Interactive Meeting with H E Mr Shaukat Aziz, Hon'ble Prime Minister of Pakistan
November 24, 2004 - New Delhi

Address by HE Mr Shaukat Aziz, Hon'ble Prime Minister of Pakistan

President Confederation of Indian Industry,
Chairman, FICCI,
Excellencies,
Ladies and Gentlemen.

It's a special pleasure to visit New Delhi. I am grateful for this opportunity to speak to the Captains of Indian business and industry.

I bring to you and the people of India greetings and good wishes of the people of Pakistan.

After nearly half a century of acrimony and tensions, Pakistan-India relations are now on historic cross-roads.

With sincerity and courage borne of conviction that our destinies are indeed intertwined, both countries can open a new chapter of friendship and cooperation.

The twenty first century must be a century of peace and prosperity for South Asia.

The global and regional situation has undergone a major transformation. Both Pakistan and India need to factor in the new realities.

Neither Pakistan and India nor our region as a whole, can afford to dissipate our energies in mutual squabbles.

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.

Both regional and bilateral processes are mutually reinforcing. On the bilateral track, the CBMs and Composite Dialogue process have been sustained and should be made more substantive and purposeful.

Pakistan is prepared to make its earnest contribution to the success of these endeavours. We need to move from tactical to strategic discussion.

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 mindsets. We must be realistic and pragmatic.

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 to all outstanding issues including Jammu and Kashmir.

It is time to accommodate in fall the aspirations of the Kashmiri people. This is an imperative of justice, history and democracy.

It is time to think "out of the box" both in India and Pakistan.

South Asia, home to one-sixth of humanity, cannot remain indefinitely mired in poverty and affliction. We have the resources, talents, skills and industrious peoples. We have the ability to turn South Asia into an economic powerhouse of the world.

The greater Asia-Pacific region has witnessed major advances. The world's economic centre of gravity is fast shifting to Asia.

Our continent is seeing important processes of regional and sub-regional economic cooperation. North East and South East Asia are forging cooperation in trade, investments and technology.

China, Japan, South Korea and the ASEAN are major success stones in terms of economic and technological advancement.

These countries have been able to benefit from the processes of globalization and have positioned themselves to optimize gains.

The resource rich regions of Central and West Asia are also embarked on important cooperative ventures epitomized by the Shanghai Cooperation Organization, the Economic Cooperation Organization and the Gulf Cooperation Council.

Pakistan is situated in South Asia, Central Asia and the Gulf regions simultaneously. Our strategic location makes it possible for us to play a critical role in advancing cooperation in these regions and we are determined to contribute to their peace, stability and prosperity.

We are forging close cooperative links with all these regions. We want to build positive links with the process of globalization and believe that regional cooperation is a necessary ingredient in maximizing dividends in an increasingly inter-dependent world.

Pakistan has worked towards the creation of South Asia Free Trade Area. We have also started consultations to enter into preferential tariff and even free trade arrangements with several important economies of the Asia-Pacific region.

Pakistan will host the Ministerial Meeting of the Asia Cooperation Dialogue in Islamabad in April next year. Pakistan and India can together contribute to the success of the ACD enterprise. A major theme at the Islamabad ACD is Economic Cooperation in Asia.

As Chairman of SAARC, Pakistan has made efforts towards the realization of its goals.

Enormous challenges confront South Asia. It has the largest number of poor in the world; FDIs at a low level but a vast unrealised potential.

Central to SAARC's functioning is the Pakistan-India equation. The recent improvement in atmospherics between Pakistan and India helped propel the process of regional cooperation in South Asia.

Under SAARC we are coming together in trade with SAFTA that is MFN Plus. We are also working towards Customs cooperation; setting up an Arbitration Council; working instrument on Avoidance of Double Taxation; and on promotion and protection of Investments.

SAARCFINANCE enables the heads of our Central Banks to develop closer understanding and cooperation. There is also the overarching objective of poverty alleviation as well as mechanisms for technical cooperation. Social Charter sets the regional markers for lifting the quality of life region wide. In SAARC we should share best practices and create mutual dependencies and linkages. All this would create South Asian dynamics for growth and development.

On the bilateral plane there is a lot that can be done. To begin with the Gas pipeline project could be a huge economic CBM. We envisage this as stand alone project of great significance.

We believe that both Pakistan and India can gain a lot by cooperating in the field of energy. We can offer India an energy corridor, if it so wants. We could promote tourism and trade.

Bilaterally, India has a huge advantage in terms of balance of trade. It is important to identify reasons that make it difficult for Pakistan to get market access in India. We hope that the Economic Experts Committee would be able to deal with these issues effectively. It is important to create a level playing field and facilitate private sector interaction.

Investments and joint ventures could take-off in a big way if we are able to create an enabling political environment of peace, stability, trust and confidence. We should work towards attaining these objectives.

Resolution of the Jammu and Kashmir dispute would create the requisite political framework conducive to closer economic cooperation.

I discern distinct warmth in sentiments in Pakistan and India to engage constructively.

Constructive engagement requires vision, sagacity and purpose. There is a huge area of convergence. Divergences can be minimized.

The parameters of engagement, as far as Pakistan is concerned are simple and straightforward.

We must cultivate good neighbourly relations.

We must respect each other's sovereignty, territorial integrity and base our relations on sovereign equality.

We should respect the principles of non-intervention and noninterference.

We must endeavour to win each other's trust and confidence.

Respect for these basic principles of inter-state conduct are the safe and sure foundation in which Pakistan-India relations will thrive and prosper.

Pakistan looks forward with confidence to engaging India on the whole range of issues.

Pakistan and India must lead South Asia to new horizons of economic development. Our basic economic indicators are impressive. India hopes to pick up its economic growth rate. We also expect our economy to accelerate.

The macro-economic indicators for Pakistan are all positive. The investment climate is attractive. The Stock Exchange is buoyant. Interest rates are down. The exports and foreign exchange reserves are healthy. Fiscal deficit is contained at 3.3%. Per capita income has risen to $ 650.

We have undertaken across the board reforms in our financial and banking sectors.

Pakistan is now out of the IMF-PRGF and in fact returned with thanks two tranches offered by the IMF recently.

Our privatisation programme has progressed well. Major banks have been privatised. Telecom sector is being de-regulated. Mobile telephony has seen a quantum jump.

The Government is paying greater attention to the social sector. Education is high priority as is agriculture. Major infrastructure projects are taking shape in the form of new powerhouses, ports, road and rail networks.

Pakistan is well positioned geographically to emerge as a commercial hub for landlocked Central Asia and beyond.

The Karakoram highway links us overland across the Himalayas to China. Our excellent seaports are equidistant from Europe and the Far East. We are, therefore, paying special attention to becoming an important trans-shipment point for the flow of goods and resources especially energy.

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 others.

We are committed to pursuing the policy of enlightened moderation at home and abroad. We believe that at this critical juncture of contemporary history, it is important to debunk the theory about clash of civilizations.

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 adjoining regions.

I believe that Pakistan and India together could do much more for the cause of global peace, stability and development.

We have a long road to traverse. I believe a good beginning has been made. Let us jointly set out the direction, guided by an enlightened vision of the future.

My visit to New Delhi has been useful. 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. The Jammu and Kashmir dispute must be resolved peacefully. It is important to associate the Kashmiris and to respect their legitimate aspirations.

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.

My visit has hopefully contributed to re-invigorating the Pakistan-India process.

Let us both prove the pundits of gloom and doom wrong. A new beginning, a new dawn awaits the peoples of South Asia. Lets work together for a promising tomorrow.

Thank you!