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)
Short Url
Updated 02 March 2021
Follow

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 forms special task force to curb human smuggling after Morocco boat capsize

Updated 24 January 2025
Follow

Pakistan forms special task force to curb human smuggling after Morocco boat capsize

  • A migrant boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistani nationals
  • The tragedy once again underscored the perilous journeys many migrants embark on due to conflict, instability at home

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a special task force to curb human smuggling in Pakistan, Sharif said on Friday, days after a migrant boat carrying over 60 Pakistanis capsized near Morocco.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later 36 people were rescued from the vessel which left Mauritania on Jan. 2, while the Pakistani Foreign Office has said the survivors include 22 Pakistanis.
Sharif announced the launch of the task force at a meeting to review action against human traffickers, his office said, adding that the prime minister will himself head the task force.
“The arrests of members of groups involved in human trafficking should be expedited,” Sharif told officials at the meeting. “All institutions, including the Ministry of Foreign Affairs, should play their full role in identifying human traffickers.”
The Morocco tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests. PM Sharif has also urged increased collaboration with international agencies like Interpol to ensure swift action against human trafficking networks.
Officials informed participants of Friday’s meeting that so far, six organized human trafficking gangs have been identified, 12 cases have been registered, three key traffickers have been arrested, and 16 names have been placed on the passport control list. They were also apprised of the details of seizure of vehicles, bank accounts and assets.
“The murderers of humanity involved in human trafficking will be brought to justice,” Sharif said.


Parliament elects ex-PM Khan aide as head of accountability body amid Pakistan political tensions

Updated 24 January 2025
Follow

Parliament elects ex-PM Khan aide as head of accountability body amid Pakistan political tensions

  • Pakistan parliament elects ex-PM Khan aide as head of accountability body amid political tensions
  • Member of the government’s team criticizes Khan’s party for calling off the parleys, says differences can only be resolved through talks

ISLAMABAD: Pakistan’s National Assembly, the lower house of parliament, on Friday elected a member of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party as the head of its accountability committee, amid prevailing political tensions in the South Asian country.
The Public Accounts Committee is among the most powerful parliamentary bodies in Pakistan and holds the authority to summon virtually any individual or record from government departments. Its main objective is to uphold transparency and accountability across all public and constitutional institutions, promoting financial integrity and good governance.
The development came a day after ex-PM Khan called off negotiations with the government over its failure to establish judicial commissions to investigate violence at anti-government protests organized by his party. The talks, which began last month after Khan threatened a civil-disobedience movement, aimed to ease political tensions, but have not yielded desired results after three rounds.
Khan’s ouster in a parliamentary no-trust vote in 2022 has plunged Pakistan into a political crisis, particularly since he was jailed in August 2023 on corruption and other charges. His PTI party has regularly held protests to demand his release, with many of the demonstrations turning violent. At the last meeting on Jan. 16, the PTI had given the government seven days to announce the truth commissions, a deadline that expired on Thursday.
But despite the government-opposition stalemate, Junaid Akbar Khan, a lawmaker from Khan’s PTI party, was elected on Friday unopposed as the head of the National Assembly’s Public Accounts Committee (PAC), according to a statement issued by the National Assembly Secretariat. The post of the PAC chairman had been vacant since the general election in Feb. last year.
“I will move forward taking all the [committee] members with me,” Junaid was quoted as saying by the National Assembly Secretariat, as committee members assured him of their support.
The announcement of Junaid’s election as PAC chairman came hours after the PTI refused to attend the next round of talks with the government on Jan. 28
The PTI’s demands to the government revolve around the release of all political prisoners including Khan, and the formation of two judicial commissions to probe into violent protest rallies, including one on May 9, 2023, when PTI supporters rampaged through military offices and installations, and a second one on Nov. 26, 2024 to demand Khan’s release, in which the government says four troops were killed.
Speaking to reporters in Islamabad, Senator Irfan Siddiqui, a member of the government’s negotiations team, criticized the PTI for calling off the parleys.
“Come out of this confusion, and come sit with us on the 28th,” he said in televised comments, referring to Khan’s party. “Whether the commission will be formed or not, it will be decided there.”


