KARACHI: Pakistan entered the $1 trillion global cloud kitchen market amid rising coronavirus infections this year, generating significant interest among restaurant owners as the world was forced to rethink its passion for dining.
A cloud kitchen restaurant, also known as dark kitchen, ghost kitchen, and satellite or franchise restaurant, is a delivery-only concept. It receives orders from multiple brands and retains their unique taste while preparing food.
“The concept was conceived during the outbreak of COVID-19, and it was also during this period that we decided to introduce it in Pakistan,” Abdus Samad Rashid, founder and CEO of Hotpod, Pakistan’s first cloud kitchen, told Arab News on Saturday. “Cloud kitchens help food brands discover themselves digitally. The coronavirus situation has also acted as a steroid to the idea which was already gaining popularity due to the mounting costs of restaurants.”
Cloud kitchens are expected to create a $1 trillion global opportunity by 2030. At present, more than 13,000 of these facilities operate around the world, according to Euromonitor International, with 7,500 in China and 3,500 in India.
Backed by Singapore-based High Output Ventures and strategic local investors, the Hotpod introduced cloud kitchen concept only two months ago, enabling restaurants to expand their network through a managed kitchen infrastructure with minimum capital risk, zero hassle, and effective customer service.
“Cloud kitchen is a new concept in our market,” Rashid explained. “These are hidden kitchens that serve food at lower rates since they reduce the operating costs of restaurants significantly. It also makes it possible for them to offer services in new geographies by simply maintaining their digital presence.”
“These kitchens not only promise greater economies of scale to different brands but also generate more employment opportunities, increase tax revenues, and enable home chefs to set up and operate professional food chains,” he said.
Hotpod plans to establish about 50 cloud kitchens in the next four years across the country and hopes to branch out in the Middle Eastern markets.
“We started with two kitchens and are trying to add one every month,” he informed. “Pakistan is a growing market and we have witnessed it during the pandemic. Our intention is to expand in the Pakistani market first before moving to the Middle East and North Africa. Dubai and Saudi Arabia will also be our preferred markets.”
In Pakistan, there are more than 100,000 food outlets across the country. The food and beverage processing industry is also the largest in the country after the textile sector, accounting for 27 percent of the value-added production and 16 percent of employment in the manufacturing sector, according to Pakistan’s Board of Investment.
Adeel Hashmi, Chief Growth Officer at Hotpod, estimated that the potential of cloud market in Pakistan was roughly about Rs7.5 billion ($47 million) per year. He added that major drivers behind the success of cloud kitchen business included high demand for online food delivery, rising real-estate costs, and coronavirus infections.
“Cloud kitchens are the future of the restaurant business, especially after the pandemic. When 50-year-old people and children below the age of 15 place online orders, it implies a big change,” Hashmi said. “Our volumes in terms of transactions and brands have doubled since we started the kitchen in September 2020.”
Hashmi said the cloud kitchen was currently serving nine local brands and targeting at least 20 businesses per kitchen.
“Opening a new restaurant requires an investment of millions of rupees,” Hashmi noted as he highlighted how cloud kitchens could help new entrants in the market.
Stakeholders say the concept can cut down costs and increase outreach of restaurant businesses, especially amid COVID-19.
“This is a good concept and more people should focus on it. The idea helps reduce input costs and enables food chains to cater to a much larger segment of customers,” Tania Faheem, partner of 3 Sisters Cuisine, a homebased eatery that caters to online orders, told Arab News.
The market size of Pakistan’s food industry is estimated to be somewhere near Rs20 billion per year, while the global food and beverage market size is thought to be $7 trillion, according to various sources.
