A Chinese company, Hangeng Trade Company, operating in Pakistan's Gwadar Free Zone, has reportedly shut down its factory and terminated all employees. The company has cited an unworkable business climate and mounting financial losses, reported ANI, citing The Express Tribune. The company said that while its investment was made in the spirit of strengthening China-Pakistan ties and bilateral cooperation, the absence of a clear and workable policy environment made it increasingly difficult to sustain operations, ultimately forcing it to exit.
The Chinese firm announced its closure on International Labour Day (May 1). It said that "non-commercial factors" and operational difficulties had made continued business operations impossible, as per the report.
The company said that despite meeting international export standards, its shipments remained stuck, pushing the business into sustained losses.
It said that it had remained in contact with authorities over the past three months in an attempt to resolve the issues, but no solution emerged.
The company said that it had cleared all outstanding obligations, including all three months' salaries for employees, penalties, electricity bills and container demurrage charges.
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The firm emphasised that Pakistan and China remain close partners and noted that Gwadar is a flagship project under the China-Pakistan Economic Corridor (CPEC) initiative.
While it thanked the Pakistani government for supporting Pak-China economic cooperation, it cautioned prospective investors to carefully evaluate uncertainties linked to projects in Gwadar, the report added.
This comes just ahead of Pakistan's Prime Minister Shehbaz Sharif's visit to China. Sharif is expected to visit China later this month for a business-to-business investment forum.
The Gwadar port has been reportedly facing several issues, including low cargo volumes, infrastructure deficits, and local discontent. Security threats from the Baloch group also remain high. Several Chinese projects have also been targeted in the past.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
