South Korea’s state-owned power producer Korea South-East Power Company has called on the Pakistani government to address regulatory challenges delaying nearly $1 billion worth of hydropower investments, citing uncertainty over tariff approvals and the country’s future power generation plans.
The concerns were raised during a meeting between Federal Commerce Minister Jam Kamal Khan and a KOEN delegation led by Chief Executive Officer Kim Min Young. The discussions focused on the company’s ongoing hydropower projects in Swat and the support required to move them forward.
KOEN told the minister it has been investing in Pakistan’s energy sector since 2011. After completing the 102-megawatt Gulpur Hydropower Project in 2020, the company launched the 229-megawatt Asrit Kedam Hydropower Project and the 238-megawatt Kalam Asrit Hydropower Project under Pakistan’s 2015 Power Generation Policy.
The company said key milestones, including feasibility studies, environmental clearances, land-related approvals, water consent and grid interconnection studies, have already been completed. It added that around $1 billion in financing has been arranged, while nearly $25 million has been spent on project development and technical studies.
However, KOEN expressed concern over delays in tariff determination and uncertainty regarding the inclusion of the projects in Pakistan’s draft power generation expansion plan, saying these issues have slowed investment decisions.
The delegation said the projects would increase clean energy production, create employment opportunities, support local development and stimulate economic activity in the Swat region. It also reaffirmed the company’s commitment to investing in Pakistan and its willingness to align future plans with the country’s energy needs.
Jam Kamal Khan welcomed KOEN’s continued confidence in Pakistan and reiterated the government’s commitment to encouraging foreign investment, particularly in renewable energy and sustainable infrastructure. He said Pakistan is working to create a transparent and investor-friendly business environment and stressed the importance of effective coordination among government institutions to strengthen investor confidence.
The minister assured the delegation that the relevant ministries and authorities would review the company’s concerns and work towards facilitating progress on the projects. He also noted that while Pakistan is reassessing its current energy requirements, future opportunities are expected to emerge in green energy, industrial development, data centres and other high-growth sectors.
