ISLAMABAD: The Export-Import Bank of Korea (Korea Exim Bank) would soon sign a new framework arrangement with Pakistan (2022-26) for enhancing existing level of financing from US $500 million to US $1 billion for implementing new projects in road sector, climate change, healthcare and IT sector development.
This transpired during a meeting between Minister for Economic Affairs Omar Ayub Khan and a high-level Korean delegation, led by Chong Hwa Lee, the director general of Ministry of Economy & Finance of Korea, who is on a two-day visit to Islamabad, on Thursday. Korean Ambassador Suh Sangpyo and representatives of Korean Exim Bank also participated in the meeting.
The minister appreciated the role played by the Exim Bank for financing various development projects in Pakistan. He expressed that Pakistan desires to implement more development projects in IT, social sector and infrastructure under Korean financing facilities.
“The mobilisation of financial resources from the Exim Bank would contribute to the social and economic development of Pakistan,” said the minister. He appreciated the government of Republic of Korea for its enhanced support for various development projects and disaster management including combating Covid-19 pandemic and locust in Pakistan.
At present, five development projects i.e. Technology Park in Islamabad, Kalkatak-Chitral Road, Chakdara-Timergara Road, Malakand Tunnel and Children Hospital in Sukkur are under implementation with $343 million financing by EDFC/EXIM Bank of Korea.
Meanwhile, a loan agreement for establishment of IT Park in Karachi was also signed. The total cost of the project is around $199 million. Out of which, the EXIM Bank Korea will provide $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 Secretary EAD Zulfiqar Haider and Chong Hwa Lee.
Both sides also held policy dialogue under EDCF Framework at the Economic Affairs Division.
Zulfiqar Haider welcomed the delegation and expressed that the government attaches great importance to its relations with the Republic of Korea. He appreciated the efforts made by the Korean Exim Bank for financing potential projects in healthcare, road infrastructure development, IT sector and mitigating climate change.
Both sides discussed a future roadmap for mobilising financing for potential projects and ways for expediting implementation of projects.
Chong Hwa Lee thanked Pakistani-side for their hospitality and informed them that the government of the Republic of Korea would continue its endeavours for mobilising financial and technical resources for development projects in Pakistan.