September 30, 2016
News
Pakistan-Korea trade over $ 1 billion, FTA set to be signed
*Free Trade Agreement will further enhance countries’ ties
By: tarique siyalISLAMABAD: Ambassador of Republic of Korea to Pakistan Suh Dong-gu has said that the two-way trade volume between Pakistan and Korea volume was $1.074 billion in 2015; both countries have initiated the process of Free Trade Agreement (FTA) after signing it, bilateral trade would be enhanced.
In an exclusive interview with Daily Times on Wednesday, Ambassador Suh Dong-gu, speaking on Korea’s stand on Pakistan and India’s applications for the membership of Nuclear Supplier Groups (NSG), said that Korea is the chair of the NSG for 2016-2017. Korea has vowed to play its role as a fair coordinator and to facilitate discussions on various agendas, including the membership issue. Furthermore, it should be remembered that membership requires unanimous agreement by all 48 member states.
A Korean delegation visited Pakistan to study Pakistan’s 5-year plan when Korea was making its own 5-year plan in 1960s. A very famous Pakistani economist, late Dr. Mahbub ul Haq, who was then Deputy Chairman of the Planning Commission of Pakistan, gave valuable inputs. However, Pakistan and Korea’s economies were very different in nature and size at that time. Korea’s Five year economic plan was made to suit Korean requirements after taking Korean factors into consideration.
On economic and trade relations between two countries he said that Korea and Pakistan established diplomatic relations in 1983. Since then, the bilateral ties have been gradually developed and expanded in all walks of life including economic, political, cultural and educational sectors. He said the two-way trade volume is not properly reflecting the potential of two emerging markets. Korea is exporting technology goods and is importing raw material from Pakistan.
He said both countries initiated talks on Free Trade Agreement FTA. The process started during the first-ever visit of Korean Prime Minister to Islamabad in mid-April 2014. As a follow-up, the Pakistani Federal Minister for Commerce Khurram Dastgir Khan also visited Korea in July 2015. At that time, an agreement for a joint civil level feasibility study to explore the possibility of FTA was inked between two economic research institutes of Pakistan and Korea.
The study is going to be completed within this year. After that the formal government to government negotiations will be initiated accordingly. Both sides are highly optimistic about the positive outcome of the studies and are expecting a big jump in the bilateral trade volume once the FTA is signed.
The Korean envoy said that Korea is one of the leading infrastructure development partners of Pakistan. In the 1990s, the Islamabad-Lahore motorway M-2, and Hyderabad-Mirpurkhas carriageway was built in 2012 by Korea. At present, Lowari Tunnel is under construction by Korean company and Malakand Tunnel and National Highway N-45 improvement in the same region are being undertaken with the financial assistance of Korean Exim Bank. These projects will open Pakistan to Central Asian States, providing a market access for its products.
He said Korean companies completed three power generation projects of 665 MW during 2011-14. Three hydropower projects of 353 MW are to be completed in the next 2-3 years and some more hydropower projects are under consideration as well. He said about 20 Korean companies are stationed in Pakistan at present. Many more are interested in establishing their businesses in Pakistan. The improving security environment, ease in starting and doing business along with attractive investment incentives of the government of Pakistan can attract more companies to seek opportunities in this country.
Courtesy www.dailytimes.com.pk