In response to growing complaints from Pakistani consumers, Chinese e-commerce giant Temu has addressed the noticeable price hike affecting thousands of online shoppers across the country. The clarification comes amid a wave of discontent over soaring prices not just on Temu, but also on platforms like AliExpress and Daraz.

A company spokesperson stated, “The prices of some products may have changed due to recent changes in external policies and rising operational costs across various areas. We remain committed to providing access to quality products at affordable prices, while fully complying with local requirements.”

The surge in pricing is largely attributed to new taxation policies introduced by the Pakistani government, including the Digital Presence Proceeds Tax Act. This legislation now mandates a 5% tax on all goods sold by foreign companies operating in the country. Moreover, platforms like Temu and AliExpress are now also subject to an additional 18% sales tax, putting them on a more level playing field with local retailers.

Previously, international platforms could operate without many of the tax obligations faced by domestic businesses. Local manufacturers typically pay 18% sales tax plus 35% income tax, while .foreign marketplaces avoided these layers of financial responsibility. The new regulations aim to close this loophole.

Besides tax reform, another factor contributing to the price hike is the rising global operational costs, including logistics, freight, and cross-border transaction fees. With these combined pressures, several items listed on Temu and AliExpress are now being sold at three to four times their earlier prices, according to buyers.

This shift marks a significant moment for Pakistan’s e-commerce landscape. While the government sees these changes as a move toward tax fairness, shoppers accustomed to ultra-low prices are now facing a very different reality.

As the market adjusts, consumers and sellers alike will need to navigate a more regulated and expensive online ecosystem, one where affordability may no longer be guaranteed.