 Japan recognized Bangladesh within two months on 10 February 1972, inviting more Pakistan’s criticism.Half of Japan’s loans were consumed in East Pakistan and it refused to honor and payback those loans as Japan recognized Bangladesh before Pakistan made any decision.Moreover, Pakistan’s anti-West stance in the 1970s under the dynamic leadership of Prime Minister Zulfikar Ali Bhutto and his industrial nationalization policy resulted in the decline of Pakistan-Japan diplomatic interaction and decreased the interest of Japan entrepreneurs towards Pakistan.