ISLAMABAD, March 16: Japanese leaders have asked President Pervez Musharraf to improve law and order situation, and ensure continuity of economic policies for attracting Japanese investment in Pakistan.

“Their (Japanese) biggest concern is the law and order situation and our president told them that his government is taking all necessary measures to have peace across the country,” Commerce Minister Razak Dawood told a news conference after his arrival from Tokyo here on Saturday.

He said that assurances were given to the Japanese government that the military government would ensure continuity of the policies beyond October.

The minister, nevertheless, shocked the reporters when he said that there was no discussion on the resumption of much talked about $500 million annual Japanese assistance to Pakistan. This assistance was suspended in 1998 when Pakistan had gone nuclear.

“The resumption of our annual assistance was not on the agenda, therefore nobody talked about it,” he said. When reminded that this was the major issue as before the president’s visit every important functionary of the government was talking about it, the minister said: “All I would say is that there is nothing on annual aid resumption except $300 million aid that has already been announced by Japan for social sectors”.

Informed sources however said that the Japanese government had linked the resumption of annual aid to the signing of the Comprehensive Test Ban Treaty by Pakistan. Japanese, the commerce minister acknowledged, strongly felt about the nuclear issue and in that context the signing of the CTBT was raised by them. “We told them that we are trying to finalize the CTBT issue shortly.”

However, he said that Japanese were positive to consider Pakistan’s aid request for various projects, including the development of Landhi site area in Karachi, Kohat Tunnel, Indus Highway and a couple of other projects in fisheries, agriculture, food processing, textile, information technology and human resource development.

Asked whether Japan had promised to provide financial support for the 3rd and 4th phases of Indus Highway and $30 million required for the completion of the Kohat Tunnel, he said the Japan government had assured to look into the matter sympathetically. When pressed, he said: “Japanese do not say yes to anything.” There would be follow-up meetings during which the aid issue for various development projects would be finalized, he added.

Japan, he minister said, was happy over Pakistan’s position against terrorism and its economic revival programme. “But they did tell us that Japan’s economic conditions were not very good to greatly support others”.

In reply to a question, Mr Dawood said the Japanese indicated they would come back to us with some decision shortly about the market access sought for Pakistani products.

He said there had been three major meetings with Japanese investors to have their investment in Pakistan. “We are hopeful that they will come to Pakistan for investment,” he said, adding that Pakistan had tried to remove their apprehensions.

Talking about exports, he said Japan had expressed willingness to import fruits and vegetables from Pakistan. However, he added, Japanese were very particular about the quality.