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Growth and Structure
The retail sector in Pakistan is one of the fastest-growing segments of the economy, driven by urbanization, population growth, and the rise of the middle class. This sector includes traditional markets, modern shopping centers, and a growing number of e-commerce platforms.
Traditional vs. Modern Retail
While traditional markets remain popular, particularly for daily needs, modern retail formats like supermarkets, malls, and online stores have become increasingly common in urban centers. This shift is influenced by lifestyle changes, convenience, and rising incomes, particularly in cities such as Karachi, Lahore, and Islamabad.
The Rise of E-commerce
Pakistan’s e-commerce sector has seen exponential growth in recent years, largely due to increased internet access and mobile usage. Digital payment options, cash-on-delivery services, and improved logistics networks are making online shopping more accessible, even in semi-urban and rural areas.
Challenges and Future Potential
Challenges such as limited logistics, low digital literacy in rural areas, and high import duties persist. However, with a young population and growing tech adoption, the retail sector has significant potential to create jobs and expand economic opportunities across Pakistan.
Kreston Hyder Bhimji & Co. is a well-respected chartered accountant firm based in Pakistan. With over 53 years of experience in the industry, the firm has a deep understanding of the local business landscape and regulatory environment.
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