Temu, the Chinese e-commerce platform infamous for its predatory pricing tactics, has come under intense scrutiny by the Competition Commission of Pakistan (CCP) over what industry insiders are calling a full-blown assault on Pakistan’s regulated retail economy.
Read More: Temu’s Troubled Expansion in Pakistan: Mounting Customer Complaints Spark Concern
Since its aggressive entry into the Pakistani market, Temu has saturated digital platforms with misleading advertisements offering “too-good-to-be-true” discounts. These deceptive promotions, paired with artificially low pricing, have blindsided local retailers and triggered widespread concern about Temu’s true intentions — to flood the market, destabilize domestic competition, and profit off an unregulated loophole.
In a strongly worded complaint, the Chainstore Association of Pakistan (CAP) has sounded the alarm on Temu’s operations, labeling them anti-competitive, exploitative, and economically destructive. “Foreign platforms like Temu and Shein are operating with impunity, bypassing all local regulations while legitimate businesses are crushed under taxes, duties, and compliance,” CAP stated.
Illegal Practices, No Accountability: Temu is operating in Pakistan without any physical or legal presence, using the De Minimis loophole to ship under-declared goods with zero import duties or taxes. Industry reports suggest the platform consistently mislabels products, breaks up high-value orders to dodge tax thresholds, and evades all regulatory oversight — while offering no consumer protection, quality assurance, or legal accountability.
Worse still, Temu compels customers to pay in foreign currency with no cash-on-delivery option — a move that not only erodes trust but also threatens Pakistan’s fragile current account balance.
Deliberate Market Distortion: Retail experts and logistics insiders have confirmed that Temu’s pricing strategy qualifies as predatory dumping — deliberately selling below cost to drive out local competitors. The result is a dangerously uneven playing field where tax-paying, regulation-compliant Pakistani businesses are bleeding losses while a foreign tech giant reaps the benefits of unchecked digital invasion.
“This isn’t competition — this is economic sabotage,” said one industry leader. “Temu is systematically dismantling Pakistan’s retail ecosystem under the guise of cheap convenience.”
Lack of Enforcement: A National Crisis: Despite overwhelming evidence of misconduct, customs authorities have failed to take meaningful action. While small local businesses are penalized over minor infractions, Temu continues to operate with zero enforcement or consequence. CAP warns this sets a dangerous precedent, where law-abiding enterprises are punished while violators thrive.
Urgent Demands for Regulatory Action: The Chainstore Association has demanded immediate intervention by CCP and regulatory coordination with the Ministry of Commerce, FBR, SECP, and courier companies. Recommendations include:
- Mandatory registration of all foreign e-commerce operators.
- Full tax and customs compliance enforcement.
- Prohibition on deliveries lacking commercial invoices and proper declarations.
- Real-time digital tracking and shipment data sharing with authorities.
Additionally, a separate complaint has been filed through the Office of Fair Trade by independent sellers, echoing concerns about consumer deception, regulatory evasion, and the existential threat posed to local entrepreneurship.
Unless swift, coordinated enforcement is carried out, Pakistan’s retail and e-commerce sectors risk permanent damage — hollowed out by foreign actors exploiting regulatory gaps and collapsing fair market structures.
“Enough is enough,” said CAP. “Temu and platforms like it are not welcome in Pakistan unless they play by the same rules as everyone else.”
