ISLAMABAD: South Korea’s state-owned **Korea South-East Power Company (KOEN)** has urged the Government of Pakistan to remove regulatory obstacles delaying nearly **$1 billion** in planned hydropower investments, citing pending tariff approvals and uncertainty surrounding the country’s future power generation strategy.
The concerns were raised during a meeting between **Federal Minister for Commerce Jam Kamal Khan** and a KOEN delegation to discuss the company’s proposed investments in Pakistan’s hydropower sector and the status of its projects in Swat.
The delegation was led by **KOEN Chief Executive Officer Kim Min Young** and included Deputy CEO **Jang Sungkyu**, Chief Operating Officer **Javid Rashid Chaudhary**, Director of Finance **Asim Javed**, and General Manager for Project Development **Shahid Javid**.
During the meeting, Asim Javed presented an overview of KOEN’s investment portfolio in Pakistan, outlining the progress of its projects, financing arrangements, regulatory approvals obtained to date, and the support required from relevant government institutions.
KOEN informed the minister that it has been investing in Pakistan’s energy sector since **2011**. The company successfully completed the **102-megawatt Gulpur Hydropower Project** in March 2020 and later launched two major hydropower initiatives under the **Power Generation Policy 2015**:
* **229 MW Asrit Kedam Hydropower Project**
* **238 MW Kalam Asrit Hydropower Project**
Both projects are located in Swat, Khyber Pakhtunkhwa.
According to the delegation, key preparatory milestones—including feasibility studies, environmental approvals, land acquisition processes, IRSA clearance, and grid interconnection studies—have already been completed.
KOEN further revealed that it has secured approximately **$1 billion** in debt and equity financing for the projects and has already invested around **$25 million** in feasibility studies and project development.
However, the company expressed concern over delays in tariff determination, the absence of the projects from the draft **Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35**, and the lack of clarity regarding their future implementation.
The delegation emphasized that the hydropower projects would contribute to Pakistan’s clean energy goals while creating employment opportunities, promoting local development, and stimulating economic activity in the Swat region. It reaffirmed KOEN’s long-term commitment to Pakistan and its willingness to align its investment plans with the country’s evolving energy requirements.
Minister Jam Kamal Khan welcomed KOEN’s continued confidence in Pakistan’s investment potential and reaffirmed the government’s commitment to strengthening economic cooperation with the **Republic of Korea**.
He noted that Pakistan remains open to foreign investment in renewable energy, sustainable infrastructure, technology, logistics, and other priority sectors.
“Pakistan needs a stable, transparent, and investor-friendly environment to attract long-term foreign investment. Clear communication and effective coordination among institutions are essential for strengthening investor confidence,” the minister said.
Jam Kamal assured the delegation that the relevant federal ministries, departments, and regulatory authorities would be engaged to facilitate coordinated consideration of KOEN’s concerns.
He added that while Pakistan is currently reviewing its energy requirements in light of existing generation capacity, future opportunities are expected to emerge in areas such as green energy, industrial development, data centres, and other high-growth sectors.
