Japan asks Pakistan to allow import of vehicle manufacturing equipment

ISLAMABAD: Japan on Thursday asked Pakistan to allow imports of manufacturing equipment of vehicles as the lingering dollar liquidity crunch has severely impacted the release of letters of credit (LCs) of Japanese companies operating in the country.

The Japanese companies are also working on establishing plants for making hybrid vehicles in Pakistan and planning to ensure exports from Pakistan in the future.

According to an official statement issued by the Ministry of Finance on Thursday, Wada Mitsuhiro, the Ambassador of Japan, called on Federal Minister for Finance and Revenue Senator Ishaq Dar at the Finance Division. Shinji Yanagi, Vice Chairman Toyota Co., SAPM on Finance Tariq Bajwa, finance secretary and senior officers also attended the meeting.

Finance Minister Ishaq Dar briefed him on the economic challenges and priorities of the government. Dar further said Japan is one of its major development partners, adding that the cooperation will strengthen in multiple fields for the mutual benefit of both countries. He also highlighted potential opportunities for investment in Pakistan and welcomed the investment plans of Japanese companies.

Ambassador of Japan Wada Mitsuhiro lauded the pragmatic policies and actions of the government, saying that Japan greatly values its bilateral relations with Pakistan. He expressed confidence in the economic policies of the current government.

Meanwhile, a World Bank delegation headed by Mamta Murthi, Vice President of the World Bank for Human Development, held a meeting with Finance Minister Ishaq Dar at the Finance Division.

Murthi emphasised the importance of investing in human capital, particularly in education, health and nutrition, social protection, population control, and women’s development. She also highlighted the importance of local ownership and community participation in implementing development projects.

Murthi shared her views on the best human development practices being followed in the region and expressed the desire to initiate the same practices in Pakistan as well.

The finance minister apprised the vice president of the government’s policies and programmes related to key areas of human development in order to uplift the masses and eliminate poverty in the country. He also expressed the commitment of the government to work in collaboration with the World Bank to achieve their shared goals of sustainable development in Pakistan.