It has been officially revealed that Pakistanis are spending over $1 billion annually on online shopping, with major payments going to international platforms such as Facebook, Google, Alibaba, Netflix, and others.
According to a newly released government document, Pakistani citizens have made over 42.6 million online transactions, amounting to more than Rs317 billion over the past year. In response, the federal government has introduced a 5% tax on foreign vendors in the new budget to regulate and generate revenue from this rapidly growing sector.
Breakdown of online spending
The document highlights the massive scale of Pakistan’s e-commerce activity, revealing payments to various global platforms, including:
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Rs12.31 billion spent on Facebook for ads, purchases, and digital services
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Rs5.94 billion paid to Google, including services and applications
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Rs5.14 billion spent on Apple and iTunes
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Rs4.49 billion on AliExpress, a leading Chinese shopping platform
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Rs2.79 billion on Netflix for streaming subscriptions
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Rs2 billion on Alibaba, the Chinese e-commerce giant
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Rs1.82 billion on Temu
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Rs1 billion on Shopify for product orders and business tools
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Over Rs281 billion spent collectively on other foreign online platforms
Govt moves to regulate foreign digital spending
With this surge in digital transactions, the government has taken fiscal measures to capture revenue from foreign digital vendors operating in Pakistan. The newly proposed 5% tax on foreign online vendors is aimed at bringing parity in the taxation of local and international sellers, and ensuring the country earns from the economic activity taking place through these platforms.
