ISLAMABAD, April 29: Japanese Prime Minister Junichiro Koizumi who is scheduled to arrive here on Saturday morning will hold talks with his Pakistani counterpart Shaukat Aziz and President General Pervez Musharraf later in the day. This will be first high-level visit from Japan since August 2000 when former Prime Minister Yoshiro Mori came to Pakistan.

The visit assumes significance as the Japanese prime minister is expected to announce the resumption of the Yen loan to Pakistan suspended in 1998. Apart from reviewing bilateral relations, the two sides will exchange views on regional and international developments. In bilateral context, economic and political reforms in Pakistan as well the alleged transfer of nuclear technology to North Korea from Pakistan by Dr A.Q. Khan, an issue of serious concern to Tokyo, are expected to come up for discussion.

All issues of mutual interest, global and regional situation and issues of economic cooperation, counter-terrorism, non-proliferation and UN reforms are expected to be discussed between the leadership of the two countries, a foreign ministry statement said on Friday.

Japan is one of the four aspirants for a permanent seat in the UN Security Council. After attending a welcome ceremony at the PM’s House on Saturday morning, the Japanese prime minister will call on President Musharraf who will host a luncheon for the visiting dignitary.

Later, Prime Minister Koizumi will hold formal delegation-level talks with Mr Aziz. The two prime ministers will oversee the signing of three agreements. These include a Technical Cooperation Agreement, a $37 million grant for the Faisalabad water purifying scheme and a $50 million grant for the Taunsa Barrage project.

Both prime ministers will also walk through an exhibition of Japanese products and companies in Pakistan. In the evening, Prime Minister Aziz will host a banquet in honour of the Japanese premier and his delegation.