TEHRAN Japan vowed Wednesday to live up to its pledge to put tough economic reforms at the top of its agenda even if its G7 partners step up pressure to give top priority to recovery efforts.

Junichiro Koizumi, who is due to be voted in as Japan's new prime minister today, is expected to appoint a new finance minister the same day, ahead of a ministerial meeting of the Group of Seven industrialized nations in Washington this weekend.

The new finance minister would "present the views of the new cabinet regarding macroeconomic policy and structural economic policy, including financial sector policy," AFP quoted a senior Finance Ministry official as saying.

The official, who requested anonymity, told a group of foreign correspondents that Tokyo was ready to brush aside any G7 pressure to put more efforts on recovery than reform.

"Even if G7 colleagues are saying that restructuring and structural reforms should be avoided, perhaps a new government would implement the necessary structural measures," the official said.

Koizumi, a champion of reform, has pledged to concentrate on cutting the swelling national debt, even at the risk of a further slowdown of the nation's economy.

Asked if he was considering an extra budget to boost the economy, the 59-year-old leader said Japan was not in a position to consider such a measure.

Calls are growing for an additional pump priming budget with recent economic indicators showing continuing dim prospects for the Japanese economy.

Analysts and government officials said the G7 was likely to greet favorably a series of drastic monetary easing measures unveiled by the Bank of Japan last month and that the G7 was unlikely to seek further monetary easing steps.

"The BOJ has taken measures to help stave off deflationary concerns and I think the G7 will welcome the steps," Trade Minister Takeo Hiranuma said last week.

But they said the G7's reaction to the government's economic package unveiled earlier in April, which include the setting up of a stock-purchasing entity funded by public money, could be less positive.

Former top financial diplomat Eisuke Sakakibara said on Friday that the government package lacked substance.

"(The G7 nations) are expected to raise many questions about the package. Also there could be much criticism about the planned stock-buying institution."

On March 19, the BOJ's Policy Board decided on a quantitative easing that aimed to increase the volume of financial institutions' current account deposits parked at the BOJ to five trillion yen from about four trillion yen.

The BOJ has pledged to maintain the current policy until consumer prices stabilize near zero percent. Consumer prices have been negative for two consecutive years.