Pakistan’s e-commerce constitutes only two percent of its retail market — Daraz CEO

Bjarke Mikkelsen, CEO of the e-commerce retail platform Daraz, speaks with Reuters during an interview in Islamabad, Pakistan, on November 24, 2021.. (REUTERS/File)
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Updated 26 November 2021
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Pakistan’s e-commerce constitutes only two percent of its retail market — Daraz CEO

  • Daraz has invested $100 million in Pakistan during the last three years and plans to invest at the same rate for the next few years
  • The platform is operating in Pakistan, Sri Lanka, Bangladesh, Nepal and Myanmar with about 20 million customers

ISLAMABAD: The top official of a major online shopping company said on Wednesday e-commerce only accounted for two percent of Pakistan’s retail market while adding that his company was trying to create digital literacy to bring nearly 50 million customers to its platform within the next few years.
According to official statistics, 88 percent of the country’s population has access to internet and broadband services. However, e-commerce remains in a nascent stage in Pakistan with modest retail sales, though there has been a noticeable surge in online vendors and payment facilities introduced by banks and cellular companies.
International e-commerce platforms and investors have been pouring in a lot of money in Pakistan as the government tries to promote online markets to provide employment to about 130 million people in the country in another 30 years.
“By now, e-commerce is only two percent of the retail market in Pakistan,” Bjarke Mikkelsen, the founder and CEO of Daraz Group, told Arab News in a wide-ranging interview. “We are off to a good start, but it is still just the beginning.”




Founder and CEO of Daraz Group, Bjarke Mikkelsen, center, during an exclusive interview with Arab News in Islamabad, Pakistan, on November 24, 2021. (AN photo)

Daraz is not just into e-commerce but also logistics, payment infrastructure and financial services.
It started its operations in Pakistan in 2015 and soon became one of the leading online marketplaces in the country.
The company is also operating in Sri Lanka, Bangladesh, Nepal and Myanmar – giving it access to over 500 million people in the context of accelerated digitalization.
In 2018, Alibaba Group, a Chinese e-commerce giant, acquired it to boost its operations in the South Asian market.
Daraz not only connects customers to sellers but also creates opportunities for over 100,000 small and medium enterprises and provides its 35 million monthly customers access to 50 million products across 100 categories.
The CEO of the company said his platform was working to change the perception and mindset of people regarding e-commerce since most of them usually considered online platforms as places where they could get substantial discounts.
“But now, they have understood that e-commerce is about providing services and … helping people lead an easier and more exciting life,” he said.
Mikkelsen said he had promised Alibaba 100 million customers in the next couple of years from the South Asian market, excluding India, as part of the company’s global vision of two billion consumers.
“Almost half of these [100 million customers] need to come from Pakistan,” he added.
Currently, Daraz has about 20 million users in the regional market. It has been growing at about 100 percent on a yearly basis for the last four years.
The Daraz official said his company had invested over $100 million in Pakistan in the last three years and planned to spend at the same rate for the next few years.
“We are doing this because we see a long-term opportunity here,” he explained. “It is not only about foreign investment; it’s about bringing in technology to the country as well.”
Mikkelsen said e-commerce trends in South Asia, excluding India, were similar in terms of growth, internet penetration and adoption of payment methods. “What makes Pakistan different is its talent and young generation,” he added.
He informed that Daraz was working “very closely” with the government to document the national economy since it wanted a digital environment where sellers were registered and paid their taxes.
“That’s the goal that we have put together with the government, and we are helping the government in educating our sellers, educating them how to become a seller and pay their taxes,” he said, adding that digital economy also provided better financing facilities to sellers which made it easier for them to enhance their outreach and access to technology.
“We can prove with data that becoming part of the registered economy is a good thing for sellers,” he continued while referring to a recent study his company jointly conducted with the World Bank.
The Daraz CEO said his platform was currently trying to improve and promote Pakistan’s local market while working on greater exports opportunities for its sellers as well.
“We are figuring out how we can help our sellers reach other markets,” he said.
Mikkelsen assured online users of “complete protection” of their data and information on Daraz, adding that government regulations should also encourage data privacy.
“Regulation is good,” he continued. “It is required for the industry to scale. However, it is important that it is done as a collaborative effort, making sure that private sector is really taken into account.”


