JOURNAL SOUTH
ASIAN
The macro-economic indicators for Pakistan are all positive. The investment climate is attractive; the Stock Exchange is buoyant and interest rates are down. The exports and foreign exchange reserves are healthy. Fiscal deficit is contained at 3.3 per cent of GDP. Per capita income has risen to US$ 650 and is destined to go higher. This year the GDP was 6 per cent. We have undertaken across the board reforms in our financial and banking sectors and many foreign banks are operating in the private sector. Pakistan is now out of the IMF-PRGF and in fact returned -- with thanks -- two tranches offered by the IMF recently. Pakistan is accessing global capital market. Last year Pakistan floated its first Euro bond. And Pakistan's rating has improved since to B plus. Our privatisation program has progressed well. Major banks have been privatised. The telecom sector is being de-regulated. Mobile telephony has seen a quantum jump. A new paradigm has been introduced to encourage the private sector to leverage the opportunities for commercial and economic activity. The government's role is now only confined to that of a policymaker. We have left the entire business activity with the private sector. The government is also paying greater attention to the social sector. Education is high priority as is agriculture. Major infrastructure projects are taking shape in the form of electricity generating powerhouses, ports, and road and rail networks. Pakistan is well positioned geographically to emerge as a commercial hub for landlocked Central Asia and beyond. Our experience in Afghanistan has been very encouraging. Our trade with Afghanistan has reached US$ 1 billion mark and is growing. Our banks have opened branches in Afghanistan recently. This has further generated economic and commercial activity between Afghanistan and Pakistan. The Karakoram highway links us overland across the Himalayas to China. Our seaports are equidistant from Europe and the Far East. We are, therefore, paying special attention to becoming an important trans-shipment point for flow of goods and resources especially energy. The port of Gwadar has created history. From the beginning to the end it would be completed within three years. We are conscious of our geo-strategic and geo-economic significance. We are equally conscious of our credentials as a progressive, moderate Islamic state, which can be a model to other countries. We are committed to pursuing the policy of enlightened moderation at home and abroad, a policy discussed and introduced to the world, and particularly the Muslim world by the President of Pakistan, Mr. Pervez Musharraf. We believe that at this critical juncture of contemporary history, it is important to debunk the theory about clash of civilisations. I have no disagreement with Huntington but I disagree with his concept of clash of civilisations.
JOURNAL SOUTH
ASIAN
adjoining regions. A vision of peaceful cooperation must imbue our efforts to leverage the full potential of South Asia for progress and development. As Chairman of SAARC, Pakistan has been pro-active in promoting regional cooperation. There is a clear recognition all around that SAARC's success is a function of Pakistan-India relations. When Pakistan-India relations seem to be on the mend, SAARC moves up. Whenever Pakistan-India relations get cool, SAARC becomes inactive. Both regional and bilateral processes are mutually reinforcing. On the bilateral track, the CBMs and Composite Dialogue process with India have been sustained and should be made more substantive and purposeful. Pakistan is prepared to make its earnest contribution to the success of these endeavors. We need to move from tactical to strategic discussions. This is a process that has already started. Pakistan-India relations are not ordained to remain adversarial perpetually. A sense of confidence in our common destiny coupled with the courage to take bold decisions to turn the corner is required. It is time for a strategic re-think. It is time to move away from rigid mindset. We must be realistic and pragmatic. The time has come to bridge the trust deficit. Both sides must move away from conditioned reflexes to open new avenues and cover fresh ground in our bilateral relations. We must learn from history and experience of other nations in managing our region and our relations. We need to seek just and durable solutions of all outstanding issues including Jammu and Kashmir. It is time to accommodate in full the aspirations of the Kashmiri people. This is an imperative of justice, history and democracy. My visit to New Delhi last November has been useful. The dialogue we have had with Indian leadership has been very constructive. I have conveyed to the Indian leadership that Pakistan sincerely desires peace. We want good neighbourly relations based on sovereign equality. We have the courage to take bold decisions to move the relations forward. We must think 'out of the box'. By adhering to old mindsets the present opportunities could easily be lost. If India takes a step forward, Pakistan will respond by two. We will demonstrate flexibility, if India chooses to show the same. In short, we are sincere and serious and expect this to be reciprocated. Let us both prove the pundits of gloom and doom wrong. A new beginning, a new dawn awaits the peoples of South Asia. Let's work together for a promising tomorrow.
Pakistan, today, is engaged simultaneously at home and abroad on defending basic human values and to avert conflicts and crises. Our role in countering terrorism is well acknowledged and appreciated. We are committed to promoting peace in our
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