Tuesday, April 23, 2024
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Ali Baba To Invest $400 Million in Pakistan

Ali Baba has sent a high-tech delegation to Pakistan. The company’s officials are visiting Pakistan the second time during the last few weeks.

Sources privy to the information revealed that President and Director of Ali Baba Mr. Michael Evans who is responsible for company’s international expansion would lead the delegation.

Ali Baba Delegation’s Meetings in Pakistan

Ali Baba Delegation’s Meetings in PakistanThe Ali Baba delegation in Pakistan is expected to meet the country’s Prime Minister Mian Nawaz Sharif. They would also meet Commerce Minister Khurram Dastagir Khan, Minister for IT and Telecom Ms. Anusha Rehman, and other officials in Islamabad.

Ali Baba founder showed his interest in the Pakistan market when he first met with Prime Minister Nawaz Sharif on the sidelines of World Economic Forum’s annual meeting.

The delegation is expected to discuss matters related to fiscal problems, finances, and investment. Ali Baba will also meet with the Commerce Minister to share the company’s plans for investment in Pakistan. Key meetings also include sessions with Chairman Board of Investment and Chairman NADRA.

Some ecommerce experts say that the company is potentially investing around $400 million in different segments of the country’s economy.

Potential Ecommerce Challenges in Pakistan

Pakistan has seen tremendous growth within the ecommerce domain. However, the market still faces a lot of problems. Let us have a look at these difficulties.

No Online Banking Transactions

The customers in Pakistan usually do not make Debit or Credit card payments. They do not trust the online banking and mostly prefer COD or Cash on Delivery. Cash on Delivery adds the risks of the ecommerce venture. Similarly, in a country where a lot of people do not have bank accounts, conducting online banking transaction is not an easy thing to achieve.

Location Issues Outside Cities

There are many unidentifiable places in the country outside the popular cities. The lack of clear directions makes it difficult to deliver the product to the end customer. The inability of the logistic companies to deliver the products makes their life a lot more difficult.

Lack of Customer Trust

Online purchasing is not a comfortable thing to do in Pakistan. Not all clients can get authentic product experience. Many customers are not satisfied with the products delivered to them. There are no well-established customer review websites for sharing honest opinions.

Ecommerce Policy Under Process

A few days ago HoursTV.com published a story on State Bank of Pakistan working on an ecommerce policy for the country. There are no timelines given for that ecommerce policy to come out. Legal framework and other policy related challenges will also embrace Ali Baba. But despite all difficulties, if Ali Baba comes to Pakistan, it will surely garner interest from other ecommerce companies in the world. Ali Baba delegation had visited Pakistan in March 2017 where it met with many officials in Pakistan including Finance Minister Mr. Ishaq Dar.

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