Mourners in Pakistan’s Kurram district demand inquiry after sectarian clashes kill 41

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Mourners in Pakistan’s Kurram district demand inquiry after sectarian clashes kill 41

  • Gunmen opened fire on vehicles carrying 41 members of Shiite community in Kurram district on Thursday
  • Authorities impose curfew, suspend mobile phone services in district long plagued by sectarian clashes

ISLAMABAD: Mourners in northwestern Pakistan’s Kurram district on Saturday demanded the government hold a transparent inquiry into sectarian clashes that killed 41 people this week, as fear grips the restive area days after the attack. 
Authorities imposed a curfew and suspended mobile phone services in Kurram district after 41 people were killed on Thursday when gunmen opened fire on vehicles carrying members of the minority Shiite community. 
The assault, one of the deadliest such attacks in recent years in the area, took place in the district where sectarian clashes have killed dozens of people in recent months. 
“A transparent inquiry of this incident should be carried out,” Hayat Abbas Najafi, one of the mourners, told Reuters at one of the district’s main towns Parachinar during a funeral ceremony. 
“We call on the government as well as security institutions that Parchinar, which is a great part of Pakistan, should be saved from sectarianism and should be provided safety and security.”
No one immediately claimed responsibility for the attack, which came a week after authorities reopened a key highway in the region that had been closed for weeks following deadly clashes.
Previous clashes in July and September killed dozens of people and ended only after a tribal council called for a ceasefire.
Sajjad Hussain, another mourner, said among those killed were infants as young as six months old and women.
“They were innocent passengers. What was their fault,” he asked. 
Shop owners in Parachinar announced a three-day strike on Friday to protest the attack while locals described an atmosphere of fear across the district following the incident. 
Interior Minister Mohsin Naqvi called the shootings a “terrorist attack.” Prime Minister Shehbaz Sharif and President Asif Ali Zardari condemned the attack, and Sharif said those behind the killing of innocent civilians will not go unpunished.
Shiite Muslims make up about 15 percent of the 240 million population of Sunni-majority Pakistan.
With inputs from Reuters


UAE promotes Arab culture and cuisine at three-day festival in Karachi 

Updated 23 November 2024
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UAE promotes Arab culture and cuisine at three-day festival in Karachi 

  • UAE consulate in Karachi kicks off celebrations ahead of nation’s National Day 
  • UAE is one of Pakistan’s largest trading partners and major source of remittances

KARACHI: The United Arab Emirates (UAE) Consul General in Karachi this week paid a visit to promote several stalls selling Arab cuisine and highlighting Arab culture at a three-day festival in Pakistan’s southern port city of Karachi, ahead of the Gulf nation’s National Day. 
Sindh’s Culture Minister Syed Zulfiqar Ali Shah inaugurated the three-day Sindh Craft Festival on Friday which showcases traditional shawls, quilts, handlooms, and caps made by artists from all over Sindh at Karachi’s famous Port Grand entertainment hub. 
UAE Consul General Dr. Bakheet Ateeq Al Rumaithi visited the festival on Friday to highlight Arab cuisine and review stalls promoting Arab culture at the festival. The UAE consulate is gearing up for celebrations to mark the nation’s 53rd National Day on Dec. 2.
“Various stalls have been set up at Port Grand keeping in mind Arab culture,” the UAE Consulate in Karachi said in a statement on Friday. 

