SECP grants Buy Now Pay Later licence to Alibaba-owned Koko Tech Pakistan

The Securities and Exchange Commission of Pakistan (SECP) on Tuesday said it had granted a Buy Now Pay Later (BNPL) licence to Alibaba-owned Koko Tech Pakistan Pvt. Ltd (KTPL).

“The entry of Alibaba-backed KTPL marks a significant milestone for Pakistan’s digital financial ecosystem,” it said in a press release.

The press release further stated: “One of the world’s leading e-commerce and technology companies, Alibaba’s move into Pakistan reflects growing international confidence in the country’s large consumer base, expanding digital economy, and untapped financial services market.”

It said that with its advanced artificial intelligence-driven credit assessment systems and globally tested digital infrastructure, KTPL was 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,” the press release said.

It highlighted that the development also represented a direct inflow of foreign investment into Pakistan’s financial sector.

“Backed by Alibaba’s global expertise and capital strength, KTPL is well-positioned to support small and medium enterprises, boost e-commerce activity, and accelerate the shift towards a more inclusive, technology-led financial system,” it said.

The press release quoted SECP Chairman Dr Kabir Ahmed Sidhu as saying, “The entry of Alibaba Group will boost competition and innovation.”

Dr Sidhu further noted that Pakistan was an “attractive destination” for international investment, supported by its large population, growing digital adoption, and an improving regulatory framework.