Tech Desk 
Jul 06, 2025
Temu and AliExpress, two popular online shopping platforms, have seen a sharp rise in product prices for Pakistani users, leaving many confused and frustrated.
Both sites, which offered cheap products from electronics and clothing to household goods, have become a popular destination for online consumers in Pakistan.
However, following the federal budget 2025, buyers have found that Temu and AliExpress prices have shot up, sometimes as high as 300%.
Temu and AliExpress prices in Pakistan
In the latest budget, the government has changed a tax policy under the Digital Presence Proceeds Tax Act. This law taxes goods sold in Pakistan by foreign digital businesses with a tax of 5%.
This includes Temu and AliExpress, which were previously allowed to operate in Pakistan without tax obligations.
In addition to the new 5% tax, 18% sales tax will now also be added, like local Pakistani businesses.
Notably, officials call it a move to even the playing field and to make sure that international e-commerce will generate a fair amount of revenue.
However, based on comments from experts, the new taxes by themselves likely do not explain the rapid increase in products of 3x or 4x.
It is more likely that Temu and other platforms quickly raised prices pre-emptively to cover any unknown charges, customs duties, or technical costs while the tax system settles into place.