Sindh’s Culture Minister Syed Zulfiqar Ali Shah (2L) inaugurates three-day Sindh Craft Festival during an event to mark the UAE’s 53rd National Day in Karachi on November 22, 2024. (Photo courtesy: UAE Consulate Karachi)

Al Rumaithi noted that women, children and the elderly were all taking part in the three-day cultural festival. 
“We have a centuries-old relationship with Pakistan which is strengthening,” he observed. 

UAE Consul General Dr. Bakheet Ateeq Al Rumaithi (5R) cuts the cake to celebrate the UAE’s 53rd National Day in Karachi on November 22, 2024. (Photo courtesy: UAE Consulate Karachi)

The UAE is one of Pakistan’s largest trading partners and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE ministry of foreign affairs. The UAE-Pakistan trade volume rose to $7.9 billion in 2023, up 12 percent from 2022. 
In May this year, Prime Minister Shehbaz Sharif said the Emirates had committed $10 billion to invest in promising economic sectors in Pakistan. The Pakistan Business Council (PBC), set up this September at the Sharjah Chamber of Commerce and Industry, also aims to increase Pakistan’s bilateral trade volume with the UAE to $40 billion in three years.
The UAE is also home to more than a million Pakistani expatriates and the second-largest source of remittances to Pakistan after Saudi Arabia.


T20 Blind Cricket World Cup kicks off in Pakistan today sans India’s participation

Updated 23 November 2024
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T20 Blind Cricket World Cup kicks off in Pakistan today sans India’s participation

  • Pakistan’s blind cricket team to take on South Africa in Lahore today
  • India failed to secure clearance from government to travel to Pakistan

ISLAMABAD: The fourth T20 Blind Cricket World Cup will kick off today, Saturday, with Pakistan set to face South Africa in the eastern city of Lahore, state-run media reported days after India pulled out of the tournament.
The T20 Blind Cricket World Cup is scheduled to be held in Pakistan from Nov. 23-Dec. 3. As per Radio Pakistan, the tournament will feature blind cricket teams from Pakistan, Sri Lanka, Bangladesh, South Africa, Nepal and Afghanistan.  
“In the Fourth edition of the Blind Cricket T20 World Cup, the opening match will be played between South Africa and Pakistan in Lahore today,” Radio Pakistan said. 
India was also scheduled to take part in the tournament but the Cricket Association for the Blind in India (CABI) announced on Wednesday that its blind cricket team was withdrawing from the event, citing its failure to secure clearance from New Delhi to travel to Pakistan. 
Political tensions between nuclear-armed neighbors India and Pakistan have restricted cultural exchanges and bilateral sports events between the two nations.
Both countries have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.
India withdrew its blind cricket team from the tournament with a little over three months left before the start of the 2025 Champions Trophy, which is also set to be held in Pakistan in February/March next year. The Board of Control for Cricket in India (BCCI) informed the International Cricket Council (ICC) this month that India will not travel to Pakistan for the tournament.
The ICC informed the PCB of the BCCI’s decision, following which Pakistan demanded an explanation from the cricket governing body. Pakistan has repeatedly insisted it will not agree for the tournament to be shifted to another country and has insisted India travel to Pakistan for the Champions Trophy.
Pakistan hosted last year’s Asia Cup but all of India’s games were played in Sri Lanka under a “hybrid” hosting model for the tournament. Several months later, Pakistan traveled to India for the 50-over World Cup.


Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

Updated 23 November 2024
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Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

  • Jailed Imran Khan’s party has called for a “long march” to Islamabad on Nov. 24 to demand his release
  • Motorway police say as per intelligence reports, protesters will be armed with sticks and slingshots

