Careem suspends ride-hailing operations in Pakistan amid economic headwinds

Careem suspends ride-hailing operations in Pakistan amid economic headwinds
A man uses Careem application on a mobile phone in Cairo, Egypt, on November 6, 2019. (AFP/File)
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Careem suspends ride-hailing operations in Pakistan amid economic headwinds

Careem suspends ride-hailing operations in Pakistan amid economic headwinds
  • Company says ‘challenging macroeconomic reality’ and intensifying competition behind the decision to close
  • Careem launched in Pakistan in 2015, became household name for offering alternative to traditional taxis 

ISLAMABAD: Careem, the Dubai-based super-app with operations in 70 cities worldwide, will suspend its core ride-hailing service in Pakistan from today, Wednesday, due to worsening economic conditions and stiff market competition, its co-founder announced in a statement on LinkedIn.

Careem launched in Pakistan in 2015 and quickly became a household name for offering a cheap and easy alternative to traditional taxis and rickshaws. The company’s app-based service helped popularize cashless payments and gave flexible income opportunities to thousands of drivers, known as “captains.”

“This was an incredibly difficult decision [to suspend operations]. The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country,” Sheikha said. 

In recent years, Pakistan’s economic downturn, currency depreciation and rising fuel costs have squeezed ride-hailing margins.

Local players and international competitors, including Uber, which acquired Careem’s regional ride-hailing business in 2020, have also intensified competition for drivers and customers in key cities like Karachi, Lahore and Islamabad.

Despite shutting down ride-hailing, Sheikha said Careem remained committed to its technology and engineering presence in Pakistan. 

“Careem Technologies ... will continue to build from Pakistan for the region. Nearly 400 colleagues across all functions (including engineering) are building the Everything App and its ecosystem of verticals (food/grocery delivery, payments, and more),” Sheikha said about the all-in-one super app that aims to combine multiple daily services in a single mobile app.

“This presence is only set to grow, with over 100 open roles and the expansion of our Falcon / NextGen program that brings in top graduates from Pakistani universities and gives them hands-on training on building highly scalable systems.”

Sheikha said Pakistan was in Careem’s DNA and its first line of code was written in Pakistan. 

“I sincerely hope to bring Careem’s services back to the country in the future,” Sheikha said. 


Pakistani parliamentary body calls for scrapping 18 percent tax on imported solar panels

Pakistani parliamentary body calls for scrapping 18 percent tax on imported solar panels
Updated 29 sec ago

Pakistani parliamentary body calls for scrapping 18 percent tax on imported solar panels

Pakistani parliamentary body calls for scrapping 18 percent tax on imported solar panels
  • New tax proposals in fiscal year budget 2025–26 have raised concerns among industry players and clean energy advocates
  • Pakistan’s solar generation outpaced global growth by over threefold, provided 25 percent of grid electricity so far this year

ISLAMABAD: Pakistan’s Senate Standing Committee on Finance and Revenue this week urged the government to withdraw a proposed 18 percent general sales tax (GST) on imported solar panels, saying some stakeholders were stockpiling equipment ahead of the federal budget to avoid the new levy.

Under the proposed federal budget for fiscal year 2025–26, the government has included the 18 percent GST on the import and local supply of solar panels and related equipment. The plan has raised concerns among industry players and clean energy advocates who warn that higher costs could slow the rapid uptake of household and commercial rooftop solar systems and undermine national targets for increasing renewable energy’s share in Pakistan’s power mix.

So far this year, solar has provided 25 percent of Pakistan’s grid electricity, placing the country among fewer than 20 worldwide that generate at least a quarter of their monthly power from solar farms.

Pakistan imported 17 gigawatts (GW) of solar panels in 2024 — double the previous year’s volume — to meet surging consumer demand, according to the Global Electricity Review 2025.

“The committee strongly recommended withdrawing the proposed 18 percent GST on solar panels,” the Senate secretariat said in a statement released on Tuesday after the standing committee’s fifth session to review the budget for fiscal year 2025–26.

“Members observed that ahead of the budget, certain stakeholders had imported and dumped solar equipment in anticipation of the tax hike.” 

Senator Saleem Mandviwalla, the chairman of the committee, called the government’s move “discriminatory” in nature.

“The committee rejects the sudden imposition of GST on solar imports and urges immediate withdrawal,” the statement quoted him as saying.

Sharmila Faruqui, a member of the National Assembly’s finance committee, also echoed the Senate panel’s call to scrap the proposed tax.

“I’m in the finance committee and the members have unanimously rejected this tax,” she told Arab News.

Pakistan increased its solar electricity generation at a rate more than three times the global average in 2025, driven by a surge in solar capacity imports that were over five times higher than in 2022, according to data from Ember, a UK-based energy think tank.

This rapid growth in both capacity and output has propelled solar energy from being the country’s fifth-largest power source in 2023 to the top spot in 2025.

