Foodpanda weathers Pakistan’s economic storm by entering export business, starting with Middle East

In this undated photo a food panda delivery person is putting food in the delivery bag. (Photo courtesy: REUTERS)
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Updated 02 March 2023
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Foodpanda weathers Pakistan’s economic storm by entering export business, starting with Middle East

  • Foodpanda Pakistan is first entity within larger Berlin-based group to start exports of vegetables, fruit, meat
  • Company also working in collaboration with Talabat and Hunger Station in Saudi Arabia, other Gulf nations

KARACHI: Foodpanda Pakistan, an online food and grocery delivery platform owned by Berlin-based Delivery Hero, has become the first entity within the group to start exporting food items with an aim to enhance market penetration in the Middle East, a top official said.

The on-demand delivery platform operates in 11 countries in Asia, including Pakistan, Bangladesh, Thailand and Singapore. None of its branches in other parts of the world have so far ventured into the export business.

“Pakistan is the first country within Foodpanda, and might even be within Delivery Hero as well, to start export of fresh products such as fruits, vegetables or meat to any other country,” Muntaqa Peracha, CEO of Foodpanda Pakistan, told Arab News in an interview on Wednesday.




Muntaqa Peracha, CEO of Foodpanda Pakistan, speaks to Arab News in Karachi, Pakistan, on March 1, 2023 (AN Photo)

The company was working with organizations like Talabat and Hunger Station in Saudi Arabia and other Middle Eastern states, Peracha said, to scale up exports after making the first shipment of oranges to the United Arab Emirates earlier this year.

“We are trying to work with them as well where we can start exporting our products to them,” the CEO added. “It can eventually scale up [the exports], because if they can start purchasing from us rather than from the local market, it helps their profitability, it helps our profitability, it brings dollars into the country.”

Peracha highlighted that the company’s export goals would be achieved without needing extra financing:

“We’ve established our stations at the vegetable market to purchase. That helps in terms of the quality, it obviously helps in terms of pricing as well, it helps in terms of our scale. So, we’re using our existing means, we’re not trying to invest further or dilute our profitability.”

Pakistan is currently grappling with alarmingly low foreign exchange reserves which stand at $3.2 billion, not even enough to cover a month of imports. Many companies are scaling down or suspending their operations as the government has banned all but essential imports and restricted outflows of the dollar.

Against this background the Foodpanda chief said the decision to export would enhance its revenue in dollars and favorably position Pakistan in the Middle Eastern market.

He admitted that the economic situation was “a little bit difficult” for delivery operators, especially when it came to imported materials.

“We, for example, as Foodpanda are facing issues in terms of stocks for our Pandamart dark stores because suppliers are not able to import a few of their materials used to produce products,” Peracha said. “Be it something like tissue paper, be it tea, be it oil.”

“We are facing those issues where we are probably running out of stock sooner than what we had anticipated,” he added. “That’s not something we can solve alone because that’s something that the suppliers and the government need to solve and they are working on that.”

The Foodpanda chief said instead of taking a hit in terms of revenue, the company had decided to look at the possibility of exporting.

Asked about running operations amid increasing prices, with inflation rate hitting 31.5 percent in February, Peracha said Foodpanda was offering discounts and subsidizing “from our pocket” to drive demand growth up in order to maintain profitability.


Special force set up to police road in Pakistani district wracked by sectarian feuding

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Special force set up to police road in Pakistani district wracked by sectarian feuding

  • Police say at least 136 killed in fresh sectarian feuds in Kurram that started last month
  • Northwestern district has for decades seen fighting between Shia and Sunni groups

PESHAWAR: The government of Pakistan’s northwestern Khyber Pakhtunkhwa province said on Monday it was establishing a special force to ensure that a main road in Kurram district remained open, after its blockade since last month following sectarian clashes in the region has triggered a humanitarian crisis.

Kurram, a tribal district of around 600,000 where federal and provincial authorities have traditionally exerted limited control, has frequently experienced violence between its Sunni and Shia communities over land and power. Travelers to and from the town often ride in convoys escorted by security officials. 

The latest feuding started on Nov. 21 when gunmen ambushed a vehicle convoy and killed 52 people, mostly Shias. The assault triggered road closures and other measures that have disrupted people’s access to medicine, food, fuel, education and work. Over 130 people have been killed in the fighting that has ensued after the convoy attack.

The provincial government and Edhi Foundation charity last week started sending medicines to the region via helicopters.