ISLAMABAD: Pakistan’s National Highways and Motorway Police (NHMP) has said that motorways across the country have been sealed from various areas to protect people’s lives ahead of a planned protest by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party to Islamabad on Sunday.
Pakistani authorities sealed off major arteries and roads with shipping containers leading to Islamabad from the surrounding Rawalpindi city and other areas on Friday ahead of the PTI’s “long march” scheduled for Sunday, Nov. 24.
In a notification released on Friday, the NHMP cited intelligence reports that protesters were planning to disrupt law and order in the capital, adding that they would be armed with sticks and slingshots.
“To prevent any untoward situation and to protect the lives of the people, motorways have been closed from various locations,” the NHMP said.
“The lives and property of the people will be guaranteed at all costs. Those who take the law into their hands will be dealt with strictly.”
Hours earlier, the NHMP had shared a notification on its social media platform X in which it had said that certain sections of the motorway were closed due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
As per local media reports, the Metro Bus service between the twin cities of Islamabad and Rawalpindi will be suspended on Nov. 24 while a ban on public gatherings has been imposed in Punjab from Nov. 23-25 ahead of the PTI’s march.
The PTI’s protest is primarily aimed at pressurizing the government to end Khan’s imprisonment which has lasted for over a year on what his party contends are politically motivated charges. The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this. 
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.


Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

Updated 23 November 2024
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Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

  • Thirteen Pakistanis were allegedly lured with job offers and trafficked to Myanmar from Thailand
  • Families say captors torture them to lure others into cryptocurrency scams disguised as investments

ISLAMABAD: The families of 13 Pakistani nationals allegedly taken hostage by job scammers in Myanmar have appealed to authorities this week to secure their release, saying their loved ones are being confined to a compound, subjected to torture and forced to lure customers online for cryptocurrency scams.
The incident is part of a growing trend of Pakistanis falling victim to transnational criminal networks operating in Southeast Asia. In July this year, families of six other Pakistanis reported similar cases, claiming their relatives were held hostage by criminal gangs in Myanmar.
According to the families of the 13 individuals, including two women, they traveled to Thailand in March on valid work visas for a construction company, where they worked for two months. Subsequently, they were relocated to Laos and then Myanmar after their employer claimed to be moving operations.
The victims, who had completed short computer and IT courses, had prior experience in online jobs and were recruited by an agent in Rawalpindi, Pakistan.
“They are now being held hostage in Myanmar, subjected to physical torture and sleep deprivation and forced to lure customers from Europe, America and Canada into cryptocurrency scams,” Danish Qamar, a resident of Wah Cantt in Punjab province, whose brother and nephew are among the trapped, told Arab News.
“They are tortured and made to work over 18 hours daily to trap people into fake cryptocurrency investments,” he added. “We have written applications to Pakistan’s foreign office and the Overseas Pakistani Foundation, but there has been no meaningful response.”
The issue of Myanmar’s criminal zones has also raised global concern, with the United States Institute of Peace reporting in November 2022 that these areas have been facilitating human trafficking, slavery and international fraud on a large scale.
Such criminal activities exploit vulnerable individuals, lured by the promise of high-paying jobs abroad, only to be trapped in forced labor and fraudulent operations.
Earlier this year, Pakistan’s foreign office acknowledged reports of Pakistani citizens being detained by such networks in Myanmar, saying that its diplomatic mission in the Southeast Asian country was working with local authorities to secure their release. The foreign office also emphasized the need for a coordinated international response to combat human trafficking and transnational organized crime.
Asked about the 13 Pakistanis, foreign office spokesperson Mumtaz Zahra Baloch reiterated in a brief response to Arab News, “Our mission is in contact with the relevant authorities.”
However, she did not provide further details on the number of Pakistanis held or the measures being taken for their release.
According to the families, the 13 individuals have been trapped in Myanmar for about 20 days. Efforts to seek help from Pakistani missions in Myanmar and Thailand have proven futile, as officials reportedly cited limited access to the “lawless” border regions where the victims are being held.
“Officials say this is a lawless area, but the scammers have all the facilities like the Internet and electricity to run their operations,” said Maqsood Sadiq, the father of Suleman, 20, one of the hostages.
“We urge the government to act immediately to secure their release,” he added.