The Securities and Exchange Commission of Pakistan (SECP) approved a Non-Banking Finance Company (NBFC) license for Cocotech Pakistan Private Limited, Alibaba Group’s wholly owned subsidiary, on April 14, 2026.
This license allows Cocotech Pakistan to offer Buy Now Pay Later (BNPL) services, enabling consumers to make purchases from e-commerce platforms using installment-based payments rather than one-time upfront payments.
The SECP announcement also mentioned that Alibaba will directly invest in Pakistan as part of its expansion into the country’s growing digital market. This marks Alibaba’s official entry into Pakistan’s regulated financial services sector.
Market Context and Regulatory Significance
Pakistan’s BNPL market is still at an early stage but shows rapid evolution, having gradually expanded over recent years through the efforts of companies like QisstPay and Bank Alfalah’s installment platforms. However, current market penetration remains limited.
The entry of Cocotech brings a globally recognized operator into a market where traditional credit products are less accessible, especially to younger consumers, freelancers, and small businesses.
Dr Kabir Ahmed Sidhu, the SECP Chairman, highlighted that Pakistan is an attractive destination for international investments due to its large population, increasing digitalization, and improved regulatory environment. Alibaba’s investment underscores the growing confidence in Pakistan’s consumer market and digital economy among global investors.
