ISLAMABAD, May 1: Prime Minister Shaukat Aziz said on Saturday that the resumption of yen loan would help accelerate economic cooperation between Islamabad and Tokyo and have a salutary effect on Japanese private sector’s interest in Pakistan.

Speaking at the state banquet hosted by him in honour of visiting Japanese Prime Minister Junichiro Koizumi, Mr Aziz expressed confidence that the visit would the harbinger of a new era in the relations between the two countries.

He said the economic upturn in Japan after a long period of relative stagnation had vindicated Prime Minister Koizumi’s structural reform drive.

In Pakistan too, he said, the government had made concerted efforts to follow the road of peace and progress, entailing some difficult decisions.

“Today I can say with confidence that Pakistan’s economic fundamentals were sound and we are set on the course of sustained economic growth,” he said.

He said his government had created an ambience that was investor-friendly. He said the country’s indicators, moderate policy orientation and strategic location had turned Pakistan into an attractive destination for trade and investment.

The prime minister said: “We look upon Japan as a model of development for Asian countries as well as a benevolent and non-intrusive partner, highly value the contributions made by Japan to Pakistan’s economic and technological development and want it to regain its position as Pakistan’s principal development partner.

“I am confident that the resumption of Japan’s yen loan for Pakistan, for which we are deeply appreciative, will accelerate our bilateral economic cooperation and have a salutary effect on the Japanese private sector’s interest in Pakistan.”

Prime Minister Koizumi said the main purpose of his visit was to exchange vies on the whole area of bilateral relations and he believed that he had achieve the objective.

He said he had held candid talks with President Gen Pervez Musharraf and Prime Minister Aziz.

He said he had visited an exhibition held by Japanese and Pakistani businessmen working together. He said he was encouraged to hear from the Japanese working in Pakistan that they were happy to work in a country which had warm feelings for them.