KARACHI: The Ambassador of the Republic of Korea, Park Ki Jun, has indicated that negotiations for the Korea-Pakistan Economic Partnership Agreement (EPA) are expected to commence in the first half of this year. This development is set to lay a strong institutional foundation for enhancing economic exchanges between the two nations and fostering deeper trade relations.
Ambassador Park shared this update while referring to a recent announcement made by Pakistan’s Commerce Minister and Korea’s Trade Minister during the visit of Jam Kamal Khan to Korea on January 9. Speaking at a meeting held at the Karachi Chamber of Commerce & Industry (KCCI), he emphasized that it is time for both nations to move beyond diplomatic ties and forge a mutually beneficial economic partnership.
The meeting was attended by Korea’s Consul General Yi Sungho, KCCI’s Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Former President Majyd Aziz, and members of the KCCI Managing Committee.
Highlighting the untapped potential of Korea-Pakistan economic cooperation, Ambassador Park noted that Pakistan possesses abundant natural and human resources, whereas Korea excels in advanced technology and economic expertise. This combination, he stated, presents immense opportunities for synergy and mutual benefit. “Korea views Pakistan as a rapidly developing economy with a young and dynamic workforce, making it an attractive destination for Korean businesses looking to expand their operations.”
Encouraging Pakistani businesses to explore opportunities in Korea, the envoy urged them to visit Korea for market research and direct engagement with Korean business leaders in Seoul. He assured that the Korean Embassy remains committed to maintaining close communication with KCCI to facilitate economic collaboration.
He further underscored Karachi’s strategic importance as Pakistan’s economic hub, handling over 90 percent of the country’s cargo shipments and offering a well-established industrial infrastructure. “Currently, eight Korean companies operate in Karachi, and around 200 Korean nationals reside in the city. Karachi can play a pivotal role in strengthening Korea-Pakistan economic relations, with KCCI leading efforts to boost trade and investment,” he remarked.
Discussing Pakistan’s economic landscape, Ambassador Park acknowledged the government’s ongoing efforts to tackle economic challenges and promote sustainable growth. He noted positive trends such as a reduction in inflation to around 5 percent, an 8 percent increase in foreign exchange reserves, and a 46 percent rise in foreign direct investment. Encouragingly, bilateral trade between Korea and Pakistan also grew by 27 percent in the first half of last year.
Additionally, he welcomed Pakistan’s five-year economic development plan, “Uraan Pakistan,” which prioritizes key sectors such as exports, digital transformation, climate resilience, energy, infrastructure, and equity. Expressing confidence in this initiative, he asserted that it would provide a solid foundation for Pakistan’s long-term economic growth, benefitting both local businesses and foreign investors, including Korean enterprises.
He also acknowledged KCCI’s crucial role in shaping Pakistan’s business landscape, highlighting its impressive membership base of over 30,000 businesses. “KCCI is not only the largest chamber in Pakistan but also one of the most influential globally. Its efforts in fostering business growth and economic cooperation have been commendable since its inception in 1959,” he said.
During the session, Senior Vice President KCCI, Zia ul Arfeen, spoke about the longstanding diplomatic and economic ties between Pakistan and Korea, which date back to Pakistan’s support for Korea’s early development initiatives. “Over the years, this partnership has strengthened, paving the way for enhanced cooperation across various sectors,” he noted.
Arfeen underscored the significance of the upcoming Economic Partnership Agreement, which aims to double bilateral trade and unlock new economic opportunities. He pointed out that despite immense trade potential, Pakistan’s exports to Korea in FY24 stood at approximately $185 million, while imports from Korea amounted to around $881 million. “Both countries need to work towards diversifying trade and broadening cooperation to maximize these opportunities.”
Recognizing Korea’s leadership in artificial intelligence (AI), Arfeen proposed the establishment of AI-focused training programs and research centers in major Pakistani cities such as Karachi, Lahore, and Islamabad. He also invited Korean investment in Pakistan’s refining sector, emphasizing that Korea’s technological expertise could modernize Pakistan’s outdated refineries, enhance energy security, and reduce reliance on imports.
Moreover, he encouraged Korean businesses to explore Pakistan’s thriving textile and agriculture sectors, leverage its 1,000 km coastal belt as a gateway to global markets, and participate in the development of technology parks aimed at fostering greater economic integration.
The Korea-Pakistan partnership is poised for significant expansion, with the upcoming EPA negotiations marking a pivotal step towards strengthening trade, investment, and technological collaboration between the two nations.