KARACHI: China’s Alibaba Group has entered Pakistan’s financial services sector through a local unit that will offer “buy now, pay later” (BNPL) services, the country’s securities regulator said on Tuesday.
The Securities and Exchange Commission of Pakistan (SECP) said it has granted a non-banking finance company license to Coco Tech Pakistan, an Alibaba-backed firm.
The company will enable consumers to purchase goods from e-commerce platforms and pay in instalments, a model gaining popularity worldwide as an alternative to traditional credit.
The regulator confirmed that Alibaba will make a direct investment in Pakistan as part of its expansion into the country’s growing digital economy.
Pakistan’s e-commerce sector has expanded rapidly in recent years, driven by rising smartphone penetration and a young population. However, access to formal credit remains limited, especially for small businesses and freelancers.
SECP Chairman Akif Saeed said Pakistan’s large consumer market and fast-growing digital economy are attracting international investors.
He added that Alibaba’s entry would increase competition and drive innovation in the financial services sector.
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The regulator said the move would also improve access to financial services for underserved groups, including youth and small businesses.
