Korean bank EXIM Bank to double project finance in Pakistan to $ 1 billion
The Korean Import-Export Bank (EXIM) plans to provide Pakistan with a $ 1 billion line of credit under a new 2022-2026 framework agreement for the execution of various development projects and infrastructure, an official statement said on Thursday.
According to the statement, “The Korean side informed that EXIM Bank will soon sign a new framework agreement with Pakistan (2022-2026) to increase the existing funding level from $ 500 million to $ 1 billion for the implementation. implementing new projects in the road sector, climate change, healthcare and the development of the IT sector.
This comes as a high-level Korean delegation, led by Mr. Chong Hwa Lee, Director General of the Ministry of Economy and Finance of the Republic of Korea, met with Economic Affairs Minister Omar Ayub Khan in his office during their two-day visit. in Islamabad.
HE Suh Sangpyo, Ambassador of the Republic of Korea in Islamabad, and representatives of Korean Bank EXIM Bank also attended the meeting.
It should be mentioned that to date, five development projects, namely Islamabad Technology Park, Kalkatak-Chitral Road, Chakdara-Timemgara Road, Malakand Tunnel and Sukkar Children’s Hospital are in progress. being implemented with US $ 343 million funding from EDFC / EXIM Bank of Korea.
Omar Ayub appreciated the increased support of the Government of the Republic of Korea for various development projects and disaster management, including the fight against the coronavirus pandemic and the desert locust in Pakistan.
During the meeting, a loan agreement worth $ 158 million for the establishment of a computer park in Karachi was signed between Mr. Zulfiqar Haider, secretary of the Economic Affairs Division (EAD), and Mr. Chong Hwa Lee, Director General, Ministry of Economy and Finance, Republic of Korea. The total cost of the project is $ 199 million, and $ 158 million of the total will be provided by the EXIM Bank of Korea.
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According to the statement, this project aims to provide a high-tech infrastructure based on information technology in which IT companies can work together by leveraging each other’s expertise, foster industry-university cooperation and promote the entrepreneurship in Pakistan.
The park will provide state-of-the-art infrastructure for local and multinational companies to establish their offices in the city.
A political dialogue was held within the framework of the Cooperation Fund for Economic Development (FEED) within the Economic Affairs Division. Secretary EAD welcomed the delegation and said the Government of Pakistan attaches great importance to its relations with the Republic of Korea.
He appreciated the efforts of EXIM Bank of Korea to finance projects in the health sector, road infrastructure development, IT sector and climate change mitigation, the statement noted, adding that “both Parties discussed the future roadmap for mobilizing project finance and ways to accelerate project implementation.
Finally, Mr. Hwa Lee thanked the Pakistani side for their hospitality and assured the continuation of efforts to mobilize financial and technical resources for development projects in Pakistan by the government of the Republic of Korea.