July 14, 2002	Sunday	Jamadi-ul-Awwal 3, 1423

ISLAMABAD, July 13: Pakistan has sought the support of Japan International Cooperation Agency (JICA) to help promote export and industrial production.

Minister for Finance Shaukat Aziz met President of JICA, Takao Kawakami, here on Saturday and asked for his organization’s support specially for promoting adequate export and industrial production.

He said that the technical assistance should be user driven instead of donor driven. “JICA, being a single largest technical assistance provider, could help the process of industrial development”, the finance minister said.

He welcomed the presence of JICA experts in Pakistan and mentioned several sectors where further assistance could be provided by Japan. During the meeting Ambassador of Japan Sadaki Numate, Secretary Finance and members of the visiting JICA delegation were also present.

Kawakami said that reform process introduced by President Pervez Musharraf has restored confidence of international community and international donors in Pakistan’s economy and its management.

He said if Pakistan stayed the course and maintained consistency of economic policies, the international donors would continue to support the country to help build its sound economic foundations.

He said Japan and Pakistan enjoyed constructive relationship, which has strengthened over the years. JICA, he said, has been extending all possible technical cooperation to Pakistan. Under the programme, around 150 training facilities were available to Pakistan every year.

JICA through its technical assistance, Kawakami said, has focused on capacity building, improving educational standards and health facilities in the country.

Shaukat Aziz informed JICA president that after September 11, Japan was the first country to provide $300 million as budgetary support and for social sector programmes. He said that recent visit of President Pervez Musharraf to Japan has further cemented the existing relationship between the two countries.

Japan is a strategic development partner for Pakistan. JICA programmes are effective in improving social services, industrial output and poverty reduction, he added. Giving a brief resume of Pakistan’s reform agenda, Aziz said that outcome driven Interim Poverty Reduction Strategy was being cited as a model programme throughout the world.

Pakistan has enforced fiscal discipline, introduced structural reforms and was committed to economic growth, reducing poverty and good governance. Pakistan, he said, has been pursuing a balanced reform agenda, encompassing major sector including oil and gas, financial sector, agriculture, human development and good governance.

The government, he said, deregulated oil and gas sector allowing market forces to determine prices of petroleum products. Financial sector reforms have improved the banking sector.

The government, he pointed out, was also vigorously pursuing privatization to allow private sector to play its part in the national economy.

“The government intends to focus on policy making and regulatory supervision”. Impact of reforms was now visible despite the events of September 11 and tension in the region.

Pakistan’s gross foreign exchange reserves, he pointed out, were likely to touch $7 billion mark in near future, exchange rate is strengthening, dedollarization of economy has taken place and budget deficit has been reduced to a manageable level.

Shaukat said that Pakistan’s international credit rating has improved. Its foreign loans have reduced from $38 billion to $36 billion in one year and domestic debt was under control. “Current account balance is in surplus and inflation is under control”, he added.

During the current financial year, Pakistan was aiming to achieve 4.5 per cent growth rate, which would increase in subsequent years provided “we stay on the reform path as a lot more needs to be done”.

In social sector, government has adopted an integrated approach to fight poverty in all its forms and manifestations. Resources, he said, were being diverted for providing better education, health cover and social infrastructure at the gross root level.

He appreciated JICA assistance in promoting health sector in Pakistan. JICA assistance, he said, had been a source of encouragement for Pakistan.