Japan plans to host Pakistan aid conference

As part of moves to spur Islamabad to take on terrorist groups operating on its soil, a group of nations headed by Japan is proposing a multi-billion dollar aid package to Pakistan to stabilise its slumping economy.
    
Tokyo is proposing to hold a meeting of ten major industrial powers in late March or April during new US secretary of state Hillary Clinton trip here to finalise the package, official sources were quoted by Kyodo news agency as saying.
    
"Japan envisions the participation of countries such as fellow Group of Eight (G-8) member nations and China," Japanese Government sources said.
    
The International Monetary Fund (IMF) had last year decided on a USD 7.6 billion emergency financing package to help Pakistan meet its serious balance of payments difficulties.
    
But the Japanese government feels that the amount was insufficient and hopes to discuss at the conference additional aid to the country of around several billion dollars, the sources said.
    
Japan is apparently hoping that the move would help reinforce its ties with the United States, seeing that president Barack Obama has placed priority on stabilising Pakistan and Afghanistan as part of efforts to fight terrorism, the sources said.
    
Asked if Clinton would attend, a government official said: "Naturally, that is one of our assumptions."
    
A Pakistani diplomat in Tokyo said the conference would bring together countries in the so-called "Friends of Pakistan" -- a group formed last year to help consolidate democracy in the country.