KARACHI: Pakistan’s securities regulator has granted a non-banking finance company (NBFC) license to Coco Tech Pakistan, a local unit backed by Chinese e-commerce giant Alibaba Group, allowing the firm to offer “buy now, pay later” (BNPL) services in the country.
The decision, announced on Tuesday by the Securities and Exchange Commission of Pakistan (SECP), marks Alibaba’s formal entry into Pakistan’s rapidly growing digital financial services landscape.
@AlibabaGroup steps into PK🇵🇰@SECPakistan has granted a license to Cocotech PK, a company linked to Alibaba. Cocotech will introduce BNPL services allowing consumers to purchase products online and pay in easy installments over time. #DigitalNationPakistan pic.twitter.com/YsGPzZXxjU
— Ministry of IT & Telecom (@MoitOfficial) April 14, 2026
The BNPL model, which lets consumers purchase goods from e-commerce platforms and pay in installments, has emerged as a popular alternative to traditional credit cards globally.
According to the SECP, Alibaba will make a direct investment in Pakistan through this venture, signaling confidence in the country’s consumer market despite ongoing economic challenges.
Regulator sees boost for underserved consumers
SECP Chairman Akif Saeed welcomed the development, stating that “the inclusion of Alibaba Group will bring greater competition and innovation” to Pakistan’s financial sector. He also noted that Pakistan’s large consumer base and rapidly digitizing economy are increasingly attracting foreign investors.
The regulator emphasised that the move would improve access to formal credit for underserved segments of the population, including young consumers, small business owners, and freelancers, groups that often struggle to secure traditional bank financing.
Big news for the people of Pakistan 🇵🇰
The world’s leading e-commerce and technology company, Alibaba Group, is entering Pakistan.
The company will now operate directly within the country after being granted a license.
Consumers will be able to purchase products from the… pic.twitter.com/vym9vIwSG8
— Inspired Analyst (@inspirdanalyst) April 14, 2026
Pakistan’s e-commerce industry has seen robust growth in recent years, fueled by rising smartphone penetration and a demographic majority under 35. However, limited access to credit has remained a bottleneck for both merchants and buyers.
The entry of a deep-pocketed international player like Alibaba is expected to intensify competition among existing BNPL providers and e-commerce platforms, potentially driving down costs and expanding consumer choice.
No timeline for the commercial launch of Coco Tech’s services has been announced yet.
