Qatar’s Al-Thani Group to Exit Pakistan’s China-Backed CPEC Project Over Unpaid Debts

In a significant setback to Pakistan’s economic credibility, the Al-Thani Group of Qatar has reportedly decided to exit the Port Qasim Power Project in Karachi, a major venture under the China–Pakistan Economic Corridor (CPEC). The move, reported by Karachi-based Business Recorder, reflects growing frustration over unpaid debts and deteriorating investor confidence in Pakistan’s energy sector.

The Al-Thani Group, which has close ties to Qatar’s royal family, has informed authorities of its intent to sell its stake in the multibillion-dollar coal-fired power plant. The decision comes amid a broader trend of foreign investors retreating from Pakistan due to persistent payment delays, policy uncertainty, and macroeconomic distress.

Qatar’s Warning Ignored: Islamabad Fails to Clear Dues

According to the report, the Al-Thani family had previously urged Prime Minister Shehbaz Sharif to ensure reimbursement of hundreds of millions of dollars owed to the Port Qasim project developers. However, Islamabad appears to have failed to honor the request, further straining ties with Doha.

Pakistan’s financial position remains precarious. As of late October 2025, the State Bank of Pakistan held just $14.5 billion in foreign reserves-barely enough to cover three months of imports. The nation continues to grapple with mounting external debt, declining exports, and erratic remittances, forcing repeated bailouts from the International Monetary Fund (IMF) and other global lenders.

Port Qasim Power Project: A Key CPEC Energy Hub

The Port Qasim Power Project was developed as a joint venture between China’s Power Construction Corporation and Qatar’s Al-Mirqab Capital, an investment arm of the Al-Thani family. Valued at $2.1 billion, the project is located east of Karachi and plays a critical role in supplying electricity to Pakistan’s southern industrial belt.

The Al-Thani Group owns a 49% stake in the project, contributing more than $1 billion in investment. However, the project has faced chronic payment delays from Pakistan’s Central Power Purchasing Agency Guaranteed (CPPAG), with arrears now estimated at nearly PKR 400 billion.

These payment defaults have rippled across Pakistan’s power sector, forcing multiple foreign entities to reconsider their presence in the country. The situation has been worsened by circular debt, weak governance, and lack of fiscal discipline in energy payments.

Another Blow to CPEC as Foreign Investors Exit

The Al-Thani Group’s planned withdrawal adds to a growing list of foreign corporations that have exited Pakistan in recent years. Over the past four years alone, nine international companies have shut down or divested their operations, citing similar issues of late payments and regulatory bottlenecks.

For Beijing, this development represents another potential setback for CPEC – China’s multibillion-dollar Belt and Road Initiative (BRI) project aimed at improving connectivity and energy cooperation with Pakistan. The Port Qasim plant was among the most prominent early successes under the CPEC framework.

Who Are the Al-Thanis?

Since the mid-19th century, the Al-Thani family has ruled Qatar and built one of the world’s most powerful sovereign wealth networks. Through Al-Mirqab Capital and other investment vehicles, the family owns assets valued at over $335 billion, including luxury global real estate, equities, and stakes in major brands. Their portfolio includes London’s Shard skyscraper and several high-end Manhattan properties.

The group’s potential withdrawal underscores the risk of worsening investor sentiment toward Pakistan, especially at a time when the country depends heavily on foreign capital inflows and CPEC partnerships to stabilize its fragile economy.

Outlook: CPEC Faces Another Test

If the Al-Thani Group formally exits, the Port Qasim Power Project could face funding challenges and delays in expansion. More broadly, the move may send a negative signal to other Gulf investors evaluating opportunities in Pakistan’s energy and infrastructure sectors.

With its fiscal and political instability deepening, Pakistan’s ability to retain strategic foreign partners under CPEC remains under intense scrutiny. For now, the Al-Thani Group’s exit serves as a stark warning to Islamabad – that even allies from the Muslim world are losing patience with unpaid debts and unfulfilled promises.