Tag: Korea

  • 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.

  • Korea extends $500 million concessional loan to Pakistan

    Korea extends $500 million concessional loan to Pakistan

    ISLAMABAD: Pakistan and Korea signed a framework arrangement amounting to $500 million on Wednesday. The ceremony was witnessed by Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs.

    Secretary, Economic Affairs Division, Noor Ahmed and Ambassador of the Republic of Korea, Kwak Sung-Kyu, signed the Framework Arrangement on behalf of their respective governments.

    Under the signed Framework Arrangement (2018-20), Republic of Korea will provide long term concessional financing up to $500 million for execution of various development projects in Health, Information Technology, Communication, Agriculture, and Energy etc.

    Earlier, the Ambassador called on the Adviser and discussed matters pertaining to enhancement of bilateral cooperation between the two countries.

    The Adviser informed the envoy that Pakistan attached significant importance to its ties with the Republic of Korea which had so many layers of cooperation with Pakistan in both public and private sectors.

    The Adviser appreciated the role and cooperation extended by the Republic of Korea for development projects in Pakistan.

    He said that the economic relations between the two countries would be further strengthened with the passage of time and Framework Arrangement will enable Pakistan to seek financing from Korean Exim Bank for development of various Infrastructure Projects in Pakistan.

    The Ambassador of the Republic of Korea hoped that this Framework Arrangement would be instrumental in backing up the economic policies and initiatives being pursued by the new Pakistani government.

    He said that the Arrangement would go a long way in further strengthening bilateral cooperation.

    He also said that Korea would extend all possible cooperation for economic development of Pakistan, which would be greatly conducive to promoting bilateral relations in the years ahead.