Qatar-based Al-Thani Group, a major global investment firm, has decided to withdraw from the Port Qasim power project at Karachi Port, dealing a major blow to Pakistan’s flagship China-Pakistan Economic Corridor (CPEC). The Port Qasim plant was considered one of Pakistan’s most critical energy investments, and part of the government’s hope to revive its fragile economy through foreign partnership. However, CPEC itself has fallen into uncertainty as Pakistan continues to struggle for funds, while China shows declining interest in further financing.
The Al-Thani Group, which is linked to the Qatari royal family, was expected to be a key player in Pakistan’s plans for an economic turnaround. Under the terms of the agreement, Pakistan also had to invest a share of capital in the joint Port Qasim venture. After the government repeatedly failed to provide the required financing, the Qatari company formally initiated its withdrawal. The project, a 1,320-megawatt coal-fired power plant, was valued at around USD 2.09 billion, with the Al-Thani Group holding a 49 per cent stake. The company has already invested nearly USD 1 billion. Despite repeated reminders, the Pakistani government was unable to secure the remaining investment or repay outstanding dues. As a result, the project is now considered practically non-functional. In this context, the Al-Thani Group has indicated it is prepared to sell its stake and exit the partnership.
The withdrawal comes in the middle of a troubling trend. Foreign companies are increasingly shutting down operations and leaving Pakistan. Major global firms, including Microsoft, Shell, Total Energies, Telenor, Pfizer, Procter & Gamble (P&G), Eli Lilly, and Uber, have exited the Pakistani market in recent months. Analysts attribute this corporate exodus to a failing economy, mounting national debt, weak financial discipline, unpredictable tax policies, unfriendly investment laws, political instability, and deteriorating relations with neighbouring countries. Poor infrastructure and high regulatory risks have further discouraged global investors.
In 2023, former Qatari Prime Minister Sheikh Hamad bin Jassim bin Jaber Al-Thani personally requested Prime Minister Shahbaz Sharif to release USD 450 million owed to the Port Qasim project. Even after assurances, Pakistan failed to pay the amount. The Doha-based Al-Mirqab Capital, which manages international investment projects for the Al-Thani family, has now officially informed Islamabad of its decision to withdraw because of repeated payment defaults. The move is a diplomatic setback and a major embarrassment for Pakistan.
The crisis is also straining relations with China. Several Chinese companies involved in CPEC have expressed frustration, some even demanding refunds of their investments. Pakistan’s inability to fulfil its financial commitments has brought many CPEC-linked ventures to a halt. The departure of multiple multinational firms has also pushed Pakistan’s foreign exchange reserves to alarming levels. As of October, Pakistan held only USD 14.5 billion in reserves, sufficient to cover barely three months of imports. In comparison, India has nearly USD 690 billion in reserves, enough to finance more than a year of imports. The withdrawal of the Al-Thani Group is a serious blow to Pakistan’s energy sector and further signals the diminishing confidence of foreign investors in the country’s economic stability.
