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Pakistan: Shared Hosting Tips and Market Challenges

Pakistan: Shared Hosting Tips and Market Challenges

Pakistan’s web hosting market is growing, with increasing demand for affordable and reliable shared hosting solutions. While internet speeds remain a challenge, local businesses and individuals are actively adopting website builders and online services. Many users prefer local hosting providers and domain registrars, favoring familiar payment methods. The .pk domain is popular, though international domains like .com are also widely used. Understanding these trends can help businesses and website owners make informed hosting decisions in Pakistan.

Pakistan and Local Domainity

Filip Borcov, Incredible at Site.pro

00:20 Internet penetration ~30%
01:00 ~100.000 local domains .pk
01:50 ~$10 for domain
02:00 Locals buy a domain for $10, foreigners for $30
02:45 Shared hosting price ~$15 per year
03:05 Domainity: 1.5, it means 0.15% of people use domains in Pakistan
05:30 Money from Pakistan are collected via PayPal, Stripe, and Paysera
05:40 Local Payment Gateways: PayPal, PayFast, Bank deposit, FasterPay, EasyPay, Omni
07:15 Website builders market is rising
07:20 People slowly switch from agencies directly to website builders
08:05 Lifehack #1: Pakistanis are pretty good affiliators
09:15 Lifehack #2: Track CJM to avoid losing money and to grow
10:35 Lifehack #3: Islamic countries have 3 days off a week

Internet Penetration

Pakistan has a population of 240 million, about half that of Europe, with internet penetration at around 30%. This penetration is much lower than in Europe, where internet speeds are generally 100 megabits or higher. In contrast, internet quality in Pakistan is very poor. If you purchase a SIM card abroad and use it in Pakistan, the connection could range from very bad to very good, depending on the area. Many people need to switch providers frequently due to the inconsistent internet service.

Filip Borcov
Lifehack #2: Track CJM to avoid losing money and to grow
Site.pro Founder, Lithuania
Site.pro

Local Domain Names and Pricing

There are about 100,000 domains like .PK, and many second-level domains such as .COM.PK and .NET.PK, but despite that, .COM domain is most popular in Pakistan.

The local registry price for a domain is about $5, but the end customer usually pays around $10, or 3,000 rupees. If a local domain is sold through a foreign register, the price can rise from $15 to $30. This price discrepancy seems illogical, but somehow helps protect the local economy.

Hosting Services

Hosting in Pakistan is very affordable, similar to prices in India, Sri Lanka, and Bangladesh. Hosting packages typically cost between $1 and $2 per month. Annual packages can range from $10 to $20.This is not considered dumping but rather the regular price in this region. Domain penetration in Pakistan is about 1.5%, with fewer than 0.1% of people using domains. Many people still do not have websites or social media profiles, and Internet speeds remain low.

Filip Borcov
Shared hosting price ~$15 per year
Site.pro Founder, Lithuania
Site.pro

Hosting companies in Pakistan are generally very small. About 80% of these companies are not well-known, and many do not even update their addresses on their websites. Urdu is the primary language, with English serving as a secondary language, especially in business and Internet-related areas. Despite English being widely spoken, support is typically provided in both languages. In addition, the market in Pakistan is highly price-sensitive.

Local Preferences

Locals in Pakistan prefer to work with local suppliers. Indian brands are popular here, perhaps due to India's size and its ability to offer low-cost solutions. While these solutions are affordable, they are not necessarily of low quality. Pakistanis often use these cost-effective solutions from neighbouring India.

Filip Borcov
One day companies — popular form of doing business
Site.pro Founder, Lithuania
Site.pro

Payment gateways

There are many payment gateways in Pakistan, including PayFast, PayPal, Bank Deposit, FasterPay, Easypaisa, Omni, MobiCash, UBL Pesa, Perfect Money, and more. However, there is no standard payment gateway for Pakistan, and statistics on their usage are scarce. Islamic banks work with Islamic cards, and non-Islamic cards may not receive support from these banks, making the payment system somewhat tricky.

Filip Borcov
Local Payment Gateways: PayPal, PayFast, Bank deposit, FasterPay, EasyPay, Omni, MobiCash, UBL, Perfect Money
Site.pro Founder, Lithuania
Site.pro

Cloud vs. on-premises solutions

When it comes to cloud versus on-premises solutions, I would choose on-premises in Pakistan due to the slow internet speeds. A local solution could be more reliable, but from a stability perspective, cloud solutions might be better, offering more stability despite being slower.

Website Builders and Market Growth

The market for website builders in Pakistan is still growing. Many people still rely on web agencies, which are often not very wealthy, leading to a preference for affordable solutions. Indian brands have a presence here, primarily because they are cost-effective and geographically nearby. Website builders are also coming into the market through partnerships with control panels, making it easier for users to access them. There are 3 ways how website builders come to Pakistan: with Control Panel, from India, as well as Site.pro :)

Filip Borcov
People slowly switch from agencies directly to website builders
Site.pro Founder, Lithuania
Site.pro

Lessons Learned

  • Lifehack #1: Pakistanis are pretty good affiliators. On affiliate forums, you'll find many people from India and Pakistan who work hard and deal with traffic. Our website builder is quite popular here, with people frequently copying websites, changing buttons, and selling traffic. This feature is highly appreciated in Pakistan.
  • Lifehack #2: Track CJM to avoid losing money and to grow. By tracking customer journeys through various steps, we've been able to identify opportunities for improvement. We've conducted numerous tests, changing our sales funnels, offering free trials, and experimenting with various pricing models. Each iteration has yielded better results, contributing to an expected 20-25% growth in MRR this month, which is remarkable for the hosting market.
  • Lifehack #3: Islamic countries have 3 days off a week. Friday is considered a religious day, so many people do not work, despite it being a business day in other parts of the world. Islamic countries often have three holidays: Saturday, Sunday (which may or may not be a workday), and Friday. Scheduling meetings can be challenging, as people are motivated to meet but often cancel or reschedule due to unforeseen circumstances.

Conclusion

Pakistan presents both challenges and opportunities for digital services, with a growing demand for affordable and reliable hosting solutions. While low internet penetration and poor connectivity remain obstacles, the market’s potential is undeniable. Businesses that understand local preferences—such as the demand for cost-effective services and reliance on local providers—can gain a competitive edge. With the right approach, adaptability, and strategic partnerships, there is significant room for growth in Pakistan’s evolving digital landscape.