KARACHI, April 23: Business leaders of 29 Japanese companies want to lay foundations of economic development for next 50 years with Pakistan as they are convinced that "this is the most auspicious time and excellent leadership".

A big delegation of Japanese businessmen and investors is expected to come to Pakistan before the end of this year under the leadership of Toru Tsuji of Marubeni Corporation who has been recently elected chairman of Pakistan-Japan Business Coordination Committee in Tokyo.

All these leaders assembled under the auspices of Japanese Association of Commerce and Industry (JACI) in a daylong meeting here on Friday resolved that "this is auspicious timing during which the foundations of economic development for next 50 years can be established under the authority and guidance of such excellent leadership".

The JACI urged the Japanese authorities "for an earlier full resumption of yen credit facilities" for Pakistan. "Pakistan's fundamentals of economy are showing promising prospects and we think it is right time to invest here and for Japanese government to enhance official assistance", Hayashi Otani, president of the JACI, informed newsmen on Friday afternoon at a press conference on conclusion of the daylong 25th joint meeting.

Mr Otani said that his association represents 29 Japanese companies operating in Pakistan. Of these 17 are in Karachi while 6 are in Lahore and six in Islamabad. Takeo Kato represented JACI Islamabad and Haryuoshi Murakami represented JACI Lahore in the meeting and were present in the press conference.

The Japanese Ambassador in Pakistan Minoru Shibuya and Consul General in Karachi Kanji Hanagata and representatives of Japan Bank for International Cooperation (JBIC) and Japan External Trade Organization (Jetro) attended the meeting.

Leaders of the 29 Japanese companies in Pakistan paid tributes to the "strong leadership and guidance" of President Pervez Musharraf and Prime Minister Zafarullah Khan Jamali in their exemplary direction and management of regional international political developments since the devastating terrorism of September 11, 2001.

The JACI took note of Pakistan boldly challenging "the sources of international terrorism and has taken aggressive measures to create mutual trust in order to achieve the long awaited restoration of friendship with India."

"Regionally and domestically, the government has made consistent efforts to establish a stable relationship among South Asia countries, and in economic endeavours it has been managing a steady economic administration and has maintained its Economic Reform Policy", the JACI observed while highly appreciating "the recent prosperity supported by improved macroeconomic indicators as a result of creative measures implemented by the team headed by Finance Minister Shaukat Aziz.

In its meeting, the JACI confirmed the importance of Japanese official economic assistance to Pakistan before economic sanctions were applied following 1998 nuclear explosion. Japanese assistance was effectively and efficiently utilized and contributed in the economic development and for maintenance of infrastructure facilities of water, energy and transportation.

It resolved that this official assistance was essential for sustainable economic development of Pakistan and resolved to make constructive proposals to the concerned authorities of Japan and Pakistan including proposals for an earlier full resumption of yen credit facilities.

Hence, the JACI urged both Pakistan and Japan to promote projects in which Japanese technology and experts are actively involved under Japanese grants and technical assistance programmes. It also suggested the two countries to implement such projects that will encourage Pakistani talents and effectively contribute to reduction of poverty.

The Japanese business leaders expressed their support towards expanding Pakistan's trade with Japan and also with East Asian countries including China and also to support Pakistan government towards enhancing export competitiveness of Pakistani products.

The JACI noted "reluctance of some Japanese companies for investment in Pakistan" resolved to make every effort to encourage and invite increased direct investment from Japan. The JACI appreciated the efforts of Pakistan government to improve investment environment by assuring transparency and fairness of tax regime and judiciary in Pakistan.

"We want Pakistan government to remove some of the irritants", Mr Otani replied to a question but did not elaborate as what these irritants were. He was informed that Japanese investors have a major stake in Pakistan's automobile sector which is now under pressure to open up for competition and asked how do the Japanese company look this development. "That's true that Japan's big stake at present is in automobile", Mr Otani replied and said that JACI focussed on other sectors as well.