Korean state-owned firm seeks clarity on tariff, IGCEP inclusion for $1 billion Swat hydropower projects

Korea South-East Power Company (KOEN) has raised concerns over pending tariff determination and uncertainty around the inclusion of its Swat hydropower projects in the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025-35, as the Korean state-owned firm seeks clarity on nearly $1 billion in planned investment.

The concerns were shared during a meeting between Federal Minister for Commerce Jam Kamal Khan and a KOEN delegation at the Minister’s Office on July 1, 2026.

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

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.

KOEN completed the 102MW Gulpur Hydropower Project in March 2020 and later 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.

The delegation said major project-related studies and approvals had been completed, including feasibility studies, environmental approvals, land-related processes, IRSA consent and grid-interconnection studies.

It said approximately $1 billion in debt and equity financing had been arranged, while around $25 million had already been spent on project studies and development activities.

KOEN highlighted concerns over the pending tariff determination, inclusion of the projects in the draft IGCEP 2025-35 and the need for clarity on their future implementation.

The delegation said the projects could contribute to clean-energy generation, employment, local development and increased economic activity in Swat.

It added that KOEN remains committed to Pakistan and is willing to align its commercial plans with the government’s future energy requirements.

Jam Kamal Khan appreciated KOEN’s continued interest in Pakistan and its confidence in the country’s long-term investment potential.

The minister said Pakistan values its economic relationship with the Republic of 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. Clear communication and effective coordination among institutions are important for strengthening investor confidence,” the minister said.

Jam Kamal assured the delegation that relevant federal ministries, departments and authorities would be engaged to facilitate coordinated consideration of KOEN’s concerns.

He said the government remains committed to supporting credible foreign investors and would extend all possible assistance within the applicable legal, regulatory and policy framework to bring clarity to the proposed projects.

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

The minister said the Ministry of Commerce would continue to support engagement between KOEN and relevant stakeholders.

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