By Qudsia Bano ISLAMABAD, Oct 28 (INP-WealthPK): Pakistan's e-commerce industry is fast growing, and has the potential to boost the country's economy by increasing job possibilities, connecting rural areas to the mainstream, developing small and medium businesses, and increasing exports via online platforms. Pakistan needs to step up and take measures to strengthen the competitiveness of local e-commerce businesses, thereby increasing their role in local and global trade, building on the efforts made so far by public and private sectors. Pakistan is the 46th largest e-commerce market in the world, with revenue of $4 billion in 2020. The Pakistani e-commerce market contributed to the global growth rate of 29 percent in 2020, with a 90 percent gain. E-commerce sales are continuing to rise. New markets are emerging, and established markets have the potential to grow even more. Over the next few years, global growth will continue. East and Southeast Asia, with their growing middle class and sluggish online shopping infrastructure, will drive this trend. The e-commerce market consists of online sales of physical commodities to individual consumers (B2C). Purchases made on a computer, as well as on smartphones and tablets, are included in this definition. Digitally distributed services (e.g., trip tickets), online stores specialised in digital media downloads or streaming, online stores dedicated to B2B markets, and sales between private persons (C2C) inside the e-commerce market are all excluded from the concept of e-commerce DB. E-commerce provides enormous prospects for both developed and developing countries. The size of Pakistan's e-commerce market increased by more than 35 percent in the first quarter of fiscal year 2021, to Rs96 billion, from Rs71 billion the previous year, according to the Ministry of Commerce. Average revenue per paying user with carrier billing in Pakistan from May 2020 to May 2021 Source: https://www.statista.com/statistics/1253144/pakistan-average-revenue-per-user-with-carrier-billing/ E-commerce has the potential to improve livelihoods, increase enterprise competitiveness, and increase Pakistan's global trade in developing countries. As international mega-corporations (such as Alibaba) enter the Pakistani market, the policy framework can help other entities, particularly local enterprises, enter the market, creating a competitive environment that will increase the standard of local industry and benefit consumers. Access to distant markets, speedy interchange of products and services, safe payments, stimulating innovation, and providing job possibilities are among the major benefits. It has the potential to give the developing world the opportunity to make significant progress on the path to socio-economic and technological growth that was lost during the industrial revolution. At the same time, it's critical to address consumers' worries, which are only going to grow as e-commerce grows. A broad range of measures are needed to drive the expansion of e-commerce, including resolving legislative anomalies, guaranteeing a level playing field for all e-commerce market parties, transparency in the economic activities of e-commerce companies, and harmonising tax systems. All of the foregoing characteristics of e-commerce or the digital economy necessitate the creation of an overall policy framework that will allow departments and agencies in their respective areas to make specific and objective policy decisions. In Pakistan, there are about 3.2 million SMEs units, accounting for 98 percent of all businesses. The sector employs almost 78 percent of Pakistan's non-agriculture labour force and provides more than 30 percent of the country's GDP. Furthermore, the industry accounts for 25 percent of manufactured products exports and 35 percent of manufacturing value added. Through worldwide e-commerce platforms as well as Pakistani online marketplaces, e-commerce provides an opportunity to mainstream SMEs and connects them with international markets. E-commerce provides for easy engagement, lower expenses for merchants, and lower pricing for customers. However, because of lack of physical contact, it poses a significant risk to consumers. Because the success of an e-commerce model is dependent on consumer trust, consumer protection is one of the most pressing concerns confronting its expansion. The legislative framework for consumer protection must be upgraded proportionately to the growth of the e-commerce sector in terms of efficiency and effectiveness. Customer experience is critical to the success of any e-commerce business, and it can be greatly enhanced by increasing seller capacity through education and awareness. Customer trust has been a major battleground for Pakistan's e-commerce industry, which may be strengthened through e-commerce education, performance-based training, and information sharing from experienced mentors.