KARACHI: Restaurant owners in Pakistan’s seaside megapolis of Karachi are boycotting Foodpanda in a protest over what they say are “unethical practices” by the mobile food delivery service which seeks to increase its commission fees.
The All Pakistan Restaurant Association (APRA) announced their protests on Tuesday, accusing the company owned by Berlin-based Delivery Hero SE of increasing commission to “nonviable” levels. From Monday, the protest is going to expand to Islamabad and Lahore.
“Our 250 members have protested over the unfair practices by Foodpanda and boycotted its services from Sept. 15, in the first phase in Karachi. The three-day deadline is ending today. Now our tablets will be closed on Foodpanda in Lahore and Islamabad from Monday,” Ather Chawla, convener of APRA, told Arab News on Thursday.
“They (Foodpanda) are asking for increasing the commission fee from the current 18 percent to 25-35 percent, which is not viable for the business of restaurants whose raw material cost alone is 50 percent,” he said, adding that APRA’s cooperation with Foodpanda has been suspended until the company puts in place “corrective measures.”
Having operations in 50 countries, Foodpanda offers services in 32 Pakistani cities. In Karachi alone, it has some 262 restaurants registered on its platform. A major chunk of the company’s revenue comes from restaurant commissions.
In a letter addressed to the chief executive of Foodpanda, APRA chairman Muhammad Naeem Siddiqui wrote that the company’s managers “blackmail APRA members to increase the commission manifold,” threatening them that their restaurants would be removed from the delivery service’s platform.
Restaurant owners also say Foodpanda is deviating from its original Vendor Delivery concept.
“The original model was that they only book orders through their portal and we would deliver food. Later they also came up with delivery options and now they are forcing us to abandon our own delivery services,” Chawla said, adding that it would reduce the area of delivery from 10 kilometers to four kilometers.
APRA has also written a complaint to the Competition Commission of Pakistan (CCOP), accusing Foodpanda of “anti-competitive business conduct by forcing restaurants to sign exclusive contract with them, limiting them to work with other food delivery companies.”
“First they forced restaurant owners to hike commission and when they refused, they were pressurized to sign exclusivity agreements,” Chawla said.
As in Pakistan many other companies such as CareemEats, Eat Mubarak, and Cheetay offer food delivery services, Chawla sees Foodpanda’s policy as “a bid to monopolize food delivery business.”
Despite repeated attempts by Arab News, Foodpanda chief executive for Pakistan, Nauman Sikandar Mirza, was not available for comment.
Karachi restaurants boycott Foodpanda delivery service over commission policy
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Karachi restaurants boycott Foodpanda delivery service over commission policy
- All Pakistan Restaurant Association (APRA) protest in Karachi will expand to Islamabad and Lahore on Monday
- Restaurant owners also accuse the Berlin-based company of attempt to ‘monopolize food delivery business’ in Pakistan
Rana Sanaullah, another Nawaz Sharif loyalist, appointed adviser to Pakistan PM
- Sanaullah’s appointment comes two days after foreign minister Ishaq Dar was named deputy prime minister
- Analysts believe the appointments indicate Nawaz Sharif is trying to assert indirect control over the government
ISLAMABAD: President Asif Ali Zardari on Tuesday appointed Rana Sanaullah adviser to Prime Minister Shehbaz Sharif, according to a post on the Pakistan president’s official account on platform X.
Sanaullah is considered a close aide of PM Sharif’s elder brother, Nawaz Sharif, who is also a three-time former prime minister.
Sanaullah has previously served as the federal interior minister and provincial law minister for Pakistan’s most populous Punjab province.
“President Asif Ali Zardari has approved the appointment of Rana Sanaullah Khan as Adviser to the Prime Minister on Political and Public Affairs,” read the post on President Zardari’s official social media account.
“The President approved the appointment of Rana Sanaullah Khan on the advice of the Prime Minister under Article 93 (a) of the Constitution.”
Sanaullah’s appointment comes two days after Foreign Minister Ishaq Dar was named the country’s deputy prime minister. Dar, a 73-year-old chartered accountant, is another close Nawaz Sharif ally.
The elder Sharif, who returned to Pakistan in October 2023 after years of self-exile, was widely seen as the favorite candidate for the prime minister’s office ahead of the February 8 national polls, and was believed to be backed by the country’s powerful army.
However, the three-time former prime minister decided against taking the PM’s office after the elections failed to produce a clear winner, leading to speculation that his role in the country’s politics had come to an end.
Analysts widely believe that the recent appointments of Dar and Sanaullah indicate Nawaz Sharif is attempting to assert control over the government through indirect means.
Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns
- In December, the Federal Board of Revenue said Pakistan had around 5.2 million taxpayers in 2022, out of a population of 240 million people
- The government has decided to digitalize tax collection system to prevent leakages even as large segment of economy remains undocumented
ISLAMABAD: Pakistan has decided to block mobile phone connections of more than 500,000 individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Tuesday.
Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.
In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.
On Tuesday, the FBR issued an order to enforce filing of returns by the persons who were not appearing on the active taxpayer list.
“FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals who fall under the aforementioned category,” the regulator said in a statement.
“The Pakistan Telecommunication Authority (PTA) and all telecom operators have been instructed to enforce the ITGO with immediate effect, ensuring swift implementation of the order.”
These mobile connections would remain blocked until restored by the FBR or the concerned Inland Revenue commissioner, according to the statement. Telecom operators were asked to furnish a compliance report to the FBR by May 15.
Amid its efforts to broaden the tax base, the government of Prime Minister Shehbaz Sharif has recently decided to digitalize the tax collection system to prevent leakages even as a large segment of the national economy remains undocumented.
Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.
