Why Temu Got Expensive Overnight in Pakistan: Here's What Changed After July 1st

Temu is an online shopping app similar to Amazon, Alibaba, and AliExpress.
Temu gained popularity worldwide by offering consumers low-cost products. This online shopping platform attracts users due to its extremely affordable pricing, as it follows a factory-to-consumer model—meaning there are no third parties or middlemen involved.

The platform began operating in 2022.

In addition to shoes, toys, clothing, and fashion items, it also features products that many people may not even know exist—some of which arguably shouldn't exist at all.

Temu is one of the most downloaded shopping apps in Pakistan.
Its popularity can be attributed to the following reasons:

Low Prices:
Temu offers products at reduced prices by shipping directly from China.

Wide Product Range:
The app features over 600 categories of items, including electronics, fashion, home goods, and cosmetics.

Shipping and Perks:
Temu currently offers free delivery, and if the delivery is not made within the specified time (usually 4–11 days), the customer receives a Rs. 280 credit.










From Affordble to Overpriced: Why Temu Products Just Got a Lot More Expensive in Pakistan

Looking for a budget-friendly CCTV camera, a stylish glass water bottle, or everyday makeup essentials? For many shoppers in Pakistan, the go-to answer has often been one word Temu.

But as the calendar turned to July 1st, something changed. Prices on the popular online shopping platform spiked dramatically products that were previously selling for Rs. 500 are now listed for Rs. 1,500 to Rs. 2,000.

Price Hike Shocks Customers

The sharp rise in prices hasn’t gone unnoticed. Social media platforms are flooded with complaints, as users share screenshots of their old Temu purchases at far lower prices and express regret over not completing their orders earlier.

Some shoppers blame themselves for missing out, while many others are pointing fingers at the government’s new tax policies, which came into effect with the 2024-25 federal budget.

What Changed? Government Taxation Targets Foreign E-Commerce

According to officials from the Federal Board of Revenue (FBR), the Pakistani government has rolled out the Digital Presence Proceeds Tax Act a policy aimed at taxing international e-commerce platforms that sell directly to Pakistani consumers.

Under this new regulation, any product sold in Pakistan through foreign platforms like Temu, Amazon, AliExpress, or Alibaba now faces a 5% digital tax.

The FBR explains that locally-made products already bear a heavy tax burden 18% sales tax and up to 35% income tax while international platforms were previously operating tax-free. This created an uneven playing field that hurt local manufacturers.

To correct this imbalance, the government is now demanding that foreign sellers contribute similarly to the national tax base even though these companies don’t have physical offices in Pakistan, which is why income tax doesn’t apply to them directly. However, in addition to the 5% digital tax, an 18% sales tax is now applicable as well.

Is Temu Also Raising Prices on Its Own?

While taxes have clearly played a role, some customers and observers believe the story doesn’t end there. A price jump of up to 300% has led to speculation that Temu itself may have increased its rates, perhaps in response to the new policy or to maintain profit margins.

Critics argue that even with new taxes, such a massive price surge isn't entirely justified. There's hope that prices could stabilize over time, though likely not to pre-July levels.

Online Backlash: "We’re Being Punished for Wanting Quality

The public reaction has ranged from frustration to humor. One user posted, “Temu's quality was never top-tier, but at least it was cheap. Now it’s just overpriced.

Another remarked, The government seems to hate seeing us enjoy affordable products.

Some users lamented the lack of innovation in local goods, arguing that raising taxes on international items won’t magically improve the quality of local offerings. One user noted, Temu filled a gap giving us access to trendy, affordable products from abroad. Now even that’s slipping away.

And of course, there were light-hearted posts too. One read Just my luck Temu got expensive the before I placed my order.