Federal Minister for Commerce to Visit Korea for Strengthening Economic Ties
Islamabad: Federal Minister for Commerce Jam Kamal Khan is set to embark on an official visit to Korea to sign the Pakistan-Korea Economic Partnership Agreement (EPA), marking 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.
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In preparation for this critical visit, Jam Kamal Khan received a comprehensive briefing today from the relevant government wings, outlining the objectives, challenges, and opportunities associated with the trip.
Korea, which currently has a Free Trade Agreement (FTA) with India, poses a competitive landscape for Pakistan. However, the EPA is expected to not only double the trade volume between the two nations but also pave the way for a potential shift of Korean manufacturing operations to Pakistan, thanks to the country’s strategic location and lower production costs.
The visit also includes a meeting with the International Economic Institute, where the minister will discuss strategies to attract Korean industries to offshore their operations to Pakistan. Presently, Korea has been favoring countries like India and Vietnam for such ventures, but this visit aims to highlight Pakistan as a viable alternative.
A meeting with K-EXIM Bank representatives will be held to discuss the underutilization of $1.1 billion earmarked for 2022–2026, which could be increased to $1.7 billion for future projects.
The minister will also have engagements with the Korea Trade Association (KWEMA) leadership and major investors, including LOTTE Group and a prominent steel company. Additionally, a press interaction with the Korea Herald is scheduled.
The visit will also include a trip to Korea’s new capital, located two hours from Seoul, to meet the think tank president of the International Economic Institute.
Plans are being made to arrange a gathering with Pakistani laborers working in Korea, recognizing their contributions to the economy and fostering stronger community ties. The schedule also allows for a two-hour shopping break.
Korea’s high production costs have driven 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, leveraging the EPA 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 engagement with Korea, fostering trade, and attracting investment to strengthen its industrial base.
