Pakistan, KOEN review hydropower project progress

July 01, 2026 (MLN): Pakistan and Korea South-East Power Company (KOEN) discussed the company's proposed investment in the country's hydropower sector, along with matters relating to its two projects in Swat,

This took place during a meeting between Federal Minister for Commerce Jam Kamal Khan and a KOEN delegation at the Minister's Office, said a press release issued.

The delegation was led by KOEN Chief Executive Officer Kim Min Young and included Deputy Chief Executive Officer Jang Sungkyu, Chief Operating Officer Javid Rashid Chaudhary, Director Finance Asim Javed and General Manager Project Development Shahid Javid.

Asim Javed gave a detailed presentation to the Minister on KOEN's investment profile in Pakistan, progress on its projects, financing arrangements, regulatory approvals and support required from relevant authorities.

The delegation informed the Minister that KOEN, a state-owned power company of the Republic of Korea, has been investing in Pakistan's energy sector since 2011.

The company completed the 102MW Gulpur Hydropower Project in March 2020 and subsequently initiated two hydropower projects under the Power Generation Policy 2015,  the 229MW Asrit Kedam Hydropower Project and the 238MW Kalam Asrit Hydropower Project in Swat.

Major project-related studies and approvals have been completed, including feasibility studies, environmental approvals, land-related processes, IRSA consent and grid-interconnection studies, the delegation said, adding that around $1 billion in debt and equity financing has been arranged while roughly $25 million has already been spent on project studies and development activities.

The KOEN delegation raised concerns over the pending tariff determination, inclusion of the projects in the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025-35, and the need for clarity on the future implementation of the projects.

It noted that the projects could contribute to clean-energy generation, employment opportunities, local development and increased economic activity in Swat, adding that the company remains committed to Pakistan and is willing to align its commercial plans with the government's future energy requirements.

The Minister appreciated KOEN's continued interest in Pakistan and its confidence in the country's long-term investment potential, saying Pakistan values its economic relationship with South Korea and welcomes 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, the Minister said, adding that clear communication and effective coordination among institutions are important for strengthening investor confidence.

The Minister assured the delegation that concerned federal ministries, departments and relevant authorities would be engaged to facilitate coordinated consideration of KOEN's concerns, and that the government remains committed to supporting credible foreign investors within the applicable legal, regulatory and policy framework.

He further noted that Pakistan is reviewing its energy requirements in light of existing capacity conditions, though future opportunities are expected to emerge in green energy, industrial development, data centres and other growing sectors.

He assured KOEN that the Ministry of Commerce would continue to support constructive engagement between the company and relevant stakeholders.

The KOEN delegation thanked the Minister for receiving them and expressed hope that continued engagement with the Government of Pakistan would help provide clarity and facilitate progress on the proposed hydropower projects.

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