**Mitsubishi already shows interest in LNG export to Pakistan](Redirect Notice)… **
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Dar seeks Pak-China corridor-like package in Japan**
January 16, 2015/ 1 Comment
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ISLAMABAD/TOKYO - Minister for Finance Senator Mohammad Ishaq Dar has said that Pak-China economic corridor is not going to benefit China and Pakistan alone, but it will bring benefits to the entire region - to the Central Asian states, to India, to Afghanistan, and to other neighboring countries.
“Even Japan won’t have to go to the Gulf to get things done if this economic corridor from Kashgar [in northwestern China] to Gwadar [in southwestern Pakistan] is activated,” he told Nikkei Asian Review in an interview which is Japan’s leading economic journal.
“It’s a win-win for everybody. We are quite grateful for China’s support, which they announced. Now we are looking to Japan for an equal package, hopefully”, he added. Finance minister urged Japanese investors to take optimum benefits of the investment friendly policies and opportunities in various sectors of economy.
“China has indicated that they are willing to finance coal-based generation and if Japanese companies would like to come, they are most welcome”, he remarked.
Replying to a question about economic growth projections of Pakistan, the minister said that the economic position of Pakistan was fairly unstable [prior to the 2013 general election] and that’s why many international institutions stopped working with Pakistan.
But now the political party headed by Prime Minister Nawaz Sharif - the Pakistan Muslim League - had a very clear road map of how to make an economic recovery, he added. “Our fiscal year starts July 1. Soon after we took the oath [of office] in June 2013, we [pursued] very strong structural reforms to fix the economy. They’re always painful, but I’m glad to share with you that all of our macroeconomic indicators have shown very good performance”, he told the Japan’s Economic daily.
“We had almost an average [gross domestic product growth rate] of 3pc in the [previous] five years. But we pushed for over 4pc in our very first year. [We resolved] to make a full attempt to have GDP growth of 4pc, and the next year 5pc, the third year 6pc and the fourth year 7pc.
So our projected GDP growth is 7pc in the 2017 to 2018 fiscal year”.
Meanwhile, Dar called on Japanese Deputy Prime Minister Taro Aso here on Thursday where both the leaders discussed matters of mutual interest, including cooperation in the field of economy, trade and investment and agreed to increase economic cooperation between the two countries.
Dar highlighted the economic reforms undertaken by the government since June 2013 and expressed his satisfaction over the performance of the economy saying that “it had taken the right direction”.
He apprised Aso, who is also Japan’s Finance Minister, of the successful completion of five reviews by the IMF under the Extended Fund Facility Program and expressed optimism of completion of sixth review by February.
He dilated upon some of the challenges still facing the economy including shortfall in electricity generation, requirements of rehabilitation of TDPs and countering the militants.
He informed Aso that there was considerable interest in electricity generation using coal and LNG.
He further stated that Mitsubishi had expressed interest in energy projects in Pakistan provided financing from Japan Bank for International Cooperation (JBIC) was made available.
He opined that all friendly countries should participate in energy projects in Pakistan. Briefing Aso about some of the areas where Pakistan would welcome Japanese assistance, finance minister suggested that JICA may consider financing infrastructure projects, particularly in the transport sector.
JICA, he opined, should also participate in phase II of energy sector reform programme with possibly increased funding, while the Japanese government could also assist in the rehabilitation of TDPs.
He also suggested that JBIC should study in-depth Pakistan’s improved economy, particularly in view of Mitsubishi’s interest in investing in Pakistan’s energy sector. He also invited Aso to visit Pakistan, while also expressing the desire for a possible visit to Pakistan by the Japanese Prime Minister.
The Japanese Deputy Prime Minister assured that Japan would continue its cooperation with Pakistan. He expressed his happiness over increased stability in Pakistan and stated that with patience and steadfastness all problems could be overcome.
Ishaq Dar also met Ijima, Vice President of Japan Bank for International Cooperation (JBIC) at its Headquarters Thursday and discussed with him possibility of financing Japanese companies that are interested in investing in Pakistan.
He informed that his visit would have been incomplete without a meeting at JBIC and dilated upon the economic performance of the government in past 19 months, including five successful IMF reviews under the Extended Fund Facility Programme.
He informed Ijima of the positive response of the Japanese businessmen to the Pakistan Investment Seminar organized by the** Japan External Trade Organization (JETRO)**, as well as the JETRO plans to establish a 800 square metres Japan pavilion at the Expo Pakistan being organized in Karachi in end February.
This, he said, was proof that many new companies and businesses were looking to do business with Pakistan, some of whom may require financing.
The JBIC Vice President welcomed the finance minister and stated that it was JBIC’s responsibility to support Japanese companies that invested abroad.
He said that Pakistan, being a developing economy, needed concessional loans and assured that as Pakistan’s economy took-off, more and more Japanese companies would be interested in Pakistan.
Ijima informed the finance minister that JBIC financed Japanese companies on need basis and had no cap on financing in a particular country.
He assured that JBIC would study in-depth the economy of Pakistan so as to be ready for financing any Japanese company that may approach it.