In a surprising revelation, Pakistanis spent more than Rs. 317 billion on various online apps and e-commerce platforms during the fiscal year 2024–25. The Federal Board of Revenue (FBR) disclosed these figures during a meeting of the National Assembly’s Standing Committee on Finance.
To regulate this growing digital economy, the federal government has introduced the Digital Presence Proceeds Levy Act, 2025, a new tax aimed at foreign and local digital vendors supplying goods and services to Pakistani consumers.
FBR’s New 5% Digital Tax?
The newly introduced tax applies to foreign tech giants such as Amazon, Facebook, Google, Netflix, Temu, and others, as well as local platforms like Daraz and PakWheels. Under this law, 5% of the total payment for digitally ordered goods and services will now be collected as tax.
This move comes in response to the rapid increase in digital transactions and the growing role of global tech companies in Pakistan’s economy.
Breakdown of Pakistan’s Spending on Online Platforms
The massive spending by Pakistanis is spread across social media platforms, e-commerce websites, and streaming services. Here’s a detailed look at some of the top platforms:
Platform | Number of Transactions | Value (PKR) |
---|---|---|
Facebook/Meta | 1.86 million | 12.3 billion |
Apple/iTunes | 5.14 million | 5.98 billion |
2.31 million | 5.94 billion | |
AliExpress | 944,000 | 4.99 billion |
Netflix | 3.37 million | 2.79 billion |
Alibaba.com | 26,600 | 2.0 billion |
Temu | 376,000 | 1.82 billion |
Shopify | 38,800 | 1.0 billion |
Other Platforms | 28.6 million | 281.4 billion |
Meta Leads the Digital Spending Race
Leading the pack is Facebook/Meta, generating over Rs. 12.3 billion in transactions. Much of this spending is likely linked to advertising and marketing services purchased by businesses and influencers in Pakistan.
Following closely are Apple/iTunes with Rs. 5.98 billion and Google with Rs. 5.94 billion in payments. Apple dominated in terms of transaction volume, exceeding 5.1 million transactions alone.
AliExpress saw nearly Rs. 5 billion in purchases, while Temu, despite being relatively new, generated Rs. 1.82 billion in spending. Shopify platforms also crossed Rs. 1 billion, highlighting the increasing adoption of international e-commerce websites among Pakistanis. Despite rising subscription costs, Netflix recorded 3.37 million transactions worth Rs. 2.79 billion, indicating a steady demand for online entertainment.