Alibaba-backed KOKO tech secures SECP license to launch BNPL services in Pakistan

The Securities and Exchange Commission of Pakistan (SECP) on Tuesday granted a license to KOKO Tech Pakistan (Private) Limited (KTPL), a subsidiary of Alibaba Group, to operate a Buy Now Pay Later (BNPL) business in Pakistan, marking a new entry of foreign-backed digital lending into the country’s financial sector.

According to a press release, the company will deploy advanced artificial intelligence-based credit assessment systems supported by globally tested digital infrastructure to introduce data-driven lending solutions in the rapidly expanding BNPL segment.

The regulator said the initiative is expected to broaden access to consumer financing, particularly for young users, freelancers, and small and medium-sized enterprises that often face limited access to traditional banking channels. The move is also likely to stimulate e-commerce activity and support the growth of small businesses operating in the digital marketplace.

SECP Chairman Kabir Ahmed Sidhu said the entry of Alibaba-backed operations would strengthen competition and encourage innovation within Pakistan’s financial ecosystem. He noted that Pakistan continues to present an attractive destination for international investors, supported by its large population base, expanding digital adoption, and a gradually improving regulatory framework.

The development represents a direct inflow of foreign investment into Pakistan’s financial services landscape and underscores growing interest from global technology firms in the country’s evolving fintech and consumer finance sectors.