Korea to lend $205m to Pakistan: Daily Times

ISLAMABAD: Pakistan and Korea signed two loan agreements worth $205 million under the Economic Development Cooperation Fund (EDCF) on Thursday.Economic Affairs Division Secretary Farrakh Qayyum and Korean Ambassador to Pakistan Shin Un signed the agreements on behalf of their respective governments, while State Minister for Economic Affairs Hina Rabbani Khar witnessed the signing ceremony. The first agreement was in connection with a ‘framework arrangement’ between the two governments concerning loans from EDCF for the years 2008-2011.Under the agreement, Pakistan would be entitled to avail the EDCF loan from Korea up to $160 million at the interest rate of 0.1 percent with repayment period of 35 years including a 10-year grace period.Under the second agreement, Korea would provide Pakistan $45 million EDCF loan concerning Gujranwala Electric Power Company (GEPCO) substations for the Rural Distribution Construction Project. The loan would be utilised to design, procure and install equipment with technical assistance from Korea for the construction of 132/11 KV sub-stations in GEPCO region.

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