President Asif Ali Zardari and Prime Minister Naoto Kan
February 24, 2011
Zardari’s Japan visit brings tangible benefits for Pakistan
ISLAMABAD, The visit of President Asif Ali Zardari to Tokyo has given a new impetus to bilateral relations as political and business leaders of Japan finalized proposals for investment in various sectors in Pakistan.
During his visit, President Zardari met with Japanese business leaders, who showed keen interest in making further investment in industrial, infrastructure, energy and railway sectors in Pakistan. Japan is the fourth largest investment partner of Pakistan.
During the visit, Tokyo offered over Rs. 14 billion interest-free loan to Pakistan for rebuilding roads and bridges destroyed in the devastating floods in Khyber Pakhtunkhwa. This loan is repayable after 40 years at a nominal interest rate of 0.01per cent and will be utilized for building 400 kilometers of rural roads, 120 kilometers of provincial roads and over two kilometers of bridges that were washed away during the floods.
President Zardari held talks with Japanese Emperor Akihito, Prime Minister Naoto Kan, Foreign Minister and Minister for Economy, Trade and Industry and explored avenues to strengthen the already existing bilateral ties in multifaceted fields.
The Japanese investors agreed to set up special captive power plants in a special economic zone and offered trade concessions to Pakistan.
The two sides agreed to begin joint ventures in food and agriculture, energy, water resources, infrastructure development and for establishing of a special economic zone near Karachi over an area of 2,000 acres for investment by Japanese entrepreneurs.
Emperor Akihito and Prime Minister Kan appreciated and recognized Pakistan’s role in the war on terror and noted numerous sacrifices of its security forces and people.
The visit laid the groundwork for a tripartite conference of corporate leaders of Afghanistan, Pakistan and Japan to further explore the prospects of joint economic collaboration in the border regions for the uplift of tribal areas as a means of fighting militancy.
For decades Japan has been assisting Pakistan in social, health and education sectors. Japan has also played a key role in holding the first meeting of Friends of Pakistan in Tokyo.
During his meetings, President Zardari stressed on establishing a regular dialogue mechanism at the level of foreign ministers, for enhanced market access through FTA and GSP plus trade concessions, educational and vocational training for FATA (Federally Administered Tribal Areas), enhanced Japanese ODA and support for upgradation of infrastructure in Khyber Pakhtunkhwa for facilitating trade on the Pak-Afghan border and beyond.
President Yamaha Motors told President Asif Ali Zardari during a meeting in the Japanese capital that Yamaha Motors Pakistan will spend $150 million and set up a new plant at a 50-acre plot in Bin Qasim.
Yamaha Company would bring advanced technology to Pakistan initially manufacture 22,000 motorcycles of 125-150 cc with EFI engines per year and during next ten years the annual production of its factory will reach 750,000. The project is expected to create 45,000 jobs.
Thursday,February 24, 2011
Special economic zone for Japan in Pakistan
Pakistan’s President Asif Ali Zardari speaks with Japanese Emperor Akihito at the Imperial Palace in Tokyo yesterday. Zardari is in Japan for a three-day visit.
Pakistan President Asif Ali Zardari and Japanese Prime Minister Naoto Kan have signed a joint statement that promises to take bilateral ties to new heights by deciding upon “a comprehensive partnership for peace and development through multifaceted economic co-operation” on the one hand and “strengthening co-operation in the field of defence” on the other.
According to president’s spokesperson Farhatullah Babar, the areas of multifaceted economic co-operation identified in the joint statement range from promoting private sector co-operation, joint ventures, food and agriculture, energy and establishment of special economic zones in Pakistan for investment by Japanese entrepreneurs.
President Zardari also used his visit to announce the establishment of a special economic zone for Japanese investors on over 2,000 acres of land near Karachi wherein special concessions will be offered to Japanese investors to set up industries.
Babar said the Japanese investors would be allowed to set up special captive power plants in the proposed special zone to meet their power needs.
They would also be allowed to export their produce from Pakistan to countries in the region.
The expansion of defence related co-operation covers “training of defence personnel and enhancing co-operation between the respective defence educational institutions.”
The joint statement also reaffirms that peace and prosperity in the South Asian region is vital for peace and prosperity across Asia and the world over.
Prime Minister Kan welcomed the agreement between Pakistan and India on the resumption of dialogue on all issues following the foreign secretary-level talks in Bhutan on February 6.
Babar said that President Zardari and Prime Minister Kan also witnessed signing of a $173mn soft loan agreement for the rehabilitation of roads and bridges in Khyber Pakhtunkhwa province of Pakistan that were swept aside by the floods last year.
The agreement was signed by Secretary Economic Affairs Division Sibtain Fazal and President of Japan International Co-operation Agency (JICA) Sadako Ogata.
The $173mn loan will be provided on soft terms at 0.01% per annum interest rate and is repayable after 40 years including a grace period of 10 years, Babar said. It is part of the $500mn already pledged by Japan in a meeting of Pakistan Development Forum last year.
Under the project 400km of rural roads, 120km of provincial roads and over 2km of bridges will be constructed throughout the province that were damaged during the floods.
The joint statement also pledges Japan’s continued support to the development of power sector, water resources and infrastructure in Pakistan.
Babar said besides holding summit level talks with Prime Minister Kan and signing the joint statement, the president also held a series of separate meetings with different Japanese political and business leaders including Foreign Minister Seiji Maehara, Minister for Economy, Trade and Industry Banri Kaieda, President JICA Sadako Ogata and President of Japan’s leading business and technological conglomerate Marubeni Corporation Teruo Asad and addressed Japan Pakistan Business Co-operation Committee.
The two sides also agreed to institutionalise mechanics for streamlining trade and commerce between the two countries to take economic partnership to even greater heights.
Babar said multiple messages were consistently conveyed to Japanese political and business leaders throughout the one-on-one and group interactions.
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