ISLAMABAD, Sept 5: Japan and Pakistan, agreed to enhance economic cooperation in a meeting between Seiken Sugiura, Sr Vice-Minister for Foreign Affairs, Japan, and Finance Minister, Shaukat Aziz, here on Thursday.

The finance minister thanked the Japanese visitor for the US$300 million assistance and their support in many fields.

Japan is Pakistan’s largest creditor and has about US$5.3 billion credits as outstanding. This debt is being re- profiled.

The Japanese authorities are finalizing a draft agreement in this regard.

Also, Japan Aid is financing the construction of Kohat Tunnel and the Indus Highway. Several other projects are under consideration, mainly, in the areas of health, education, police reforms, and poverty reduction.

Aziz requested for greater technical assistance through JICA (Japan International Cooperation Agency) to promote small and medium industries.

The JICA assistance would include machinery required for training centres and technical experts.

Pakistan also requested more concessional Yen credits as well as Suppliers’ Credits for funding development projects, and for importing Japanese machinery for the private sector.

Both countries re-affirmed the understanding reached during President Musharraf’s visit to Japan to set up a mechanism for ministerial level economic policy dialogue.

This forum will enable discussions on all bilateral and multilateral issues and help promote greater private sector activity in the areas of trade and investment as well as government-to-government economic cooperation.

The meeting was attended by secretary finance, Pakistan’s ambassador to Japan, and members of the Japanese delegation. —APP