Afghanistan news24: A Chinese firm, Hengeng Trading Company (Private) Limited, operating in the free zone of , has announced the immediate suspension of all its operations in Pakistan and the closure of its factory.
According to the company’s statement, the decision was driven by persistent non-market pressures and operational obstacles that have made it no longer viable to continue business activities. The company noted that, despite its facilities meeting international food safety standards (Hazard Analysis and Critical Control Points system) as well as Chinese customs requirements, the necessary approvals for exports were repeatedly delayed.
The statement further explained that over the past three months, the halt in exports resulted in significant financial losses, including employee salaries, electricity expenses, and container-related charges.
The company emphasized that the challenges it faced were no longer technical in nature but stemmed from administrative uncertainty and systemic barriers, which ultimately threatened the sustainability of its operations.
Hengeng Trading also advised other international investors to carefully assess policy implementation gaps and institutional stability before committing to investments under the framework of the .
The management expressed deep regret to both its Chinese and Pakistani employees, stating that under the current circumstances it could no longer ensure stable employment.
Meanwhile, and related projects under the corridor have long faced security concerns and political opposition. Analysts note that the prevailing security environment and administrative challenges continue to have a direct impact on the sustainability of foreign investment in the region.