Pakistan stick with spin as they chase West Indies series sweep

Updated 24 January 2025
Follow

Pakistan stick with spin as they chase West Indies series sweep

  • Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets
  • West Indies spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners

MULTAN: Head coach Aaqib Javed brushed aside criticism of Pakistan’s reliance on spin bowling as they seek a clean sweep against the West Indies in the second Test starting on Saturday.
Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets, Noman Ali six and Abrar Ahmed five for their third straight win at home.
West Indies left-arm spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners.
The second Test will also be played on a dry and grassless pitch in the central city of Multan.
Former Pakistan players and analysts hit out at the spin-heavy strategy, saying the team would struggle on away tours where pitches may not be as conducive to spin.
Aaqib, a fast bowler from an era dominated by the great pacemen Wasim Akram and Waqar Younis, insisted the spin assault would continue.
“We found that the West Indies have a weakness in dealing with the spin bowling, so we exploited that and will do that again,” Aaqib told a news conference on Friday.
West Indies skipper Kraigg Brathwaite had no qualms about Pakistan’s tactics.
“Pakistan are playing at home and if they believe spinning pitches are their strength then that’s fine and that’s how cricket is played,” Brathwaite said.
“I have played on pitches which took turn from day one but not like this, which had cracks from day one,” he said.
West Indies will be without injured pace bowler Jayden Seales, who took three wickets in the first match and will be replaced by the experienced Kemar Roach.
Pakistan are unlikely to make any changes.
Brathwaite said his batters need more faith after the first Test, in which his team managed just 137 and 123 in their two innings, with Alick Athanaze the only one to reach a half century.
“It was a difficult pitch to bat in the last game,” Brathwaite said.
“I would say you need to believe in your plan from ball one and not think of the third or fourth ball.”
Pakistan are eighth and the West Indies ninth and last on the World Test Championship table.
Another victory in Multan could see the hosts rise to seventh.
Pakistan were forced to make radical changes last year after losing the first of three Tests against England, their 11th straight home Test without a win.
The Aaqib-led selection panel dropped out-of-form batter Babar Azam and rested pace spearheads Shaheen Shah Afridi and Naseem Shah.
The tactics worked on the spin-friendly pitches in Rawalpindi and Pakistan went on to win the series 2-1.
“If we had taken these decisions earlier we would have been in the race for World Test Championship final,” Aaqib said.


Two separatists lay down arms, accuse foreign agencies of interference in Pakistan’s Balochistan

Updated 59 min 36 sec ago
Follow

Two separatists lay down arms, accuse foreign agencies of interference in Pakistan’s Balochistan

  • Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups
  • Pakistani officials have in the past blamed hostile agencies for fanning insurgency in Balochistan to disrupt China-led development projects in the region

