Ecommerce registration and payments in Pakistan come down to three setups: a legal identity (your CNIC, plus an NTN from FBR once you sell regularly), payment rails (wallets, bank transfer and cash on delivery), and a courier account that picks up and delivers orders. Put all three in place before your first sale.
This guide covers the operational side of a store. If you have not yet picked a product or a channel, start with How to Start an Ecommerce Business in Pakistan, then come back here to set up registration, payments and delivery.
Step 1: Decide how you will register the business
Most first-time sellers in Pakistan start as a sole proprietor. That means the business is you: it trades under your name and your CNIC, and profit is taxed as your personal income. It is the simplest structure and costs nothing to set up. You can move to a partnership or a private limited company with the SECP later, once the store has real volume or you bring in partners.
Do you need an NTN to sell online?
An NTN (National Tax Number) is your registration with the Federal Board of Revenue. You create it yourself on FBR's online portal, IRIS, using your CNIC, a mobile number registered in your name and an email address. Some channels ask for an NTN to open a business account, and payment gateways usually need one for a sole proprietor merchant account. Even where it is optional, having one makes every later step easier.
What changed in online seller tax rules?
Pakistan's 2025-26 budget brought online selling further into the tax net. As Dawn reported, the government moved to make couriers collect sales tax on online orders and to require digital vendors to register, while FBR said one-time sellers and home-based sellers would not have to register (Dawn, June 2025). Details keep changing through circulars and later budgets, so confirm your own obligations with FBR or a tax adviser before you scale, and include tax in your pricing from the start.
What tax is deducted from your online sales under section 153(2A)?
Since the Finance Act 2025, two kinds of business collect income tax from the money they pass on to you. The first is every payment intermediary, such as a gateway or bank, that processes a digital payment for a seller on a locally operated ecommerce platform or website. The second is every courier that collects cash on delivery for a seller. Each deducts tax from the gross amount payable to you, including any sales tax, and deposits it with the government (section 153(2A) of the Income Tax Ordinance, amended up to 31 July 2025).
How the buyer paid | Who deducts the tax | Rate if you are on the ATL | Rate if you are not |
|---|---|---|---|
Wallet, card or bank transfer | The payment intermediary | 1% of the gross amount | 2% of the gross amount |
Cash on delivery | The courier | 2% of the gross amount | 4% of the gross amount |
Rates are from FBR's Withholding Income Tax Rate Card, updated to 30 June 2025. The ATL is the Active Taxpayers List: you appear on it after you file your income tax return. Staying on it halves the deduction on every order.
Here is a hypothetical example. You collect Rs 200,000 of cash on delivery orders in a month. If you are on the ATL, the courier deducts Rs 4,000. If you are not, it deducts Rs 8,000. Over a year, that gap is Rs 48,000 on the same sales. Keep every deduction statement your courier and gateway send you, and ask a tax adviser how the tax deducted is treated in your own return.
What does section 165C reporting mean for you?
Section 165C, added by the same Finance Act, makes every payment intermediary and courier that deducts this tax file a quarterly statement with FBR. It lists each seller’s name, NTN or CNIC and address, each transaction’s date, invoice number and value, and the tax deducted. Every online marketplace in Pakistan must also file a monthly statement with each vendor’s tax registration numbers, monthly turnover and the amount paid into the vendor’s bank account (Income Tax Ordinance, section 165C).
In plain terms, the businesses that handle your money now report your online sales to FBR, whether or not you file a return yourself. Registering, filing on time and keeping records that match those statements is the safer path from your first month.
Step 2: Open a bank account for the business
Keep store money separate from personal money from day one. A separate current account in your own name is enough for a sole proprietor. Marketplaces pay out to a bank account whose title matches the seller name on file, so use the exact name on your CNIC. A separate account also makes tax filing and profit tracking much simpler.
Step 3: Choose how customers will pay you
Pakistani buyers pay in several ways, and a store that offers only one loses sales. The State Bank of Pakistan's FY25 review found that account and wallet-based channels made up 93 percent of e-commerce payments (SBP press release, November 2025), so wallets and bank apps belong at the top of your list.
- Mobile wallets. JazzCash and Easypaisa both run online payment gateways for businesses with a website or app. See the JazzCash payment gateway and the Easypaisa online payment gateway pages for their current onboarding steps.
