Pakistan’s foreign direct investment (FDI) crisis has deepened as Qatar’s Al-Thani Group announced plans to sell its 49% stake in the 1,320 MW Port Qasim coal-fired power project near Karachi.
The move marks another setback for Pakistan’s struggling investment climate, already hit by several multinational companies exiting the market.
The Port Qasim Power Project, worth around USD 2.09 billion, consists of two 660 MW coal-based units built under the China–Pakistan Economic Corridor (CPEC). Spread over more than 330 acres, the plant was developed jointly by Qatar’s Al-Mirqab Capital and China’s Power Construction Corporation. Al-Thani Group reportedly invested over USD 1 billion in the venture.
Sources confirmed that Al-Mirqab Capital, the investment arm of Sheikh Hamad Bin Jassim Bin Jaber Al Thani, has officially informed Pakistani officials about its intent to divest. Letters have been sent to Federal Minister for Power Sardar Awais Ahmad Khan Leghari and Minister for Economic Affairs Senator Ahad Khan Cheema.
The plant’s management has frequently complained about delayed payments from the Central Power Purchasing Agency–Guaranteed (CPPA-G). These outstanding dues, linked to Pakistan’s severe foreign exchange shortage, have reached alarming levels. The Port Qasim Electric Power Company (PQEPC) recently warned of a possible shutdown if payments were not released soon.
Last year, former Qatari Prime Minister Sheikh Hamad Bin Jassim Bin Jaber Al Thani wrote directly to Prime Minister Shehbaz Sharif, requesting payment of USD 450 million owed to PQEPC. Despite follow-ups from senior officials, the issue remains unresolved.
READ MORE: Saudi Investors Invited to Pakistan’s Mega Motorway Projects
Officials say the Qatari firm’s divestment notice was shared through official diplomatic channels. However, the company has instructed that all coordination on the matter should continue via the same channel.
Pakistan’s investment environment continues to weaken. In recent years, nine major international firms including Pfizer, Sanofi-Aventis, Eli Lilly, Procter & Gamble, Shell, Total, Telenor and Uber/Careem have either divested or left the country.
