FPCCI emphasises implementation of ecommerce policy

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the government to implement the new ecommerce and digital policy that was unveiled last year to promote online business.

Addressing a webinar, Sheikh Sultan, vice president of FPCCI said the COVID-19 increased online business wherein social media marketing plays a crucial role. Small businesses should be made aware to utilise technology as 64 percent of Pakistan’s population is youth which can quickly adopt technology and subsequently promotes IT related business, he said.

Last year, the federal cabinet approved the country’s first ecommerce policy framework that envisages new regulations and consumer protection laws in the Rs40 billion online shopping market.

A certain component of domestic sales and services did well during the last fiscal year, “with anecdotal evidence indicating a growing popularity of ecommerce activity and mega shopping malls,” the SBP said in a report.

Aisha Moriani, joint secretary of ministry of Commerce updated the participants about important aspects of e-commerce policy like regulation and facilitation, financial inclusion and digitization through payment infrastructure, empowering youth and small and medium enterprises through business support programs and trade development, customer protection, taxation structure, logistics, data protection and investment and global connectivity.

Moriani informed the meeting about the development of cross-border e-commerce system for promotion of trade and establishment of national ecommerce councils for promoting start-ups, simplifying payment options, reducing disputes and protection of consumer rights.

Raza Ahmed Sukhera, project manager of ministry of information technology also enlightened the participants about development of new software, availability of internet access, and business facilitation measures.

Provincial governments should follow the tax incentive on digital payments by the Punjab government to encourage online financial transactions, Shehzad Shahid, chairman of Pakistan Software Houses Association said.

Shahid said the IT-related exports of Pakistan increased 23 percent last year, which reflected the potential of this sector.

“Pakistan is currently using cash on delivery system which has to be digital and in this context, banks should come forward with better incentives in order to facilitate digital payments,” Shahid said. “Punjab Government has reduced GST to 5 percent on e-payments and other provinces should also adopt similar policy.”

Shahid said most of the companies working in IT sector are at small scale and need investment. Pakistan Post is the only company in Pakistan, which has largest logistics network which also need facilitation for improving their services and reduction of cost, he added.

The meeting was told there is huge potential in e-commerce industry as global ecommerce reached $3.4 trillion while ecommerce in Pakistan stands at $2 billion. In Pakistan, sales of local and foreign ecommerce sites surged 93.7 percent to Rs40.1 billion. The e-commerce value didn’t include cash-on-delivery transactions that account for 60 percent of all the e-retail transactions. Number of online merchants exceeded 1,242.

Talha Nadeem, senior analyst at the State Bank of Pakistan also supported enhancement of role of Pakistan Post in financial inclusion.

The State Bank of Pakistan developed regulatory framework to facilitate cross border business-to-consumer ecommerce.