KARACHI: Image Pakistan Limited, country’s first approved seller on Amazon, plans to create a wholly owned subsidiary titled Image Tech Limited to avail the recently announced incentives by the government for technology companies including digital electronics and internet related services such as e-commerce services.
Such companies have been allowed a 100 percent tax credit against their tax liability for three years. Image Pakistan would make Rs200 million capital investment in the subsidiary company.
Image Pakistan, formerly Tri-Star Polyester Limited, was initially set up for producing 4,200 tons/annum of polyester filament yarn. Lately, the company has started manufacturing and marketing value added embroidered fabric as well as printed lawn under the brand name “Image”.
In May this year, US based e-commerce giant Amazon added Pakistan to its approved sellers’ list, a development that is being seen as a major boost to the country’s e-commerce industry.
Amazon’s sellers’ list will create opportunities for the exporters to sell their products through the platform, giving them access to market their products through the 3P model, which brands the owners with a third party relationship to retail sell directly to buyers through the marketplace. Amazon also offers the 1P model for mass producers, who want to produce for Amazon brand items.
Pakistan has remained off Amazon’s list of sellers despite the company’s presence in neighboring India. Pakistani retailers wishing to sell their products on the marketplace would register their companies from other countries, in an effort to bypass Pakistan.
However, after being added to the list, Pakistani merchants will be able to sell their products on the platform with ease. But this does not mean much for Pakistani consumers; it will mostly benefit Pakistan-based merchants that want to sell their products abroad.