Emergency Economic Assistance to Pakistan

Following Prime Minister Koizumi's announcement on September 19 concerning the measures in response to the simultaneous terrorist attacks in the United States, Japan has decided on measures to assist Pakistan which were urgently needed.

1. Bilateral assistance

4.7 billion yen (approx. 40 million US dollars) will be extended in the form of refugee assistance and emergency budgetary assistance.

(notes)

(a) Refugee assistance (1.7 billion yen)
This aims to assist measures that deal with the many Afghan refugees who are already in Pakistan and those who are expected to come in the future. Emergency grant aid and food aid will be provided.Grass-root grant aid also will be provided through NGOs and others.

(b) Emergency budgetary assistance (3 billion yen)
In view of the risk of worsening chronic economic difficulties in Pakistan such as a serious shortage of foreign currency, Japan will provide financial assistance to purchase materials in order to assist Pakistan's structural adjustment efforts, which are being undertaken in consultation with the IMF and the World Bank.

2. Official debt rescheduling

Prompt rescheduling will be made based on the Paris Club agreement for Pakistan, which faces difficulty in repaying its debt. (note: The amount to be rescheduled is expected to be about 64.7 billion yen, equivalent to about 550 million US dollars.)

3. Assistance through international financial institutions

Japan will positively support and assist loans by the IMF, the World Bank, etc. directed toward alleviation of economic difficulties and poverty reduction in Pakistan.


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