Pakistan enters $1 trillion cloud kitchen market as pandemic rages on

This undated file photo released by Hotpod shows a chef reviewing a food order. (Photo courtesy: Hotpod)
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Updated 02 March 2021

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

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’s foreign minister defends ex-PM Khan’s Russia visit in New York

Updated 7 sec ago

Pakistan’s foreign minister defends ex-PM Khan’s Russia visit in New York

  • Bilawal Bhutto-Zardari says Khan could not have foreseen the beginning of the war during his visit
  • Pakistani FM describes India’s decision to revoke Kashmir’s status as an insult to the United Nations

ISLAMABAD: Pakistan’s foreign minister Bilawal Bhutto-Zardari on Thursday defended Imran Khan for visiting Moscow the day Russian President Vladimir Putin ordered his forces to invade Ukraine, saying the former prime minister could not have foreseen that the war was going to begin during his visit.

The timing of Khan’s trip to Russia annoyed Western nations who were trying to internationally isolate Putin’s administration for launching the war in his neighborhood. The heads of various foreign missions in Pakistan also wrote a joint letter to the country’s previous administration, urging it to condemn the Russian aggression in Ukraine soon after the invasion.

Pakistan’s new foreign minister, who is currently in New York to attend a global food security conference at the United Nations headquarters, told a news conference he would “absolutely defend” the former prime minister.

“Pakistan’s [former] prime minister conducted that trip as part of Pakistan’s foreign policy and without knowing … at the time that the current conflict would start,” he said. “I believe it is very unfair to punish Pakistan [for that visit].”

Pakistan’s foreign office also maintained in the past that Khan’s Russia visit had been in the making for a long time, adding it was not possible to postpone it shortly before it was scheduled to start.

The former prime minister, who was ousted from power in a no-confidence vote last month, said he was trying to pursue an independent foreign policy by strengthening relations with Russia and China which led to the downfall of his administration under an international conspiracy hatched by the United States.

His assertion has been repeatedly denied by US officials.

“Pakistan is not part of any conflict,” Bhutto-Zardari said while reiterating his country’s position on the war in Ukraine. “Pakistan would not wish to be part of any conflict. We would like emphasize on the importance of peace and dialogue.”

Asked about India’s decision to revoke the semi-autonomous status of the disputed Kashmir region, he described it as an insult to the United Nations its Security Council resolutions.

Prime Minister Narendra Modi’s government annulled Kashmir’s special constitutional status on August 5, 2019, to annex the Muslim-majority state with the rest of the Indian union.

The administration in New Delhi more recently published a list of redrawn political constituencies for the Himalayan territory under its control earlier this month, giving greater representation to the region’s Hindu areas while paving the way for fresh elections.

“The actions of August 5, 2019, and May 5, 2022, by India in illegally occupied Jammu and Kashmir is not only an insult to the people of Kashmir but is an insult to the United Nations and to the Security Council’s resolutions,” he said.


Three killed as fire in world’s largest pine nut forest in Pakistan enters tenth day

Updated 19 May 2022

Three killed as fire in world’s largest pine nut forest in Pakistan enters tenth day

  • The fires have affected different parts of the Koh-e-Sulaiman mountain range in Pakistan’s southwest
  • National Disaster Management Authority helicopter arrived today to extinguish fire with little luck

QUETTA: A massive forest fire that has been raging for ten days in different parts of the Koh-e-Sulaiman mountains in southwest Pakistan intensified on Wednesday, with three people reported dead as provincial and federal disaster management authorities struggled late into Thursday to douse the flames.

The fire has consumed hundreds of trees dotting the Koh-e-Sulaiman — a mountain range connecting the Pakistani provinces of Balochistan, Punjab and Khyber Pakhtunkhwa — and forced residents of nearby villages to move to safer locations.

The Koh-e-Sulaiman region is home to the world’s largest Chilghoza (pine nuts) forest, annually producing about 640,000 kilograms of the edible seed. It also houses different species of animals and birds, including chukar partridges, ibex goats and rabbits, which are under threat from the fires.

The first fire started on May 9 in Musakhail district, lasting over a week and affecting pine nut trees in a 22 kilometers radius. The fire had barely died down when a second blaze erupted late on Wednesday in the Saraghalai area of district Sheerani, with three locals killed as they tried to help in rescue operations.

