ISLAMABAD, Nov 2: The total loss to the Pakistani economy in consequence of the Sept 11 terror blitz on America is now estimated at $2 to $3 billion, says Finance Minister Shaukat Aziz.

According to a handout issued by the ministry of finance, Aziz met Japanese Prime Minister Mr Koizumi in Tokyo on Friday and delivered him a letter of President Pervez Musharraf. The Japanese premier praised President Musharraf’s stand against terrorism.

He said his country would like to see Pakistan emerge as a strong and stable country for which Tokyo will give necessary assistance.

During his meeting with Japanese Minister for Economy, Trade and Industry (METI) Mr Takeo Hiranuma, Aziz said that Pakistan’s economy had been hit hard by the Sept 11 events in America.

He said there was going to be a $2 to $3 billion loss to the economy. Earlier, the government was maintaining it will have $1 to $2 billion loss.

The fall in revenue, decrease in exports, shrinkage in foreign investment and a slowdown in privatisation process are to blame for this loss, he said.

He pointed out that Japan could assist Pakistan by providing market access and by providing technology and technical know-how for Pakistan’s medium and small-scale industries to improve productivity and production base.

The Japanese economic minister assured that his country, in view of the peculiar situation, will provide market access and technical assistance to Pakistan and would explore the specifics with Pakistan.

Aziz also raised the issue of resumption of export credit and insurance for Pakistan.

The Japanese minister said that Japan was willing to extend this facility to Pakistan for viable projects. He stated that Japan would send experts to Pakistan for helping small and medium enterprises.

Accompanied by Ambassador Touqir Hussain, Aziz also held a joint meeting with Mr Muneo Suzuki, Chairman Liberal Democratic Party (LDP)’s committee on Economic Cooperation, Mr Taro Nakayama, Chairman, LDP Research Commission on Foreign Affairs, Mr Esuke Kawamoto, Chairman of the LDP’s Committee on Foreign Affairs and Mr Ichiro Aizawa, Vice-Chairman of LDP’s Policy Research Council.

The finance minister also met Mr Kyosuke Shinozawa, President of Japan Bank for International Cooperation, and Chairman and members of Foreign Trade Council.

In his meeting with Chairmen of the LDP’s committees, the finance minister expressed his appreciation of Japan’s move to lift sanctions against Pakistan. He assured them that Islamabad would continue its moratorium on further nuclear tests. “It would neither be the first country to restart nuclear tests nor would it export its nuclear technology to any entity,” he said.

The tax revenue of Pakistan has declined by 20 per cent and the exports by about 30 per cent, Aziz said. To offset these negative effects, he added, Pakistan sought emergency budgetary support, revival of yen credits and a relief on debt. In addition, there are more than 3 million Afghan refugees in Pakistan who were a heavy burden on the country’s economy.

In his meeting with Mr Shinozawa, President of Japan Bank for International Cooperation, the minister explained at length the fiscal and economic reforms initiated by the government and completion of the one-year IMF programme for Pakistan.

Mr Shinozawa told Aziz that Japan was also discussing economic assistance package with its partners for Pakistan.

In his luncheon meeting with Mr Seiken Sugiura, Vice Minister for Foreign Affairs, he urged downgrading of the travel advisory imposed on Pakistan, which has affected travel of Japanese nationals to Pakistan. Mr Sugiura promised to give the matter a serious thought.