Amazon set to expand in Pakistan, good news for Indian garment manufacturers

By

Isabelle Crossley

Published
Apr 11, 2018

Amazon is planning to increase its stake in the Pakistani online fashion portal Clicky which, if successful, is expected to increase trade between India and Pakistan, especially in the fashion sector.

Amazon, which has its international offices based in Seattle, America, already owns a 33 percent stake in Pakistan’s Clicky. The business acquired the stake in 2017 from the Dubai based online retailer called Souq who had invested in the company in 2016.

Amazon’s plan is to increase the stake in Clicky is expected to increase trade. There is a list of 1,200 products that the Pakistani Government has banned from being imported from India but merchants get around this by routing products through another country on the way. The country is usually Dubai, sometimes Afghanistan, and it is believed that, if Amazon has a greater presence in the region, it can facilitate this routing for many products.

As clothing and jewellery are popular imports into Pakistan routed from India through the Middle East, it is hoped that demand will increase with increased availability. As the Indian Government’s “Make in India” campaign is promoting garment manufacture in India and aiming to increase exports, this would be good news for the government and manufacturers alike. Negotiations are ongoing and no official statement has been made by either Amazon or Clicky as yet.