Shahid Farooq

Chief (Governance & IT)

Planning & Development Department, Punjab, Pakistan

Tokyo, Japan

November 30, 2016

E-commerce:

A Potential Catalyst for Growth in Punjab,

Pakistan

Asian Economic Development and Integration

Can e-commerce serve as potential catalyst for

growth in Punjab province of Pakistan?

The Question

E-Commerce a prominent facet of Digital Economy

Convincing reasons and sound evidence worldwide

A promising platform for development

Breaks the limitations of traditional mode of business i.e.

no cultural berries, inclusive channel for marginalized

classes, etc.

E-Commerce – A Ladder towards Growth

Pakistan

Population 188.9 million

GDP - $270 billion

GDP Growth 5.5%

Huge natural resources

Large domestic market

Low economic growth, partially

due to security situation as

result of war on terrorism

E-Commerce in Pakistan

“Late But Not Too Late”

Economy

Share of

population having

mail delivered

at home ( 2012 or

latest, per cent)

Share of

individuals with

credit cards

(15+, 2011, per

cent)

Share of

individuals using

internet (2013 or

latest, per cent)

Secure service per

one million people

(normalized 2013)

UNCTAD

E-commerce

Index value

Rank

India 100 1.8 12.6 48.2 40.6 83

Iran 100 23.9 26.0 39.1 47.3 69

Pakistan 95 0.7 10.0 39.2 36.2 86Nepal 65 0.6 11.2 44.2 30.2 94Sri Lanka 98 3.5 18.3 54.9 43.7 74

(Source: UNCTAD. Information Economy Report 2015, Unlocking the Potential of E-commerce for Developing Countries)

86 of 130 in UNCTAD B2C e-commerce ranking E-Commerce market $60 million to $100 million Not too late to catch up the fast runners Increasing internet penetration Mobile internet - 24.8 million 3G / 4G users Start from relatively developed and vibrant region

Punjab – The Greener Patch

Mainly agricultural economy, but the most industrialized province

The Greener Patch due to progressive reform culture and opportunities for innovation

Relatively prosperous region

Population-wise largest province –100 million (57%)

Area 205,345 sq. km

Growth Potential through E-commerce in Punjab

Potential for Industrial Growth : 39033 Small &

Cottage Size Industrial Units

Youth Bulge

Large Domestic Demand

Innovation Friendly Governance – Punjab Speed,

Punjab Model of Proactive Governance

Growth Potential through E-commerce in Punjab

Bridging Digital Divide; Free public Wi-Fi,

free laptops to students

Government encouraging banking culture –

mobile banking on rise

E-government Initiatives

PITB’s interventions for promotion of IT –

Plan IX & Plan X Programs etc.

Government’s collaboration with business

sector for bringing ease in doing business

Contn…

The Paradox

Can e-commerce serve as potential catalyst for

growth in Punjab province of Pakistan? …..Yes

Existing e-commerce situation not that positive........

Findings

E-commerce sector developed indigenously, in

absence of sufficient ICT infrastructure and

state patronage

Undeveloped internet market in a largely

unbanked society could not attract major

international e-commerce companies to

expand their business to Pakistan

Some local tech – savvy entrepreneurs

brought a trailer-made “click & mortar”

commerce solutions.

Policy Recommendations

Comprehensive E-commerce Policy covering

the areas of : • ICT infrastructure,

• Legal Framework

• E-commerce platform

• Awareness rising

The policy should be in culture and social

context of Punjab keeping in view the lesson

learnt from existing scenario

Initiatives to encourage e-banking / payment

gateways

Policy Recommendations

Potential of rural agriculture economy be

exploited. Concept of Information Village

Network of Republic of Korea be adopted

with localized design

Establishment of R&D institutions for e-

commerce

E-commerce as optional subject in general

education at secondary school level

Contn…

References

Sharma, S. K. (2004). Socio-economic impacts and influences of e-commerce in a digital economy. In:

H. S. Kehal and V.P. Singh (Eds.), In: digital economy: Impacts, influences and challenges (pp. 1-20).

Hershey, PA: Idea Group Publishing

Dave Chaffey: E-business and E-commerce Management: Strategy, Implementation, and Practice

(Prentice Hall.2009)

The World Bank, “E-commerce Boosts Inclusive Labor Markets”

http://www.worldbank.org/en/news/feature/2016/03/18/e-commerce-boosts-inclusive-labor-markets

(Accessed October 21,2016)

UNCTAD. Information Economy Report 2015, Unlocking the Potential of E-commerce for Developing

Countries. http://unctad.org/en/PublicationsLibrary/ier2015_en.pdf (accessed October 18,2016

Telenor. Realizing Digital Pakistan.

https://www.telenor.com.pk/media/wysiwyg/TELENOR_Realizing_Digital_Pakistan_Jan_2016.pdf(Acc

essed 23 October,2016

Panagariya, A. E-Commerce, WTO, and Developing Countries. Policy issues in international trade and

commodities study Series No.2 UN, New York and Geneva. 2000, pp 1-33.

GSMA, Building Digital Societies in Asia: Making Commerce Smart (PDF) 2015.

https://www.gsmaintelligence.com/research/?file...download (accessed October 21,2016)

References

Government of the Punjab - Planning & Development Department: Punjab Growth Strategy 2018

Accelerating Economic Growth and Improving Social Outcomes (March 2015)

Farooqui Tashkeel (20 June 2016): Northern Punjab, Urban Sindh People More Prosperous than Rest

of Country: report. The Express Tribune. (Accessed 18 October 2016)

World Economic Forum: The Inclusive Growth and Development Report 2015.

http://www3.weforum.org/docs/Media/WEF_Inclusive_Growth.pdf (Accessed October 21,2016)

www.smeda.org: (Accessed October 21,2016)

Tidd, J. (2001). Innovation management in context: Environment, organization and performance.

International Journal of Management Reviews, 3(3), 169-183

Government of the Punjab - Planning & Development Department: Punjab Growth Strategy 2018

Accelerating Economic Growth and Improving Social Outcomes (March 2015)

http://siteresources.worldbank.org/PAKISTANEXTN/Resources/Jun29WBpresentation.pdf (Accessed

October 21,2016)

World Bank: Development Report 2016: Digital Dividends; Chapter 2

(Accessed through iPhone App on October 23,2016)

Contn…

Q&A

Thanks

shahidfaaruk@gmail.com

linkedin.com/in/shahidfaaruk

shahid.faaruk