Coffee trumps economic crisis as Tim Hortons opens in Pakistan

People standing in a long queue outside the Canadian chain Tim Hortons as it opens its first branch in Lahore, Pakistan on February 11, 2023. (Photo courtesy: @DrYumnaZee/Twitter)
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Updated 14 February 2023
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Coffee trumps economic crisis as Tim Hortons opens in Pakistan

  • Inflation is highest in over a decade but that hasn’t stopped scores of Pakistanis from thronging to cafe since it opened on Saturday
  • A small brewed coffee costs 350 rupees ($1.30), average government-mandated minimum wage is 25,000 rupees ($94) a month

LAHORE: Pakistanis are queuing for hours to grab coffee and pastries from Canadian chain Tim Hortons, which opened its first outlet in the South Asian country last week just as its economic crisis took a turn for the worse.

In less than a month, Pakistan’s currency has lost more than a quarter of its value against the US dollar, and fuel prices have risen by almost a fifth as the government implemented fiscal measures that are prerequisite to unlocking funds from an International Monetary Fund bailout.

Inflation in January spiked to 27 percent year-on-year, the highest in more than a decade, and the government only has enough foreign reserves to pay for just over three weeks of imports.

All that hasn’t stopped scores of Pakistanis from thronging to the cafe since it opened on Saturday at an upmarket Lahore shopping mall.

Tim Hortons is owned by Restaurant Brands International Inc. (RBI), , a Toronto-based company that also owns other fast food brands including Burger King and Popeyes.

“Higher prices don’t really matter for the class of people coming here,” Ahmad Javed, a medical student who used to go to Tim Hortons while he was living in Canada, told Reuters as he queued up.

“Rich people in Pakistan are getting richer, the poor are becoming poorer while the middle class is struggling.”

According to its online menu, a small brewed coffee costs 350 rupees ($1.30), while a large flavoured coffee is twice as much. By comparison, the average government-mandated minimum wage is 25,000 rupees ($94) a month.

With a population of more than 230 million and a $350-billion economy, Pakistan remains a growth market for fast-food companies. McDonald’s, Retail Food Group (RFG.AX)-owned Gloria Jean’s Coffee and Yum Brands Inc-owned Pizza Hut are among the international brands with outlets in Pakistan.

Tim Hortons is set to open another two outlets in Lahore, RBI said in a statement. Pakistani firm Blue Foods operates the franchise. Both companies declined to give any details about the outlet’s sales in the opening week.

For students such as Pareeshay Khan, the brand’s social media traction trumps the cost of the coffee:

“I’m here to taste the coffee that’s the top social media trend. I don’t know about the price, nor do I care.”

($1 = 266.5000 Pakistani rupees)
 


Pakistan’s PIA to resume London flights from Mar. 29 after six-year gap

Updated 30 December 2025
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Pakistan’s PIA to resume London flights from Mar. 29 after six-year gap

  • Newly privatized airline says will operate four weekly flights from Islamabad to London
  • PIA is already operating three fllights per week to British city Manchester, says airline

ISLAMABAD: The newly privatized Pakistan International Airlines (PIA) will operate direct flights to London starting Mar. 29, 2026, after six years, its spokesperson confirmed on Tuesday. 

The PIA resumed its flight operations to the UK in October this year with its inaugural flight to Manchester. The airline is currently operating three weekly flights to the British city. 

Britain lifted restrictions on Pakistani carriers in July, nearly half a decade after grounding them following a 2020 PIA Airbus A320 crash in Karachi that killed 97 people. The disaster was followed by claims of irregularities in pilot licensing, which led to bans in the US, UK and the European Union. 

“Pakistan International Airlines has announced the expansion of its operations in the United Kingdom with the resumption of flights to London,” the airline’s spokesperson said in a statement. 

“Starting Mar. 29, PIA will operate four weekly flights from Islamabad to London.”

The airline said that the London flights will be operated from Heathrow Airport’s Terminal 4, which it said is recognized as one of its most modern terminals. 

“London was PIA’s very first international destination and remains one of its most important and attractive routes,” the spokesperson said. 

Pakistan’s government succeeded in its frequent efforts to privatize the airline this month after a consortium, led by Arif Habib Group, on Dec. 23 secured a 75 percent stake in PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).

The sale marked Pakistan’s most aggressive attempt in decades to reform the debt-ridden national airline, which had accumulated more than $2.8 billion in financial losses. The government said it would end decades of state-funded bailouts and help revive the airline.

In an exclusive interview with Arab News this week, the airline’s new owner Arif Habib said he plans to renovate PIA planes, improve maintenance and flight schedule, and bring in new aircraft to revive the carrier.

Habib said he sees the region comprising the UK, the US and Canada as a “lucrative market” for the airline’s business. 

“There we can increase the frequency of the flight,” he said. “We will also try to run flights to Canada from Karachi, Lahore, and I think it’s already in Islamabad.”