Japan’s Yen Loan: Resumed to Pakistan amid vow on Strong Ties
By Aziz Malik - Pakistan Times Federal Bureau Chief

ISLAMABAD: Japan Saturday announced the resumption of Yen Loan Programme for Pakistan, discontinued in 1998, as the two countries declared to enter a new era towards a renewed, enhanced and robust relations.

After formal talks at the PM House, Prime Minister Shaukat Aziz and his Japanese counterpart Junichiro Koizumi also witnessed the signing of three agreements that include $80 million worth of grant assistance for a water supply and irrigation projects and the accord on technical cooperation.

Under the new Yen loans, Japan has decided to extend about 16,400 million Yen (approximately 164 million US dollars) that include 12,523 million Yen for the Lower Chenab Canal System Rehabilitation Project and up to 3,839 million Yen for the Load Dispatch System Up-gradation Project.

Joint Declaration

The two countries also signed a Joint Declaration to further expand their strong collaboration at all levels.

"With the visit of the Prime Minister Koizumi to Pakistan, relations between the two countries have entered a new phase where they are further expanding their strong collaboration at all levels," said the joint declaration.

Koizumi's visit to Pakistan is the first by the Japanese Prime Minister since his predecessor Yoshiro Mori in 2000.

War on Terror

In the Declaration, Japan also paid tributes to Pakistan's role in the fight against terrorism and the country's "continuing efforts towards establishing a democratic and modern Islamic polity under the principles of 'enlightened moderation'" as expounded by President General Pervez Musharraf.

"I had meetings with President Musharraf and Prime Minister Shaukat Aziz and had candid and fruitful exchange of views, I am very happy " Koizumi told reporters.

The Japanese Premier said his visit aimed at further developing ties between the two countries.

The Joint Declaration "embodies our will to further grow our ties not just in political and economic areas but across the board. This is in fact reflection of our resolve to further grow friendly ties between the two countries," Koizumi added.

PM Shaukat Aziz

Prime Minister Shaukat Aziz described the discussion as very fruitful that covered broad range of issues. "I am sure this trip will help improve bilateral relations, we hope to get more investment and technical assistance from Japan."

He expressed Pakistan's desire to have peace and close ties with all its neighbours and promote era of global understanding with all people of the world.

Referring to the improving investment environment, the Prime Minister expressed the hope that country's rising economy will attract even more Japanese investment to Pakistan.

The two leaders held an exclusive meeting that lasted about 40 minutes before they were joined by their respective sides for formal talks.

One-on-One Meeting

During the one-on-one meeting that lasted for about 45 minutes, Prime Minister Shaukat Aziz told the Japanese Premier about the ongoing composite dialogue with India on all issues including the decades-old Kashmir dispute.

He emphasised the need of resolving the Kashmir dispute in line with the aspirations of the Kashmiri people for a durable peace in South Asia.

The issues of UN reforms, nuclear non-proliferation, terrorism, bilateral matters and regional and international issues of mututal concerns were also discussed by the two leaders.

Prime Minister Koizumi said he was very happy to see the products jointly manufactured by Pakistan and Japanese business that were displayed at an exhibition at a local hotel.

"It was indeed encouraging to find that Japanese and Pakistani companies are cooperating with each other and working energetically to manufacture these goods that will improve standard of living of people," he added.

He expressed the hope that his visit will add greater depth to cooperative relations between the two countries.

Talks with President

Responding to a question about his discussion with President Musharraf on nuclear proliferation, the Japanese Premier said they had very good discussion on the subject.

Premier Koizumi appreciated Pakistan's role in the fight against international terrorism and the firm stand taken by the Pakistani leadership in spite of difficult and tough circumstances.

"I an convinced that the international community will hold in high regard Pakistan's firm response in the fight against terrorism," he added.

Afghanistan

Moreover, he said Afghanistan was in transition from the dictatorship under the Taliban to stable democratic regime under President Hamid Karzai and Pakistan had an important role in helping Afghanistan establish that stable and democratic
government.

Responding to a question on the 'nuclear black market', Koizumi said Pakistani leaders told him that it was purely an individual act and the government of Pakistan was in no way involved in this.

He said President Musharraf and Prime Minister Shaukat Aziz said that Pakistan would deal very strictly with the nuclear matters and would continue to cooperate with the international community in this regard.

Later, Prime Minister Aziz presented a replica of "fasting Buddah" to Koizumi, original of which is placed in the Lahore Museum.

UN Reforms

Responding to a question on the UN reforms, Prime Minister Koizumi said that Pakistan explained its position on the expansion of the Security Council.

Pakistan says that reform of the UN Security Council can be achieved through an appropriate expansion in the non-permanent category.

But at the same time, he said, Pakistan also expressed its appreciation for Japan's role and its support in the interest of international community over the past 60 years.

Banquet

Prime Minister Shaukat Aziz hosted a banquet in the honour of the distinguished guest.

Speaking at the banquet, the Prime Minister expressed the hope that the visit by the Japanese Premier would be the harbinger of a new era in relations between the two countries.

He appreciated Koizumi's bold and innovative style of leadership and the skill with which he steered Japan's affairs at a difficult juncture in world history. "The economic up-turn in Japan after a long period of relative stagnation has vindicated your structural reform drive," he added.

Prime Minister said in Pakistan too, the government has made concerted efforts to follow the road of peace and progress. "Today, I can say with confidence that Pakistan's economic fundamentals are sound and we are set on the course of sustained economic growth," he added.

Prime Minister Aziz said as part of overall strategy, the government has created an ambience that is investor-friendly.

Trade and Investment

"Our moderate policy orientation, as well as strategic location turned Pakistan into an attractive destination for trade and investment," he added.

He expressed the confidence that the resumption of Japan's Yen Loans for Pakistan will accelerate bilateral economic cooperation and will have a salutary effect on the Japanese private sector's interest in Pakistan.

The Japanese Premier in his remarks said his main purpose of the visit was to exchange views on the whole area of bilateral relations and " I believe I have indeed achieved this objective".

The Japanese Premier also invited Prime Minister Shaukat Aziz to visit Japan. Prime Minister Aziz accepted the invitation. Premier Koizumi also attended a cultural show during which the performers presented local tunes and folk dances.

Recap

The Japanese Prime Minister arrived Pakistan on Saturday to a very warm welcome.

As reported by Pakistan’s first independent daily e-Newspaper, ‘Pakistan Times’ in its issue of Saturday, April-30, soon after his arrival in Islamabad, the distinguished guest have had in-depth dialogue with President General Pervez Musharraf on topics of bilateral, regional and global significance.

Besides zest for enhancing relations between Pakistan and Japan with a swift pace in diverse areas, the exchange of views between President Musharraf and the Japanese Premier Junichiro Koizumi focused on matters which included multiple issues, the world is faced with—including measures to wipe out the menace of terrorism as well as the subjects like nuclear non-proliferation and United Nations reforms.

Prime Minister Junichiro Koizumi also held talks with his Pakistani counterpart Shaukat Aziz on subjects of mutual interest as well as those, having global importance.

Click here for in-depth story on Junichiro Koizumi’s visit to Pakistan, as reported by ‘Pakistan Times’ in its’ earlier edition;

http://pakistantimes.net/2005/04/30/top.htm

And about a story on resumption of Japanese Yen loan programme for Pakistan, Click to PT Newswire at;

http://pakistantimes.net/2005/04/30/top16.htm●