ISLAMABAD: A South Korean state-owned power company has raised concerns over delays and regulatory uncertainty affecting its planned investment of nearly $1 billion in hydropower projects in Pakistan, according to reports.
The company, Korea South-East Power Company (KOEN), has reportedly sought the intervention of Prime Minister Shehbaz Sharif after facing delays in the approval and implementation of its investment plans. The company has alleged that bureaucratic and regulatory hurdles are holding back projects that could bring significant foreign investment into Pakistan’s energy sector.
The proposed projects are located in Swat and are expected to contribute to Pakistan’s hydropower generation capacity. However, concerns over the pending determination of electricity tariffs and uncertainty regarding the inclusion of the projects in Pakistan’s future power generation plan have reportedly slowed progress.
KOEN has also raised questions over the delay in determining tariffs for the projects and uncertainty surrounding the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35. The company has reportedly warned that continued uncertainty could affect the implementation of the projects and its planned investment.
The issue comes at a time when Pakistan is actively seeking foreign investment to strengthen its economy, improve energy security and expand renewable power generation. The delay involving a major South Korean investor could raise concerns about the country’s ability to provide a predictable and investor-friendly regulatory environment.
The development also highlights the importance of resolving policy and regulatory issues for foreign investors. South Korean companies have shown interest in expanding their presence in Pakistan, particularly in the energy and manufacturing sectors. Pakistan and South Korea have also been working to strengthen bilateral trade and investment ties through negotiations on a Comprehensive Economic Partnership Agreement (CEPA).
The government has repeatedly stated its commitment to facilitating foreign investment and creating a transparent and stable business environment. The latest complaint is expected to increase pressure on relevant authorities to resolve the outstanding issues and ensure that the proposed billion-dollar hydropower investment does not face further delays.
