Dues pile up, Qatar’s Al-Thani Group decides to walk away from Pakistan’s China-backed CPEC project

A vehicle passes the Abbottabad Tunnel No 2, which is part of China Pakistan Economic Corridor (CPEC) along Hazara Motorway in Abbottabad, Khyber Pakhtunkhwa province, Pakistan October 15, 2023. REUTERS/Akhtar Soomro

Qatar’s powerful Al-Thani Group, linked to the country’s royal family, has reportedly decided to withdraw from Pakistan’s Port Qasim Power Project in Karachi, a key component of the China–Pakistan Economic Corridor (CPEC). The move, reported by Business Recorder, comes amid deepening frustration over Islamabad’s failure to clear mounting payment arrears.

According to the report, the Al-Thani Group has grown disillusioned with Pakistan’s persistent payment delays and worsening financial instability, joining a growing list of foreign investors exiting the crisis-hit country. Over the last few years, at least nine multinational firms have pulled out of Pakistan, citing similar concerns about the government’s poor fiscal management, unreliable payment systems, and eroding investor confidence.

Sources told Business Recorder that the Al-Thani family had directly approached Prime Minister Shehbaz Sharif to seek repayment of hundreds of millions of dollars owed to the plant’s developers. However, Islamabad reportedly failed to act on the request, further straining ties with Doha.

Pakistan’s dire financial condition has only worsened in recent months. The country’s foreign exchange reserves have fallen to around USD 14.5 billion as of late October 2025, enough to cover barely three months of imports. The economy continues to reel under the weight of external debt, weak exports, volatile remittances, and political instability. Islamabad’s dependence on repeated IMF bailouts and other foreign loans underscores its chronic inability to stabilise its finances.

A critical project under CPEC

The Port Qasim Power Project, valued at USD 2.1 billion, is located east of Karachi and was developed as a joint venture between Qatar’s Al-Mirqab Capital and China’s Power Construction Corporation. Al-Mirqab Capital, the investment arm of the Al-Thani family, contributed over USD 1 billion and holds a 49 percent stake in the venture.

The coal-fired power plant was meant to be a cornerstone of CPEC’s energy corridor, supplying electricity to Pakistan’s national grid. However, chronic payment defaults by Pakistan’s Central Power Purchasing Agency Guaranteed (CPPAG) have crippled operations. Arrears owed to the plant alone are estimated at around PKR 400 billion.

Industry analysts note that such financial mismanagement has become systemic in Pakistan’s energy sector, where companies routinely face months-long delays in receiving payments. These conditions have discouraged foreign investment in what was once billed as the “engine” of Pakistan’s growth under CPEC.

A blow to CPEC and foreign trust

The potential exit of the Al-Thani Group marks another setback for the China–Pakistan Economic Corridor, which has already seen slowing progress and multiple project cancellations due to Pakistan’s inability to meet its financial obligations.

The Al-Thani family, Qatar’s ruling dynasty since the 19th century, is among the wealthiest in the world, controlling an estimated USD 335 billion in assets. Its holdings include global real estate such as the London Shard, prime Manhattan properties, and stakes in luxury brands.

Losing an investor of such stature not only weakens Pakistan’s reputation as a reliable partner but also sends a clear signal to other Gulf investors about the risks of doing business in the country. With Qatar now distancing itself from one of CPEC’s flagship projects, Pakistan’s already fragile investment climate looks set to deteriorate further.