“It has been decided to establish a special police force to secure the Parachinar Road in connection with the restoration of land connectivity to Kurram,” the KP government said in a statement after a cabinet meeting chaired by Chief Minister Ali Amin Gandapur. 

Parachinar is the main town in Kurram and a main road that connects the region to Peshawar, the provincial capital of KP, has been blocked since sectarian fighting began late last month. 

“A total of 399 personnel will be recruited for this new force,” the statement said. “It has been decided to set up temporary posts initially to secure the road, while permanent posts will be set up in the future.”

The statement said the road would be opened after an agreement was reached between the two warring sides. A grand jirga of tribal and political heavyweights was set up earlier this month to convince the two sides to shun violence. The council will resume peace talks later this week. 

Kurram police spokesman Riaz Khan told Arab News on Monday least 136 people had been killed in the violence since last month. If you added those who had died due to lack of access to hospitals and medicines following the road closures, the number reached at least 200, the police officer said. 

Meanwhile, the KP government has launched a helicopter service to evacuate people and transport aid and medicines to Kurran amid the closer of the Parachinar-Peshawar road since last month, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages.

On Sunday, two flights evacuated 27 individuals and 16 government staffers and jirga members, according to KP chief minister’s office. Since last week, over 180 people, including women, children and patients, have been transported via helicopter, with priority given to those in need of urgent medical attention.

Last week, KP government spokesman Muhammad Ali Saif said authorities had decided to dismantle private bunkers — observation posts used in the fighting by both sides — and given a deadline of Feb. 1 for tribesmen in Kurram to handover heavy weapons. 

Local tribesmen have so far reportedly refused to surrender their weapons, citing concerns about their safety.


Trying civilians in military courts lacks transparency, UK government says after verdicts announced

Updated 23 December 2024
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Trying civilians in military courts lacks transparency, UK government says after verdicts announced

  • 25 civilians sentenced by a Pakistani military court to periods of two to 10 years of “rigorous imprisonment” on Saturday
  • Case relates to accusations thousands of Khan supporters stormed military installations, torched general’s house in 2023

ISLAMABAD: The United Kingdom said on Monday trying civilians in military courts lacked transparency and undermined the right to a fair trial, days after 25 civilians were sentenced by a Pakistani military court to periods of two to 10 years of “rigorous imprisonment” in connection with attacks on military facilities in 2023.

The Dec. 21 ruling underscores concerns among supporters of jailed former prime minister Imran Khan that military courts are going to play a bigger role in cases involving the 72-year-old cricketer-turned politician, who is facing multiple charges including allegedly inciting attacks against the armed forces. He is currently facing these charges in a civilian court, but his Pakistan Tehreek-e-Insaf (PTI) party fears he may also be taken to military trial. 

The government says thousands of Khan supporters stormed military installations and torched a general’s house on May 9, 2023, among other violence, to protest against the former PM’s arrest by paramilitary soldiers that day in a land graft case. At least eight people were killed in the violence. 

“While the UK respects Pakistan’s sovereignty over its own legal proceedings, trying civilians in military courts lacks transparency, independent scrutiny and undermines the right to a fair trial,” a Foreign, Commonwealth and Development Office spokesperson, said. “We call on the Government of Pakistan to uphold its obligations under the International Covenant on Civil and Political Rights.”

The Pakistan government and military have not yet responded to the UK statement, which follows one by the European Union, saying the military court verdicts were “inconsistent” with Pakistan’s international obligations.

On Saturday, while announcing the military court verdicts, the army’s media wing said the sentences were an “important milestone in dispensation of justice to the nation.”

“It is also a stark reminder to all those who are exploited by the vested interests and fall prey to their political propaganda and intoxicating lies, to never take law in own hands,” the army said in a statement.

Others charged over the violence were being tried in anti-terrorism courts but justice would only be fully served “once the mastermind and planners ... are punished as per the Constitution and laws of the land,” the military said, in what was widely seen as a veiled reference to Khan. 

The ruling comes days after Khan was indicted by an anti-terrorism court on charges of inciting attacks against the military. An army general who served under him as his spy chief, Faiz Hamid, is facing a military investigation on the same charges.

Pakistan’s Supreme Court last week allowed military courts to announce verdicts in concluded trials of nearly 85 supporters of Khan on charges of attacking army installations. However, it made such verdicts conditional on the outcome of appeals against the jurisdiction of military courts over civilians.

The court last year provisionally allowed military courts to try civilians.

