Asian Journal of Economics, Finance and Management

E-commerce facilitates firm and individual to conduct business over an electronic network and it is decreasing the geographical hurdles of trade. E-commerce played key role in the development of many countries by changing old methods of doing business with more sophisticated and accessible methods. The current study examines the significance of E-commerce industry for Pakistan and the prospects of growth and opportunities in the sector. Furthermore, the study also takes into account the challenges faced by e-commerce sector. The study used the descriptive analysis for the purpose and analysis is presented based on the secondary data. E-commerce industry in Pakistan observed significant growth in the last few years. The government has also taken measures through e-commerce policy and Digital Pakistan Policy which provided new opportunities for the growth of the sector. However, e-commerce is facing challenges including payment gateways, lack of Information and Communications Technology (ICT) infrastructure, multiple taxes on ICT products and lack of e-payment regulations. Despite the challenges, the sector can possesses growth prospects as it can help in revenue generation, jobs provision and promoting digital trade. It is required that government should accelerate the digital payment gateways. A digital chamber of commerce, better human capital and intellectual property protection are other measures which can be helpful in promoting e-commerce in Pakistan.