TOKYO, March 14: Japanese Prime Minister Junichiro Koizumi on Thursday praised President Pervez Musharraf for his reforms and resolve to fight terrorism, but said he wanted both Pakistan and India to pursue dialogue on Kashmir.

Speaking at a joint press conference with President Pervez Musharraf, the Japanese leader said the two agreed to promote dialogue on security issues and economic cooperation.

“I respect the president from my heart for his active efforts to achieve stability in his country and for the fight against terrorism,” Junichiro Koizumi said.

Earlier both the leaders discussed a wide range of topics, including Pakistan’s political reforms and economic development efforts, the reconstruction of Afghanistan, plus tension between Pakistan and India over Kashmir.

President Musharraf said that during talks he invited Junichiro Koizumi to visit Pakistan.

The Japanese premier said that through close ties with Pakistan, Japan would like to offer as much cooperation as possible in the Afghan and the India-Pakistan issues.

President Musharraf said that his meeting with the Japanese prime minister would usher in a new era of friendship and cooperation.

Pakistan and Japan have come even closer in the wake of the tragic events of Sept 11. “We stand together with the rest of the international community in the fight against terrorism,” he said.

The Japanese prime minister said nothing specific about the possibility of fresh economic assistance or investment in Pakistan.

A Japanese Foreign Ministry official briefing reporters on the meeting said Musharraf asked Koizumi to “give consideration” on interest charged on loans from Japan to Pakistan.

President Musharraf also asked Japan to restore official development assistance to pre-1998 levels and to take steps to promote bilateral trade, the ministry official said.

In response, Koizumi said Japan would see what it could do about the interest on loans, taking into account decisions made by the Paris Club of creditor nations, which agreed in December to reschedule $12.5 billion of Pakistan’s debt.

Koizumi said he had urged Musharraf to strengthen efforts to continue dialogue with India over Kashmir, adding that he had delivered the same message to Indian Prime Minister Atal Behari Vajpayee when he visited Japan in December.

The Japanese prime minister termed his talks with Gen Musharraf as useful and constructive and said Japan would further increase its economic relations with Pakistan.

Koizumi also asked Musharraf to make efforts toward arms reduction, including signing a nuclear test ban treaty.

The President said he was aware of Japan’s sensitivities toward nuclear issues, adding: “I have reaffirmed our policy of restraint in all nuclear matters.”

When asked by a reporter whether Pakistan was involved in military cooperation with North Korea, Gen Musharraf denied such links, saying: “We don’t have any contacts.”

“India, our main opponent, gets high-tech aircraft from Britain, from Russia, from France,” he said. “Yes, we are getting these from China, purely defensive in nature to exercise our right of deterrence and self-defence.”

To a question, Gen Musharraf called for the international peacekeeping force to stay in Afghanistan until it has achieved security there.

“We explored the possibility of Pakistan and Japan joining hands in the reconstruction of Afghanistan,” he said.

The President said he assured the Japanese prime minister that Islamabad remained committed to contributing its full support to the reconstruction and rehabilitation of Afghanistan.

Gen Musharraf told reporters that the war in Afghanistan was over but called on international forces in the country to keep supporting the Afghan government until it achieves political stability.

He said the British-led multinational security force should stay until it achieves security and not leave at the end of its six-month mandate.

“The most important factor is the continuation of the International Security and Assistance Force,” he said.

“My suggestion is that instead of giving time limits, we (should) give an effect limit to it.”

“United States forces and the International Security and Assistance Force should respond to requests and requirements from the government of Afghanistan,” he added.

The President was assisted in the talks by Foreign Minister Abdul Sattar, Finance Minister Shaukat Aziz and Commerce Minister Abdul Razzak Dawood, while Japanese Prime Minister Junichiro Koizumi led his country’s side.

President Musharraf briefed the Japanese prime minister about Pakistan’s economic and political reforms programme aimed at establishment of a durable democracy and good governance. He also informed the Japanese leader about the situation in Afghanistan and tension on Pakistani borders. —Agencies