제17407호                               관              보                 2010.12.17.(금요일)
                                              Article 6
     Notwithstanding the provisions above, the EDCF Loans less than 2 million Special Drawing
Rights (SDRs) shall be implemented as stipulated in the Annex. The Annex to this Arrangement
shall constitute an integral part of the Arrangement.
                                              Article 7
     The Parties mutually agree to further negotiate the specific terms and conditions of a Loan
Agreement in line with the Arrangement.
                                              Article 8
     The Arrangement may be amended through mutual written consent of the Parties.
                                              Article 9
     Any dispute arising out of the interpretation or application of the Arrangement shall be
settled amicably through negotiations between the Parties.
                                              Article 10
1. The Arrangement shall enter into force on the date of signatures and shall remain in force
until the Parties have performed all obligations under each of the Loan Agreement.
2. The Framework Arrangement made between the Government of the Republic of Korea and
the Government of the Islamic Republic of Pakistan regarding Loans provided by the Economic
Development Cooperation Fund for the years 2008 through 2011 signed on November 20, 2008
shall be terminated on the date when the Arrangement enters into force and be replaced by the
Arrangement.
     IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective
Governments, have signed the Arrangement.
     Done in duplicate at Islamabad, on 9th day of December, 2010, in the English language.
FOR THE GOVERNMENT OF                                        FOR THE GOVERNMENT OF THE
THE REPUBLIC OF KOREA                                       ISLAMIC REPUBLIC OF PAKISTAN
                                               ANNEX
                           COMPACT LOAN FACILITY OF THE EDCF
     The utilization of EDCF Loan less than 2 million Special Drawing Rights (hereinafter referred
to as "Compact Loans") shall comply with the following procedures and principles.
1. Amount of Compact Loans to be utilized by the Pakistani Government shall not exceed the
amount in Korean Won equivalent of twenty million US dollars (US$20,000,000), which shall
account for a part of the maximum commitment amount specified in the Article 1 of the
Arrangement and may be adjusted with the consent of the two Governments.
2. The Pakistani Government shall submit a list of projects to be financed by the Compact
Loans to the Korean Government from time to time, and request the Korean Government, through
diplomatic channels, to approve the Compact Loans for each individual projects.
3. Should the Compact Loans be approved by the Korean Government, the Pakistani Government
and the Bank shall execute Loan Agreement containing the following principles:
     (a) maximum interest rate shall be zero point one percent (0.1%) per annum;
     (b) repayment period, including a grace period, shall be determined in the way that it
         maintains the concessionality level of the EDCF standard terms for the Islamic Republic
         of Pakistan;
     (c) supplier(s) of the goods and services, including consulting services, necessary for the
         implementation of the projects shall be selected among small and medium-sized
         enterprises of the Republic of Korea that meet the criteria specified by the Bank on
         behalf of the Korean Government;
     (d) terms and conditions of the Compact Loans shall be set out in the respective Compact
         Loan Agreement.
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