Chinese Firm Hag Geng Trade shuts down operations in Gwadar Free Zone

GWADAR: Hag Geng Trade has permanently closed its operations in Pakistan after facing major difficulties with its business operations and government regulations.

The company declared through its official statement that it had failed to obtain export approvals, although it had fulfilled all international food safety standards, which included HACCP requirements.

The factory management declared that non-market factors and operational constraints had created a complete operational shutdown. The unresolved issues after three months of collaboration with the proper authorities led to the business incurring substantial financial damages.

In an official statement, the company said,” It is with deep regret that we announce that on May 1st, 2026—International Labor Day—we are forced to inform all our employees in Pakistan and China that, due to ongoing non-market factors and operational barriers, the company can no longer sustain normal operations and will be compelled to shut down the factory. ”

The statement further reads that ” Over the past three months, we have remained patient and fully cooperative with all relevant authorities, while actively seeking resolution through higher-level coordination. During this period, the company has continued to bear substantial financial losses, including employee wages, contractual penalties, electricity costs, and container demurrage charges.

The company demonstrated that Gwadar Port functions as a vital element of the China-Pakistan Economic Corridor (CPEC), while its operational environment has now exceeded its capacity to control.

The company advised investors to evaluate how policies will be enforced and what regulatory problems exist in Pakistan before making their investment decisions.

The company described its regret for terminating the employment of its Pakistani and Chinese workers who lost their jobs because Heng Gang Trade closed its operations.

The company has requested that government officials develop a stable, investor-friendly policy framework that will guide their activities before the Prime Minister makes his upcoming visit to China.