Abstract:

The ecommerce market of Pakistan reached the rank of 46th largest market in 2020 with revenue of US$4 billion, which makes it stand before Peru but still behind Greece. The growth of e-commerce not only helped Pakistan, but also recent 90% increase in ecommerce market of Pakistan contributed to the 29% growth around the globe. Since the increase in ecommerce had been focused hereby it is important to understand its impact on the economy of Pakistan and how we can get benefit from it. This study uses exploratory study and quantitative analysis of the chosen variable that are e-commerce as percentage of total retail sales and as percentage of GDP, along with literacy rate of Pakistan and unemployment rate of Pakistan. The analysis is conducted by using spearman rank correlation and Pearson correlation. The results of Spearman rank correlation show positive strong correlation between e-commerce as percentage of retail sales and literacy rate, which meansthey are directly proportional to each other. Also, the Pearson correlation results show negativestrong correlation between ecommerce as percentage of GDP of Pakistan and unemployment rate of Pakistan, which means increase in any of them, would cause other one decrease. Hereby, it's concluded that there is an explicit impact of the ecommerce market in the economy of Pakistan and increase in ecommerce activities would help in decreasing the unemployment rate of the Pakistan, however, increase in literacy rate would be required.

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