Qatar’s Al-Thani Group Port Qasim Stake Divestment 2025 – FDI Crisis Deepens

Pakistan’s foreign direct investment (FDI) landscape continues to deteriorate as Qatar’s Al-Thani Group signals its plan to divest its 49% stake in the Port Qasim Power Project, one of the flagship energy ventures under the China-Pakistan Economic Corridor (CPEC).

This development marks another setback for Pakistan’s economy, which has already seen several multinational corporations exit due to financial instability and delayed government payments.

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Overview of the Port Qasim Power Project

The Port Qasim Power Project, located near Karachi, is a $2.09 billion initiative featuring a 1,320-megawatt (MW) coal-fired power plant.
It was established as a joint venture between:

• Al-Mirqab Capital, representing Qatar’s Al-Thani family, holding a 49% share, and
• China’s Power Construction Corporation, holding a 51% stake.

The project comprises two supercritical coal units, each generating 660 MW, and plays a crucial role in Pakistan’s national power grid.

Qatari Investment and Contribution

Qatar’s Al-Thani Group invested more than $1 billion in the Port Qasim project through Al-Mirqab Capital.
The power plant became operational in 2018, providing electricity to millions of households and industries.
Its development was seen as a symbol of Pakistan’s partnership with Gulf investors and a key step toward diversifying energy sources beyond hydropower and gas.

However, the group’s decision to divest reflects growing disillusionment among foreign investors, particularly regarding payment delays, bureaucratic hurdles, and currency instability.

Why Al-Thani Group Is Divesting from Pakistan

According to reports, Al-Mirqab Capital has formally informed Pakistani authorities of its intent to divest its 49% stake from the project.
The main reasons behind this decision include:

1️⃣ Chronic Payment Delays by CPPA-G:
Pakistan’s Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) reportedly owes over Rs. 400 billion to Independent Power Producers (IPPs), including Port Qasim Electric Power Company (PQEPC).

2️⃣ Unpaid Dues to the Tune of $450 Million:
Last year, former Qatari Prime Minister Sheikh Hamad Bin Jassim Bin Jaber Al Thani wrote directly to Pakistan’s leadership, urging payment of $450 million owed to PQEPC. Despite high-level engagement, the dues remain unsettled.

3️⃣ Concerns Over Sovereign Guarantees:
The power company has warned that continued delays could disrupt operations, raising concerns about sovereign default risks and energy supply reliability.

4️⃣ Erosion of Investor Confidence:
Pakistan’s recurring economic crises, depreciating currency, and lack of structural reforms have weakened investor confidence, prompting global companies to reduce or withdraw their exposure.

Impact on Pakistan’s Energy Sector

The divestment decision by Al-Thani Group comes at a time when Pakistan’s power sector is already struggling with:

• Circular debt exceeding Rs. 2.6 trillion.
• Inconsistent fuel imports due to dollar shortages.
• Declining investment in renewable and thermal energy projects.

If the Port Qasim Power Plant faces disruption, it could cause load management challenges, potentially impacting both industrial output and urban electricity supply.

Port Qasim Electric Power Company’s Warning

The Port Qasim Electric Power Company (PQEPC) has officially warned the Ministry of Energy and CPPA-G that continued non-payment of dues could lead to partial or full suspension of operations.
Such a scenario would significantly affect Sindh’s power supply, where Port Qasim contributes a major share to the regional grid.

PQEPC maintains that it has fulfilled all contractual obligations under the Power Purchase Agreement (PPA) and now expects the Government of Pakistan to honor its sovereign guarantees.

Al-Thani Family’s Broader Business Portfolio

The Al-Thani family, Qatar’s royal household, manages global investments through Al-Mirqab Capital — a diversified group with holdings in:

• Energy and infrastructure,
• Real estate,
• Finance, and
• Transportation sectors.

Its exit from Pakistan would signal a major diplomatic and economic setback, as the group has historically been considered one of the most reliable Gulf investors in South Asia.

