In a major setback to foreign investment in Pakistan, Century Steel Group, a leading Chinese conglomerate, has issued a warning about shutting down its operations and withdrawing its investment.
Century Steel Group CEO Li Chunjian has announced plans to cease operations and withdraw investment from Pakistan, showing unresolved challenges with government entities overseeing foreign direct investment in the CPEC Rashakai Special Economic Zone in Khyber Pakhtunkhwa. In a letter addressed to Prime Minister Shehbaz Sharif, Li expressed frustration over persistent issues that have hindered the company’s business in the region.
“This will be our last notice to the Government of Pakistan; if the above problems are not resolved immediately, we will start dismantling the plant from the RSEZ,” the letter said.
According to the reports by The News, the Government of Pakistan, said that the prime minister had constituted a committee led by Aleem Khan to resolve all the complains of the company. The committee also comprised members from the federal and KP Government.
Overall, the demand for steel has contracted in Pakistan due to several factors including high inflation, currency instability and economic downturn.