By Qudsia Bano

Artificial intelligence (AI)-powered export platforms are creating new opportunities for Pakistan’s small and medium enterprises (SMEs), enabling them to reach international buyers, lower marketing costs, and expand their presence in global markets, industry experts say.

The trend comes as Pakistan accelerates efforts to boost exports through digital trade and e-commerce channels. SMEs remain the backbone of the economy, representing more than 90% of all business establishments, contributing nearly 40% to the gross domestic product (GDP), and accounting for around 30% of the country’s exports, according to the latest estimates of the Small and Medium Enterprises Development Authority (SMEDA).

Momentum behind AI-enabled export solutions has gained pace in recent months. In May 2026, Alibaba.com announced a strategic partnership with Pakistani stakeholders to provide AI and digital skills training to 10,000 SMEs, onboard at least 2,000 Pakistani businesses onto its global marketplace, and strengthen the Pakistan National Pavilion on the platform. The initiative aims to connect local exporters with more than 50 million B2B buyers worldwide.

According to Alibaba.com, the Pakistan National Pavilion currently features over 3,700 sellers offering more than 7.3 million products. The platform attracts over 700,000 buyers daily and has recorded annual growth of 17.5% in sellers and 40.3% in listed products.

The shift toward AI-assisted exports coincides with rapid growth in Pakistan’s digital economy. During July 2025-April 2026, the country’s IT and IT-enabled services exports reached approximately $3.8 billion, reflecting a 21% year-on-year increase, according to data highlighted by the Trade Development Authority of Pakistan (TDAP).

Industry experts believe AI-powered export platforms are transforming the way SMEs engage with international markets. Technologies such as automated product-listing generation, multilingual communication, intelligent buyer-seller matching, demand forecasting, and digital marketing optimisation are enabling smaller firms to compete more effectively without maintaining costly overseas sales networks.

Muhammad Ahsan, Manager of Export Development at Interloop Limited, said AI-driven trade platforms are significantly lowering entry barriers for smaller exporters.

“Traditionally, SMEs struggled to identify reliable buyers and sustain an international marketing presence. AI-powered B2B platforms now help exporters analyse buyer behaviour, improve product visibility, and communicate with customers in multiple languages. This substantially reduces the cost of entering foreign markets,” he said.

He noted that Pakistan’s textile, apparel, sports goods, and home textile sectors are particularly well positioned to benefit because they possess strong manufacturing capabilities but often lack sophisticated digital marketing resources.

“International buyers are increasingly sourcing suppliers through digital procurement platforms. SMEs that embrace AI-assisted export tools can improve response times, understand demand trends more accurately, and compete more effectively with suppliers from countries such as Vietnam, Bangladesh, and China. The opportunity is no longer confined to large exporters,” Ahsan added.

Saad Khalid, Manager of Business Development at the Pakistan Hosiery Manufacturers and Exporters Association, said AI-enabled export ecosystems could play a key role in diversifying Pakistan’s export base.

“Many Pakistani SMEs manufacture quality products but remain dependent on intermediaries. AI-powered platforms enable businesses to engage directly with overseas buyers, increasing profit margins and improving access to market intelligence. This direct connectivity is especially valuable for manufacturers located in secondary cities that traditionally have limited international exposure,” he said.

Khalid emphasised that integrating AI with e-commerce, logistics, and digital payment systems could help smaller firms scale up exports more efficiently.

“The global shift towards digital sourcing is accelerating. Buyers now expect rapid quotations, personalised communication, and real-time supplier information. AI tools help SMEs meet these expectations. With the right training and digital readiness, Pakistani businesses can leverage these platforms to access new markets across North America, Europe, the Middle East, and Southeast Asia,” he said.

Despite the growing opportunities, several challenges continue to hinder SME competitiveness. Limited access to finance, shortages of digital skills, and slow technology adoption remain significant barriers. Various policy assessments indicate that Pakistani SMEs receive only a small share of private-sector credit compared with regional peers, restricting investment in digital transformation and export expansion.

Nevertheless, analysts believe that the convergence of AI-powered export platforms, government-backed digital trade initiatives, and rising global demand for online sourcing could create a new growth avenue for Pakistan’s exports. With SMEs already making a substantial contribution to GDP and export earnings, wider adoption of AI-driven trade tools could help thousands of businesses connect with global buyers and strengthen the country’s export performance in the years ahead.

Credit: INP-WealthPk