Japan reluctant to write off debt

Published October 18, 2001

TOKYO, Oct 17: President Gen Pervez Musharraf called on Japan to boost its financial support, including a debt waiver, as Pakistan struggles to cope with a flood of refugees following US bombing attacks in Afghanistan, officials said here on Wednesday.

President Musharraf made the request during a 30-minute telephone conversation with Japanese Prime Minister Junichiro Koizumi, the officials said.

“Referring to five billion dollar loans from our country to Pakistan, President Musharraf requested Prime Minister Koizumi to write off the loans,” a Japanese foreign ministry official said.

Mr Koizumi vowed to continue backing Pakistan but showed no intention of waiving its loans to the debt-ridden country.

“I would like to support Pakistan from a financial point of view,” Mr Koizumi was quoted by the official as telling the president. “But our basic stance is that a debt waiver is not desirable,” Mr Koizumi said.

Last month, Japan said it would reschedule $550 million of Pakistan’s debt in recognition of Islamabad’s support for the international war on terrorism.

President Musharraf also asked Mr Koizumi to lift its economic sanctions imposed after Islamabad conducted nuclear weapons tests in 1998.

But Mr Koizumi merely replied: “We will make a decision after considering our bilateral relations, international relations and developments of your country’s effort for the non-proliferation of nuclear arms.”

During their talks, Mr Koizumi expressed his “strong support” for Pakistan’s policies against international terrorism. Gen Musharraf thanked the Japanese government for its support, the official said.—AFP

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