Pakistani online shoppers were shocked to find sudden, massive price hikes on Temu and AliExpress, with some products now costing up to four times more than before. Items that were previously affordable have become almost luxury goods overnight. For example, a pair of shoes that once cost Rs. 4,900 is now selling for Rs. 21,000, while shopping carts that used to total Rs. 6,000 have jumped to Rs. 30,000 or more.
Social Media Flooded with Outrage and Memes
Users took to social media to express their anger and disbelief. Many described the situation as the “death of Temu and AliExpress in Pakistan.” One user humorously commented, “Shopping at Temu feels like shopping at Dolmen Mall now,” referencing a high-end local shopping center. Others shared how their wishlist has become just a “wishlist” in reality, with one saying, “Time to delete this app cuz nothing in it is affordable.”
The New Tax Changes Explained
These drastic price hikes coincide with the new fiscal year 2025-26 in Pakistan. The government introduced the “Digital Presence Proceeds Tax Act,” which imposes a 5% tax on all goods sold in Pakistan from abroad. In addition, an 18% sales tax has been applied to foreign online platforms, bringing them in line with taxes paid by local businesses, which also face a 35% income tax.
Previously, foreign platforms like Temu and AliExpress operated without these taxes, giving them a huge price advantage over local sellers. The new measures aim to create a level playing field but have also led to unintended consequences for consumers.
Taxes Alone Can’t Explain the Massive Price Surge
Experts believe these taxes alone don’t fully explain the extreme price increases of up to 300%. Analysts suspect Temu and AliExpress raised prices preemptively to cover possible future costs or unexpected regulatory changes. Additionally, Pakistani customs have cracked down on heavily discounted shipping services like Cainiao and AliExpress Standard Shipping, which has further increased costs for sellers.
Consumers Forced Back to Local Options
With foreign products now out of reach for many, consumers feel forced to return to local marketplaces like Daraz. However, many complain that local goods are often overpriced, of poor quality, and lack variety. As one user stated, “Local pak goods are meh. There’s no innovation here. Temu was the one nice affordable thing we had since we don’t have any international products here.”
Public Reactions: From Shock to Resignation
Social media posts reveal a mix of outrage, sadness, and reluctant acceptance. Some joked about “touching grass now” and welcoming Daraz back, while others vowed to stop using Temu altogether. One user wrote, “Why is Temu doing this to us? Why is the same thing I bought for 3k now 8k?” Another summed up the collective feeling: “Temu’s loss, ain’t no Pakistani ordering from it anymore.”
The Future of Online Shopping in Pakistan
Many hope that prices might normalize once the tax situation becomes clearer and sellers adjust their strategies. Until then, Pakistani consumers are left dealing with a drastically different online shopping experience one that feels much more restrictive and far less affordable. Whether these changes will push consumers to support local businesses or simply reduce online spending overall remains to be seen.
