Chinese firm shuts Gwadar plant in Pakistan, lays off workers amid losses
Hangeng Trading Company announced its closure on International Labor Day, saying in an official statement that “non-commercial factors” and operational difficulties made it impossible to resume business operations.
The company said that despite meeting international export standards, its shipments were stuck, leaving the business in constant losses. He added that he has been in contact with the authorities for the last three months in an attempt to resolve the problems, but no solution has emerged.
As a result, the company claimed that it was forced to cease operations. Hangeng Trading Company stated that before the closure, it had met all outstanding obligations, including three months’ salaries of employees, fines, electricity bills and container demurrage fees.
The company emphasized that Pakistan and China remain close partners and noted that Gwadar is the flagship project under the China-Pakistan Economic Corridor (CPEC) initiative. Stating that the investment was made in the spirit of bilateral cooperation, the company emphasized that a “clear and applicable policy environment” is necessary for businesses to survive.
The company also thanked the Government of Pakistan and the Ministry of Planning for supporting Pakistan-China economic cooperation, while cautioning potential investors to carefully consider the uncertainties associated with projects in Gwadar.
This development comes ahead of Prime Minister Shehbaz Sharif’s expected visit to China for a business-to-business investment forum later this month, raising fresh concerns about investor confidence and the future of foreign-backed enterprises in the region. The company expressed regret over the layoffs, saying it could no longer sustain employment under current conditions.
Meanwhile, Iran’s latest offer aimed at advancing talks with the United States to end the ongoing West Asian conflict comes in response to Washington’s changes to a draft plan aimed at ending the conflict, as reported by Axios.
Iran’s latest offer, submitted through Pakistan, which is mediating the talks, comes after U.S. Special Envoy Steve Witkoff sent a list of amendments on April 27 focused on reintroducing the nuclear issue into the draft framework, according to Axios, citing sources familiar with the matter.
Iranian state media IRNA reported that Tehran has presented its latest proposal aimed at advancing negotiations with the United States to end the ongoing West Asian conflict.
Tehran delivered the new offer text to Pakistan on the evening of April 30, but the details of Tehran’s counter-conditions were not fully disclosed.
Meanwhile, on May 1, the United States announced a new wave of sanctions targeting Iran’s financial and energy networks, increasing pressure on Tehran’s oil revenues and trade links with China.
US Treasury Secretary Scott Bessent, in his post on
He noted the U.S. Treasury Department’s
The Treasury Department said these exchange offices played a central role in converting Iran’s oil revenues, which it claimed were largely pegged in Chinese yuan, into currencies usable by the Iranian government and allied groups.
Earlier, the last round of peace talks between Washington and Tehran, which were supposed to be held in Islamabad, was canceled after the Iranian delegation led by Foreign Minister Abbas Araghchi left Islamabad on the evening of April 25 after a day of high-level meetings with Pakistani leaders.
According to Al Jazeera, the delegation left the capital of Pakistan after presenting an “official list of demands” to Pakistani leaders on behalf of the United States and Israel in order to find a full solution to the conflict in West Asia.
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