12 Apr 2009

Japan to give Pakistan $US1b in aid

6:44 am on 12 April 2009

Japan is finalising plans to provide Pakistan with up to $US1 billion in economic aid over the next two years.

The Nikkei business daily reported on Saturday the assistance would consist of yen loans and grant aid to finance infrastructure, education and job training.

The Nikkei said it is aimed at helping poverty-stricken areas that could become breeding grounds for extremists.

The paper said the details will be announced on 17 April at a conference in Tokyo that Japan is co-hosting with the World Bank.

Pakistan is seeking between $US4 - $US6 billion in aid pledges at the donors conference for financing over the next two years.

In November, Pakistan obtained an emergency loan of $US7.6 billion from the International Monetary Fund to stave off a balance of payments crisis.