economy of Pakistan. Some reports estimate the undocumented economy to be as large as 50% of the current GDP. This entails that a large segment of the population is unbanked. Mobile banks like EasyPaisa and JazzCash – while increasing in popularity – still have a low penetration in the market. This exacerbated the problems for business owners who do not have access to or the knowledge of banking. Pakistan is considered to be a blessed country when it comes to resources. The human capital of a country is one of the prized resources. With around 60% of the population below the age of 30, there are a lot of opportunities yet to be tapped in the Pakistani market. All of these factors contribute to an environment that is conducive to e-commerce, which is why the Pakistani e-commerce market has grown by a staggering 35% in the first quarter of 2021, according to National e-Commerce Council (NeCC). The market now has a capitalization of Rs 96 billion compared to Rs 71 billion in the same period in 2020. Covid-19 and the digital economy The Covid-19 pandemic has altered the e-commerce landscape drastically. Novel concepts like remote work and an increased focus on digitizing traditional mechanisms have become rampant. As many cities around the global are under lockdown, it became crucial for businesses to shift towards online services. The trend has also been widespread in Pakistan – with a huge surge of online businesses. As Covid-19 restricted movements, there has been an increase in the use of internet. The number of internet subscribers has been growing steadily in the country. Pakistan has the eighth largest population of internet users in the world. This further primed the environment for internet-based enterprises. In 2021, the Pakistani e-commerce market is expected to reach a revenue volume of $5.9  billion with a compound annual growth rate of 7.5%. How can China help boost Pakistani e-commerce? Chinese investment has been playing a multitude of roles in boosting the economy of Pakistan. The multi-billion-dollar CPEC initiative is one example of how China is contributing towards Pakistan’s development. One of the major sectors of China’s contributions is e-commerce and there is one name that comes to mind – Alibaba. Alibaba Group Holding Limited is a Chinese conglomerate operating in the tech, internet, retail and e-commerce sectors. Alibaba is one of the largest retail and e-commerce companies. It is no secret that the corporation has infiltrated into various markets throughout the globe and it has strong presence in the Pakistani market as well. Pakistan’s largest e-commerce platform, Daraz, is a product of Alibaba but that is not all. Alibaba and its subsidiary AliExpress have become household names for small businesses. Platforms like Alibaba have led to a boom of Instagram businesses. Instagram businesses are essentially pages on Instagram that sell products. Alibaba is designed for business-to-business (B2B) mechanism where anyone can make bulk purchases. It has made it convenient for people to order products at cheap prices from China and earn profits by selling them at higher prices. The supply chain brings together the vendors and buyers with less complications. AliExpress is designed for business-to-consumer segment (B2C), While the uncertainties related to customs and shipping make people shy away from utilizing the platform, the entrepreneurs are striving to establish their dominance in the e-commerce sphere.