Exim Bank of Korea to raise financing for Pakistan to $1 billion

Web DeskWeb Editor

26th Aug, 2021. 07:08 pm

ISLAMABAD: The 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.

This was disclosed during a meeting of the high-level Korean delegation, led by Chong Hwa Lee, director general, Ministry of Economy and Finance, Republic of Korea and Minister for Economic Affairs Omar Ayub Khan in his office.

The Korean team informed the minister that additional financing will be provided for implementing new projects in road infrastructure, climate change, healthcare and IT sector development.

Khan appreciated the role played by the Exim Bank for financing various development projects in Pakistan and said that Pakistan wanted to implement more development projects in IT, social sector and infrastructure under the Korean financing facility.

“The mobilisation of financial resources from the Exim Bank would contribute to the social and economic development of Pakistan,” Khan said.

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

The minister appreciated the government of the Republic of Korea for their enhanced support for various development projects and disaster management, including combating the Covid-19 pandemic and locust in Pakistan.

On the sidelines of the meeting, a loan agreement for the establishment of IT Park in Karachi was also signed. The total cost of the project is around $199 million. Of this, the Exim Bank of Korea will provide $158 million. This project is aimed at providing IT-enabled high tech infrastructure; wherein, the 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 the national and international IT firms for establishing their offices in Karachi. The financing agreement was signed by Zulfiqar Haider, secretary of the Economic Affairs Division, and Chong Hwa Lee, director general of the Ministry of Economy and Finance Korea.

During this visit, both sides also held policy dialogue under the EDCF framework in the Economic Affairs Division.

The EAD secretary welcomed the delegation and said the government of Pakistan attached 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 the financing for potential projects and ways for expediting implementation of these projects.

Lee thanked the Pakistani side for their hospitality and said the government of the Republic of Korea would continue its endeavours for mobilising financial and technical resources for the development projects in Pakistan.

Suh Sangpyo, ambassador of the Republic of Korea in Islamabad, and representatives of the Korean Exim Bank also participated in the meeting.

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