SMEs Struggle to Grow Amid Poor Internet and Payment Barriers in Pakistan
Small and medium enterprises (SMEs) in Pakistan are struggling to expand into global markets due to unreliable internet services and weak digital payment infrastructure, according to the Businessmen Panel of FPCCI. Despite a 17% annual growth rate and rising interest in non-textile and online exports, key barriers—such as lack of consumer trust, low adoption of digital payment systems, and frequent internet disruptions—continue to hinder progress. Most online shoppers in Pakistan still prefer cash-on-delivery, reflecting skepticism toward digital platforms, largely fueled by poor service experiences and high-profile product delivery failures.
NRL Discovers Significant Copper-Gold Mineralization in Chagai, Balochistan
Cash-On-Delivery Culture and Slow Internet Hold Back Online Business Growth
Mian Anjum Nisar, former FPCCI President, highlighted that although digital in-store payments have reached 84% in FY24, online payments remain underutilized due to the absence of secure, easy-to-use systems. Pakistan’s mobile internet speed is ranked 97th globally, far behind India and Bangladesh, making e-commerce operations difficult, particularly in rural areas. SMEs, which account for over 90% of businesses and contribute 40% to GDP, are struggling to keep up with regional competitors who benefit from better infrastructure and mobile payment ecosystems like UPI and bKash.
Martin Dow hosts Tech Day to highlight the transformative power of Artificial Intelligence
Despite efforts like the Digital Pakistan Policy and tax incentives for IT exports, progress has been slow and uneven. Many rural entrepreneurs lack access to digital marketing resources and B2B training workshops, which are often only available in major cities. Moreover, services like PayPal remain inaccessible, forcing overseas customers to rely on slow bank transfers or unreliable COD methods. Experts warn that unless Pakistan treats internet access and logistics as essential business infrastructure and accelerates adoption of secure digital systems, its SMEs risk falling further behind in the global digital economy.
Also read
- PTA Warns Public Against Fraudulent Calls and Fake UAN Numbers
- Pakistan’s Trade Deficit Hits $19.2bn in H1 as Exports Slide, Imports Surge
- Livoltek Launches Innovative Energy Solutions in Pakistan
- PIA Resumes Direct Lahore–London Flights From March 30 Amid High Demand
- OICCI engages DG TPO Dr. Najeeb Memon on investor-centric tax policy priorities
