Minister propose revisions in E-Commerce taxation framework to support SMEs

Minister for Commerce Jam Kamal Khan announced on Thursday that E-Commerce Policy 2.0 has reached its final stages of internal review and is nearing completion. The revised policy, aimed at fostering digital trade and empowering small businesses, will soon be presented to the Federal Cabinet for formal approval.

This strategic update is expected to enhance regulatory frameworks, streamline operations for online businesses, and strengthen Pakistan’s position in the global digital economy.

As part of the consultative framework shaping E-Commerce Policy 2.0, Minister for Commerce Jam Kamal Khan has announced the formation of a joint working group in collaboration with the IT Ministry. This specialized team will focus on gathering comprehensive recommendations to refine key aspects of the policy, including taxation, vendor compliance, and digital payment systems.

The E-Commerce sector in Pakistan has experienced remarkable expansion, with its market size surging to $7.7 billion in 2024. Minister for Commerce Jam Kamal Khan highlighted this rapid growth, noting that industry forecasts predict a 17% compound annual growth rate (CAGR) through 2027.

The ministers reiterated their commitment to fostering an inclusive, competitive, and digitally empowered trade ecosystem and arising issues, shall be addressed at highest level.