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Chinese firm shuts Gwadar unit in Pakistan, flags unworkable business ...
A Chinese firm shuts its Gwadar Free Zone unit citing an unworkable business environment, highlighting persistent operational hurdles and raising fresh concerns over investor confidence in CPEC-linked projectsIn a fresh blow to investor confidence in projects linked to the China-Pakistan Economic Corridor (CPEC), a Chinese company has shut its factory in Pakistan’s Gwadar Free Zone, laid off its entire workforce, and cited an unworkable business environment — at a time when Islamabad is seeking to revive foreign investment.According to a report by The Express Tribune, Hangeng Trade Company said “non-commercial factors” and persistent operational bottlenecks made it impossible to continue operations, even though it met international export standards. The firm added that repeated delays in shipments led to mounting financial losses, ultimately forcing the closure.STORY CONTINUES BELOW THIS ADThe exit from Gwadar Port — a key node under CPEC — highlights the structural challenges confronting foreign investors in Pakistan’s flagship infrastructure corridor.Hangeng said it had been in discussions with authorities over the past three months to resolve logistical and administrative issues, but no solution emerged. Before winding up operations, the company cleared all outstanding dues, including three months’ salaries, penalties, electricity bills, and container demurrage charges.More from BusinessGovernment steps in after export disputeIn the latest development, Pakistan has approved the export of donkey meat to China after the Chinese firm warned it could shut operations, prompting intervention from the Prime Minister’s Office.The dispute centred on delayed export approvals for Hangeng Trade Company in Gwadar, where shipments had reportedly been held up for months. The clearance is seen as an attempt by authorities to address bureaucratic hurdles that have increasingly come under scrutiny in foreign-backed projects.Firm reverses shutdown after interventionIn a partial turnaround, Hangeng Trade Company has since reversed its decision to shut operations following high-level government intervention, according to a report by Arab News.According to the report, the issue was resolved with support from Pakistan Prime Minister Shehbaz Sharif and the planning ministry, after export approvals were granted.Investor concerns mount ahead of Sharif’s China visitThe development comes weeks before Pakistan Prime Minister Shehbaz Sharif is expected to visit China for a business-...
China-Pakistan Economic Alliance Strained: Chinese Firm Closes Gwadar ...
China-Pakistan Economic Alliance Strained: Chinese Firm Closes Gwadar Factory Due to Challenging Business Climate May 3, 2026 The business landscape between China and Pakistan faces turbulence as the Hangeng Trade Company, a Chinese firm based in Gwadar Free Zone, made a pivotal decision. Reports confirm the closure..... Subscribe for Full Access! Gain valuable sourcing and trade intelligence from our database of millions of data points spanning 20+ years! Subscribe! Key Data Topics bilateral cooperation, business climate, China, CPEC, Economic Partnerships, foreign investment, Gwadar, international businesses, Pakistan, Trade Dynamics Share this Data Other Sourcing Intelligence
Chinese firm quits Gwadar as Pakistan commissions first Hangor sub
... systemic and non-commercial barriers ... China-Pakistan Economic Corridor under strain? Chinese company shuts Gwadar unit, flags 'systemic barriers' in project.
Chinese firm quits Gwadar over systemic barriers, warns investors
Closure triggered by systemic and operational hurdles · Investor caution ahead of PM's China visit · Strategic strain on CPEC and Gwadar · Long-term implications ...