With inputs from Reuters


IFC backs Pakistani firm, UAE subsidiary to set up tire manufacturing unit in Sindh

Updated 23 December 2024
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IFC backs Pakistani firm, UAE subsidiary to set up tire manufacturing unit in Sindh

  • IFC and group of local banks will provide up to $50.2 million to Armstrong ZE to increase local production of tires
  • The project is expected to create over 1800 jobs and bolster local manufacturing and supply chains, IFC said

ISLAMABAD: The International Finance Corporation (IFC) and a consortium of Pakistani banks will provide up to $50.2 million-equivalent in financing to support Pakistan’s Armstrong ZE Pvt. Ltd. and its UAE subsidiary Zafco Group Holding in developing a greenfield tire manufacturing facility in the Sindh province, IFC said on Monday. 

The number of registered vehicles in Pakistan has grown steadily over the last decade, reaching approximately 30 million vehicles in 2023, including 23 million two-wheelers. However, local tire manufacturing remains constrained due to a lack of technical expertise and technology and a substantial informal market, making the country heavily dependent on imports.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector, working in more than 100 countries. It has invested approximately $13 billion in Pakistan since 1956, supporting diverse sectors such as renewable energy, financial inclusion, infrastructure development, agribusiness, manufacturing, housing, health care, and trade, among others.

“Armstrong ZE is deeply honored to have earned the trust and support of IFC and our partner banks, HBL, Meezan Bank, Bank Alfalah and Habib Metropolitan Bank. Their investment in this transformative project is not just a financial endorsement but also a strong vote of confidence in our vision, capabilities, and potential to shape the future of tire manufacturing,” Azim Yusufzai, the chairman of Armstrong ZE, said in a statement released by IFC. 

“Together, we aim to foster innovation, create employment opportunities, and contribute to sustainable development in our communities and beyond. This collaboration marks a monumental step forward in advancing our mission to deliver world-class, sustainable, and innovative tire solutions to the Pakistani market.”

The financing comprises a $25 million loan from IFC alongside an up to $25.2 million equivalent investment in Pakistani rupees from local banks. The project is expected to create over 1,800 direct and indirect jobs and help increase the competitiveness of the tire sector through technology and know-how transfers.

The project will utilize the company’s long-standing experience in the tire industry, through its UAE-based company, Zafco Group Holding, which operates as a global importer and exporter of tires, batteries, and lubricants, with a presence in over 85 countries, as well as Zafar Enterprises, a leading tire distributor in Pakistan.

IFC will also be supporting Armstrong through its Responsible Investing Support in Emerging Economies (RISE) advisory program, which will strengthen Armstrong’s climate risk management, resource efficiency, and environmental and social processes.

“IFC is committed to improving Pakistan’s value-added manufacturing capacity by partnering with strong companies that can scale up production,” said Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan. 

“This investment exemplifies this commitment and will help improve consumer access to tires while spurring the economy through job creation, increased productivity, and reduced reliance on imports.”

IFC said the project will introduce a locally manufactured international brand to Pakistan, which will improve consumer access to quality, affordable tires, while strengthening local supply chains, creating jobs and boosting private sector-led growth.

Armstrong ZE Pvt. Ltd. is a wholly owned company established by the Pakistan-origin Hussain and Yusufzai families who have over fifty years of experience in the tire business with operations in more than eighty-five countries. The families also own, Zafar Enterprises, a leading tire distribution company in Pakistan, and UAE based Zafco Group Holding, a global importer and exporter of tires, batteries, and lubricants, with a presence in over 85 countries.


Senate convenes parliament session to discuss UAE visa restrictions, welfare of overseas Pakistanis

Updated 23 December 2024
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Senate convenes parliament session to discuss UAE visa restrictions, welfare of overseas Pakistanis

  • Session held after months of widespread media reports of a decline in UAE visas for Pakistanis
  • Last month, Pakistan foreign office said it did not subscribe to “impression” of ban on UAE visas

ISLAMABAD: The Senate Standing Committee on Overseas Pakistanis and Human Resource Development on Monday convened a session at the Parliament House to deliberate on critical issues, “including the UAE’s unofficial visa restrictions and the welfare of overseas Pakistanis,” state-run APP news agency reported. 

The session was held after months of widespread media reporting on a decline in UAE visas for Pakistanis and a decrease in overall overseas employment for nationals of Pakistan, allegedly due to their lack of respect for local laws and customs and for participating in political activities and sloganeering while abroad.

Last week, Prime Minister Shehbaz Sharif thanked the UAE for taking steps to streamline visas for Pakistanis.

“Senator Zeeshan Khanzada [chair of the session] emphasized the urgency of addressing lingering visa concerns, noting public frustration over unresolved issues,” APP reported after the meeting. 

