Fatemi upset over missed Nepra chief-Korean team meeting
Well-placed sources told Business Recorder that Fatemi, who also oversees foreign investment facilitation, formally conveyed his concerns after the delegation's high-level engagements with various federal institutions, including the Power Division, the Ministry of Foreign Affairs, and the Special Investment Facilitation Council (SIFC), ended without a crucial interaction with NEPRA's top official.
The KOEN delegation emphasized its long-standing commitment to Pakistan's power sector and flagged continued regulatory delays as a key impediment to foreign direct investment. Its two major hydropower projects—229.4 MW Asrit-Kedam and 238 MW Kalam-Asrit—have been in limbo for over three years despite completing all policy and regulatory milestones under the Power Generation Policy 2015.
Projects 'ineligible' under IGCEP: PD not ready to lend a helping hand to Korean firms
Sources said the delegation raised particular concern about the prolonged non-determination of tariffs, even though NEPRA had admitted the petitions in 2022 and the projects were optimized in the IGCEP 2022–31. The uncertainty, they noted, makes it increasingly difficult to maintain a $1 billion investment commitment in the absence of regulatory clarity.
As a show of flexibility, KOEN offered to adjust the commercial operation timelines for both projects in view of the country's current power overcapacity—on the condition that NEPRA fulfills its legal obligation to determine tariffs without further delay, in compliance with orders from the NEPRA Appellate Tribunal.
In a letter to Deputy Prime Minister and Foreign Minister Ishaq Dar, KOEN's Branch Manager Park Changhark reaffirmed the company's desire to invest in Pakistan's clean energy future. He reiterated KOEN's focus on delivering 'reliable, cost-effective, and environmentally responsible' energy solutions aligned with the Government of Pakistan's development vision.
KOEN, a state-owned entity, first entered the Pakistani market with the 102 MW Gulpur Hydropower Project, commissioned in 2015 at a cost of $350 million. The project remains a model of successful public-private energy collaboration. Inspired by Gulpur's success, KOEN launched the two larger hydropower initiatives in 2017–18, with a combined estimated investment of $1 billion.
According to the company, nearly $20 million has already been spent on detailed feasibility studies, obtaining all required No Objection Certificates (NOCs), and securing generation licenses. Despite this, the projects have remained stalled since June 2022 due to inaction on tariff petitions.
'Our relentless efforts have not yet translated into progress, and we are seeking clarity on the regulatory delays,' said Park.
Sources added that Fatemi, in his official capacity advising on foreign investment-related issues, has written to all relevant ministries and agencies involved in the delegation's visit to flag the lack of coordination and missed opportunity. The incident has raised broader concerns about the treatment of credible foreign investors and the consistency of Pakistan's investment facilitation mechanisms.
Copyright Business Recorder, 2025
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