Foodpanda adds USD 1.2 bn to Pakistan’s economy: LUMS study

A groundbreaking study conducted by the Lahore University of Management Sciences (LUMS) has revealed that Pakistan’s food delivery sector contributed a staggering USD 1.2 billion (Rs 335 billion) to the national economy during the fiscal year 2023-2024. The economic impact assessment, unveiled at a seminar hosted by LUMS, provides the first in-depth analysis of the food delivery industry’s expanding footprint and its cascading effects across multiple sectors.

The report, independently commissioned by Fp and conducted by LUMS economists, confirms a sharp and continuous rise in the sector’s economic influence over the past two years.

According to the findings, the industry exhibits strong multiplier effects across food, hospitality, manufacturing, transport, and retail — with the ripple effects extending well beyond food delivery. In FY 2023-24 alone, foodpanda facilitated transactions worth PKR 75 billion in restaurant gross merchandise value (GMV), significantly enhancing revenues, employment, and operational growth for local businesses.

The platform also paid PKR 9.76 billion in taxes and empowered over 50,000 freelance riders, contributing to widespread digital and financial inclusion, particularly through fintech integrations. “Our research at LUMS reveals that foodpanda’s impact extends far beyond just food and grocery delivery,” said Dr. Kashif Z. Malik, Associate Professor at the Department of Economics, LUMS. “This study highlights its fundamental role in stimulating growth across a diverse range of sectors, empowering a significant number of individuals through entrepreneurship and livelihood opportunities, and contributing substantially to the digital and financial inclusion landscape of Pakistan.”

The LUMS-led assessment was based on primary and secondary data, including national input-output multipliers. It marks the first academic effort to quantify the full scope of the platform’s economic contribution. Commenting on the study, Foodpanda’s CEO Muntaqa Peracha said, “This in-depth study by LUMS is a powerful validation of foodpanda’s significant role in Pakistan’s economic landscape. It showcases strong multiplier effects across industries and highlights our role in directly boosting income and jobs, along with a significant tax contribution.” The study’s micro-level impacts are equally notable.

Over 13,000 restaurant partners have seen their incomes double. More than 7,000 HomeChefs — most of them women — now earn an average of PKR 120,000 per month. Meanwhile, 57% of Foodpanda’s 50,000+ freelance riders have reported income increases due to the platform. LUMS and Fp both highlighted the role of such platforms in unlocking Pakistan’s economic potential. With its growing investments and digital infrastructure, foodpanda is positioning itself not just as a delivery service, but as a key enabler of inclusive economic growth. The study also underlines the importance of fostering innovation and entrepreneurship in a rapidly evolving digital ecosystem.

As Pakistan continues to face economic headwinds, the report sends a clear message: the digital gig economy, powered by platforms like foodpanda, can serve as a resilient engine for job creation, business growth, and financial inclusion.