Temu, a Chinese-origin e-commerce platform known for its aggressive pricing and promotional strategies, is now under the lens of Pakistan’s Competition Commission (CCP) over alleged anti-competitive conduct. The scrutiny follows a formal complaint filed by the Chainstore Association of Pakistan, representing a broad coalition of local retailers and online sellers who claim Temu’s operations are distorting the domestic market.
Temu made its entry into the Pakistani digital commerce space only a few months ago, but its impact has been swift and far-reaching. Through a calculated digital marketing campaign filled with promises of steep discounts and seemingly risk-free online shopping, the platform rapidly gained consumer traction. However, this rapid expansion has come at a cost—particularly to domestic businesses that argue they cannot compete with Temu’s scale, pricing, and operational practices.
The association’s formal complaint highlights multiple issues, chief among them being that Temu, along with other foreign platforms like Shein, is operating in Pakistan without a legal or physical presence. These platforms reportedly exploit loopholes in import regulations, specifically the De Minimis exemption, which allows low-value shipments to enter without incurring customs duties or taxes. As a result, foreign sellers are able to offer artificially underpriced products, while local businesses remain burdened by full compliance with regulatory and tax obligations.
The Chainstore Association warns that this uneven playing field is not only eroding the competitive landscape but also threatening the survival of formal sector players who adhere to established rules. Moreover, the influx of products with no quality assurance or consumer recourse poses a significant risk to end users. The association emphasized the erosion of consumer rights, lack of oversight, and the potential for economic instability due to untracked foreign currency outflows.
Temu’s operational model also came under fire for requiring consumers to make pre-payments in foreign currency, without offering cash-on-delivery options. This, according to the complaint, has implications for Pakistan’s current account balance, as it may contribute to capital flight and create an unsustainable drain on foreign reserves.
In its appeal to the CCP, the association has urged regulators to initiate a comprehensive investigation into the activities of Temu and similar platforms. It further called for inter-agency collaboration involving the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Securities and Exchange Commission of Pakistan (SECP) to ensure that all online retailers operating in the country are registered and compliant with national laws.
Additionally, the association recommended that logistics and courier services enforce stricter compliance, such as verifying commercial invoices and ensuring that all imported parcels carry accurate declared retail values. This step, they argue, is essential to curb under-invoicing and ensure that the digital commerce ecosystem evolves in a fair and regulated manner.
As Pakistan’s e-commerce sector grows, the call for regulatory clarity and enforcement becomes increasingly urgent. The CCP’s response to this complaint could set a precedent for how cross-border digital trade is governed in the country, particularly in a marketplace where local businesses face increasing pressure from global entrants operating outside traditional oversight.