Pakistan enters $1 trillion cloud kitchen market as pandemic rages on
https://arab.news/nnjpv
Pakistan enters $1 trillion cloud kitchen market as pandemic rages on
- Estimates suggest the global cloud kitchen market can reach $1 trillion by 2030
- The business has found traction in Pakistan due to growing demand for online food delivery and rising real-estate costs
Death toll from heavy rains in northwestern Pakistan rises to 46
- Forty-six casualties include 25 children, 12 men and nine women, says Provincial Disaster Management Authority
- Heavy rains and lightning strikes have killed at least 36 people in Pakistan’s Punjab and Balochistan provinces since April 12
Peshawar: The death toll from rain-related incidents in northwestern Pakistan rose to 46 on Saturday, the Provincial Disaster Management Authority (PDMA) said on Saturday, while the number of injured climbed to 60.
“As many as 25 children, 12 men and nine women are among those who died in rain-related incidents during the last eight days,” the report said about heavy rains that began in the province last Friday, April 12.
The number of injured has risen to 60, which includes 33 men, 16 children and 11 women, the PDMA said.
The current spell of showers is likely to continue till April 21, the PDMA said this week. The provincial government has released Rs110 million to be distributed among the affected families and dispatched aid, including tents, kitchen kits, blankets, hygiene kits, mosquito nets and mattresses, to the affected areas, according to the authority.
As the rains are expected to continue intermittently until April 21, the PDMA said it had already a letter to all district administrations to remain alert and take precautionary measures.
In the southwestern Balochistan province, heavy rains have killed 15 people since Friday and triggered flash floods in several areas, according to provincial authorities.
Balochistan Chief Minister Sarfaraz Bugti said climate change had become a “challenge” for the provincial government.
“Current rains are unusual which were never reported in a thousand years,” he told reporters on Friday. “The government has been helping the masses with available resources and our teams have reached all districts to help the people affected by rains and floods.”
Pakistan has received heavy rains in the last three weeks that have triggered landslides and flash floods in several parts of the South Asian country.
The eastern province of Punjab has reported 21 lighting- and roof collapse-related deaths, while Balochistan, in the country’s southwest, reported 10 deaths as authorities declared a state of emergency following flash floods.
In 2022, downpours swelled rivers and at one point flooded a third of Pakistan, killing 1,739 people. The floods also caused $30 billion in damages, from which Pakistan is still trying to rebuild.
US sanctions four international companies for aiding Pakistan’s missile program
- US State Department announces sanctions against three Chinese companies and one based in Belarus
- State Department says companies supplied missile-applicable items to Pakistan’s ballistic, long-range missile programs
ISLAMABAD: The US State Department announced this week it has imposed sanctions on three Chinese companies and one Belarus-based company for supplying items to Pakistan’s ballistic missile program.
As per a press release, the State Department announced sanctions against China-based companies Xi’an Longde Technology Development Company Limited, Tianjin Creative Source International Trade Co. Ltd, Granpect Company Limited and the Belarus-based Minsk Wheel Tractor Plant.
“These entities have supplied missile‐applicable items to Pakistan’s ballistic missile program, including its long-range missile program,” a press release issued late Friday stated.
The State Department said Minsk Wheel Tractor Plant had worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program.
“Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles,” it said.
Washington alleged Xi’an Longde Technology Development Company Limited supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile program that was also destined for NDC.
“Filament winding machines can be used to produce rocket motor cases,” the State Department said.
It said the Tianjin Creative Source International Trade Co. Ltd. supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment.
It said the company’s supplies were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles.
It further said Granpect Company Limited worked with SUPARCO to supply equipment for the testing of large-diameter rocket motors.
“In addition, Granpect Co. Ltd. also worked to supply equipment for testing large-diameter rocket motors to Pakistan’s NDC,” it added.
The sanctions mean all property and interests in property of the companies in the US or in possession or control of American citizens are blocked and must be reported to the US Treasury Department’s Office of Foreign Assets Control (OFAC), the State Department said.
They also mean that all transactions by American citizens, or those within (or transiting) the US that involve any property or interests in property of the companies, are prohibited unless authorized by a general or specific license issued by OFAC or exempt.
Pakistan has so far not responded to the US State Department’s action.
