Government moves to regulate e-commerce with new digital bill

Pakistan is preparing to introduce a Digital Bill designed to regulate the rapidly growing e-commerce and online marketing sector. The draft legislation targets fraud prevention, consumer rights, and market fairness, with strict measures against deceptive practices.

Under the bill, influencers, advertising agencies, and digital sellers will need to register with relevant authorities. It will enforce truth-in-advertising, protect user data, and ban misleading promotions. Special provisions will address false product descriptions, scam deliveries, and exploitative lending apps.

The legislative push comes in the wake of the FY26 budget, which imposed an 18% GST on online sales, extra levies for non-filers, and compliance rules for payment intermediaries to store and share buyer information with the FBR every quarter. Delivery companies will also be held accountable for false or incomplete transaction records.

Regulatory momentum has grown after the Competition Commission of Pakistan launched an inquiry into Chinese e-commerce giant Temu, accused of harming local sellers through alleged anti-competitive tactics. The Pakistan eCommerce Association has warned that high taxes are pushing SMEs and women-led businesses to the brink, while strengthening the position of foreign platforms.