The Hangeng Group, a Chinese firm operating within the Gwadar Port ecosystem under the China-Pakistan Economic Corridor (CPEC), announced it will cease operations in both Pakistan and China by May 1, 2026. The company cited 'systemic uncertainties' and persistent operational hurdles, including blocked export approvals despite compliance with necessary standards. Hangeng Group has faced substantial financial losses over the past three months due to delays related to wages, electricity, and contractual penalties. The firm emphasized the mismatch between policy intent and execution, particularly concerning the regulatory environment in Pakistan. This development raises alarms about the investment climate in Pakistan and may have broader implications for China's Belt and Road Initiative (BRI) in the region. In light of these challenges, Hangeng Group advised potential investors to carefully assess institutional risks and policy execution gaps before investing in Pakistan.