Pakistani pacer Mohammad Amir sets sights on T20 World Cup after comeback
- Amir played his first T20 international match for Pakistan on Thursday after a nearly four-year hiatus
- Pacer says he feels his body is fitter compared to 2019 when he last played for Pakistan in a World Cup
ISLAMABAD: Pakistani fast bowler Mohammad Amir said this week he has set his sights on the upcoming T20 World Cup 2024, as he gears up to mark his return to international cricket after a nearly four-year hiatus.
The 32-year-old pacer played his first match on Thursday against New Zealand in Rawalpindi but did not bowl a single delivery as rain suspended play during the first over of the match.
Amir, one of Pakistan’s most prolific fast bowlers, retired in December 2020 after being dropped from the side. He changed his mind last month and decided to restart his career, which had also been stalled by a spot-fixing ban in 2010.
“The way the Pakistan Cricket Board (PCB) management brought me back, it is for a short-term goal, the [T20] World Cup,” Amir told PCB Digital in an interview on Friday. “And that is the biggest goal.”
The left-arm pacer pointed out that Pakistan had played in the semifinal of the T20 World Cup 2021 and competed in the final of the T20 World Cup in 2022. However, it had failed to “cross the line” and become world champions on both occasions.
“If that happens [Pakistan win the World Cup] it would be a huge achievement for me, to be a part of that team,” he said.
Amir said he feels he is much fitter compared to 2019 when he last represented Pakistan in a World Cup tournament.
“See, you cannot express yourself properly in the ground until you’re fit,” he said. “So I feel the way my body feels fresh right now, I can chip in more and prove beneficial to the team via my performance.”
The pacer credited his wife and children for helping him stay positive.
“She makes sure that all my focus is on cricket,” he said. “I think that always gives me energy and helps me to face whatever I have to.”
Pakistan face New Zealand in the second T20 fixture of the five-match series in Rawalpindi today, Saturday. The two sides will lock horns in Rawalpindi on April 21 before meeting for the remaining two fixtures in Lahore on April 25 and 27.
Teams:
Pakistan: Babar Azam (captain), Usman Khan, Abrar Ahmed, Iftikhar Ahmed, Mohammad Rizwan, Mohammad Amir, Muhammad Irfan Khan, Naseem Shah, Saim Ayub, Shadab Khan, Shaheen Shah Afridi
New Zealand: Michael Bracewell (captain), Mark Chapman, Josh Clarkson, Jacob Duffy, Dean Foxcroft, Ben Lister, Jimmy Neesham, Tim Robinson, Ben Sears, Tim Seifert, Ish Sodhi
Pakistan’s finmin discusses energy, tax reforms with senior World Bank official
- Pakistan has vowed to broaden its tax base, reform energy sector and privatize loss-making state-owned entities
- Pakistan’s finance minister is in Washington to attend spring meetings by the International Monetary Fund, World Bank
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb underlined the government’s resolve to carry out reforms in the energy and tax sectors in his meeting with a senior World Bank official this week, the finance ministry said on Saturday, as Islamabad grapples with an economic crisis amid surging inflation and low foreign exchange reserves.
Reeling from a macroeconomic crisis, Pakistan has assured international financial institutions and bilateral partners it would take concrete measures to broaden its tax base, carry out reforms in the energy sector and overhaul loss-making state-owned enterprises (SOEs).
Aurangzeb has been in Washington since last week to participate in spring meetings organized by the IMF and World Bank. His tour is an important one for the South Asian country as Pakistan’s ongoing nine-month, $3 billion loan program with the International Monetary Fund designed to tackle its balance-of-payments crisis, expires this month.
Aurangzeb met Martin Raiser, the World Bank’s regional vice president for South Asia, on Friday to discuss the government’s economic reforms.
“Underlined the reform thrust of the government in the areas of energy, tax reforms and SOEs,” the finance ministry said. “Informed that government was pursuing short and long-term goals in these sectors.”
