Alibaba has entered Pakistan’s market through its local unit to provide citizens with a facility to buy products on instalments. The country’s securities regulator confirmed the entry of the Alibaba Group in Pakistan.
The Securities and Exchange Commission of Pakistan has given a non-banking finance company licence to Coco Tech Pakistan, an Alibaba-backed firm. The company will offer ‘buy now, pay later’ services, allowing people to buy products from e-commerce sites and pay in instalments. The model has become popular worldwide as an alternative to traditional credit.
“Alibaba will make a direct investment in Pakistan,” the regulator said in a statement, announcing the company’s entry into the market.
Pakistan’s e-commerce sector has grown rapidly in recent years as more people use smartphones and the country has a young population. However, access to formal credit is still limited, especially for small businesses and freelancers.
“Pakistan’s large consumer market and rapidly growing digital economy are attracting international investors,” SECP Chairman Akif Saeed said.
He further added, “The inclusion of Alibaba Group will bring greater competition and innovation to the Pakistani market.”
The regulator said this step will help improve access to financial services for people who do not get enough banking support, including young people and small businesses.
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