PR-/47 February 26, 2025 *Korea-Pakistan EPA negotiations expected in first half of this year, says Korean Envoy* KARACHI: Referring to the recent announcement by Pakistan’s Commerce Minister and Korea’s Trade Minister during Jam Kamal Khan’s visit to Korea on January 9, the Ambassador of the Republic of Korea, Park Ki Jun indicated that negotiations for the Korea-Pakistan Economic Partnership Agreement (EPA) are likely to begin in the first half of this year, laying a new institutional foundation for promoting economic exchanges between our two countries. “We must now move beyond friendship and develop a mutually beneficial partnership,” he stated while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI). The meeting was attended by Consul General Korea Yi Sungho, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Former President Majyd Aziz, and KCCI Managing Committee members. Underscoring the untapped potential for deeper Korea-Pakistan collaboration, Ambassador Park pointed out that Pakistan boasts rich natural and human resources, while Korea offers advanced technology and economic expertise. This combination, he stated, creates opportunities for complementary cooperation. “Korea views Pakistan as a fast-growing economy with a youthful population, making it an attractive destination for Korean businesses.” Encouraging Pakistani businesses to explore opportunities in Korea, Ambassador Park urged them to visit Korea for market research and direct engagement with business leaders in Seoul. He assured that the Korean Embassy is committed to incorporating insights from the business community and maintaining close communication with KCCI to further economic collaboration. He highlighted Karachi’s strategic importance as an economic hub, noting that the city handles over 90 percent of Pakistan’s cargo shipments and offers well-developed industrial infrastructure. “Currently, eight Korean companies operate in Karachi whereas around 200 Korean citizens reside in this city. Karachi could play a leading role in strengthening economic ties between the two countries, with KCCI playing an active part in expanding trade and investment”, he added. Ambassador Park further noted that Pakistan’s government has been making significant efforts to address economic challenges and drive sustainable growth. “As a result, the country’s economy showed positive performance last year, with improvements in key macroeconomic indicators. These included a drop in inflation to around 5 percent, an 8 percent rise in foreign exchange reserves, and a 46 percent increase in foreign direct investment”, he said, adding that encouragingly, the bilateral trade between Korea and Pakistan also grew by 27 percent in the first half of last year. Furthermore, he welcomed the Pakistani government’s five-year economic development plan, “Uraan Pakistan,” which prioritizes exports, e-Pakistan (digital transformation), environment & climate change, energy and infrastructure, and equity. He expressed confidence that this initiative would set a strong foundation for Pakistan’s long-term growth, benefiting both local businesses and foreign investors, including Korean companies. He also acknowledged KCCI’s influential role in Pakistan’s economic landscape, highlighting its impressive membership base of over 30,000 businesses, making it not only the largest chamber in Pakistan but also one of the largest globally. He commended KCCI’s ongoing efforts to foster business growth and economic cooperation since its establishment in 1959. Speaking at the occasion, Senior Vice President KCCI, Zia ul Arfeen, highlighted the longstanding diplomatic, social, and economic ties between Pakistan and South Korea, dating back to Pakistan’s support for Korea’s early development efforts. “Over the years, this partnership has deepened, paving the way for enhanced collaboration in various sectors.” Arfeen emphasized the significance of the Economic Partnership Agreement between the two nations, which aims to double bilateral trade and unlock new economic opportunities. He pointed out that despite immense trade potential, Pakistan’s exports to South Korea stood at approximately $185 million in FY24, while imports were around $881 million. “Both countries must work towards diversifying trade to fully capitalize on these opportunities.” Recognizing South Korea’s leadership in artificial intelligence (AI), Arfeen proposed setting up AI-focused training programs and research centers in Karachi, Lahore, and Islamabad. He also invited Korean investment in Pakistan’s refining sector, highlighting that South Korea’s advanced technology and expertise could help modernize Pakistan’s outdated refineries, improving energy security and reducing reliance on imports. He also urged Korean companies to leverage Pakistan’s strong textile and agriculture sectors, its 1,000 km coastal belt as a gateway to global markets, and the development of technology parks to foster economic integration.