After UAE, China also gave a big blow to Pakistan, the company closed the factory citing 3 months loss

Islamabad: Pakistan is facing shocks one after another. After United Arab Emirates (UAE), now a Chinese company has also decided to leave Pakistan. Due to this, an important project of China-Pakistan Economic Corridor (CPEC) is in deep crisis.

The company closed the factory

Chinese company ‘Hangeng Trade Company’ announced the permanent closure of its factory running in Gwadar Free Zone on 1 May 2026. The company fired all the employees. This decision was taken on International Labor Day.

In its statement, the company cited poor business environment in Pakistan, administrative hurdles, policy uncertainty and continuous hurdles in exports as the main reasons. According to the company, it was facing huge financial losses for the last three months.

Shipments stuck in export

The company said that despite meeting international standards, its shipments used to get stuck. Pakistani officials were repeatedly contacted, but no solution was found. Before shutting down the work, the company fully paid three months’ salary, electricity bills and other liabilities of the employees.

Deep impact on CPEC

This company was running a big donkey slaughtering and processing unit in Gwadar North Free Zone, which was part of CPEC. The company cautioned future investors about investing in Gwadar. He said that clear and practical policies are needed here, otherwise investment is risky.

Double trouble for Pakistan

Some time ago UAE had withdrawn its big loan from Pakistan. Now the exit of the Chinese company is a big blow for Pakistan. This incident has happened at a time when Pakistan Prime Minister Shahbaz Sharif is going to visit China.

Let us tell you that the loss of confidence of foreign companies is worrying for Pakistan’s economy and the future of CPEC project. If the situation does not improve then other companies may also leave Pakistan.

This incident has become a matter of concern for the Government of Pakistan. The government will now have to take concrete steps to improve the business environment and win the confidence of investors.