09 January 2005	Sunday	27 Ziqa'ad 1425

ISLAMABAD, Jan 8: Japanese minister for economics, trade and industries, Shoichi Nakagawa met Prime Minister Shaukat Aziz on Saturday and discussed measures to enhance bilateral trade and promote economic and bilateral ties between the two countries.

The Prime Minister recalled the close relations between the two countries in a broad range of areas like trade, social, investment, cultural and diplomatic fields.

Pakistan, he said, admires what Japan has accomplished in growth and development, which was a source of inspiration for countries in the region.

He discussed with the Japanese Minister restoration of ODA (official development assistance) as well as yen credit programme, which would help in development of infrastructure projects as well as trade between the two countries.

He said that ODA helps Japanese goods import to Pakistan and in fact builds bridges of cooperation for development between the two countries.

The Prime Minister suggested creation of a study group to find ways and move towards Preferential Trade Agreement (PTA) and Free Trade Agreement (FTA).

This group can also suggest measures to improve the trade balance between the two countries, he added.

Prime Minister Aziz also briefed the Japanese minister on Pakistan's deregulation policies and economic reforms undertaken by the government during the last 5 years.

He said Pakistan's structural reforms had made the economy robust and strong and the country was expecting up to 7 per cent GDP growth rate this year.

The prime minister stated that economic indicators were positive and the government was focusing on sustaining growth and achieving better distribution of income. Pakistan of today and tomorrow is not Pakistan of yesterday, he added.

Highlighting Pakistan liberal policies, he said, the country offers very attractive opportunities for investment.

"Our private sector is growing and expanding and we are focusing on demand creation, which is boosting growth in manufacturing sector," he added.

He informed the Minister that Japanese manufacturers were expanding their business in Pakistan in collaboration with private sector investors.

He said that Pakistan would welcome more Japanese investment in Pakistan and use it as an export base for their goods.

The Prime Minister said that Pakistan is an anchor of peace and stability in the region but could play this role only if it had strong economy, stability and a credible defence capability.

He underlined important role Pakistan has played in all the global efforts for peace, security and development.

Pakistan can play its role with the support and economic assistance of Japan and other friendly countries, he said.

Pakistan, he said, has initiated process of dialogue with India for resolution of all outstanding issues including the core issue of Kashmir, in its efforts to promote peace in the region.

The Prime Minister said that Pakistan was striving for peace and stability in the region and was focusing on development to improve the income levels of its people and raise their standard of living.

The Japanese minister appreciated Pakistan's role in reducing tension in the region and fighting extremism. Pakistan's role for peace in the world has been commendable.

The Prime Minister underlined that there was need to remove and reduce feelings of deprivations, which leads to extreme behaviours. Economic growth and development helps a great deal in reducing deprivations and promoting peace, he added.-APP Our Reporter adds: Federal Commerce Minister Humayun Akhtar Khan has proposed establishment of Pakistan-Japan joint study group to work for bilateral market access initiatives.

The minister made the proposal in a meeting with the Japanese Minister for Economy, Trade and Industry Shoichi Nakagawa here on Saturday.

The Japanese Minister noted the proposal and consented to work on it further to develop the strategy after discussing it with the stakeholders in Japan.

The Japanese minister visit was in sequence of the dialogue initiated on bilateral economic cooperation during the visit of the President of Pakistan in March 2002. Two rounds of dialogue were held in September 2003 and February 2004 in Tokyo and Islamabad, respectively.

Japan had suspended the yen loan to Pakistan in 1998 and the bilateral economic relations had been strained since then. The Japanese Minister's visit was the first high-level visit after a number of years.

A delegation of Japanese businessmen accompanied by senior officials of Ministry of Economy, Trade and Industry (METI) would also visit Pakistan in March 2005, which would further help strengthen the bilateral economic and commercial relations.

Mr. Nakagawa was of the view that any technical impediments in improving these relations would be removed and Japan could provide technical assistance especially for Small and Medium Enterprises (SMEs), which were the backbone of industrial development.

He observed that the human resources in Pakistan had the capacity as Pakistan was producing surgical equipments and soccer balls of high quality and there was a need to provide managerial and technical skills for further development in these sectors.

The federal commerce minister briefly explains the present scenario of economic development and the government policy of export led growth. He expressed the need for better market access for Pakistan exports in Japan and to increase bilateral trade up to its potential.