Get rid of 'CNN effect': Pakistan must promote softer image to gain investor confidence: South Korean envoy

Pakistan must promote its soft and accurate image as, at present, the country is suffering from 'CNN effect', defined as 'focused on stories of misfortune', said the Ambassador of the Republic of Korea to Pakistan, His Excellency Choong-joo CHOI, in an exclusive interview with Business Recorder team, comprising Staff Reporters Wasim Iqbal, Zaheer Abbasi and Tahir Amin.
He emphasised the need to uphold 'success stories' as a prerequisite for the global community, including Korea, to be attracted to explore Pakistan's investment opportunities. He maintained that Korean companies are eager to invest in the fields of energy, infrastructure including renovating Pakistan railway, etc. Korea pledged $200 million for various socio-economic development initiatives in 2009 under Overseas Development Assistance.
BR: Do you have any personal safety concerns in Pakistan?
CJC: Occasionally, I travel to Murree and remote parts of the country. I am very sympathetic to what is happening in this country and feel that you are suffering from some sort of CNN effect. CNN always concentrates on negative aspects while reporting. During the 1970s and 1980s my country Korea also suffered from the same fate.
BR: What problems are faced by Korean companies in Pakistan?
CJC: Korean business community is watching closely what the existing companies are doing in Pakistan and, for this purpose, it is critical to create success stories. If foreign companies can carry out their operations successfully here, it will send a very positive message to Korean businesses back home.
If foreign companies suffer due to inconsistent policies then the message would be negative. For this reason it is very important that the country should have consistency in policies. For example, the Lowari Tunnel project was suspended due to financial constraints. I understand the government's financial situation. However, SAMBU Company was disappointed because financing stopped in the middle of the project. Another Korean business giant, LOTTE group, has developed differences with the government over lowering tariffs on PTA products. Daewoo Bus service is also facing problems.
Pakistan is a country gifted with immense natural and human resources. It is quite natural that Korea is interested in doing business here. Although there are some security threats, yet generally Korean companies are risk takers. As I said earlier, Korea, too, was subjected to the 'CNN effect' and we did come out of it. So can Pakistan.
BR: Like other foreign countries, does your government have any advisory for Pakistan?
CJC: No specific advisory. Unlike other western companies, who prefer not to take risks, Korean companies are known for aggressiveness and taking an early position.
BR: Most of the Korean companies are engaged in sale of consumer products and not in infrastructure and energy sector projects. Why?
CJC: This perception is not correct. We are not limited to just trading in commercial consumer products. For example, POSCO steel is considering second phase investment in Pakistan Steel Mills (PSM). Investment in expansion plan of PSM is also being considered by the Korean steel company. Development of infrastructure is another important venture for Korean companies. Our construction company is now constructing the extension of motorway between Karachi and Mirpur and exploring further business opportunities in different sectors of Pakistan.
BR: Can your country help Pakistan resolve its energy shortage?
CJC: Recently, Korean Global Company K-water invested around $300 million in constructing Patrind hydropower project. It is a consortium, co-financed by Asian Development Bank and a Korean bank. Another company SAMBU is engaged in a hydropower project.
BR: Any other Korean companies that have shown interest in investing in sectors other than energy and construction?
CJC: Samsung is actively looking at the commercial viability of running CNG buses in Lahore. Hopefully, this project may be extended to Rawalpindi and Karachi. We are also looking at Pakistan Railway system, which is in dire need of renovation. So, it is another area where Korea is interested in collaboration and co-operation with Pakistan. We have a very well developed and well advanced Railway system and can, therefore, bring great value to our assistance.
BR: Are Korean companies interested in developing special economic zones in Pakistan offered by President Zardari?
CJC: Setting up special economic zones in Pakistan is a very viable prospect. The Embassy will encourage Korean companies to avail of this business opportunity, but the ultimate decision will be theirs. However, the first step in this respect is to formulate a full-fledged development plan, which must include the provision of basic infrastructure and utilities to these zones.
BR: Are you party to the Friends of Democratic Pakistan?
CJC: Yes, and we committed $200 million at the FODP forum in 2009. Recently, we constructed Malakand Tunnel, under this agreement.
BR: Any outcome of your recent meeting with the Minister for Privatisation?
CJC: Not yet.
BR: Why do you think Korea-Pakistan bilateral trade is very nominal, as compared to other regional countries?
CJC: Both countries have potential for bilateral trade but unfortunately our trade remains very low. Korea mainly exports electronic appliances like TV, refrigerators, mobile phones, wireless sets and also steel products to Pakistan, and imports agriculture products, raw material, mineral items mainly copper and leather. Our trade volume was only $1.2 billion in 2010, which jumped slightly to $1.5 billion last year. There is great potential for significantly enhancing the trade volume. Our government officials and business communities must work together to identify the possible range of products to be traded. As compared to Pakistan, our trade with India reached $15 billion, and efforts are underway to double this volume by 2015.
BR: What is the extent of visits between the business communities of the two countries?
CJC: Last year, Chief Minister of Sindh took a business delegation to Korea. This year, Trade Development Authority Pakistan (TDAP) is scheduled to take a business delegation to Korea. We will encourage Korean business community to visit here and sincerely hope that your business community will also visit Korea to explore business opportunities.
BR: How many Pakistanis are in Korea?
CJC: Over 10,000 Pakistani are working in Korea, and the Korean Overseas Worker Centre provides them skills training and language courses to absorb them in industry and provide them with jobs legally.
Unfortunately, illegal immigrants from Pakistan are in very large numbers and are creating problem for us. They also tarnish the image of Pakistan. The government must take some appropriate action against those who engage in this illegal activity.
BR: Do you offer scholarships to Pakistani students?
CJC: Our Korea International Co-operation Agency (KOICA) is active in many areas of development. One area is education. We are thinking of increasing existing quota for Pakistani students.
BR: Does Korea acknowledge Pakistan's role in war against terror?
CJC: Korean people are very sympathetic to the tremendous sacrifices made by Pakistan in the war against terror.