The Securities and Exchange Commission of Pakistan (SECP) has granted a licence to KOKO TECH Pakistan (Private) Limited (KTPL) to operate a Buy Now Pay Later (BNPL) business in Pakistan, according to an official statement issued on Tuesday.

KTPL is owned by Alibaba.com Holdings, one of the world’s leading e-commerce and technology companies. The entry of Alibaba-backed KTPL marks a significant milestone for Pakistan’s digital financial ecosystem, reflecting growing international confidence in the country’s large consumer base, expanding digital economy and untapped financial services market.

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, which have often been reluctant to extend credit to these segments 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 that 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 and boost e-commerce activity.