Prime Minister Junichiro Koizumi told Pakistani President Gen. Pervez Musharraf on Wednesday that Japan is ready to extend billions in additional yen loans to Pakistan in response to Islamabad's request, a Japanese official said.
In a meeting at the United Nations, Koizumi also urged the Pakistani leader to promote democracy in the country.
A Foreign Ministry official said Musharraf expressed concern that talk of military action against Iraq could provoke fresh anti-American sentiment in Pakistan.
Koizumi told Musharraf that Japan plans to send an election-monitoring team to Pakistan to observe the national polls set for Oct. 10.