Ministry of Industry Requests Support for $1.6 Billion Hydropower Plant Contract in Pakistan

The 3rd Korea-Paris Trade and Investment Joint Committee Meeting Held
Support for Winning $1.6 Billion Hydropower Plant Contract
Resolving Corporate Difficulties Such as Delays in Corporate Tax Refunds and Remittance Approvals

The Ministry of Trade, Industry and Energy announced on the 6th that it held the "3rd Korea-Pakistan Trade and Investment Joint Committee" via video conference. During the committee meeting, the ministry stated that the Pakistani government requested support for Korea's participation in the construction of the Lowari Spotga and Asrit Kedam hydroelectric power plants. The photo shows the Patrind Hydroelectric Power Plant being built by Korea Water Resources Corporation in Pakistan. It is the first domestic private joint development overseas hydroelectric investment power project. (Photo by Korea Water Resources Corporation)

[Asia Economy Reporter Moon Chaeseok] On the 6th, the Ministry of Trade, Industry and Energy announced that at the 3rd Korea-Pakistan Trade and Investment Joint Committee held via video conference, the Pakistani government requested support for the participation of a Korean consortium in the construction of the Lower Spatka and Asrit Kedam hydropower plants that it is promoting.

On this day, both sides discussed the awarding of local hydropower projects to Korean companies in Pakistan, difficulties faced by local companies, and explanations of investment opportunities in Pakistan.

As chief representatives of the Joint Committee, Korea was represented by Jeon Yoonjong, Director General of Trade Cooperation at the Ministry of Trade, Industry and Energy, and Pakistan was represented by Muhammad Humar Karim, Deputy Secretary of the Ministry of Commerce.

The Pakistani side is actively proceeding with power plant construction projects to resolve the power shortage. They decided to positively consider Korea's participation.

Our side recently requested support for the participation of a Korean consortium in the hydropower plant construction projects promoted by the Pakistani government.

The Lower Spatka power plant (capacity = 470MW), with a project scale of $1.076 billion, and the Asrit Kedam power plant (215MW), valued at $540 million, are both awaiting issuance of state government permits (LOI).

They requested special attention from the Pakistani government for timely corporate tax refunds, as delays in these refunds are causing difficulties for Korean companies' activities.

They also requested improvements to the minimum tax system, under which a certain portion of sales must be paid as corporate tax.

They asked for an extension of import tariff reduction benefits for locally produced automobile companies and cooperation to facilitate approval of import payments.

Pakistan responded that it would cooperate to the fullest extent in timely corporate tax refunds and smooth remittance approvals. They also stated they would strive to reasonably adjust the minimum tax rate.

Both sides agreed to renew the trade and investment cooperation MOU signed in 2014 and to hold working-level consultations regarding the signing of a cooperation MOU between the trade promotion agencies of both countries (KOTRA of Korea and TDAP of Pakistan).

In his opening remarks, Director General Jeon emphasized, "Amid difficulties in human exchanges and face-to-face meetings due to COVID-19, this video joint committee will serve as an opportunity for both countries to work together to expand economic exchanges."

This content was produced with the assistance of AI translation services.