Temu’s aggressive digital advertising in Pakistan is shaping the perception that it’s a game-changer for affordable online shopping in a market as price-sensitive as ours. The global platform, owned by e-commerce giant PDD Holdings, offers steep discounts on a wide variety of goods, from basic household items to electronics and accessories. However, what is being promoted as consumer empowerment is, according to many small businesses and market observers, a calculated effort to dominate the market by overwhelming the local retail ecosystem through unsustainable pricing and mass-scale product dumping.
Products are being absurdly listed for as little as one rupee. Popular household items, children’s clothing, gadgets, and kitchenware are priced significantly below local production and distribution costs. For consumers, this may seem like a win. For local sellers, it represents a threat they are neither equipped nor resourced to fight. These ultra-low prices are not a product of supply chain efficiency or economies of scale. They are the outcome of a model designed to undercut and outlast local competition by absorbing losses in the short term to secure long-term control of the market.
“There is a difference between offering a fair discount and pricing products to wipe out competition,” said a Karachi-based homeware seller who spoke on the condition of anonymity. “What we are seeing here is not promotion. It is market sabotage.” His sentiment echoes across Pakistan’s small and medium enterprise community, where sellers report fearing declining sales and a shrinking customer base ever since Temu entered the space.
The structural imbalance is further compounded by Temu’s operational model in Pakistan. The company does not maintain any formal physical presence. It has not invested in warehouses, local logistics, or customer support teams, which means there is no dedicated accountability mechanism. Consumers regularly report that helplines go unanswered, that complaints and return requests are ignored, and that packages are falsely marked as delivered. There is no escalation pathway for issues and no official representative for resolving disputes. The platform can tap into the local market through spending massively on digital advertising, while avoiding any of the obligations or responsibilities that come with doing real business in the country.
“I have been running a small online store for children’s clothing for over two decades now,” said a seller based in Karachi. “Ever since Temu has started offering similar designs for less than half my cost price, my sales have started declining. My customers still tell me they value the care and personal touch I bring, but in the end, most just can’t ignore the prices. It’s heartbreaking to watch something you built start slipping away.”
Local businesses contribute to the economy by paying taxes, creating jobs, and developing talent. They build long-term customer relationships and reinvest in their communities. Temu does none of this. It extracts value without returning any, operating in regulatory grey zones that allow it to scale rapidly while bypassing scrutiny.
Even consumers, initially drawn in by low prices and flashy marketing, are beginning to experience buyer’s remorse. “I bought six things I did not even need,” said a university student in Islamabad. “Every item said ‘Only 3 left’ or ‘Selling out in 2 minutes.’ I checked back hours later, and it still said the same. It is just fake urgency. You feel pressured to buy fast or miss out. It is overwhelming and the quality is more often than not a letdown”
Another buyer shared their frustration over a stalled order. “Due to the recent India–Pakistan tensions, my Temu package has been stuck at the airport for weeks. Local couriers resumed deliveries a day after the airspace reopened. However, there is still no update from Temu. No email. No tracking update. Nothing. I do not even know if I will get my parcel or if it is going back, which I have already paid for. I feel completely lost.”
Temu’s strategy in Pakistan is emblematic of a broader pattern often described as digital colonialism. Global platforms enter emerging markets with minimal local investment or long-term commitment. They capture market share by leveraging deep capital reserves, exploiting regulatory gaps, and targeting price-sensitive consumers. The result is a destabilised business environment, where domestic enterprises are pushed aside and consumers are left dependent on foreign systems that offer little accountability or reinvestment. This is not innovation. It is economic erosion masquerading as progress.
Regulators must respond with urgency. Digital platforms should be held to clear standards that ensure they contribute meaningfully to the markets they serve through reliable customer service, fair business practices, and responsible participation in the economic ecosystem. Without appropriate safeguards, the unchecked growth of such models risks hollowing out Pakistan’s digital economy and closing the door on future entrepreneurship.
