Story perspectives

Hangeng Closes Gwadar Plant Amid Export Block, CPEC Confidence Falters

5/3/2026

Summary

Story summary

Hangeng Trade Company shut its Gwadar Zone factory on May 1 2026, citing operational barriers.
Despite a $7 million investment in a HACCP-certified donkey plant that passed China Customs inspection, Pakistani authorities blocked export shipments.
Hangeng warned investors to assess policy-execution gaps and institutional uncertainties before committing in Pakistan.
Analysts say Pakistan’s China-US balancing and Baloch attacks are eroding confidence in CPEC projects like Gwadar.

History

Historical Context

Pakistan bought the Omani enclave of Gwadar for Rs 5.5 billion in 1958, created the Gwadar Port Authority in 2002 and signed a 40-year, 584-acre SEZ deal with PSA International in 2007. China’s state-run China Overseas Port Holding Company assumed operations under a 2013 concession, but low revenue sharing left the port underused, a pattern reflected today as Hangeng Trade’s donkey-meat plant faces export blocks.

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Story summary

Hangeng Trade Company shut its Gwadar Zone factory on May 1 2026, citing operational barriers.
Despite a $7 million investment in a HACCP-certified donkey plant that passed China Customs inspection, Pakistani authorities blocked export shipments.
Hangeng warned investors to assess policy-execution gaps and institutional uncertainties before committing in Pakistan.
Analysts say Pakistan’s China-US balancing and Baloch attacks are eroding confidence in CPEC projects like Gwadar.

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