Century Steel Group Threatens to Leave Pakistan

Century Steel Group, a major Chinese steel producer, has warned of withdrawing its investment from Pakistan due to unresolved issues. The company's CEO, Li Chunjian, expressed frustration in a letter to Prime Minister Shehbaz Sharif, highlighting problems at the Rashakai Special Economic Zone (RSEZ) in Khyber Pakhtunkhwa.

The company has invested over USD 30 million in the first phase of its project, aiming to produce 500,000 tonnes of steel annually. Plans for further investment of USD 200 million in subsequent phases were intended to boost Pakistan's steel production capacity to 1.5 million tonnes within five years.

Despite these ambitions, unresolved issues over the past five years have led to significant financial losses for the company, amounting to USD 7.5 million. As a result, Century Steel Group is considering dismantling its plant and reporting the situation to the Chinese government and international media.

In response, Prime Minister Shehbaz Sharif has formed a committee led by Federal Minister Abdul Aleem Khan to address the company's concerns. The committee includes members from both the federal and Khyber Pakhtunkhwa governments.