A big news has come out from Gwadar, the most important project of CPEC, where a Chinese company closed its factory citing bad business environment and continuous losses and fired all the employees. This development has raised questions on the ground situation of CPEC and the confidence of foreign investors.

Chinese company’s operations closed in Gwadar

Hangeng Trade Company, operating in Pakistan’s Gwadar Free Zone, on Friday announced the closure of its factory and firing of all employees. According to a report by The Express Tribune, the company took this decision on International Labor Day, saying that due to “non-business reasons” and operational difficulties, it was not possible to continue the business. The company said that it was meeting international export standards, but its shipments got stuck, causing continuous losses. She was in touch with the authorities for the last three months, but no solution could be found, due to which she had to take this step.

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Business closed after paying dues to employees

Hangeng Trade Company said it paid off all liabilities, including three months’ salary, fine, electricity bill and container demurrage charges, before closing the factory. The company also said that relations between Pakistan and China are strong and CPEC is a major project. However, the company clearly said that a clear and practical policy environment is very important for business. Also, the company thanked the Government of Pakistan and the Ministry of Planning for the cooperation, but also advised investors to assess the risks before investing in Gwadar.

Questions on CPEC and investors’ confidence

This development has come to light at a time when Prime Minister Shahbaz Sharif is going to visit China this month, where a Business-to-Business Investment Forum is to be organized. The news of closure of the company in Gwadar has raised new concerns about the confidence of foreign investors and the future of CPEC. Expressing regret over the layoff of employees, the company said that it was not possible to maintain employment in the current circumstances.

Iran is going through serious social and economic pressure these days. Protests are being seen against Supreme Leader Ayatollah Ali Khamenei in many cities of the country. People’s anger is not limited to politics only, but inflation, unemployment and rising prices of daily needs are also major reasons for it. Security has been tightened in many areas including the capital Tehran and efforts are on to keep the situation under control. There have also been reports of temporary restrictions on internet and communication services, which has further increased the problems of the common people. Let us know whether Iran’s currency is weaker than the rupee?

What is the real problem with the Iranian Rial?

Iran’s currency Rial has been under pressure for the last several years. The biggest reason for this is considered to be international sanctions. After America’s withdrawal from the nuclear deal in 2018, strict economic sanctions were imposed on Iran. This affected oil exports, reduced inflow of foreign currency and made banking transactions difficult. The result was that the dollar shortage increased and the Rial continued to weaken.

What is the current value of Riyal?

The position of Riyal in the open market remains different from the government rates. According to recent open market rates, around January 2026, 1 Indian Rupee was estimated to be equal to 16,700 Iranian Rials. This figure shows how fast the rial has lost its value. However, for the common man this only means that prices have increased and there is no significant value left in savings.

Purchasing power of 1 rupee vs Iran

If we compare, the picture becomes clearer. In India, even if limited to Rs 100, some needs are fulfilled. Whereas in Iran, small daily expenses can be easily covered with the same 100 rupees, which is equivalent to about 16.7 lakh riyals. This difference shows how much the value of the riyal has fallen, although it does not mean that life there has become cheaper. In fact, inflation is so high that even with more riyals, people’s problems do not reduce.

Why is the economy not able to recover?

Experts believe that Iran’s economic troubles are not just of recent years. Decades of mismanagement, government control, allegations of corruption and lack of foreign investment have worsened the situation. When investor confidence weakens, the currency is directly affected. Along with this, political uncertainty and regional tensions also increase pressure on the Rial.

What is the difference between the currencies of India and Iran?

While Iran’s currency is deeply affected by sanctions and inflation, the Indian rupee has remained relatively stable despite all the global challenges. India’s diverse economy, domestic market and confidence in foreign investment support the rupee. This is the reason why today the Indian Rupee appears much stronger than the Iranian Rial.

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