Japan has provided a $300 million credit line to Pakistan. It is the second new financial initiative to boost Japanese trade and investment in Pakistan in recent weeks.
The $300 million credit line was set up during a visit to Pakistan in mid-January by the Japanese International Trade & Industry Minister Ryutaro Hashimoto, a Ministry of International Trade & Industry (MITI) official in Tokyo confirmed. Hashimoto said Tokyo set up the credit for Japanese business people who were reluctant to put money into local enterprises and projects because of the high insurance premiums involved in covering their investments. He said that they could obtain 25 per cent of the premium from the new credit facility.
The MITI official said that Japanese investors had been considering investment in power stations and petrochemical plants. The new credit line would encourage them, he added.
It is the second large financial facility agreed with Japan recently. The Export-Import Bank of Japan (Jeximbank) signed an agreement with Japanese financial institutions in December to guarantee a $134 million loan for the HUB Power Company (MEED 13:1:95).