The Securities and Exchange Commission of Pakistan (SECP) has granted a Non-Banking Finance Company (NBFC) licence to Cocotech Pakistan Private Limited, a wholly owned subsidiary of China's Alibaba Group, on 14 April 2026.
The licence enables Cocotech Pakistan to provide BNPL services, allowing consumers to purchase goods from ecommerce platforms and pay through instalment-based plans rather than upfront.
The SECP confirmed that Alibaba will make a direct investment in Pakistan as part of its expansion into the country's fast-growing digital market. The move marks Alibaba's formal entry into Pakistan's regulated financial services sector.
Market context and regulatory significance
Pakistan's BNPL market remains at an early but rapidly evolving stage, with the segment having gradually expanded over recent years through players such as QisstPay and Bank Alfalah's instalment platforms, though market penetration remains limited. Cocotech's entry brings a globally scaled operator into a market where access to conventional credit products, including credit cards, remains relatively low, particularly among younger consumers, freelancers, and small businesses.
The SECP Chairman, Dr Kabir Ahmed Sidhu, noted that Pakistan is an attractive destination for international investment due to its large population, increasing digitalisation, and improved regulatory framework, and that Alibaba's investment reflects international investor confidence in Pakistan's consumer market and digital economy.
Last year, Alibaba made several other moves to further expand its capabilities. For example, back in September 2025, Bosch expanded its strategic partnership with the group to facilitate digital transformation via cloud computing and AI technologies. The two companies planned to centre their focus on cloud-based enterprise operations, AI-driven business innovation, and ecommerce expansion.
A few months before this, in May 2025, Alibaba Cloud teamed up with LuluFin and Ant Digital Technologies to advance its commitment to assisting the UAE's digital development by offering businesses efficient tools and augmented infrastructure to scale in the current landscape.
