Crisis-hit Pakistan seeks continued aid from Japan

TOKYO, Feb. 5 Kyodo -
(EDS: UPDATING WITH CONTENTS OF MEETING WITH NAKASONE IN 2ND-3RD GRAFS FROM BOTTOM)
An adviser on finance to the Pakistani prime minister called on Japan on
Thursday for continued aid for Pakistan, which has been engulfed by the global
financial crisis and supported by the International Monetary Fund, a Japanese
official said.

Shaukat Fayaz Ahmed Tarin, adviser on finance, revenue, economic affairs and
statistics to Prime Minister Yousaf Raza Gillani, explained his country's
economic reform efforts during a visit to Japan in a meeting with Japanese
Finance Minister Shoichi Nakagawa and underlined the importance of
international aid for Pakistan, the official said.
Last November, Pakistan reached an accord with the IMF to receive a $7.6
billion emergency financing package to help the country meet its serious
balance of payments difficulties.
The visit by Tarin, who effectively serves as Pakistan's finance minister,
comes ahead of a planned international ministerial-level donors' conference in
late March to help Pakistan stabilize its economy.
Tarin told Nakagawa that his country's fiscal position had seriously worsened
due to a delay in passing higher energy and food prices on to consumers, but
that Islamabad has implemented various reforms to tighten fiscal and monetary
policies with support from the IMF, according to the official.
He said conditions have since improved with lower inflation rates and a
normalized stock market, but expressed concerns about expected declines in the
country's exports and remittances from Pakistani workers abroad.
Nakagawa told Tarin that Japan plans to continue to help developing countries
hit hard by the economic crisis through the IMF and World Bank. Bilaterally,
Japan extended yen loans worth about $500 million to Pakistan in fiscal 2008.
Tarin unveiled a plan to set up a special economic zone in Karachi, which will
possibly serve as a gateway to Central Asian and Middle Eastern markets for
Japanese firms. He also proposed the two countries jointly develop gas, coal
and copper in Pakistan.
Later in the day, Tarin also met with Foreign Minister Hirofumi Nakasone,
during which the Japanese minister emphasized the need for self-restraint by
both Pakistan and India to avoid further instability in the region following
the bombings in Mumbai and called for cooperation between the two sides to
tackle the situation.
In response, Tarin reassured Nakasone that his government will do its utmost to
arrest and penalize all suspects involved, Japanese Foreign Ministry officials
said.
Tarin's five-day visit to Japan ends Sunday.
==Kyodo