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Government Announced E-Commerce Policy Framework | Doom updates

Doom updates a month ago, when the government announced its long-awaited e-commerce policy framework, the sector finally came into the spotlight, repeating its hopes for takeoff.

After gathering the opinions of various stakeholders, the document presented the main challenges and specific steps to be taken to revitalize the digital engine of the economy.

Pakistan's e-commerce

But Pakistan's e-commerce has often found people split, which stems from the lack of majority confidence in online shopping. A few tech players, especially the riders, have succeeded in changing behavior among the masses, while others have fallen far behind most people from certain social classes or ages. Facts and figures about the industry's remarkable growth, which was 93% last year, are often quoted to hint at the country's way to digital destruction.

But even an objective cross-sectional comparison with other developing countries still shows how the market was discovered. Our e-commerce total sales amounted to 41 billion rupiah (about $ 268 million) in 2018. In contrast to Egypt, it is believed to have a macroeconomic dynamic similar to that of Pakistan, with revenues of $ 5 billion. Iran has created $ 18.5 billion in sanctions despite serious economic crises.

There are no local language websites on the e-commerce platform, so English-speaking population is a major beneficiary of digitization In terms of traction, we, along with Daraz, the biggest player, recorded a visit of about 8 meters per month, reaching 13 meters in Egypt's souk and 44 meters in Arabia's Digikala.

What are the main factors that hinder growth

The remarkable difference between the Pakistan e-commerce platform and the platforms of the countries mentioned above is that since the former does not have a website in the local language, the English-speaking population is the main beneficiary of digitization, and most of it is left behind. But for now, let's focus on the service segment, excluding the marginalized population.

A new report, "2019 NPS Local E-Commerce Study," conducted by Islamabad-based price comparison website PriceOye.pk, reviews key bookings from customers regarding their online business. Using the popular customer satisfaction metric Net Promoter Score (a negative to positive 100), we calculated the same for several Pakistani e-commerce websites (markets and retail stores) and key industries such as riding. Hail and food delivery.

In essence, the indicator measures the likelihood that a customer will recommend a particular product / service to others on a scale of 1-10. Those who give a score between 0 and 6 are classified as discouraged, 7 to 8 are manually classified, and 9 and 10 are considered promoters. The final value is calculated by subtracting the ratio of the secretory from the ratio of the promoter, and the scale is preferably directed positively.

The survey showed that

The overall industry average was 9.6, taking into account seven major e-commerce stores and the 'other' category. This negative indicator was led by the market leader itself when Daraz's NPS rose to -27, contributing 25pc customers who expressed dissatisfaction with the quality of production and 18pc each for customer service and return policies. Meanwhile, 32pc was pleased with the delivery time due to the company's old service.

Goto pk recorded a NPS of -6.7, and buyers of 33pc were dissatisfied with price accuracy and 38pc approved product quality. Conversely, Mega.pk scores 10 points, which the company nodded about product quality from 50pc surveyed customers.

The youngest participant in Lotte, HumMart's NPS is 14, ShopHive 16 and iShopping.pk 20. Meanwhile, HomeShopping, one of the oldest players in the field, is the highest of all operators, but the value under the cluster is 23. 'Other' (26 years old). This includes sellers via Facebook and Instagram.

Among other online industries, including shoes, food delivery, sorting, riding, fashion, ticketing and makeup, the NPS is 11.4, ranging from minus 30 in shoes to 64 in makeup. In between, there were three relatively mature but negatively tilted industries. According to the report, Uber's ride was -27 for the NPS and 50 and 40 for Careem and Bykea, respectively.

The NPS of food delivery

The NPS of food delivery was at -10, and most of the promoters were primarily those who ordered directly from the restaurant's website, while customers using aggregator portals like Foodpanda complained about the delivery and cancellation times. Classified businesses such as the world-class giant OLX, along with home-developed PakWheels and Zameen, have a full NPS of -9 and most promoters are available on the automotive website.

Obviously none of this should be taken to the Gospel, but all these indicators, from basic analysis to customer satisfaction proxies, suggest what is not right. Certainly the absence of policy has hampered the growth of this sector. However, we can't explain why a particular company can't satisfy its customers with regard to product quality or customer service.

Is the problem more operational or structural? “This is a kind of chicken and egg problem,” said Darh Managing Director Ehsan Saya. Lack of structural incentives act as a barrier to entry. At least we have introduced in-house shipping, Daraz Express and closed-loop wallets to order our own homes.

Payment and logistics are the biggest challenges in e-commerce, and since these two measures have been largely solved," he explains. When it comes to maximum customer irritation, product quality, the executive director runs Daraz University for seller training, which will ultimately help him deal with that frontline.

Best of all, this is a lack of general trust in e-commerce, which requires effective policies as well as proactive leaders. It remains to be seen whether the recent development of the two fronts could bear fruit.

Businessmen in the textile sector

Businessmen in the textile sector called for the restoration of zero-grade facilities for the sector if the government could not lift billions of rupees' sales tax refunds as the industry died due to the financial crisis. Pakistan's Socks Manufacturing and Export Association (PHMA) Central Chairman Haji Salamat Ali criticized the Federal Revenue Commission for failing to pay billions of rupees back to exporters despite the promise.

He said FBR Chairman Shabbar Zaidi reminded in a letter about the board's promise that a refund would be paid to them within 72 hours after filing a [refund] claim. To this end, the FASTER Refund Module was developed to handle exporters' claims during the tax period since July 2019.

The FBR has informed in advance that the submission of Annexure-H, a form of monthly sales tax return, will be treated as the filing of a refund claim. Exporters are having difficulty filing a tax refund claim (Annexure-H) under FASTER.

He said liquidity continued to grow as the FBR failed to keep its promises, delaying payment of sales tax rebates, thereby doubling exporters' financial problems. He added that pending tax refund claims for exporters between July and August 2019 should be lifted immediately.

If they fail to lift the quick refunds, he suggested, the government should evaluate the zero-paid, zero-paid scheme for export-oriented sectors as zero.

Zafar Iqbal Sarwar

Zafar Iqbal Sarwar, Vice-President of the Faisalabad Chamber of Commerce, talked about ST refunds, adding that 800 billion rupees are regular claims from July 2019 to October 2019. 2014) and 2012 have been postponed. Other pending refunds include the Director of the National Tax Service, 15 billion won, income tax 19 billion won, income tax deduction 15 billion won and local tax amount 5 billion won.

Muhammad Pervez Lala, chairman of the APTPMA (All Pakistan Textile Processing Mills Association), made a proposal to reduce sales tax rates and said that the rate should be reduced from 17% to 5pc. The textile industry has the status of one of Pakistan's top national industries, providing products to millions of domestic consumers.

The sector also provides jobs, directly and indirectly, to millions of workers and generates billions of rupees. But unfortunately, the abolition of the zero-sales tax system and the imposition of GST put the industry in serious crisis. Therefore, we must urgently lower our sales tax rate to an appropriate level.

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