“Three local residents who tried to extinguish the fire got killed,” the top administrative official of the area, Zhob division commissioner Bashir Bazai, told Arab News. “Four people are still stranded as the district administration is making efforts to retrieve the bodies and rescue the stranded individuals.”

Smoke engulfs a pine nut forest in the Koh-e-Sulaiman mountain range in the Saraghalai area of district Sheerani in Pakistan's Balochistan province on May 19, 2022. (Photo courtesy: Forest Department Zhob)

Locals helping with the rescue operation said neither provincial nor federal authorities were equipped to handle the disaster.

“The federal and provincial departments dealing with the fire are not trained and equipped to extinguish the fire in the Saraghalai area since the flames are too high,” local activist Salmeen Khpalwak, who works on climate change and environmental protection projects in the area, told Arab News on Thursday. “The fire is heading toward villages and many families have migrated to safe locations.”

Firefighters and residents extinguish a fire that erupted in pine nut forest in district Musakhail in Pakistan's Balochistan province on May 16, 2022. (Photo courtesy: Forest Department Zhob)

Khpalwak said nearly 24 villages situated in the pine nut forest were currently in danger. He said the fire in Musakhail broke out during a thunderstorm when lightning hit but the reason behind the Saraghalai blaze was not yet known.

The National Disaster Management Authority (NDMA) sent a helicopter on Thursday to extinguish the fire, local officials said, though it was unable to put out the fire as it could not fly at a low altitude due to thick smoke and the mountainous terrain.

Muhammad Younus, who works with the Provincial Disaster Management Authority, said the NDMA had been requested to provide another helicopter due to the intensity of the fire.

“This morning, a helicopter splashed 3,500 liters of water fetched from the Sabakzai Dam about 45 kilometers away from the area engulfed in fire,” Atique Khan Kakar, a forest officer, told Arab News, “though it did not work.”


Amid economic crisis, Pakistan imposes ‘complete’ ban on imported cars, luxury items

Updated 19 May 2022

Amid economic crisis, Pakistan imposes ‘complete’ ban on imported cars, luxury items

  • Decision taken to “save precious foreign exchange,” PM Sharif says
  • Information minister says government has finalized fiscal management plan 

ISLAMABAD: The Pakistan government on Thursday announced a complete ban on imported cars and non-essential items in a latest effort to tackle a growing economic crisis in the country.  

Pakistan is currently facing dwindling foreign exchange reserves, as its currency continues a downward spiral against the US dollar and a deal for the revival of a $6 billion loan program with the International Monetary Fund (IMF) hangs in the balance.  

On Thursday, Prime Minister Shehbaz Sharif announced his decision to ban non-essential items, saying the move would help Pakistan save “precious foreign exchange.”

“We will practice austerity and financially stronger people must lead in this effort so that the less privileged among us do not have to bear this burden,” he tweeted.  

Information minister Marriyum Aurangzeb announced the government had finalized a fiscal management plan to deal with the economic crisis.  

“Yesterday, it was decided that for the first time in Pakistan’s history, all non-essential and luxury items will be banned completely,” she said. “These include food items, luxury items and all imported cars.”

Aurangzeb said Pakistan was currently facing “an emergency situation” and Pakistanis would see the impact of difficult decisions on foreign exchange reserves within two months.  

She said the government attached the highest priority to decreasing Pakistan’s dependency on imports and introducing an export-oriented economic policy.  

“Local industry, local producers and local industries in Pakistan will benefit from this [policy],” she said. “This economic plan will also promote employment in the country.”

The minister announced the government’s decision to ban imported mobile phones, home appliances, dry fruits, fruits, crockery items, private weapons, shoes and chandeliers.  

Other banned items include decoration pieces, sauces, frozen meat, sanitary ware, doors, window frames, fish, frozen fruits, carpets, reserved food items, tissue papers, furniture, makeup and shampoo items, confectionary, luxury mattresses and sleeping bags.  


