Century Steel Group, a key Chinese investor in Pakistan, has issued a stern ultimatum to halt its operations and withdraw its $82 million investment if its grievances remain unaddressed.
In a letter to Prime Minister Shehbaz Sharif, the group’s CEO, Li Chunjian, expressed frustration over unresolved issues at the Rashakai Special Economic Zone (RSEZ) in Khyber Pakhtunkhwa, as reported by The News.
The company, which began work on Pakistan’s largest steel mill, cited security lapses, personnel restrictions, and uncooperative local banks as critical hurdles. It also highlighted losses amounting to $7.5 million over five years, reflecting delays in the first phase of its $30 million project targeting 500,000 tonnes of annual steel production.
“If immediate action is not taken, we will dismantle the plant and report the matter to the Chinese government and international media,” warned Century Steel Group, emphasizing the broader implications for the China-Pakistan Economic Corridor (CPEC).
In response, Prime Minister Sharif formed a high-level committee, led by Federal Minister Abdul Aleem Khan and including federal and provincial officials, to resolve the company’s concerns.
The group’s potential exit could severely impact CPEC’s credibility and discourage other investors. Century Steel has requested an urgent meeting with the prime minister to ensure swift resolutions to salvage its investment and Pakistan’s investment climate.
