Chinese factory closure in Pakistan signals investor confidence crisis. Hangeng Trade Company shut its Gwadar Free Zone plant and laid off all workers, citing mounting losses and operational obstacles despite meeting export standards. The firm reported shipments remained stuck, forcing sustained financial losses. After three months of unsuccessful negotiations with authorities, the company ceased operations while clearing employee salaries and outstanding bills. This shutdown raises serious concerns about the viability of foreign investments in Gwadar, a cornerstone project under the China-Pakistan Economic Corridor. The closure comes ahead of Prime Minister Shehbaz Sharif's planned China visit for investment discussions, highlighting growing uncertainties affecting investor confidence in the region's business environment and future economic cooperation prospects.
Post from MarketNews_en
Log in to interact with content.