US envoy hosts Pakistan cricket team in display of support ahead of T20 World Cup
- Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US
- Both Pakistan, US have been slated to play within the same group stage and will compete on June 6
ISLAMABAD: United States (US) Ambassador to Pakistan Donald Blome held a meet-and-greet session with the Pakistan cricket team at the US embassy in Islamabad in a display of support for the ‘Green Shirts’ ahead of the highly anticipated Twenty20 World Cup 2024, the US embassy said on Tuesday.
The development came amid Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US in June.
Ambassador Blome welcomed the Pakistan team and cricket board chairman, Mohsin Naqvi, at his residence and extended his best wishes for the matches in the US.
“In dual gestures of sports diplomacy, Ambassador Blome presented the team members with a commemorative embassy cricket ball and autographed softball bat,” the US embassy said in a statement.
“The Pakistani team reciprocated by presenting the Ambassador with a signed cricket bat and team jersey.”
The US envoy later participated in an impromptu cricket demonstration with members of the Pakistan side.
Both Pakistan and the US have been slated to play within the same group stage and will compete in a highly anticipated game scheduled for June 6.
Organizers of the T20 World Cup games in the US have said that early ticket sales showed there was a huge demand for the sport in the country.
The highly anticipated clash in New York between cricket rivals Pakistan and India was over-subscribed by 200 times in the public ballot for tickets, the International Cricket Council said in Feb.
The 34,000-seat temporary venue, Nassau County International Cricket Stadium on Long Island, is already assured of a sell-out crowd for the June 9 encounter.
Pakistan says inflation expected to drop to 17.5 percent in May amid signs of economic recovery
- Finance ministry says Pakistan to achieve modest growth this year, enabling improved performance in the next fiscal
- It acknowledges higher fuel prices, saying they will be offset by the government’s initiative to reduce wheat flour prices
ISLAMABAD: Pakistan’s finance ministry said on Tuesday the country’s economy was showing signs of recovery, highlighting a downward inflationary trend that could reach 17.5 percent in the upcoming month of May.
The statement comes at a time when Pakistan received a disbursement of $1.1 billion from the International Monetary Fund (IMF) as the second and final tranche under a $3 billion standby arrangement secured last summer to avert a sovereign default.
Prime Minister Shehbaz Sharif said earlier in the day the money would help the country achieve greater economic stability, with his government striving for a bigger loan program for a longer duration.
The finance ministry said in its Monthly Economic Update and Outlook for April 2024 that the economy was “on a resilient track to achieve modest growth this year, setting the basis for better performance in the upcoming fiscal year.”
“Headline inflation observed the lowest reading after 21 months,” it noted. “In March, CPI [consumer price index] inflation recorded the third consecutive YoY [year-on-year] decline, dropping to 20.7 percent from 35.4 percent last year. This decrease was observed throughout the third quarter of FY2024.”
It added the inflation outlook for April 2024 continued a downward trajectory, with the government determined to reduce it by taking strict administrative measures.
The outlook report said the increasing crude oil prices in the international market had prompted the government to raise domestic fuel prices. However, the rise in these rates was expected to be offset by the government initiative to reduce wheat flour prices.
“Inflation is projected to hover around 18.519.5 percent in April 2024,” it continued. “However, there are expectations of a gradual easing further to 17.5-18.5 percent in May 2024.”
Pakistan’s economy witnessed a major inflationary pressure in recent years after its governments sought IMF assistance amid dwindling foreign currency reserves and depreciating national currency.
The international lender urged the country to carry out economic reforms – such as removal of subsidies and increase in fuel charges and power tariffs – which led to spiraling inflation and pushed about 40 percent of its population below the poverty line.
Last year in February, financial experts warned of spiraling inflation of up to 40 percent after official data revealed that weekly inflation had touched 38.4 percent on an annual basis.
However, the situation has gradually improved, though inflationary pressure still continues to remain on the higher side.
Saudi business delegates to soon visit Pakistan, help expedite economic cooperation — PM Sharif
- Pakistan is currently making rigorous efforts to attract investment from Saudi Arabia, other Gulf nations to support dwindling economy
- PM Shehbaz Sharif expresses resolve to work hard to implement consensus achieved in meetings with Saudi leadership on WEF sidelines
ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday that a delegation of Saudi businessmen would soon visit Pakistan, which would help expedite economic cooperation between the two brotherly countries.
The statement came at the end of PM Sharif’s visit to Riyadh, where he attended a two-day World Economic Forum (WEF) summit on Global Collaboration, Growth and Energy for Development on April 28-29.
On the sidelines of the summit, the prime minister held meetings with Crown Prince Mohammed bin Salman as well as Saudi ministers of energy, economy and planning, and environment, water, and agriculture.
Sharif, upon the completion of his visit, said bilateral relations and economic partnership between Saudi Arabia and Pakistan were getting “stronger and stronger.”
“A delegation of businessmen from Saudi Arabia is visiting Pakistan in the next few days,” he was quoted as saying in a statement issued from his office.
“The speed of economic partnership between the two countries will be accelerated by the visit of the Saudi Arabian businessmen.”
He expressed his resolve to work hard to implement the consensus achieved at the leadership level between the two countries, saying that a record number of delegations had been exchanged between Pakistan and Saudi Arabia during the past two months.
“His Excellency Crown Prince Mohammed bin Salman issued special instructions to Saudi ministers regarding Pakistan, for which we are extremely grateful,” Sharif said.
“I also pay tribute to Saudi ministers, who made full preparations for the implementation of the consensus between the leadership [of the two countries].”
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.
Both countries have been closely working to increase bilateral trade and investment deals, and the Kingdom recently reaffirmed its commitment to expedite an investment package worth $5 billion.