“Khanzada pointed out discrepancies in visa processing despite applicants fulfilling all requirements and stressed the importance of keeping the public informed through compliance updates and timelines,” the state agency added.

Dr. Arshad Mahmood, secretary of the ministry of overseas Pakistanis, clarified that the restrictions “were not absolute, particularly in Dubai, where skilled labor remains unaffected.”

“He acknowledged a recent decline in the demand for unskilled labor and highlighted the need to prioritize skilled workforce migration. He added that approximately 700,000 workers have been sent abroad this year,” APP said. 

Committee members also discussed establishing dedicated immigration counters at international airports for overseas Pakistanis and facilitation for individuals whose passports had been confiscated, preventing their return to Pakistan, particularly those released from jail after falling short on visa requirements.

Last week, Hamad Obaid Ibrahim Salem Al-Zaabi, the ambassador of the UAE to Pakistan, called on Deputy Prime Minister Ishaq Dar and briefed him on steps being taken to streamline visas for Pakistanis. Previously, the foreign office has repeatedly said Islamabad did not subscribe to the “impression” that there was a ban on UAE visas for Pakistani nationals.

“If there are any issues that arise with respect to issuance of visas and stay of Pakistani nationals in the UAE, that are important agenda items between Pakistan and the UAE and we continue to discuss them,” the foreign office spokeswoman told reporters last month.


Days-long protest sit-in in Pakistan’s Gwadar continues over curbs on Iran border trade

Updated 23 December 2024
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Days-long protest sit-in in Pakistan’s Gwadar continues over curbs on Iran border trade

  • Locals in coastal town have traditionally used boats to travel into Iran to bring back oil and food items
  • In August, government introduced a token system with only registered boats allowed to cross over

QUETTA: A protest sit-in in the southwestern Pakistani port city of Gwadar entered its 10th day on Monday, with participants calling for free trade with Iran via land and sea borders as well as uninterrupted electricity supply and access to clean drinking water.

Gwadar is a coastal town in Pakistan’s impoverished Balochistan province where China is developing a deep-sea port. Despite the largescale development work, residents of the town have for years complained of a lack of employment opportunities and basic facilities like clean drinking water and electricity.

Pakistan shares an 904-kilometer-long border with Iran via land and sea, which is used for informal trade between the two countries. Formal trade between Pakistan and Iran has been nominal due to US sanctions on Tehran, but the area is dominated by informal trade of Iranian oil, food items and liquefied petroleum gas (LPG), transported through various border crossings in the Makran and Rakhshan divisions.

District Gwadar shares a sea border with Iran while Balochistan’s Kech and Panjgur districts share a land border. In the past, locals in Gwadar used boats to travel into Iran to bring home Iranian oil and food items. They crossed over into the neighboring country after showing their Pakistani national ID cards (CNICs). 

In August this year, authorities in Gwadar introduced a token system under which only registered boats, around 600, can daily cross into Iran through the Kantani Hor sea route. Locals say the new system has led to unemployment in the district as many can’t afford the tokens, which can cost up to Rs60,000 $215.

“We have been protesting for the last ten days because our people have lost their jobs since the government announced this new token system,” Houth Abdul Ghafoor, a local politician who has been leading the All-Parties Alliance protest since Dec. 13, told Arab News, describing the system as “official bribery.”

“More than three million people in Makran division are linked with border trade with Iran because we don’t have industries and other employment sources. The border restrictions are causing food and oil shortage in the coastal city.”

Jawad Ahmed Zehri, the Gwadar assistant commissioner, said the government had formalized border trade with Iran by registering boats so that all traders could benefit equally.

“Small traders are now directly benefitting from this token system as influential traders previously prevented smaller businessmen from crossing through the border,” Zehri told Arab News. “Now everyone can travel on his allotted number.”

Asked about talks between the administration and protesters, Zehri said the government would not engage with those pressurizing the government to abolish the token system.

The participants of the Gwadar sit-in said they are also protesting power and water shortages in the port city.

“We demand provision of basic facilities like education, water, electricity and job opportunities,” Maulana Hidayat-ur-Rehman, a provincial lawmaker from Gwadar, said.

Gwadar has witnessed regular days-long protests in recent years against the lack of basic amenities and alleged violations of human rights and extrajudicial killings by security agencies, who deny the charge. 

Separatists have been waging a decades-long insurgency in Balochistan, accusing the government and army of exploiting the impoverished province’s mineral wealth, accusations both reject.