Karachi restaurants boycott Foodpanda delivery service over commission policy

A food delivery employee puts gloves on before delivering food in Karachi on April 18, 2020. (AFP/File)
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Updated 18 September 2020
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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

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.


US freezes immigrant visa processing for 75 countries, including Pakistan

Updated 15 January 2026
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US freezes immigrant visa processing for 75 countries, including Pakistan

  • Immigrant visas to be suspended from Jan 21, tourist visas unaffected
  • Move targets “public charge” concerns as Trump revives hard-line immigration rules

ISLAMABA: The United States will pause immigrant visa issuances for nationals of 75 countries, including Pakistan, from January 21, the State Department said on Thursday, as President Donald Trump presses ahead with a hard-line immigration agenda centered on financial self-sufficiency.

In an update published on its website, the State Department said it was conducting a comprehensive review of immigration policies to ensure that migrants from what it described as “high-risk” countries do not rely on public welfare in the United States or become a “public charge.”

“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the department said.

The pause applies specifically to immigrant visas, which are issued to people seeking permanent residence in the United States. The department said applicants from affected countries may still submit applications and attend interviews, but no immigrant visas will be issued during the suspension.

According to the State Department, the affected countries include Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil, Thailand and dozens of others across Asia, Africa, the Middle East, Europe and Latin America.

The department said tourist and other non-immigrant visas are not affected, and that no previously issued immigrant visas have been revoked. Dual nationals applying with a valid passport from a country not on the list are exempt from the pause.

The State Department did not indicate how long the visa pause would remain in effect, saying it would continue until its review of screening and vetting procedures is completed.

The announcement underscores the breadth of the Trump administration’s renewed immigration crackdown. Since returning to office last year, Trump has revived and expanded enforcement of the “public charge” provision of US immigration law, which allows authorities to deny entry to applicants deemed likely to rely on public benefits.

During his previous term, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in courts before a revised version was upheld by the Supreme Court and later rescinded under former president Joe Biden.

The visa freeze also comes amid an intensifying domestic enforcement push. US Immigration and Customs Enforcement (ICE) has expanded operations nationwide, drawing scrutiny over its tactics. Last week, an ICE agent shot and killed Renee Good, a US citizen, during a federal operation in Minneapolis, sparking protests and renewed debate over immigration enforcement under the Trump administration.