Century Steel Mill, a prominent Chinese investor in Pakistan’s Rashakai Economic Zone, has threatened to shut down its operations, citing a series of unresolved challenges. Rashakai SEZ is a flagship project under the China-Pakistan Economic Corridor (CPEC) framework and is prioritised by the China-Pakistan Joint Cooperation Committee.

In a detailed letter addressed to Prime Minister Shehbaz Sharif, the company outlined 18 specific grievances, warning that the project is becoming unsustainable. Among the major issues raised was the high cost of land in the Rashakai SEZ, which Century Steel claims has rendered the project financially unviable.

The company also highlighted unfair competition from steel mills operating in the FATA and PATA regions, stating that this has significantly impacted the steel industry across Pakistan. Persistent power shortages and prolonged delays in obtaining necessary approvals from the National Electric Power Regulatory Authority (NEPRA) were flagged as critical obstacles hindering operations.

Century Steel further pointed to challenges such as difficulties in importing machinery, rising steel prices, and exorbitant security expenses, all of which have exacerbated the company’s financial and operational struggles.

“This is our final communication. If the situation doesn’t improve, we will begin dismantling the plant,” the company warned in the letter, urging the government to act swiftly to resolve these issues.

The warning from Century Steel underscores the difficulties faced by foreign investors in Pakistan and raises questions about the viability of large-scale projects under the CPEC framework. The company’s ultimatum not only jeopardizes its operations but also casts doubt on Pakistan’s ability to provide a conducive environment for international investment.