ISLAMABAD, Oct 5: Japan on Friday said that restoration of official development assistance (ODA) to Pakistan would be reviewed when such situation evolved and signing of comprehensive test ban treaty (CTBT) would be considered a significant step towards that direction.
Responding to journalists questions here after the signing ceremony of $550 million debt rescheduling agreement with Pakistan, Japanese ambassador Sadaaki Numata said that his country had a stated position on ODA. He said that it will be a significant step if Pakistan signed CTBT and future assistance would be restored as the situation evolved.
He said that $40 million grant for budgetary support and refugees was “a real instance of helping a friend in need” as it took a courageous decision to join efforts against terrorism.
Besides the signing of $550 million debt rescheduling pact, the two countries also exchanged notes for provision of grant amounting to $25.5 million for foreign currency support and $7.5 million for Afghan refugees.
The $25.5 million grant would secure payment for import of goods that were urgently needed to adjust economic structure under the World Bank and IMF programme.
The $7.5 million grant for Afghan refugees would be utilised in collaboration with United Nations High Commission for Refugees (UNHCR). This assistance will be utilised for the local purchase of tents and water tankers in order to provide shelter to refugees.
The $550 million debt that was rescheduled included JBIC loans, food aid and commercial credits due during the period between December, 2000 and September 2001 for the loans up to September, 1997. This is part of Paris Club debt rescheduling pact of January this year.
The consolidated ODA debt will be payable over a period of 20 years including 10 years grace period starting from November, 2011. The consolidated non-ODA debt will be payable over a period of 18 years including three years of grace starting from November, 2004.
