A high-level Korean Delegation, led by Mr. 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. H.E. Suh Sangpyo, Ambassador of the Republic of Korea in Islamabad, and representatives of Korean EXIM Bank also participated in the meeting.
On the sidelines of the meeting, a loan agreement for the establishment of an IT Park in Karachi was also signed. The total cost of the project is around $199 million, of which $158 million will be provided by the EXIM Bank.
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 the establishment of their offices in Karachi.
The financing agreement was signed by the Secretary of the Economic Affairs Division (EAD), Zulfiqar Haider, and the Director-General of Korea, Chong Hwa Lee.
EXIM Bank will sign a new Framework Arrangement with Pakistan (2022-26) to enhance the existing level of financing from $500 million to $1 billion for the implementation of new projects in the road sector, climate change, healthcare, and the IT Sector development.
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The minister commended the EXIM Bank’s role in financing various development projects in Pakistan and said that Pakistan desired to implement more development projects in IT, the social sector, and infrastructure under Korean financing facilities.
Minister Khan remarked that “the mobilization of financial resources from the EXIM Bank would contribute in the social and economic development of Pakistan”.
At present, five development projects — the Technology Park in Islamabad, the Kalkatak-Chitral Road, the Chakdara-Timergara Road, the Malakand Tunnel, and the Children Hospital in Sukkar — are under implementation with $343 million worth of financing by the EDFC/EXIM Bank of Korea.
The minister appreciated the Government of the Republic of Korea for its enhanced support for various development projects and disaster management, including combating the COVID-19 pandemic and the locust infestation in Pakistan.
During the visit, both sides held a Policy Dialogue under the EDCF Framework in the EAD. The Secretary of the EAD welcomed the delegation and stated that the Government of Pakistan has attached great importance to its relations with the Republic of Korea.
He appreciated the efforts made by EXIM Bank for financing potential projects in healthcare, road infrastructure development, the IT sector, and mitigating climate change.
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Both sides discussed a future roadmap for the mobilization of financing for potential projects and ways for expediting the implementation of projects.
Director General Chong Hwa Lee thanked the Pakistani side for its hospitality and said that the Government of the Republic of Korea will continue its endeavors for the mobilization of financial and technical resources for development projects in Pakistan.
