ISLAMABAD – Chinese firm Hangeng Trade Company sacked all employees in Pakistan amid closure of its factory as the company cited “unworkable business environment” and financial losses.
The company blamed “non-commercial factors” and severe operational hurdles that made it impossible to continue business operations. Despite reportedly meeting international export standards, as the shipments were repeatedly stuck and left undelivered, pushing it deeper into financial distress.
In a statement, it said Dear partners, media, and friends, It is with deep regret that we announce can no longer sustain normal operations and will be compelled to shut down the factory due to ongoing non-market factors and operational barriers.
“Our facility has successfully met the inspection and quarantine standards of China Customs and complies with international HACCP food safety requirements. However, despite meeting all international export standards, the project has not received the necessary approvals in practice, and exports have remained blocked,” it said.
It mentioned being patient for past three months, and fully cooperative with all relevant authorities, while actively seeking resolution through higher-level coordination. During this period, the company has continued to bear substantial financial losses, including employee wages, contractual penalties, electricity costs, and container demurrage charges.
We fully respect the importance of regulatory oversight and understand the seriousness of food safety and quarantine requirements. However, in practice, the challenges we face are no longer purely technical or compliance-related, but stem from execution-level uncertainties and systemic barriers, which have ultimately made it impossible for the business to continue operating, the statement further added.
Before ceasing activities, the company stated it had cleared all outstanding obligations, including three months of employee salaries, penalties, electricity bills, and container demurrage charges.
It also thanked Pakistan government and the Ministry of Planning for their efforts in promoting bilateral economic cooperation. However, it issued a stark warning to potential investors, urging them to carefully evaluate the uncertainties and risks before committing capital to Gwadar-based ventures.
The sudden shutdown comes ahead of PM Shehbaz Sharif’s expected visit to China later this month for a high-profile business-to-business investment forum.
News Desk
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