The Competition Commission of Pakistan (CCP) has recommended that the Pakistan Telecommunication Authority (PTA) ban e-commerce platform Temu, in what is being described as one of the most significant regulatory interventions in the country’s digital commerce sector. The move comes amid mounting complaints from local business groups and consumer rights advocates that Temu’s entry into Pakistan is destabilising the retail ecosystem and exposing shoppers to serious risks.

In a letter dated August 22, 2025, the CCP made clear that Temu is not registered in Pakistan and therefore lies outside its direct jurisdiction. While the Commission acknowledged the limitations of its authority, it emphasized the seriousness of the issue by formally referring the matter to the PTA, which has the legal mandate to restrict or block applications and platforms operating in violation of local regulations. The CCP’s decision has been welcomed by industry stakeholders who argue that Pakistan can no longer afford to turn a blind eye to the disruptive impact of the overseas e-commerce giant.

Temu only entered the Pakistani market a few months ago, but has already made its presence felt through an aggressive strategy of deep discounts, saturation advertising, and gamified shopping promotions. While these tactics initially captured a surge of attention from consumers in one of the most price-sensitive markets in South Asia, they have also triggered alarm among local businesses who say they cannot compete against a foreign operator willing to sell products at or below cost. Industry associations such as the Pakistan Retail Business Council and the Chainstore Association of Pakistan have formally complained that Temu’s model amounts to predatory pricing, designed not to foster fair competition but to wipe out domestic players before raising prices once dominance is secured.

Executives from leading local retailers warn that the survival of hundreds of thousands of jobs linked to Pakistan’s retail sector is now at stake. They argue that local companies, which must comply with taxation, labour laws, and consumer protection regulations, are being forced to compete on an uneven playing field against an overseas platform that contributes little to the local economy. The CCP’s referral reflects these concerns, noting that Temu’s unregistered status leaves it beyond the reach of Pakistan’s existing accountability mechanisms.

The problem is not limited to anti-competitive pricing. Consumer rights groups have repeatedly raised the alarm about the risks Temu poses for shoppers. Reports have misleading ads and product listings, unclear refund and return policies, and a lack of cash-on-delivery, which remains the most popular payment method in Pakistan. Without local presence or customer service infrastructure, buyers who face problems with Temu orders are often left without recourse. This stands in stark contrast to local e-commerce businesses, which are subject to consumer protection laws and must provide clear return and dispute resolution options.

Critics warn that this imbalance is creating a dilemma and contradiction, as domestic businesses face the full weight of regulation and various taxes, whereas an overseas player like Temu can operate outside the law and take revenue outside of the country without any local investment. Consumer advocates argue that such a model not only undermines trust in Pakistan’s digital economy but also exposes both businesses and consumers to unfair treatment. The widespread concern is that unchecked foreign platforms like Temu will cause long-term damage to confidence in online shopping at precisely the time when Pakistan is trying to expand its digital commerce footprint.

The situation in Pakistan mirrors developments in other more mature markets. Indonesia and Vietnam have already moved to restrict Temu’s activities, citing concerns that its business practices were damaging local economies and putting consumers at risk. Analysts say Pakistan can learn from these examples and that regulators must act quickly before long-term harm is done.

The decision now lies with the PTA, which faces a critical test of its role as the country’s digital regulator. It must decide whether to impose a complete ban, introduce strict compliance requirements, or risk allowing Temu to continue operating unchecked. Industry leaders and consumer advocates alike argue that the stakes could not be higher. Beyond the immediate question of Temu’s operations, the outcome will send a strong signal about Pakistan’s willingness to defend its local economy and enforce a fair regulatory environment for both domestic and overseas players.

For the CCP, the referral represents a clear warning that Pakistan cannot afford to let regulatory loopholes be exploited by powerful foreign entrants. For local businesses, it is a last chance to level the playing field before the damage becomes irreversible. And for consumers, it is about ensuring that online commerce in Pakistan remains trustworthy and safe. With rising pressure from multiple fronts and precedents already set across the region, the expectation now is that the PTA must act decisively.

Temu’s arrival in Pakistan has highlighted both the opportunities and the risks of global digital integration. While the platform has offered cheap prices in the short term, the longer-term consequences for fair competition, consumer trust, and local business survival are far more serious. The CCP’s timely intervention has given the government a clear mandate. It is now up to the PTA to take the next step and ensure that Pakistan’s digital future is not shaped on terms dictated by an unregulated overseas player that has proven to be using the country as a dumping ground.