The Hindu : Pak. fails to convince Japan on resuming aid

Online edition of India's National Newspaper
Monday, Mar 18, 2002

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International

Pak. fails to convince Japan on resuming aid

By B. Muralidhar Reddy

ISLAMABAD MARCH 17. The Pakistan President, Pervez Musharraf, has not succeeded in persuading Japan to resume economic assistance and investment in the country.

During his trip to Tokyo, the Japanese leaders wanted Gen. Musharraf to improve law and order and ensure continuity of economic policies to attract 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,'' the Commerce Minister, Razak Dawood, said at a press conference here after his arrival from Tokyo on Saturday.

Mr. Dawod said assurances were given to Japan that the military Government would ensure continuity of policies beyond October.

He conceded that there was no discussion on the resumption of the much talked about $ 500 million annual Japanese assistance to Pakistan, suspended in 1998 when Pakistan went nuclear.

``The resumption of our annual assistance was not on the agenda, therefore, nobody talked about it. 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''.

Japan seems to have also linked the issue of resumption of aid to signing of the Comprehensive Test Ban Treaty (CTBT) by Pakistan. Gen. Musharraf tried to impress upon the Japanese leaders that while Islamabad was committed to not being the first to undertake any further nuclear tests, it might be compelled to reconsider its stand if the regional situation so demanded.

Barring the `feel good factor', Gen. Musharraf has not got any thing concrete in his just-concluded visit to Tokyo. Pakistan could have decided not to raise the issue of resumption of economic assistance at this juncture as Japan is facing economic difficulties.

Mr. Dawood said Japan was positive to Pakistan's request for aid 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.

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Pak. fails to convince Japan on resuming aid