A cross-border trade fraud case involving allegations of tens of millions of rupees in losses has raised concerns among Chinese investors and businesses operating in Pakistan, according to a press release issued by SinoPak and UNIGREEN Automobiles.

The companies allege that Muhammad Shahid, identified in the statement as a resident of Khyber Pakhtunkhwa, operated through a Dubai-registered company, Imperial MEA FZE (formerly Imperial Motors FZE), and allegedly secured advance payments for vehicles and spare parts but failed to deliver the goods or provide shipping documentation.

According to the press release, the alleged losses have disrupted several planned Pakistan-China business ventures, including electric vehicle (EV) assembly plants and EV taxi projects intended to support local manufacturing and cleaner transportation.

The companies claim that the suspension of these projects has resulted in the withdrawal of international investors, creating uncertainty over future investment in Pakistan's new energy and automotive sectors.

A representative of the affected companies said the incident could negatively affect investor confidence and broader economic cooperation between Pakistan and China if not addressed through legal channels.

The statement further said that formal complaints have been submitted to the relevant Pakistani law enforcement and regulatory authorities. The companies claim they have provided documentary evidence and are seeking legal action, accountability, and recovery of the alleged financial losses.

The press release describes the case as a test of Pakistan's ability to protect foreign investment and maintain confidence in its business environment, particularly in sectors linked to the China-Pakistan Economic Corridor (CPEC) and green energy development.

Balochistan Dispatch made efforts to contact Muhammad Shahid to obtain his version of events. However, no response was received by the time this report was published. The publication will update this story if a response or official statement is received from him or the relevant authorities.

The allegations contained in this report originate from a press release issued by SinoPak and UNIGREEN Automobiles. At the time of publication, the claims had not been independently verified by Balochistan Dispatch, and no findings of wrongdoing by a court or competent authority have been announced.