Courier companies across Pakistan are reporting a noticeable decline in business as new government regulations and taxes begin to weigh on the e-commerce sector. Delivery orders, particularly from smaller online sellers, have dropped sharply, signaling a challenging period for logistics providers.
Small and Mid-Sized Sellers Hit Hard
While major e-commerce brands continue to maintain their delivery volumes, mid-sized and small online sellers—especially those based in smaller cities—have been disproportionately affected. Many of these sellers have faced temporary suspensions due to difficulties complying with the new registration requirements for logistics providers.
Abdul Aleem Shaikh, Director of Marketing and Communications at Leopard Courier, noted that cash-on-delivery (COD) volumes have been uneven. “Small or newly registered shippers have seen interruptions in their service. Conversely, larger brands with proper documentation have managed to maintain steady business,” he said. Overall, COD shipments have dropped between 30% and 38% in the short term.
Government Regulations and Taxes Add Pressure
Recent fiscal policies require all online sellers to register with courier companies and provide their National Tax Number (NTN). In addition, taxes of up to 2% on COD and digital payment transactions have been introduced.
“Over the past month, we’ve seen more online sellers attempting to register with us and submit their NTNs,” Shaikh said. “However, many small operators, particularly women-led home businesses and sole proprietors, are either unfamiliar with the process or hesitant due to tax concerns.”
Rana Hassan Talal, CEO and Founder of AHL Courier, explained that these regulatory measures have had a domino effect on courier networks. “Business for smaller online sellers was suspended for nearly two weeks, which reduced logistics volumes. Many are still trying to reconnect with courier networks,” he said.
Major Brands Remain Unscathed
Larger e-commerce players, already compliant with tax and documentation requirements, have not experienced disruptions. This contrast highlights a growing divide between well-established platforms and smaller, independent sellers struggling to adapt.
Meanwhile, a brief 5% tax on foreign e-commerce platforms like Temu and AliExpress was introduced but later withdrawn, a move local industry representatives criticize as unfair.
Industry Leaders Call for Relief
Shoaib Bhatti, President of the Pakistan eCommerce Association, voiced concerns over the impact on smaller businesses. “Local sellers are paying income tax, sales tax, and now COD tax, while foreign platforms are largely exempt. This discourages small businesses and creates an unlevel playing field,” he said.
Many local companies have absorbed the costs from COD taxes, but Bhatti emphasized that sustained competitiveness requires government intervention. He urged policymakers to reduce COD taxes to 0.25%, extend registration timelines, and simplify documentation for small sellers.
Rising Operational Costs Compound Challenges
Logistics companies are also grappling with increasing fuel prices, tighter margins, and higher operational costs. The combination of fiscal measures and economic pressures is creating a more difficult environment for small and mid-sized courier operators.