ISLAMABAD: Two Baloch separatist militants on Friday announced their surrender to authorities in Pakistan’s restive Balochistan province, accusing foreign intelligence agencies of interfering in the region to “destabilize” the South Asian country.
Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups, who accuse Islamabad of exploiting the province’s natural resources, such as gold and copper, while neglecting the local population.
Successive Pakistani governments have denied the allegations, saying they prioritized Balochistan’s development through investments in health, education and infrastructure projects, accusing hostile intelligence agencies of inciting the Baloch youth to violence in the region.
On Friday, top counter-terrorism officials in Balochistan held a press conference alongside two Baloch separatist militants, who announced laying down arms and quitting their fight against the Pakistani state. It was unclear under what circumstances the militants addressed the press conference and whether they spoke freely or under pressure from the authorities.
Najeeb Ullah, a former commander of the Baloch Republican Army (BRA) who hails from Balochistan’s Makran division, said he had fought for years against Pakistan, but it was a meeting with “intelligence officials of a neighboring country” that made him realize that they were only being used to “destabilize” Pakistan and not for Balochistan’s separation.
“I met intelligence officials of a neighboring country and I presented before them several suggestions to further our struggle [for Balochistan’s separation],” he told reporters in Quetta.
“But they rebuked me and said, ‘We have nothing to do with your freedom. We will support you [only] to destabilize Pakistan’.”
Ullah did not name any country, neither divulge more details about the meeting, but Pakistan has in the past accused India, Iran and Afghanistan of sheltering militants that operate in the region, an allegation denied by all three.
He criticized leaders of Baloch separatist outfits for living a “life of luxury” abroad and inciting Baloch youth to violence in the impoverished region.
He said he looked into Balochistan’s affairs more deeply after his meeting with foreign intelligence officials, which eventually led him to quit militancy.
“I reached this conclusion that all of our [separatists] organizations are playing in the hands of foreign countries who are using us to achieve their ulterior motives,” Ullah said.
Abdul Rashid, another militant who remained associated with various separatist outfits in Balochistan for 15 years, also announced his surrender at the press conference, speaking to reporters in the Balochi language as he could not speak Urdu.
Pakistani officials have in the past accused foreign agencies of fanning militancy in Balochistan to disrupt China-led development projects in the region.
China has pledged over $65 billion in infrastructure, energy and other projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), part of President Xi Jinping’s Belt and Road Initiative.
Pakistan this month inaugurated a Chinese-funded airport in Balochistan’s Gwadar, while Beijing is also helping Pakistan develop a deep-water port close to the new airport, a joint venture between Pakistan, Oman and China that is close to completion.
Aitzaz Goraya, the deputy inspector-general of the Balochistan Counter-Terrorism Department (CTD), said the debriefing of the two former militants had made them aware of more things that could help their investigations.
“The role of hostile intelligence agencies, which we, the government, its institutions and the CTD, knew to quite an extent, some more names and people have been brought before us, who are involved in it and how they are being funded,” he said.
“This has given us more clarity in our investigations.”


Omani, Pakistani navies hold joint exercise to enhance interoperability

Updated 24 January 2025
Follow

Omani, Pakistani navies hold joint exercise to enhance interoperability

  • Pakistan, Oman are maritime neighbors and hold frequent port calls, joint exercises and coordinated patrols
  • During visit to Port Sultan Qaboos, Pakistan Navy officials discussed maritime cooperation with Omani counterparts

ISLAMABAD: Pakistani and Omani navies have conducted a joint exercise to enhance interoperability between the two forces, Pakistan Navy said on Friday, following a port call in Muscat by two Pakistan Navy ships.
Pakistan Navy’s Tabuk and Rah Naward ships visited Port Sultan Qaboos, where they were warmly received by Omani authorities, according to the Directorate General Public Relations (DGPR) of Pakistan Navy.
During the visit, Pakistani mission commander and commanding officers held meetings with Royal Navy of Oman’s director-general operations and plans, Maritime Security Center commander and commandant of the Said bin Sultan naval base.
“During these interactions, matters of mutual interest, Navy-to-Navy engagements, and cooperation in maritime security were discussed,” the DGPR said in a statement.
“Following the port call, PNS Tabuk conducted a passage exercise with a Royal Oman Navy ship Al Shamikh. The exercise at sea aimed to enhance interoperability between the two navies and promote shared learning through coordinated activities.”
Pakistan Navy ships were also opened for visitors, including ambassadors, diplomats and military attaches of various countries as well as a large number of Pakistani community members.
Pakistan and Oman are maritime neighbors and frequent visits of dignitaries, port calls by ships, joint exercises and coordinated patrols have been a regular feature of bilateral ties between the two countries.
“The visit of PNS Tabuk and Rah Naward will further strengthen bilateral relations between the two navies,” the DGPR added.