In recent weeks, Temu has found itself at the center of a growing storm in Pakistan after an abrupt and steep spike in prices across its platform. Once promoted as a budget-friendly destination for online shoppers, the platform has seen product prices soar by 200% to 300% in many categories, triggering a wave of public outrage. Social media has been flooded with user-generated comparisons exposing the magnitude of the hikes and raising sharp questions about the motives behind them.
Temu has cited new policy shifts and rising operational costs as the drivers of the price surge. But industry analysts and consumers remain unconvinced. While the government’s recent introduction of a 5% tax on international e-commerce and the existing 18% general sales tax have impacted the entire sector, no other platform has implemented increases of this scale. The gap between Temu’s justification and the actual hike has only fueled speculation that the company is using regulatory changes as a cover for broader pricing strategies.
“Temu thinks we’re dumb,” says Tania Zafar, a frequent online shopper based in Lahore. “Everyone is dealing with the same taxes. No one else has jacked up prices like this.”
Her reaction reflects the growing frustration among Pakistani consumers who feel blindsided by the platform’s sudden and widespread price increases. While many local platforms and small businesses have made limited pricing adjustments in response to recent tax changes, most have done so cautiously. They have raised prices only where absolutely necessary and, in many cases, absorbed a portion of the added cost in order to remain competitive and maintain customer trust.
Temu’s approach has been far more aggressive. Prices on popular items have surged by 200 to 300% across nearly every category, from kitchenware to apparel. For shoppers accustomed to Temu’s promise of affordability, this shift has come as a shock.
Local sellers continue to operate under significant pressure due to import duties, rising fuel and transport costs, and a fluctuating currency. Even so, they have prioritised affordability, recognising that most Pakistani consumers are extremely price sensitive. Many local businesses have chosen to protect their customer base by adjusting prices selectively or offering smaller profit margins rather than passing the full burden of cost increases onto shoppers.
Temu’s broad-based hikes appear excessive and poorly justified. The move has led many to question whether the company is responding to external costs or taking advantage of the situation to implement a more profit-driven pricing strategy. The resulting backlash has damaged consumer confidence at a time when trust is critical in a highly competitive e-commerce market.
“This is definitely not a result of compliance,” says Bilal Rafiq, a Lahore-based reseller. “It’s Temu cashing in while pretending to follow the rules.”
Temu entered the Pakistani market with ultra-low prices and quickly won over price-conscious consumers. But now that it has established a strong presence, many believe the platform has changed course, replacing its affordability pitch with inflated and difficult-to-justify pricing, all while citing vague external factors.
For many shoppers, the frustration lies not only in the scale of the price increases but also in the explanation provided. What especially fuels consumer resentment is the lack of transparency. Generic references to “policy changes” and “operational costs” offer little clarity, making the move feel less like a necessary adjustment and more like a calculated price reset.
Unlike local sellers, who have made measured adjustments or absorbed part of the impact to retain customer loyalty, Temu has implemented sweeping increases across nearly every category. The backlash reflects growing concern that the platform’s pricing strategy may be less about navigating new regulations and more about capitalising on the market share it secured through artificially low entry prices.
The shift in pricing has not only undercut Temu’s original promise but also served as a reminder that aggressive growth strategies come with long-term reputational risks.
