Govt Moves to Resolve Issues Faced by Chinese Investors in Gwadar`
Federal Minister for Planning and Development Ahsan Iqbal convened a high-level meeting in Islamabad on Monday to assess concerns raised by a Chinese firm regarding operational challenges in Pakistan. The meeting was called following the company’s unexpected announcement to shut down its operations in both Pakistan and China, including a facility located in Gwadar.
The company, Han Geng Group, had earlier issued a statement citing administrative, policy-related, and operational hurdles that had significantly impacted its ability to sustain business activities. The development drew immediate attention from Prime Minister Shehbaz Sharif and the planning ministry, prompting swift intervention.
Authorities were directed to urgently review the company’s concerns and ensure timely resolution of all outstanding issues. Minister Ahsan Iqbal emphasized that Pakistan remains committed to facilitating foreign investors, particularly those operating under the China-Pakistan Economic Corridor framework. He reiterated that removing bureaucratic and operational bottlenecks is essential to maintaining investor confidence and sustaining long-term economic partnerships.
Following the government’s assurance and proactive measures, the company decided to withdraw its shutdown announcement and continue its operations. This development reflects a renewed commitment from both sides to address challenges through dialogue and cooperation.
In its earlier statement, the company had highlighted “persistent non-market factors and administrative obstacles” as key reasons behind its decision. Despite complying with stringent international standards, including Chinese customs and food safety requirements, the firm faced ongoing difficulties in securing necessary export approvals.
Over the past three months, the company reported substantial financial losses due to continued operational costs such as employee salaries, electricity expenses, contractual obligations, and container demurrage charges. It also expressed concern that despite being part of major initiatives like Gwadar Port and CPEC, it encountered challenges beyond the control of a private enterprise.
The situation underscores the importance of consistent policy implementation and efficient administrative processes to support foreign investment. The government’s swift response signals its intent to strengthen the investment climate and ensure that strategic projects continue to progress without disruption.