NeCC lauded for enabling online businesses of all sizes

Bank of Pakistan and the Federal Board of Revenue, ably supported by many private and public sector stakeholders of the NeCC, to achieve this milestone for e-Commerce industry of Pakistan.
“This development has allowed SMEs, youth and women entrepreneurs across the country to easily serve international customers in dozens of countries over the past few months. Previously, the exports in this category were nil and there was no way for hundreds of e-commerce merchants to send international orders officially due to which they were utilizing gifts and samples schemes at nominal values. Due to the policy intervention, such merchants are now benefiting through lower tax rates, export rebates and cheap financing already available to the traditional export sector. Online businesses, including CAP members, are exporting individual orders upto USD 5000 per shipment with minimal documentation and competing globally whilst bringing precious foreign exchange to our country. We foresee that the exponential growth already observed in this space will also attract international payment gateways such as Paypal, AliPay and Stripe to offer their services in Pakistan.”, Tariq stated.
After extensive consultations, the B2C e-commerce exports procedure had been notified by the State Bank of Pakistan (SBP) through Section 39 of its Foreign Exchange Manual and vide S.R.O. 14(I)/2021 issued by the Customs wing of the Federal Board of Revenue (FBR). Both the SBP and FBR are key public-sector stakeholders of the National e-Commerce Council (NeCC) formed under the National e-Commerce Policy approved by the Federal Cabinet in October 2019. The NeCC operates under the ambit of the Ministry of Commerce and is a platform for public and private sector stakeholders, including other leading private-sector organizations such as Pakistan Software Houses Association (P@SHA), Pakistan Fintech Association (PFA) and many others working together to drive the Pakistani e-Commerce sector forward.
Asfandyar Farrukh, CAP Senior Vice Chairman, expressed that “in order for domestic businesses to be even more competitive in the international market, it is also essential that international shipping costs be reduced for small-packet shipments. Pakistan Post and local logistics providers have a massive opportunity to grow if they can capture the skyrocketing cross-border e-commerce trade from the country. In addition, the Government of Pakistan should explore the possibility of partnering with China Post for its ultra-cheap ‘ePacket’ shipping facility for international deliveries.”
The rapid growth in e-commerce exports is another milestone after the long-awaited addition of Pakistan to sellers list of countries on Amazon in May, 2021, for which a Business-to-Business-to-Consumer (B2B2C) export procedure was also designed by the NeCC to facilitate businesses working with international online marketplaces.
CAP representatives have been working closely as a part of the NeCC to ensure timely execution of the action items as part of the National E-commerce Policy with key emphasis on global connectivity, financial inclusion, digital payments, logistics, taxation and other key pillars of the policy.
The Chainstore Association of Pakistan is the official trade body of the ‘Organized Retail’ sector and represents over 200 prominent brands across the country. CAP serves as a combined platform for organised retailers to work towards the uplift of the sector, its people and the economy as a whole. A key objective is the collaboration of the retail sector with all relevant public and private sector stakeholders to ensure the sustained progress of Pakistan.