With inputs from Reuters 
 


US President Trump to host Pakistan army chief at White House lunch today

US President Trump to host Pakistan army chief at White House lunch today
Updated 18 June 2025

US President Trump to host Pakistan army chief at White House lunch today

US President Trump to host Pakistan army chief at White House lunch today
  • After years of strained ties over counterterrorism disagreements, Pakistan and US seem keen to rebuild military, economic ties
  • This will be the first time in several years that a Pakistani army chief is hosted by a sitting US president at the White House

ISLAMABAD: US President Donald Trump will host Field Marshal General Asim Munir, Pakistan’s army chief, at a White House lunch, according to the president’s daily public schedule for today, Wednesday. 

The gathering comes amid heightened Middle East tensions and will be a rare direct engagement that signals a cautious thaw in ties between the two countries under Trump’s second presidency. After years of strained relations mainly over counter‑terrorism disagreements, both nations appear keen to rebuild military and economic ties.

Under Trump’s renewed outreach, Washington has praised Pakistan’s leadership and reinstated military cooperation previously curtailed over Afghanistan-related concerns. Islamabad, in turn, seeks to balance its longstanding partnership with China, including arms supply and defense infrastructure, with growing engagement with the United States

“The President has lunch with the Chief of Army Staff of the Islamic Republic of Pakistan,” Trump’s daily public schedule for Wednesday released by his office read. 

This will be the first time in several years that a Pakistani army chief is hosted by a sitting US president at the White House. The last publicly known high-level visit was by the then-army chief General Qamar Javed Bajwa, who met senior Pentagon and State Department officials in Washington in 2022 but did not have an appointment with Joe Biden who was the president at the time. 

In May, Trump lauded Pakistan’s “very, very strong” leadership, and the White House described Pakistan as a “major non‑NATO ally,” signaling deeper security alignment. Last week, the head of United States Central Command (CENTCOM), General Michael Kurilla, praised Pakistan as a “phenomenal partner” in counterterrorism efforts, citing continued operations against militant groups and active intelligence-sharing between the two countries.

 

 

Pakistan’s powerful military plays a central role in shaping the country’s foreign and security policies. Direct outreach to its top commander reflects Washington’s effort to manage key regional security issues, including the aftermath of the Taliban takeover in Afghanistan, tensions between Pakistan and India after their brief but deadly military exchanges last month, and the broader fallout of the escalating Israel-Iran confrontation.

Security analysts say today’s meeting also reflects Washington’s renewed effort to maintain its influence in a region where Beijing’s footprint is steadily expanding through infrastructure investment and defense ties with Islamabad.


India’s PM Modi maintains there was no US mediation in ceasefire with Pakistan

India’s PM Modi maintains there was no US mediation in ceasefire with Pakistan
Updated 18 June 2025

India’s PM Modi maintains there was no US mediation in ceasefire with Pakistan

India’s PM Modi maintains there was no US mediation in ceasefire with Pakistan
  • Trump had said last month the nuclear-armed South Asian neighbors agreed to a ceasefire after talks mediated by the US
  • Pakistan has previously said ceasefire happened after its military returned a call the Indian military had initiated on May 7

NEW DELHI: India’s Prime Minister Narendra Modi maintained in a conversation with US President Donald Trump late on Tuesday that a ceasefire between India and Pakistan after a four-day conflict in May was achieved through talks between the two militaries and not US mediation, India’s senior-most diplomat said

Trump had said last month that the nuclear-armed South Asian neighbors agreed to a ceasefire after talks mediated by the US and that the hostilities ended after he urged the countries to focus on trade instead of war.

“PM Modi told President Trump clearly that during this period, there was no talk at any stage on subjects like India-US trade deal or US mediation between India and Pakistan,” Indian Foreign Secretary Vikram Misri said in a press statement.

“Talks for ceasing military action happened directly between India and Pakistan through existing military channels, and on the insistence of Pakistan. Prime Minister Modi emphasized that India has not accepted mediation in the past and will never do,” he said.

Misri said the two leaders spoke over the phone at the insistence of Trump on the sidelines of the G7 summit in Canada which Modi attended as a guest. The call lasted 35 minutes.

The White House did not immediately respond to a request for comment about the Modi-Trump call.

Pakistan has previously said that the ceasefire happened after its military returned a call the Indian military had initiated on May 7.
 


Massive fire at Karachi electronics market causes over $3.6 million in damages — union

Massive fire at Karachi electronics market causes over $3.6 million in damages — union
Updated 18 June 2025

Massive fire at Karachi electronics market causes over $3.6 million in damages — union

Massive fire at Karachi electronics market causes over $3.6 million in damages — union
  • Large fire broke out at Aamir Electronics Market in Karachi’s Saddar area on Monday and destroyed over 40 shops and several warehouses 
  • Affected traders call for stronger enforcement of fire safety regulations and dedicated fire response units for high-density commercial zones

KARACHI: A large fire that ripped through the Aamir Electronics Market in Karachi’s Saddar area this week and destroyed more than 40 shops and several warehouses has caused financial losses estimated at over Rs1 billion ($3.6 million), according to the president of a local association. 

The blaze broke out unexpectedly on Monday afternoon and quickly engulfed large parts of the electronics hub, reducing inventories of batteries, solar panels, and other high-value goods to ashes. Traders said they were unable to save most of their merchandise as the fire spread rapidly.

