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KOEN urges Pakistan to resolve tariff and IGCEP delays that stall nearly $1bn in Swat hydropower projects, warning regulatory uncertainty risks the investments and local job creation.
South Korea’s state-owned Korea South-East Power Company (KOEN) has asked Pakistan to remove regulatory roadblocks that are putting nearly $1 billion of planned hydropower investment in Swat at risk. The appeal came during a July 1 meeting between KOEN leaders and Federal Commerce Minister Jam Kamal Khan.
KOEN’s delegation, led by CEO Kim Min Young, told the minister that major preparatory work feasibility studies, environmental approvals, land clearances, IRSA consent and grid interconnection studies have already been completed. The company has arranged about $1 billion in debt and equity financing and spent roughly $25 million on project development, they said.
But KOEN warned two critical uncertainties are stalling progress: pending tariff determination and whether the 229 MW Asrit Kedam and 238 MW Kalam Asrit projects will be included in the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025-35. “The projects face uncertainty over tariff determination and inclusion in IGCEP,” KOEN officials told the minister, underscoring that those decisions are central to investment timetables.
KOEN argued the projects would boost clean energy supply, create jobs and stimulate local development in Swat. The company, which completed the 102 MW Gulpur plant in 2020, said it remains committed to Pakistan and is ready to align commercial plans with the country’s energy needs if regulators clarify the path forward.
Minister Jam Kamal Khan welcomed KOEN’s long-term interest and urged coordinated action across relevant federal bodies to address the concerns. “Pakistan needs a stable, transparent and investor-friendly environment to attract long-term foreign investment,” he said, adding the commerce ministry would engage concerned departments to facilitate consideration of KOEN’s issues.
The government has been reassessing its future electricity requirements after a period of surplus generation and high sector costs, complicating near term approvals. Officials noted that while current capacity factors are being reviewed, demand growth from green energy initiatives, industrial development and data centres could open future opportunities.
KOEN’s push highlights the tension between Pakistan’s evolving energy strategy and the urgency investors place on regulatory certainty. If Islamabad clears tariff and IGCEP questions, the projects could proceed; if not, KOEN’s nearly $1 billion in arranged financing risks delay or recalibration.
