ISLAMABAD: Pakistan has invited South Korean investors to invest in various industries, notably the Special Economic Zones (SEZs) and other China-Pakistan Economic Corridor (CPEC) projects.
Pakistan also wants to improve its business-to-business (B2B) and people-to-people (P2P) cooperation with the Republic of Korea.
According to WealthPK research, bilateral trade between the two countries has increased over the years, reaching roughly $1.41 billion in October 2021, up from $1.2 billion the previous year. Both nations have indicated a desire to strengthen bilateral trade and investment cooperation.
Pakistan’s exports to and imports from South Korea were $146 million and $1.2 billion respectively in 2021.
Pakistan appreciates its connection with the Republic of Korea and wishes to strengthen partnerships to promote political, economic, P2P, and cultural contacts.
President Dr Arif Alvi noted in a recent meeting with Pakistani ambassador to South Korea that Pakistan was a vital investment destination for global investors given its investor-friendly policies and improved business climate.
He asked the Pakistani ambassador to encourage South Korean business people to invest in Pakistan’s various industries.
The Pakistan government also thanked EXIM Bank of South Korea for assisting and cooperating in establishing the Information Technology Park in Islamabad, which cost $88.80 million.
South Korea stated that EXIM Bank will soon sign a new Framework
Agreement with Pakistan (2022-26) to increase existing funding from $500 million to $1 billion for new projects in the road, climate change, healthcare, and IT sectors.
Another breakthrough was made recently when South Korean cellular company Samsung started manufacturing in Pakistan with a target to manufacture around 3 million handsets every year.
This initiative will increase new employment opportunities in Pakistan and reduce pressure on imports.
The South Korean ambassador in a statement also expressed desire to sign a Free Trade Agreement (FTA) with Pakistan, stating that an FTA is necessary for the promotion of bilateral trade because it allows both countries’ business communities to take advantage of opportunities in each other’s country and promote mutual trade and investment.
Bilateral trade between Pakistan and South Korea may greatly improve if both countries sign an FTA. South Korean investors may not be searching for infrastructure like CPEC, but they can help them establish commercial relationships.
According to South Korean ambassador, Pakistan’s economic climate is improving day by day as a result of the government’s support policies.
He stated that the South Korean government holds the key to encouraging business people to visit Pakistan and build connections.
South Korea has achieved comparably stronger economic development and fast technological advancement.
An FTA with South Korea is important for Pakistan. The business communities of both nations should contact more with each other and investigate potential products which may be exchanged in order to promote bilateral trade, which would benefit both countries’ economic growth.
The government should promote SEZs and CPEC opportunities in terms of business-to-government (B2G), B2B, and P2P meetings, exhibitions, technological vocational training, and trade delegation exchanges, as their execution would improve trade volume and boost exports between Pakistan and South Korea. Pakistan can also gain from the technological competence of South Korea.
Furthermore, in order to improve the overall trade balance, new technology and manufacturing processes must be utilised in the domestic market to boost effective resource allocation, output, and exports. -INP
