Alibaba-backed Koko Tech Pakistan Granted SECP Licence for BNPL Business in Pakistan

Securities and Exchange Commission of Pakistan (SECP) has licensed Koko Tech Pakistan (Private) Limited (KTPL), owned by Alibaba.com Holdings, to operate a Buy Now Pay Later (BNPL) business in the country. This move signifies a major step forward for Pakistan’s digital financial ecosystem, reflecting growing international confidence in the nation’s large consumer base and expanding digital economy.

With advanced AI-driven credit assessment systems and globally tested digital infrastructure, KTPL is expected to introduce innovative, data-driven lending solutions in the BNPL space. This will enhance access to consumer financing, particularly for young users, freelancers, and small businesses that remain underserved by traditional banking channels due to perceived risks and lack of formal documentation.

The development also represents a direct inflow of foreign investment into Pakistan’s financial sector, signalling international investors are taking note of the country’s improving regulatory environment and digital adoption rates. Backed by Alibaba’s global expertise and capital strength, KTPL is well-positioned to support small and medium enterprises (SMEs), boost e-commerce activity, and accelerate the shift towards a more inclusive, technology-led financial system that prioritises access over traditional collateral-based lending.

SECP Chairman Dr Kabir Ahmed Sidhu said the entry of Alibaba Group will boost competition and innovation within Pakistan’s non-banking financial sector. He noted that Pakistan is an attractive destination for international investment, supported by its large population of over 240 million people, growing digital adoption across both urban and rural areas, and an improving regulatory framework that has been steadily modernised to accommodate new financial technologies.

The statement did not specify when KTPL would commence its BNPL operations or the expected scale of its initial rollout across the country. Following the pattern adopted by other digital lenders entering the market, the company is expected to begin with major urban centres before expanding to smaller cities.