Daraz Pakistan e-commerce, the country’s biggest online marketplace, is facing questions it has never faced before. Its parent company, Alibaba, is going through one of the biggest shake-ups in its history. The Chinese tech giant is pulling back from new retail investments in South Asia and pouring money into artificial intelligence and cloud computing instead. For Pakistan’s millions of online sellers and shoppers, that shift matters more than any sale event or app update.
How Alibaba Got Here
Alibaba bought Daraz in May 2018 for an estimated $150 to $200 million. At the time, the deal felt like a breakthrough. A global e-commerce leader was betting on Pakistan, Bangladesh, Sri Lanka, Nepal, and Myanmar all at once. When Alibaba acquired Daraz in 2018, the deal inspired optimism for how the Chinese e-commerce leader’s know-how could transform Daraz and, with it, Pakistan’s wider tech sector. Logistics improved, a digital wallet launched, and live-shopping experiments followed.
But Alibaba itself kept changing. In 2023, the company announced its most significant transformation yet, the “1+6+N” restructuring plan intended to split the giant into six independent units. While parts of this plan, such as the full spin-off of the Cloud unit, were later reversed due to geopolitical shifts and US chip export curbs, the period from 2023 to 2025 redefined Alibaba as a leaner, more agile entity focused on capital efficiency.
China’s Alibaba Group is making waves with an ambitious plan to restructure its core consumer-facing business, consolidating food delivery platform Ele.me and travel portal Fliggy into an all-new e-commerce unit. Alibaba has significantly reshaped its influential partnership system, cutting nearly a third of its members and promoting e-commerce executive Jiang Fan to the company’s top leadership circle. The overhaul reflects the tech giant’s sharpened focus on international expansion and artificial intelligence as it seeks to reignite growth.
Where Daraz Pakistan E-Commerce Fits in Alibaba’s New World
Here is the part that Pakistani sellers should pay close attention to. When Alibaba describes its international digital commerce arm today, the platforms it highlights are AliExpress, Lazada in Southeast Asia, and Trendyol in Turkey and the Middle East. Daraz does not appear in that list. Alibaba is reportedly withdrawing from new retail e-commerce investments in Bangladesh and other countries, according to multiple sources. The move is said to be affecting its subsidiary Daraz, raising concerns over the future of its operations in Bangladesh. Bangladesh and Pakistan share a very similar Daraz story, and what happens in one market is rarely isolated from the other.
Sources say Alibaba is now shifting its global focus toward artificial intelligence and cloud-based services. That is a very different ambition from running a marketplace in Lahore or Karachi. Daraz Bangladesh has no investors other than Alibaba, making continued operations heavily dependent on its backing. The same is true in Pakistan.
The Numbers Behind Daraz Pakistan Today
Despite the uncertainty at the parent level, Daraz Pakistan e-commerce is still the biggest player in the market by a wide margin. The competitive landscape is currently led by Daraz, which reported $926 million in gross merchandise value (GMV) in 2025, solidifying its position as the country’s largest online retailer. That is not a small number for a market still finding its feet with digital payments.
But growth is slowing. Daraz is expected to see a growth rate of 0-5% in 2026 compared to 2025, indicating a projected shift in performance. Earlier years showed much faster growth, so this flattening, coming right as the parent company tightens its belt, is worth noting. Pakistan is Daraz’s main market, where the retailer generated 36% of revenues in 2025. That means Pakistan matters most to Daraz, even if Daraz is no longer the priority for Alibaba.
Daraz has also continued to engage with the Pakistani government. Representatives met with government officials as part of the stakeholder consultation process ahead of the Federal Budget FY 2026-27. Discussions focused on the evolving e-commerce landscape in Pakistan and the role of digital platforms in promoting entrepreneurship, expanding market access, and supporting the country’s broader digital transformation agenda. That kind of lobbying signals that the platform is still fighting for its space.
What This Means for Pakistani Sellers
Tens of thousands of Pakistani sellers run their entire business through Daraz. For many, it is the only digital shopfront they have. If Alibaba cuts funding, reduces the seller support team, or eventually looks to sell Daraz to a regional buyer, those sellers could face sudden changes to fees, logistics support, or even platform stability.
Independent brands are thriving through Shopify stores, TikTok Shop is gaining rapid traction for impulse purchases, and cross-border platforms like AliExpress continue to attract price-sensitive buyers. This means competition is growing. Sellers who put all their eggs in one basket are at higher risk now than they were two years ago.
There is also a new regulatory layer arriving at exactly the wrong time. New legislation has closed a loophole, making Federal Board of Revenue (FBR) registration mandatory for all digital sellers, regardless of revenue size or business structure. Sellers now have to deal with formal compliance at the same time their biggest platform is looking uncertain. Pakistan’s broader digital commerce legal framework is also still evolving, as seen with the E-Transactions Amendment Bill that was deferred over consultation disputes earlier this year, adding another layer of policy unpredictability for online businesses.
What Could Happen Next
There are a few realistic paths from here. Alibaba could find a regional buyer for Daraz, similar to how it eventually reduced stakes in other non-core assets. It could maintain the platform as a low-cost, minimal-investment operation. Or it could push Daraz toward profitability by raising seller fees and cutting subsidised logistics. None of those paths is painless for Pakistani sellers.
On the other hand, a leaner Daraz that is forced to stand on its own could attract a new investor more focused on South Asia. The platform’s $926 million GMV and its position as Pakistan’s dominant e-commerce name still carry real value. A buyer who sees Pakistan’s young population and rising smartphone use as an opportunity, rather than a problem, could give Daraz a second wind.
Alibaba’s cloud growth remains robust, and AI-related product revenue saw triple-digit gains for seven straight quarters. That is where Alibaba’s heart is now. Whether Daraz Pakistan e-commerce gets a seat at that table, or gets sold to make room for it, will likely become clear within the next year or two.
Frequently Asked Questions
Is Daraz closing down in Pakistan?
There is no official announcement that Daraz is closing. The platform is still operating and still Pakistan’s largest e-commerce site by GMV. However, its parent company Alibaba is cutting costs and shifting focus to AI and cloud, which creates real uncertainty about long-term investment in the platform.
Why is Alibaba pulling back from Daraz?
Alibaba is in the middle of a major global restructuring. The company is now focused on AI, cloud computing, and a smaller set of high-growth international markets. Retail e-commerce in South Asia, where profitability has been elusive, is no longer central to its strategy.
Should Pakistani sellers look for alternatives to Daraz?
It is wise for any seller to avoid depending on a single platform. TikTok Shop, independent Shopify stores, and Instagram-based selling are all growing in Pakistan. Diversifying across channels reduces risk if Daraz changes its policies, fees, or ownership.
Does Alibaba’s restructuring affect how Daraz works right now?
Day-to-day operations on Daraz appear to be continuing normally. The impact of Alibaba’s restructuring is more about future investment levels, seller support quality, and platform development. Sellers and buyers may not feel any immediate change, but the medium-term direction is uncertain.
