Korea to enhance Pakistan financing to $1 billion

Korea to enhance Pakistan financing to $1 billion

ISLAMABAD: The Korean EXIM Bank will sign a new framework arrangement with Pakistan (2022-2026) for enhancing financing to $1 billion.

A high-level Korean Delegation, led by Chong Hwa Lee, Director General, Ministry of Economy & Finance, Republic of Korea called on the Minister for Economic Affairs Omar Ayub Khan in his office during their 2-days visit to Islamabad.

The Korean delegation informed that EXIM Bank would soon sign a new Framework Arrangement with Pakistan (2022-26) for enhancing existing level of financing from $ 500 million to $ 1 billion for implementing new projects in road sector, climate change, healthcare and IT Sector development.

H.E. Suh Sangpyo, Ambassador of the Republic of Korea in Islamabad and representatives of Korean EXIM Bank also participated in the meeting.

The Minister for Economic Affairs appreciated the role played by EXIM Bank for financing various development projects in Pakistan. The Minister expressed that Pakistan desired to implement more development projects in IT, social sector and infrastructure under Korean financing facilities.

“The mobilization of financial resources from the Exim Bank would contribute in social and economic development of Pakistan”, the minister added.

At present, five development projects i.e. Technology Park in Islamabad, Kalkatak-Chitral Road, Chakdara-Timergara Road, Malakand Tunnel and Children Hospital in Sukkar are under implementation with US$ 343 million financing by EDFC/EXIM Bank of Korea.

The Minister for Economic Affairs appreciated the Korean government for their enhanced support for various development projects and disaster management including combating COVID-19 pandemic and locust in Pakistan.

On the sidelines of meeting, a loan agreement for establishment of IT Park in Karachi was also signed.

The total cost of project is around US$199 million. Out of which, the EXIM Bank Korea will provide US$158 million.

This project is aimed at providing IT enabled high tech infrastructure wherein IT companies can work together by leveraging each other’s expertise, foster industry-academia cooperation and promote entrepreneurship in Pakistan.

The IT Park will provide state-of-the-art modern infrastructure to national and international IT firms for establishing their office in Karachi.

The financing agreement was signed by Zulfiqar Haider, Secretary, EAD and Chong Hwa Lee, Director General, Korea.

During this visit, both sides also held Policy Dialogue under EDCF Framework in Economic Affairs Division. Mr. Zulfiqar Haider, Secretary EAD welcomed the delegation and expressed that Government of Pakistan attached great importance for its relations with Republic of Korea and appreciated the efforts made by Korean Exim Bank for financing potential projects in healthcare, road infrastructure development, IT Sector and mitigating climate change.

Both side discussed future roadmap for mobilizing financing for potential projects and ways for expediting implementation of projects.

Chong Hwa Lee, Director General, Ministry of Economy & Finance of Korea thanked Pakistani-side for their hospitality and informed that Government of Republic of Korea would continue its endeavors for mobilizing financial & technical resources for development projects in Pakistan.

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