Exim Bank plans to double Pakistan's financing to $1b
The Korean 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, a statement said.
"The Korean-side informed that EXIM Bank would soon sign a new Framework Arrangement with Pakistan (2022-26) for enhancing existing level of financing from $500 million to $1 billion for implementing new projects in road sector, climate change, healthcare and IT sector development," the statement said.
A high-level Korean Delegation, led by Chong Hwa Lee, director general, Korean ministry of Economy and Finance held a meeting with Omar Ayub Khan, minister for Economic Affairs
Suh Sangpyo, ambassador of the Republic of Korea and representatives of Korean EXIM Bank also participated in the meeting. The minister said Pakistan desired to implement more development projects in IT, social sector and infrastructure under Korean financing facilities.
"The mobilization of financial resources from the Exim Bank would contribute in social and economic development of Pakistan," Khan said.
At present, five development projects; Technology Park in Islamabad, Kalkatak-Chitral Road, Chakdara-Timergara Road, Malakand Tunnel and Children Hospital in Sukkar are under implementation with $343 million financing by EDFC/Exim Bank of Korea.
The Minister appreciated the Korea government for their enhanced support for various development projects and disaster management including combating Covid-19 pandemic and locust in Pakistan.
On the sidelines of the meeting, a loan agreement for establishment of IT Park in Karachi was also signed. The total cost of the project is around $199 million. Out of which, the Exim Bank Korea will provide $158 million.
The 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 IT Park will provide state-ofthe-art modern infrastructure to national and international IT firms for establishing their office in Karachi. During this visit, both sides also held policy dialogue under EDCF Framework.
Zulfiqar Haider, secretary EAD said the government of Pakistan attached great importance for its relations with the Republic of Korea. He appreciated the efforts made by Korean Exim Bank for financing potential projects in healthcare, road infrastructure development, IT Sector and mitigating climate change.
Both side discussed a future roadmap for mobilizing financing for potential projects and ways for expediting implementation of projects.
The State Bank of Pakistan (SBP) has issued a comprehensively revised set of instructions on the sale of third-party products to address concerns over sale and bring transparency to such transactions.
"The instructions will be applicable from Nov 1," the SBP said.
Banks often offer or sell financial products that are provided by other financial institutions, generally called third party products. Such offers are often prone to misdeclaration about the quality or pricing of products, according to the regulator.
"Banks also don't assume any responsibility after the sale of products, which leads to difficulties for customers and disputes," the central bank said.