Pakistan has invited Alibaba International Digital Commerce (AIDC) to submit proposals for rationalising e-commerce taxation as the government explores ways to balance tax fairness with broader participation in the formal economy. Finance Minister Senator Muhammad Aurangzeb held discussions with AIDC leadership on October 15, 2026, on the sidelines of the World Bank Group–IMF Annual Meetings in Bangkok, Thailand. The meeting covered cooperation across Pakistan’s digital economy, including online commerce, digital payments, export development and technology infrastructure. The invitation gives the e-commerce sector an opportunity to provide input on tax policies affecting digital platforms and businesses operating through online marketplaces.
During the meeting, Aurangzeb acknowledged Alibaba’s contribution to small and medium-sized enterprises (SMEs), local brands and export activity through Daraz and Alibaba.com. The discussions focused on finding an approach to e-commerce taxation that considers fairness while expanding participation in the tax system. Any future proposals could inform policy discussions about how online businesses are taxed and how compliance can be managed across a changing digital marketplace. However, the government has not announced specific tax changes resulting from the meeting, and Alibaba’s proposals remain a matter for further consultation.
The two sides also discussed accelerating the Pakistan Single Window e-commerce platform and improving the tracking of cross-border payments and export proceeds. These measures are relevant to businesses selling goods internationally, as efficient digital processes can help connect trade documentation, payment information and export-related procedures. The talks also covered digital payments and the broader transition towards a cashless economy, alongside transparent delivery of social protection payments and targeted subsidies. Cooperation in these areas could support the development of digital transactions and improve the systems used to administer financial flows.
Technology cooperation formed another part of the discussions, with both sides reviewing potential work involving cloud infrastructure, artificial intelligence and tax administration. The conversation highlighted integrated data systems, cybersecurity and institutional capacity as areas requiring attention. The participants also explored modernising Pakistan Post’s sorting systems and expanding agricultural exports to China through Alibaba’s retail network. Together, these discussions reflect a wider agenda that connects e-commerce regulation with digital infrastructure, export opportunities and public-sector systems. The next steps will depend on the proposals submitted and any follow-up decisions by the relevant authorities.
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