“The government should immediately compensate the affected shopkeepers and work with the association to help them restart their businesses,” said MinHajj Gulfaam, President of the Karachi Mobile and Electronics Dealers Association (KMEDA).

“We also demand that trade associations be equipped with their own firefighting systems, just like some industrial associations. Preventive measures are urgently needed.”

Initial reports suggest an electrical short circuit may have caused the fire, though some eyewitnesses claimed it started in an adjacent empty plot where garbage was being burned and later spread to the market. Authorities have not issued an official cause.

Traders said fire brigade teams arrived late at the scene, by which time the blaze had intensified, adding that they tried to extinguish the flames themselves but the damage was already extensive.

Affected traders are calling for stronger enforcement of fire safety regulations and dedicated fire response units for high-density commercial zones.

Fires in commercial markets have become alarmingly common in Karachi. In April 2023, a fire at the city’s Cooperative Market destroyed dozens of shops, and in August 2022, a multi-story mobile phone market near Saddar also caught fire.

Many old commercial markets in Karachi have outdated electrical infrastructure and shopkeepers often add extra appliances, fans, lights, and unauthorized connections, leading to short circuits and electrical fires. Building codes and fire safety rules exist but are rarely enforced. Most markets don’t have proper fire exits, fire alarms, or functional extinguishers. Many are overcrowded with encroachments and illegally added stalls.

Karachi’s wholesale and retail markets, like Empress Market, Bolton Market, and Cooperative Market, often sprawl into narrow lanes with flammable goods stacked in unsafe conditions. Unauthorized mezzanines and storage units block escape routes and complicate firefighting.

Karachi’s fire brigade has also long struggled with outdated equipment, an insufficient number of vehicles, and poor access to congested market streets. Fires sometimes rage for hours before being brought under control.

Occasionally, traders or shop owners have also been suspected of starting fires intentionally to claim insurance money or erase debts, though proving this is challenging.


PIA repatriates more Pakistanis stranded in Iran as regional tensions ground flights

PIA repatriates more Pakistanis stranded in Iran as regional tensions ground flights
Updated 18 June 2025

PIA repatriates more Pakistanis stranded in Iran as regional tensions ground flights

PIA repatriates more Pakistanis stranded in Iran as regional tensions ground flights
  • Iranian airspace shut to commercial traffic last week after Israeli airstrikes on Iran and a military confrontation that has entered sixth day
  • Foreign office official says Pakistan has started evacuating families of its diplomats and staff and some members of non-essential staff 

ISLAMABAD: A special PIA flight carrying 107 Pakistanis who had been stranded in Iran landed in Islamabad early Wednesday, the national carrier said, after regional airspace disruptions forced days-long travel delays and overland detours.

Flight PK-9552, arranged under government instructions, departed from the Turkmen capital of Ashgabat and arrived at Islamabad International Airport at 3am, PIA said in a statement.

The passengers had crossed into Turkmenistan by road after being unable to depart directly from Iran due to ongoing airspace restrictions following the start of a war between longtime Middle Eastern enemies Israel and Iran, since Friday. The two rivals launched new missile strikes at each other on Wednesday as the air war between them entered a sixth day despite a call from US President Donald Trump for Tehran’s unconditional surrender.

“Due to the closure of Iranian airspace, Pakistani nationals in Iran had to reach Turkmenistan through ground routes,” PIA said, adding that the repatriation was coordinated by Pakistan’s embassies in Tehran and Ashgabat.

“Our missions in Iran and Turkmenistan played a key role in facilitating this process,” PIA added.

Passengers stranded in Iran were mostly short-term visitors, religious pilgrims and workers caught in the fallout of recent regional hostilities. 

Iranian airspace was shut to commercial traffic last week amid rising military tensions, following Israeli airstrikes on Iran and heightened fears of a wider conflict. Several international carriers, including PIA, suspended or rerouted flights passing through Iranian airspace. Pakistani citizens thus found themselves unable to return home through normal flight routes.

An elderly Pakistani pilgrim who has been evacuated from Iran walks at the Pakistan-Iran border in Taftan on June 17, 2025. (AFP)

A PIA spokesperson said the national carrier took action “in continuation of its decades-long tradition of serving national interest in difficult times.”

Pakistan also repatriated 268 nationals from Iraq via two flights on Monday and 450 nationals from Iran on Sunday. 

Pakistan has condemned Israel’s strikes, calling them an unjustified violation of Iranian sovereignty, and has urged the international community to help de-escalate tensions through dialogue.

While no official figures have been released on how many Pakistanis remain in Iran, foreign ministry officials have confirmed that further evacuations would be arranged if the situation worsens. The foreign ministry has also said diplomatic missions were “in close contact with local authorities” to ensure the safety of all nationals.

Separately, a senior foreign office official said on Monday Pakistan had started evacuating families of its diplomats and staff as well as members of some non-essential staff from Iran.

“The foreign ministry is moving out families of diplomats and staff and some non-essential staff from Iran,” a foreign office official said in a statement.

“However Pakistan embassy in Tehran and our consulates will continue to remain functional.”