- Cash on delivery. Still expected by many buyers. The courier collects cash and pays it to you after deducting charges, usually on a weekly or twice-weekly cycle.
- Bank transfer and Raast. Useful for larger or repeat orders. Share your account or Raast ID and confirm the payment before dispatch.
- Cards. Available through the same gateways and through bank-run gateways, though most local buyers use them less than wallets.
What if you use Shopify?
Shopify is available in Pakistan, but its own payment service, Shopify Payments, is not offered here. Its list of supported countries does not include Pakistan, so you connect a third-party gateway or use manual methods such as cash on delivery and bank transfer. Check that a gateway supports Shopify before you sign up with it.
What if you sell on Daraz?
Daraz collects payment from the buyer for you, including cash on delivery, and pays you weekly after deducting its commission and fees. You do not need your own gateway to sell there. You do need a bank account in the same name as the seller account. How to Sell on Daraz lists the current fees and payout schedule.
Selling to buyers abroad adds another layer: receiving dollars. Payoneer, JazzCash and Easypaisa for Pakistani Sellers: What to Use When explains which payment tool fits which job.
Step 4: Set up delivery
Delivery is where many new stores lose money and reviews. You have two routes:
- Marketplace logistics. On Daraz, you pack the order and Daraz's logistics network picks it up or you drop it off. You follow their packaging and dispatch rules and they handle the rest.
- Your own courier accounts. For your own store or social selling, open accounts with one or two couriers such as TCS, Leopards, M&P, PostEx or Trax. Several offer cash on delivery collection, plugins for Shopify and WooCommerce, and a merchant portal for booking and tracking.
How to compare couriers
- Ask each courier for a rate card by weight slab and destination, including the COD fee.
- Ask how often they pay out COD cash and how returns are charged.
- Book a few test parcels to your main buyer cities and time them.
- Check whether they cover the smaller towns your buyers live in, not only Lahore, Karachi and Islamabad.
- Pick one main courier and keep a second as a backup for areas the first covers badly.
Step 5: Reduce refused cash on delivery orders
A refused COD order costs you delivery both ways and ties up stock. A few habits cut this down sharply:
- Confirm every COD order by phone or WhatsApp before you dispatch it.
- Show the full price, including delivery, before checkout, so there are no surprises at the door.
- Offer a small discount or free delivery for prepaid orders by wallet or bank transfer.
- Keep a simple list of phone numbers that refused orders before and require prepayment from them.
Step 6: Put the basics on paper
Before launch, write short, clear store policies: delivery times by city, return and exchange rules, and how refunds are paid. Daraz sets many of these for you. On your own store, you set them yourself and must follow them. Clear policies reduce disputes and give buyers a reason to trust a new store.
A launch checklist
- CNIC-matched bank account, separate from personal money.
- NTN from FBR IRIS, or a plan to get one once sales are regular.
- A filed income tax return, so you are on the Active Taxpayers List and couriers deduct the lower rate.
- At least two payment options live, including one wallet.
- A courier account with rates tested to your main cities.
- COD confirmation routine by phone or WhatsApp.
- Written delivery, return and refund policies.
- A simple spreadsheet for orders, costs and profit per order.
Where to learn this properly
SkillsVerx's AI-Powered Ecommerce course covers registration, payments and delivery inside one real store project, alongside product research, listings and marketing, fully online and in English.
Frequently asked questions
Can I start an online store in Pakistan without registering a company?
Yes. Most sellers start as sole proprietors trading under their own CNIC. Register a company with the SECP later if you need partners, investment or limited liability.
Is an NTN free to get?
Yes. You register for an NTN yourself on FBR IRIS at no cost, using your CNIC, a mobile number in your name and an email address.
Which courier is best for ecommerce in Pakistan?
It depends on your cities, parcel weight and COD needs. Test two or three couriers with real parcels to your main buyer cities before you commit to one.
How much tax does a courier deduct from cash on delivery orders?
Under section 153(2A), a courier deducts 2 percent of the gross amount it collects for you if you are on FBR’s Active Taxpayers List, and 4 percent if you are not. Digital payments through a gateway carry 1 percent and 2 percent.
Can I use JazzCash or Easypaisa on my own website?
Yes. Both run online payment gateways for businesses with a website or app. Expect to submit business documents and pass their checks before you go live.
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