The government of South Korea will provide loan of $20 million to Pakistan for procurement of machinery and equipment required for infrastructure building, rehabilitation and reconstruction of earthquake-hit areas of NWFP and Azad Kashmir.
Representatives of both the countries signed an agreement to this effect here on Thursday. Ambassador of republic of Korea in Pakistan, Shin Un and Secretary, Economic Affairs Division M Akram Malik, signed the agreement on behalf of their respective governments. It would be concessional loan having interest rate of 1.0 percent per annum with repayment period of thirty years including grace period of ten years.
It may be recalled that Korea had provided $4.2 million grant for the earthquake-hit areas of Azad Kashmir and NWFP immediately after the calamity hit the region on October 8, 2005.
Both the countries have tremendous opportunities for cooperation in the economic development as Pakistan offers very encouraging incentives and friendly environment for investment and trade.
Korea and Pakistan have been steadily enhancing their cooperation which is manifested in the grant programme including financing of projects, training courses and deputation of Korea Overseas Volunteers (KOVs) to provide technical assistance. Korea has also been providing project loan and so far they have either provided or concluded agreements to finance projects costing around $50 million. Republic of Korea is also considering a project of energy sector, which will be carried out with a loan of $44 million in near future. Both countries are determined and hopeful to boost up economic cooperation in future.
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