Japan would need more funds than expected for starting its reconstruction work after it was being hit by a massive earthquake and tsunami. This report was been confirmed by Mohamed El-Erian, Co-Chief Investment Officer of top bond fund PIMCO on Thursday.

A significant amount of Japanese overseas investment market has strengthened the yen. There is a chance of possible repatriation.

"Right now people say there will be very little repatriation. I look at the numbers and I believe there will be more repatriation than the markets thinks right now", El-Erian, who helps oversee more than $1.1 trillion in assets at the Newport Beach, California-based firm, said in an interview with Chrystia Freeland, Reuters Global Editor at Large.

El-Erian has also claimed that there are forecasts that Japan would issue a large amount of debt in the coming years and mostly based on the Kobe quake in 1995. However, the debt situation of the country is very complicated than the previous scenarios.

The Japanese are very cautious regarding the present situation they are facing and are not taking any chances due to the scenario of the debt dynamics of the country.