The Korean Export-Import (EXIM) Bank plans to extend Pakistan a $1 billion credit line under a new Framework Arrangement 2022-26 for the execution of various development and infrastructure projects, an official statement said on Thursday.
According to the statement, “The Korean-side informed that EXIM Bank would soon sign a new Framework Arrangement with Pakistan (2022-26) for enhancing the existing level of financing from $500 million to $1 billion for implementing new projects in the road sector, climate change, healthcare, and IT Sector development.”
This is happening as a high-level Korean Delegation, led by Mr. Chong Hwa Lee, Director General, Ministry of Economy & Finance, Republic of Korea called on the Minister for Economic Affairs Omar Ayub Khan in his office during their 2-days visit to Islamabad.
H.E. Suh Sangpyo, Ambassador of the Republic of Korea in Islamabad, and representatives of Korean EXIM Bank also participated in the meeting.
It is worth mentioning that as of now five development projects, namely, Technology Park in Islamabad, Kalkatak-Chitral Road, Chakdara-Timergara Road, Malakand Tunnel, and the Children Hospital in Sukkar are under implementation with US$ 343 million financing by EDFC/EXIM Bank of Korea.
Omar Ayub appreciated the enhanced support by the Government of the Republic of Korea for various development projects and disaster management including combating the coronavirus pandemic and locust in Pakistan.
During the meeting, a loan agreement worth $158 million for the establishment of an IT Park in Karachi was signed between Mr. Zulfiqar Haider, Secretary, Economic Affairs Division (EAD), and Mr. Chong Hwa Lee, DG Ministry of Economy & Finance, Republic of Korea. The total cost of the project is $199 million, and $158 million out of the total shall be provided by the EXIM Bank of Korea.
According to the statement, 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 park will provide state-of-the-art infrastructure to local and multinational companies to establish their offices in the city.
A Policy Dialogue was held under the Economic Development Cooperation Fund (EDCF) framework in the Economic Affairs Division. Secretary EAD welcomed the delegation and expressed that the Government of Pakistan attached great importance to its relations with the Republic of Korea.
He appreciated the efforts made by the EXIM Bank of Korea for financing projects in the healthcare sector, road infrastructure development, the IT sector, and climate change mitigation, the statement noticed, adding, “both sides discussed the future roadmap for mobilizing financing for potential projects and ways for expediting the implementation of projects.”
Lastly, Mr. Hwa Lee thanked the Pakistani side for their hospitality and assured continued endeavors for mobilizing financial & technical resources for development projects in Pakistan by Government of Republic of Korea.