Chinese companies cut jobs, halt operations in Pakistan after suicide attack

Chinese engineering company Power Construction Corporation of China (PCCC) has reportedly suspended operations and laid off employees following a fatal suicide bombing at the Tarbela 5th Expansion Hydropower Project in Pakistan’s Khyber Pakhtunkhwa province. More than 2,000 workers.

The decision came after an attack on a bus carrying Chinese workers that killed five Chinese nationals and a nearby Pakistani resident was the second case in the region since 2021 involving people linked to Serious safety incidents involving personnel involved in China-backed projects.

The bus attack occurred at the Dasu Hydropower Project, about 300 kilometers north of Islamabad, which is being developed by China Gezhouba Corporation and funded by the World Bank.

Shockingly, Chinese personnel have been targeted at this site before, with another suicide bombing in July 2021 resulting in multiple casualties among Chinese and Pakistani workers.

Notably, the PCCC is overseeing the expansion of the Tarbela hydropower project in the same province. The company halted civil works due to heightened security concerns following the recent attacks, Dawn newspaper said, citing government sources.

However, despite the shutdown of operations, there is expected to be minimal impact on project completion. The project is funded by the World Bank and the Asian Infrastructure Investment Bank and is expected to be completed in May 2026.

What’s more, under Pakistan’s employment laws, workers affected by retrenchment are entitled to 50% of their wages until they are recalled to work.

In response to this tragedy, the Chinese government strongly condemned the suicide bombing and demanded a thorough investigation into the matter. Pakistani Prime Minister Shehbaz Sharif has ordered an in-depth joint investigation to identify the perpetrators and ensure the safety of Chinese workers in Pakistan.

The presence of Chinese personnel in Pakistan is linked to the China-Pakistan Economic Corridor (CPEC), a multi-billion dollar initiative focused on economic cooperation and strengthening connectivity between the two countries.