Pakistan’s FDI Situation – The Bigger Picture

Pakistan’s foreign direct investment inflows have fallen sharply over the past four years.
The latest State Bank of Pakistan (SBP) data shows:

• A decline of 25% in net FDI inflows during FY2025, and
• Increasing capital flight due to economic instability.

In addition to Al-Thani Group, several global corporations have exited or scaled back their operations in Pakistan, including:

• Pfizer,
• Sanofi,
• Eli Lilly,
• Procter & Gamble,
• Shell,
• Total,
• Telenor,
• Uber, and Careem.

This consistent exodus underscores the deep-rooted structural challenges undermining investor trust.

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Government’s Struggle with Power Sector Payments

Pakistan’s Independent Power Producers (IPPs) collectively claim that the government owes them over Rs. 400 billion in delayed payments.
The issue stems from circular debt accumulation, a recurring problem in Pakistan’s energy ecosystem where:

• Power distribution companies (DISCOs) fail to recover full dues from consumers.
• CPPA-G delays payments to producers.
• Producers, in turn, face difficulty managing fuel imports and operational costs.

The resulting liquidity crisis has strained investor relations and disrupted future project planning.

CPEC and Regional Implications

The Port Qasim project was among the early success stories of the China–Pakistan Economic Corridor (CPEC).
However, with Qatar’s exit and China’s cautious investment posture, the long-term momentum of CPEC’s energy infrastructure projects could weaken.

Beijing has already slowed its new energy commitments, awaiting policy clarity from Islamabad on repayment and tariff structures.

Diplomatic Coordination Moving Forward

According to official reports, Al-Mirqab Capital has informed the Pakistani government that all future discussions and coordination will proceed through diplomatic channels between Doha and Islamabad.
This approach signals a strategic withdrawal, not just a business exit, highlighting the growing political sensitivity of foreign investments in Pakistan’s energy sector.

Expert Opinions on the Divestment Decision

Financial analysts and energy experts have expressed concern that Qatar’s withdrawal may discourage other Gulf investors, particularly from Saudi Arabia and the UAE, who are assessing large-scale projects in energy and mining.

“This is a red flag for Pakistan’s FDI environment,” said a Karachi-based energy analyst.
“The message this sends is that even strong allies are losing patience with Pakistan’s payment and policy reliability.”

Experts urge the government to restructure power sector debts, stabilize exchange rates, and simplify FDI approval processes to prevent further investor flight.

Government’s Response

While official confirmation is awaited, government sources indicate that the Ministry of Finance and Ministry of Energy are working on a payment plan to address pending dues with IPPs, including Port Qasim.

Officials have also reached out to Qatari diplomats to reassure them of Pakistan’s commitment to bilateral investment partnerships, hoping to avoid full divestment.

Possible Buyers and Future Outlook

Industry insiders suggest that Chinese firms may consider acquiring Al-Thani’s 49% stake to consolidate control over the Port Qasim Power Project.
Alternatively, local conglomerates like Hub Power Company (HUBCO) or Lucky Electric may explore partial acquisitions.

The eventual outcome will depend on Pakistan’s ability to restore investor confidence and ensure timely financial settlements.

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Conclusion About Qatar Al-Thani Group Port Qasim Stake Divestment 2025:

The Qatar Al-Thani Group Port Qasim Stake Divestment 2025 highlights Pakistan’s ongoing FDI crisis, with payment delays, policy uncertainty, and governance failures driving foreign investors away.

If not addressed urgently, Pakistan risks losing critical energy partnerships, jeopardizing power supply stability, and discouraging future international collaborations.

To reverse the trend, policymakers must prioritize:

• Debt restructuring,
• Timely payments to IPPs, and
• Restoration of investor confidence through policy consistency and transparency.

The exit of a major Gulf investor like Al-Thani serves as a wake-up call for Pakistan’s economic managers to restore fiscal discipline and rebuild international trust.

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