Prime Minister Junichiro Koizumi hinted Tuesday that he may lift Japan's more than three-year-long freeze on new aid to Pakistan to help it fight terrorism in the U.S.-led coalition.

"In terms of assistance to Pakistan, I think we can deal with it differently from other countries," Koizumi told a joint meeting of the House of Councilors' foreign affairs, defense, transport and Cabinet committees.

"When we think about the turn of events after the terrorist attacks (in the United States), we must also think about economic aid," he said.