Miga Investment Security Agency (Miga) is studying a 500 million dollar commercial financing guarantee program for Pakistan after a promotion in the country’s credit rating, according to sources in the Ministry of Commerce.
According to a news report, a high -level Mega delegation will visit Pakistan from 19 to 21 February 2025, to discuss the proposed initiative with the main government officials. The delegation is scheduled to meet with senior officials, including the Secretary of the Department of Economic Affairs, Dr. Kazim Nias, Minister of Commerce, Fakhry Allam Erfan, representatives of the ministries of law, national food security, national health services, education, and information technology.
Discussions will focus on facilitating commercial financing, as well as Pakistan’s commitment to its international financial obligations. There is a major problem on the agenda, which is the stellar electrical energy project, which is a 147 -megawatt facility on the Kunhar River, which is located 120 km northeast of Islamabad. The project is operated by a 30-year-old scheme (Boot-Boot), and the project is supported by the Miga guarantee that protects the South Korean investor, KDS Hydro PTE LTD, from the contract violations by the Pakistani government.
The arbitration decision in favor of Star Hydro Pakistan requires payment within 21 days. Failure to comply may lead to Mega’s financial commitment to the guarantee, creating possible obligations for Pakistan.
The Public Prosecutor’s Office advised the Energy Department and the National Recitation and Recitation Company (NTDC) to negotiate a settlement with Star Hydro to prevent Miga from interfering.
Recent discussions in the Prime Minister’s office, as well as communications from the World Bank, confirmed that the conflict resolved. Mega indicated her willingness to facilitate negotiations between Pakistan and Star Hydro to alleviate the risks associated with the arbitration award and maintain the investor’s confidence in the country’s infrastructure sector.
