ISLAMABAD: China’s Century Steel Mill has warned of shutting down the plant in the Rashakai Economic Zone, as investors continue to express concerns over mounting challenges.
Rashakai SEZ is a flagship project under the industrial cooperation of China China-Pakistan Economic Corridor (CPEC) framework and is listed as the prioritized CPEC SEZ by China-Pakistan Joint Cooperation Committee.
According to official documents, Century Steel has informed Prime Minister Shehbaz Sharif through a letter about its decision to halt the project.
The letter highlights 18 specific grievances faced by the company.
The Century Steel Mill in its letter to the premier has also complained about numerous problems being faced by them.
The letter stated that the the high cost of land in the economic zone is making the project unviable, while unfair competition from FATA and PATA-based steel mills are impacting the steel industry across Pakistan.
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“Inconsistent tax policies in the steel sector, leading to closures of major players like Amreli and Agha Steel.”
China’s Century Steel Mills further said that power shortages and delays in approvals by NEPRA is also creating operational hurdles and the pressure to establish a solar power plant for electricity within the zone.
The letter also mentions challenges like declining demand for steel products due to rising costs, security expenses, and obstacles in machinery imports despite State Bank directives.
Century Steel warned, “This is our final communication. If the situation doesn’t improve, we will begin dismantling the plant.”