Amazon Wants to Enter Pakistan Via a Partnership With a Local Online Store: Report

Pakistan’s e-commerce market is on the rise and increasing exponentially. According to a report by Pakistan Telecommunication Authority (PTA), the online retail sector will cross the $1 billion mark by 2020.

Thanks to this rise in the online shopping trend, global online retail market leaders are keen on investing in the country’s e-commerce market.

Alibaba, China’s largest e-commerce platform, is reportedly looking to reach an agreement for the acquisition of Daraz.pk as well. Alibaba will be facing competition from the popular e-commerce platform Amazon to establish a firm foothold in the country’s growing IT and e-commerce market. Amazon is planning to invest in Pakistani e-commerce market with an aim to secure some share of the rapidly growing market.

The entrepreneur Adam Ghaznavi, who led Rocket Internet’s Easy Taxi and Kaymu.pk, told;

The China Pakistan Economic Corridor is also bringing in a lot of Chinese investment to the country, which will attract investors. Both Alibaba and Amazon will be interested in Pakistan, which has 70% mobile phone penetration in its 220 million population.


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Amazon in Pakistan

Amazon doesn’t operate directly in Pakistan, however, it does own a fair stake of 33% in Clicky.pk through its acquisition of Souq, a Dubai-based online retailer. Clicky.pk competes with Daraz and other online stores in the fashion and home decoration sector.

Clicky.pk raised $1 million by selling its 33% stake to Souq in 2016. Amazon later acquired Souq for a reported amount of $580 million. The deal between Souq and Clicky was made public just now.


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According to some sources, Amazon is looking to further increase its stake in Clicky.pk in order to lead the competition in the region. If the deal between Alibaba and Daraz goes through, Amazon and Alibaba will enter a direct competition. The source told;

These three geographical locations — India, Dubai, and Pakistan — makes sense for Amazon to scale up. Amazon will make entry into multiple Asian countries, a new strategy to increase its volume, optimize its sourcing and reduce single-country dependence for revenue flow.

Alibaba recently stepped up its efforts to bring Pakistani exporters onboard for its B2B Portal.

Amazon’s entry in Pakistan, directly or indirectly, will surely prove beneficial for country’s IT and online retail market.

Via: Economic Times


  • Arslan Ejaz

    AtLast……!

  • That will be a great move from amazon

  • RANGE da2

    I really wish amazon and paypal to come in Pakistan asap!

    • Muhammad Hassan Iqbal

      Wishes only!

      • RANGE da2

        Cant do anything except wishing! :)

        • Muhammad Hassan Iqbal

          Haha…. yep.

  • Ahtysham Afzal

    Lol

  • ManNan ChauDhry

    Indeed

  • Binish Iqbal

    This is such an impressive step which will boost the Pakistan e.commerce sector and as well as brings other foreign investors , can’t wait to see the blooming results of this amazing initiative……

  • Asif

    If a transaction (between Amazon and Clicky. pk) goes through Indian merchants can sell more goods in Pakistan, which can be routed through Dubai, where Souq is based.” if this is the case, #nothanksamazon.

    • Ahtysham Afzal

      Exactly

  • Muhammad

    “If a transaction (between Amazon and Clickypk) goes through Indian merchants can sell more goods in Pakistan, which can be routed through Dubai, where Souq is based.”
    I am not sure of Amazon now.

  • Pakistani observer

    “Amazon’s entry in Pakistan, directly or indirectly, will surely prove beneficial for country’s IT”. I pretty much doubt this statement. Amazon is here to do business. As I see, more Indian goods will flood our market and Amazon will laugh it’s way to the bank. I am sorry to say this but whoever agreed for CPEC model of business has kicked us right in our gonads. Now other MNC’s are just here to get a pound of flesh. Just food for thought: MNC’s are making a beeline to our country; we are neither a power house for technology nor we are economically strong. Our debts are sky high. The only grand project is CPEC. We are entirely dependent on China from loans to saving us from hell. This is just another Greece in the making. People wake up before it’s too late.

    • Anwar

      I completely agree with you. I was listening to IMF chief Christine Lagarde’s conference and she just mentioned exactly what you said. Look at Sri Lankan example. We need to change this before it is too late.

    • Usman

      You know the best part, our politicians will fight tooth and nail to take credit for this business model. When it is time to suffer, children and grandchildren of all these politicians will be living like monarchs abroad.

    • Economist

      My thesis is this: MNC’S (Auto sector, telecom, e commerce etc) are rushing here because of CPEC. The problem is that we are neither manufacturing nor servicing anything. China has built roads (by providing loans with a high interest rates by international standards) to transfer it’s goods from it’s country to it’s trading partners. The trouble begins with the repayment of loans. Just look at Sri Lankan port. Now we have Amazon, Volkswagen, Nissan etc ready to foray our market since there is lot of employment opportunities due to CPEC which translates as a “market” for these MNC’S. Post completion of projects, employment opportunities would shrink alarmingly (difference between manufacturing, service and exports) and infrastructure economy. We have to pay the loans back. If the chinese start importing Chinese labour (largest population) to maintain the infrastructure that they have built for their use in our land, we cannot question them as we have to clear their loans to gain control of these projects. Mean while Amazon, Volkswagen, Nissan would have made enough dough and would shut their shops here (please look into Auto sector from the past).

      • Talal

        All you people forgot is Pakistan will take 9% royalty from whatever profit china will make through its trade going through Pakistan. But overall Chinese grip on our economy will get stronger over time but it won’t go to the extend of occupying the country. That’s the indian media propaganda. Sri lankan govt intentionally gave its port on lease to china. It’s their headache not ours.
        All kinds of auto manufacturers are present in india and indian auto market is the strongest in south east asia with cheapest affordable cars available to people. While we have monopoly of japanese big three in auto sector and our cars are damn too expensive. So cut your whining. The entrance of new big players is a good sign.

        • Economist

          Look if you take it as whining, can’t help it. Entrance of new players are always welcome. The point I am trying to make is about transparency. Please read about Chinese exporting debt to other countries. This shouldn’t be a flash in the pan case. Amazon entering our market is a great news but it should be in the form of investments and inclusion of locals. Sadly this is not the case. 9% royalty is not sufficient for the repayment of loans. My intention was not to hurt anybody’s sentiments. I was venting out my research and observations. Anyways nice conversation. Cheers.

          • Talal

            I am totally in the favor of bringing in new mega corporations. I own a car and ask me how much painful it is getting to buy or maintain car these days. Due to recent dollar up swing not only prices of cars have increased by several folds the spare parts also have immediately got expensive. I wish death to the monopoly of big three.

  • Waiting for Amazon.

  • Awais Bukhari

    we want Amazon direct in Pakistan clicky isn’t enough