Internet users in Pakistan have been growing at a double digit growth rate of ~13% during the last 3 years. The internet users growth rate is on the rise through the services of broadband internet and mobile phone services. There are 50 internet services providers in which 10 are broadband companies exploring untapped market in big cities, making it available for people to use internet with only Rs 100.

Drivers : Promotion of internet services-The cellular phone companies have been working aggressively on the promotion of Internet services for last 2-3 years mainly for earning extra revenues besides voice calls and text messages. Increase in internet speeds through the launch of 3G/4G in the country in April 2014. This makes internet browsing a pleasure for users Availability of internet - The 3G/4G data advantages are launched by all five telecom operators of Pakistan. As coverage in more cities is established with time it will lead to availability of internet across the country Massive youth population A young country, where ~65% of the population is under the age of 30 is another driver for increasing internet usage Increasing smartphone penetration -The trend of Internet usage is increasing rapidly with increasing smartphone sales and availability of low-cost handsets having options of online connectivity. Furthermore, as 3G facilities become more accessible users will move towards smartphones from feature phones. Thus a significant boost in smartphone sales is projected. Social media The growth in internet users is further given impetus through mobile phone companies and handset makers providing easy connectivity to users for using Facebook and Twitter. The excessive branding and marketing campaigns of mobile phone companies is another factor which resulted in creating awareness among the customers before the launch of high data service3G technology.

Growth hindrance : Some of the key challenges of internet proliferation in the country are Quality and reliability of internet connectivity both in terms of internet service provider and utility reliability Unequal gender involvement in internet usage is another concern. Thus, if internet access barriers are lowered, a higher potential of internet can be realized Customer service quality and limited choice of plans is another impediment to increasing internet in the country Unreliability of the power sector is also a factor Drivers of E-commerce : The internet has significantly changed the way the retail business is done in many parts of the globe; now its doing the same in economies like Pakistan. Foreign investment - The major catalyst of this changing trend are mostly foreign investors, who see enormous potential for the online retail business to grow in a country with a large population of 180 million people and a burgeoning urban middle class and a massive youth bulge. Payment solutions The ecommerce sector that had so far been driven by cash-on-delivery (COD) model had an important breakthrough after Habib Bank Limited launched its Mobile Point of Sale (mPoS) service recently, enabling online retailers and merchants to accept debit and credit cards on delivery of goods at customers doorsteps. Towards the end of 2014, United Bank Limited had already launched its GSM machines to accept plastic cards and HBL has now come up with an improved technology. Industry sources say Telenors EasyPaisa is also in the process of launching its own debit card, which combined with products like mPoS would provide further boost to the ecommerce sector. Though it is not sure how much difference it would make overall because as of September 30, 2014, there were less than 25 million debit and credit cards in the country and it recorded a little over 1% growth on quarterly basis. The actual number of plastic card holders is far less than the official figure as a bulk of card holders have multiple cardshttp://www.slideshare.net/WorldStartupReport/pakistan-startup-reportV important

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Internet Usage: Survey conducted by IDC (2013)The young segment of the population needs to stay connected 24/7 and this need is fulfilled through apps like Facebook, Twitter, Viber and WhatsApp but just being connected does not do the trick, playing online games watching videos or downloading files is just as important as using phone for calls and messaging

The top three activities in Pakistan both on desktop and mobile Internet are: 1) social media, 2) email and 3) general search

Study, that is based on survey of over 1,000 Pakistanis, revealed that desktop is dominant computing medium with 91 percent of respondents owning a PC at home However, 45 percent of those also own a smartphone or tablet. 18 percent cite the latter as their primary device. Pakistani digital consumers are engaging more with the Internet than ever before: of those surveyed, 70 percent spend time daily on the Internet while 60 percent say it is also where they liked to spend most of their personal time. Users accessing internet from their mobile devices was expected to overtake the number of desktop internet users in 2014 Emerging markets are starting from mobile, hence lowering Internet access barriers to consumers, businesses and communities, can be expected to give rise to growth far more rapid than what is currently Mobile devices are gaining momentum: 86 percent use PCs to access the Internet daily, 77 percent use smartphones, 73 percent use feature phones and 59 percent use tablets daily. shift to mobile usage for accessing internet is also due to unreliability of the electricity supply which is also helping to promote the usage of tablets and smartphones in Pakistan..