Japan has lifted all economic sanctions on Pakistan more than seven years after the south Asian country's maiden nuclear tests, the two countries announced during a visit to Islamabad by Junichiro Koizumi, Japanese prime minister.

Pakistani officials said they expect to begin talks immediately on new loans worth Y16.4bn £80m) while more assistance would be sought during an expected visit to Japan by Mr Aziz later this year. But Japan failed to secure Pakistan's commitment to back away from opposing a proposed expansion in the UN Security Council. Farhan Bokhari, Islamabad