ISLAMABAD, April 25: Japan has assured to increase investment and further raise the level of its annual assistance to Pakistan.

Finance Minister Ishaq Dar and Ambassador of Japan Seiji Kojima on Friday held deliberations to increase the bilateral cooperation, especially Japanese assistance.

The two sides also discussed ways and means to encourage Japanese investment in the country.

They reviewed overall economic cooperation, discussed Official Development Assistance (ODA), grant assistance, non-project grant assistance and the role of Japan International Cooperation Agency (Jica) for bridging the gap between the two peoples.

They discussed high-level policy dialogue 2008 in Tokyo, and forthcoming deliberation on Aid and its Effectiveness at Accra Forum and Japan’s role as a leading development partner of Asian countries.

Pakistan appreciated Japan’s non-project grant assistance of $6 million for the development of Federally Administered Tribal Areas. Japan has indicated ODA of $478 million for 2007-08. The two sides agreed to sign and exchange the notes and identify projects to be financed under this facility at mutually convenient dates.

Finalisation of $92.6 million grant assistance for seven new projects was also discussed.

The role of Jica in promoting cooperation to engage Japanese experts and volunteers was emphasised. It was observed Jica has played an important role in human resource development through capacity building courses.

It was hoped that Jica would help Pakistan to meet its training needs for capacity building, research to increase output in agriculture, livestock, fisheries, biotechnology, horticulture and seafood.

Pakistan sought Japanese assistance to increase ODA volume over the medium term, diversify economic assistance and explore new areas of cooperation, including renewable energy.

Pakistan also evinced interest in charting new country assistance strategy and enhanced Japanese support for human development projects. Since 1961, cumulative Japanese assistance to Pakistan comes to around $5.7 billion. Its annual assistance averages to $200 million inclusive of grant and loans.

Ishaq Dar emphasised the need for economic dialogue between the private sectors of the two countries and hoped that bilateral trade would increase. He also shared Pakistan’s financial and economic performance and his deliberations with the International Monetary Fund and World Bank during the recent spring meetings in Washington.

He hoped that Japan, as one of the major development partners, would increase its bilateral assistance to facilitate economic growth in Pakistan.