Aurangzeb said the World Bank’s focus on climate change, digitalization and human development aligns with Islamabad’s priorities, highlighting the government’s vision to realize the country’s true potential for economic growth.
“Agreed on the need for reforms in the agriculture sector, water management and waste-water treatment,” the ministry said.
Aurangzeb met World Bank’s President Ajay Banga on Tuesday during which he spoke about the government’s reforms in tax and energy sectors and highlighted Pakistan’s progress on privatization of government entities.
In an interview on Monday, the Pakistani finance minister had said Islamabad would seek a fresh three-year IMF program, adding that the government plans to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.
In a separate statement, the finance ministry said Aurangzeb met China’s Finance Minister Lan Fo’an on Friday. During the exchange, the Pakistani finance chief thanked his Chinese counterpart for Beijing’s regular rollovers which helped plug Pakistan’s external financing gaps.
“Informed that Pakistan was entering into a larger and extended program with IMF and looked forward to the support of China,” the ministry said, adding that he highlighted the government’s economic reforms in various sectors during his meeting with the Chinese official.
Pakistan to train 1 million youth annually to export skilled human resource to Gulf countries
- Islamabad is planning to roll out a new education policy next month, with a focus on vocational training and out-of-school children
- Educationists, however, say the real challenge for the government is to ensure implementation of the policy, focus on teacher training
ISLAMABAD: Pakistan’s government is working on a new education policy to impart technical skills to one million youth annually to export trained human resource to Saudi Arabia and other Gulf countries, an official said on Friday.
The cash-strapped South Asian nation of 241 million has been working on a holistic national education policy to cover technical training for the youth by enrolling over 2.5 million out-of-school children.
The Special Investment Facilitation Council (SIFC), a federal body led by Prime Minister Shehbaz Sharif to attract investment from foreign and domestic sources, has given specific targets to the education ministry to finalize a comprehensive policy to improve the education sector.
“This new policy aims to impart vocational training to at least one million youth per annum to export skilled workforce to Saudi Arabia and other Gulf countries,” Rana Mujtaba, a spokesperson for the Pakistani ministry of education and professional training, told Arab News.
“It will be rolled out in May.”
There are around 9 million overseas Pakistanis living and working in different countries, including 2.8 million in Saudi Arabia, who remit around $30 billion back home annually to support the country’s fragile economy.
“Majority of our overseas workforce is unskilled labor. Therefore, the government is now focusing on enhancing vocational capacity of the youth,” Mujtaba said.
In the National Education Policy 2017-2025, Pakistan aimed to raise its literacy rate from the existing 60 percent to 90 percent by 2025, narrow down the gender gaps, reduce rural and urban imbalance, improve quality of education, promote technical and vocational education with skill development programs, and ensure good governance. But all this has yet to be achieved.
Mujtaba said Pakistan’s vocational training institutes already had a “strong affiliation” with Saudi Arabia, where all training certificates were accepted.
“The SIFC that is chaired by the PM has given a general direction to the ministry to work on a new education policy to improve the sector’s performance,” he said.
The spokesperson dispelled the notion that the education ministry was working on the new education policy without taking provincial governments on-board, since education has primarily been a provincial subject in the South Asian country.
“The federal government is in fact supporting the provinces in improving the education sector. All provincial ministers and education secretaries are on-board as the federal ministry has sought inputs from all of them,” he said.
“This will be a holistic policy that will also address the issue of out-of-school children, improving the higher education’s standards, domestic and foreign scholarships for the students.”
Educationists and public policy experts said the government had already devised numerous policies and produced documents to improve the education sector, but it would lack in implementation of these plans.
“The silver lining in the new policy is that the government is for the first time focusing on out-of-school children, but there needs to be an effective mechanism in place with clear timelines to address this issue,” Taimur Bandey, an educationist, told Arab News.
“The government needs to allocate its resources for teachers training and upgrade libraries and laboratories in the institutions to improve the education standards.”