Pakistan’s volatile currency hits another historic low of Rs200 against US dollar

Updated 19 May 2022

Pakistan’s volatile currency hits another historic low of Rs200 against US dollar

  • Pakistani rupee declined by 0.81 percent in interbank market on Thursday
  • It has so far plunged by over Rs17 since the arrival of new government

KARACHI: Pakistan’s national currency continued to slump on Thursday, hitting another historic low of Rs200 against the US dollar in the interbank market amid rising demand for import payments and uncertainty related to talks with the International Monetary Fund (IMF) for the resumption of a $6 billion loan program.

The rupee declined by 0.81 percent, or Rs1.61, during the trading session today.

The currency depreciation continued despite the ongoing negotiations between the IMF and Pakistani authorities which started in Doha, Qatar, on Wednesday.

“The dollar was trading above Rs200 in the interbank market due to increasing demand from importers to make foreign payments,” Zafir Paracha, general secretary of the Exchange Companies Association of Pakistan, told Arab News.

He said the remittance inflow was also slow since exporters were not bringing export proceeds to the country owing to the rising rupee-dollar parity which was benefitting them.

The rupee has declined by Rs17.07 against the greenback since the new government took control of the country last month.

Aadil Jillani, head of economic division at Trust Securities & Brokerage Limited, blamed the gap between external financing requirements and Pakistan’s repayment capacity on lack of policy response from the government.

“[This is] constantly bleeding markets and the economy,” he said. “This economic meltdown is taking its toll as the dollar has hit an all-time high and is trading above Rs200 in the interbank and open markets.”

Pakistan’s discussions with the IMF have become complicated due to an economic relief package amounting to $1.7 billion which was announced by former prime minister Imran Khan earlier this year.

Prime Minister Shehbaz Sharif is hesitant to remove the fuel and power subsidies included in the package since his administration fears public backlash amid rising inflation.

Economists have advised the government, however, to undo these subsidies or risk greater political and economic damage.


Pakistan top court bans transfers of investigating officers in ‘high-profile’ criminal cases

Updated 19 May 2022

Pakistan top court bans transfers of investigating officers in ‘high-profile’ criminal cases

  • The supreme court bars all investigating agencies from withdrawing high-profile cases pending before trial courts
  • The court expresses apprehension the country’s criminal justice system may be undermined by those in positions of authority

ISLAMABAD: Pakistan’s top court on Thursday stopped authorities from transferring officials involved in “high-profile” cases in different investigating agencies while seeking record of any new appointments and transfers made in the last six weeks.

The development took place only a day after the Supreme Court took suo motu notice on apprehensions that criminal justice system may be undermined by people in positions of authority.

According to news reports based on court documents, the Federal Investigation Agency (FIA) said last week it did not want to pursue a Rs16 billion money laundering case against Prime Minister Shehbaz Sharif and his two sons three days before a special court in Lahore was scheduled to frame charges against them.

The FIA denied, however, it was withdrawing the case against the prime minister in a statement subsequently released to the media.

“We want to ensure the sanctity and integrity of the criminal justice system and rule of law,” Chief Justice of Pakistan Umar Ata Bandial remarked while chairing a five-member larger bench to hear the case.

The court barred the authorities from withdrawing any high-profile cases while seeking a response from the government on transfers and appointments recently made in the FIA.

Attorney General of Pakistan Ashtar Ausaf tried to defend the transfers and postings, saying there might be “genuine reasons” behind them.

The court also issued notices to the National Accountability Bureau, director general FIA, secretary interior and others to explain their respective positions over the issue.

It directed the attorney general to ensure all record and evidence in high-profile cases were preserved and protected from any tampering.

“We hope the federal government will help us by explaining all these matters,” the chief justice said.

“We have been seeing such news for the last one month,” he continued. “We want to know about these matters because they are impacting the rule of law.”

The chief justice pointed out that an investigation officer, Dr. Rizwan, who was probing cases against Prime Minister Sharif and his son Hamza, was transferred and later died of heart attack.

“Why were the officers investigating the case against Hamza Shehbaz removed,” the chief justice asked. “We have to ensure independent and transparent working of the prosecution branch.”

The chief justice clarified the court proceedings were not meant to embarrass or hold anyone responsible, but “to uphold the rule of law.”
The court adjourned the case until May 27.