ISLAMABAD: Commerce Minister Jam Kamal is likely to face tough questions from South Korean authorities regarding the treatment of Korean companies in Pakistan’s power sector during his upcoming visit to Seoul.
Well-informed sources told Business Recorder that the Korean Ambassador to Pakistan has been trying to meet with Minister for Power, Sardar Awais Khan Leghari, for the past few months, but the meeting has yet to be scheduled.
Korean companies involved in hydropower projects in Khyber Pakhtunkhwa have also approached Senator Mohsin Aziz, Chairman of the Senate Standing Committee on Power. They appeared before the Committee to present their case, and seek support.
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According to the Ministry of Commerce, Federal Minister Jam Kamal Khan is set to embark on an official visit to Korea to sign the Pakistan-Korea Economic Partnership Agreement (EPA), which marks a significant step toward enhancing bilateral economic cooperation. During his visit, the Minister will engage with key stakeholders, including the Pakistani business community in Korea, prominent Korean investors, the Korean Trade Minister, and other high-ranking officials.
In preparation for this critical visit, Jam Kamal Khan received a comprehensive briefing on Friday from relevant government departments, outlining the objectives, challenges, and opportunities associated with the trip.
Korea, which currently has a Free Trade Agreement (FTA) with India, presents a competitive landscape for Pakistan. However, the EPA is expected to not only double trade volume between the two nations but also create opportunities for Korean manufacturing operations to shift to Pakistan, taking advantage of the country’s strategic location and lower production costs.
The Ministry of Commerce views the visit as an opportunity to engage with the International Economic Institute, where the Minister will discuss strategies to attract Korean industries to offshore their operations to Pakistan. Currently, Korea favors countries like India and Vietnam for such ventures, but this visit aims to present Pakistan as a viable alternative.
A meeting with representatives from K-EXIM Bank will address the underutilization of the $1.1 billion earmarked for the 2022–2026 period, which could potentially be increased to $1.7 billion for future projects. The Minister is also scheduled to meet with the Korea Trade Association (KWEMA) leadership and major investors, including the LOTTE Group and a leading steel company. A
The visit will also include a trip to Korea’s new capital, located two hours from Seoul, where the Minister will meet with the president of the International Economic Institute’s think tank.
The Ministry further stated that arrangements are being made for a gathering with Pakistani workers in Korea, recognizing their contributions to the economy and fostering stronger community ties. The schedule also includes a two-hour shopping break.
Korea’s high production costs have prompted its industries to seek offshore manufacturing hubs in countries like India and Vietnam. Jam Kamal Khan’s visit aims to position Pakistan as a competitive destination for these industries, with the EPA acting as a catalyst for increased investment and industrial relocation.
The Minister’s engagements with key trade and financial institutions, including K-EXIM Bank and major Korean investors, are expected to strengthen economic ties, encourage project financing, and address issues such as dollar repatriation by Korean companies operating in Pakistan.
This high-stakes visit reflects Pakistan’s commitment to deepening its economic ties with Korea, fostering trade, and attracting investment to strengthen its industrial base.
Copyright Business Recorder, 2024
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