Economic downturn forces top Pakistani startup to cease operations

The undated photo shows a bus of Pakistani quick commerce startup, Airlift. (Social media)
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Updated 13 July 2022
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Economic downturn forces top Pakistani startup to cease operations

  • Startup said it would ensure its employees were provided salaries for the months of July and August 
  • A few Pakistani startups last month restricted their services and laid off workers

ISLAMABAD: A top Pakistani quick commerce startup, Airlift, confirmed on Tuesday it was shutting down operations in light of the recent economic downturn and global recession spurned on by sluggish commercial activity and soaring fuel prices. 

The South Asian country’s startups have been reeling from the recent surge in fuel prices. Pakistan has increased the price of petroleum products four times in less than two months, partly to revive its suspended deal with the International Monetary Fund (IMF). 

Last month, Pakistani startup player Careem said it had suspended its food service in Pakistan and would focus on its ride-hailing and delivery segments only. Separately, app-based bus service Swvl said last month it was “pausing” its service in Karachi, Lahore Islamabad, and Faisalabad due to the “global economic downturn.” 

Airlift initially started as a bus service in 2019 but later pivoted to a national grocery delivery service through which customers could order groceries, fresh produce, medicines and other items via the company’s mobile app. 

The company reached a high point last year when it raised a whopping $85 million in Series B financing — the largest single private funding round in Pakistan’s history. It delivered products to households across nine cities of Pakistan including Karachi, Lahore and Islamabad. 

Airlift said last month it was laying off 31 percent of its workforce. On Tuesday, it announced it was closing operations altogether. 

“While the global recession and recent downturn in capital markets has affected economic activity across the board, it has had a devastating impact on Airlift and rendered its shut-down inevitable,” the company said in a press release. 

Airlift said that as of July 12, the company’s operations have ceased. 

The startup explained how several investors shared uncertainty in wire schedules and their disbursements in early July during a capital-raising exercise after “rapidly deteriorating conditions in the global economy.” 

The startup, however, said it would ensure its employees were provided salaries for the months of July and August. 

“For suppliers, vendors and other third parties, our team will communicate proactively to manage arrears and liabilities as a part of our ongoing shut-down process,” it added. 


Pakistan says ‘national security is non-negotiable’ after Afghanistan strikes

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Pakistan says ‘national security is non-negotiable’ after Afghanistan strikes

  • Islamabad says recent cross-border strikes targeted Afghanistan-based militants behind recent attacks
  • Kabul has condemned strikes, accused Pakistan of violating territorial sovereignty and killing civilians

ISLAMABAD: Pakistan’s Parliamentary Secretary for Information and Broadcasting Danyal Chaudhry said on Monday “national security is non-negotiable,” defending Islamabad’s recent cross-border strikes inside Afghanistan following a number of recent militant attacks.

The remarks come after Pakistan said it launched “intelligence-based selective targeting” of seven militant camps along the Afghan border in response to a mosque bombing in Islamabad and violence in the northwestern border districts of Bajaur and Bannu, among other attacks. Authorities say many of the assaults have been carried out by the Tehreek-e-Taliban Pakistan (TTP) and allied groups that Islamabad alleges are operating from sanctuaries in Afghanistan, whose government denies this.

Kabul has condemned Sunday’s strikes as a violation of its sovereignty and claimed civilians were killed. Pakistan has not responded to that allegation.

Tensions between the two neighbors have escalated sharply despite a fragile ceasefire agreed after deadly clashes in October. 

“Pakistan has always chosen the path of dialogue and peaceful coexistence. But when Afghan soil continues to be used for proxy attacks, we have no choice but to defend our homeland. National security is non-negotiable,” Chaudhry said in a statement.

He said the recent operation had “successfully neutralized militants involved in attacks on Pakistani soil,” adding that “every precaution was taken to protect innocent lives.”

Pakistan has repeatedly accused Afghanistan’s Taliban rulers of allowing TTP militants and fighters linked to the Islamic State Khorasan Province (ISKP), the regional affiliate of the Daesh group, to operate from Afghan territory, claims Kabul denies.

Chaudhry referred to a recent United Nations report, saying militants from 21 countries were now operating from Afghan territory and posed a threat to regional stability.

Afghanistan’s defense ministry earlier condemned what it called a breach of international law and vowed a “measured response at a suitable time.” Its foreign ministry summoned Pakistan’s ambassador over what it described as violations of Afghan airspace.

Islamabad has also accused neighboring India of backing anti-Pakistan militant groups, a charge New Delhi has consistently denied.

The latest exchange has raised concerns of renewed instability along the 2,600-kilometer frontier, where repeated border closures have disrupted trade and strained diplomatic ties. Analysts say the escalation risks undoing recent efforts at de-escalation, including the Saudi-mediated release of three Pakistani soldiers earlier this month.