Address by Mr. Khurshid M. Kasuri, Foreign Minister of Pakistan, at the Carnegie Endowment for International Peace, Washington, 11 July 2006 Pakistan: Promoting Peace, Security and Development Ms. Jessica Mathews, President of the Carnegie Endowment, Distinguished Guests, Ladies and Gentlemen! Thank you, Ms. Mathews, for the kind introduction. It is a pleasure to be at the Carnegie Endowment. I am grateful for this opportunity. We appreciate Carnegie s long-standing contribution both to public policy formulation and to fostering deeper international engagement on some of the key issues facing our world. I feel greatly privileged to speak to such a distinguished audience about Pakistan s role in promoting peace, security and development. My endeavor this afternoon would be to give you a sense of the profound transformation underway in Pakistan and to highlight our efforts in the foreign policy arena, in the domestic reform process and our contribution towards promoting regional and international peace and security. Domestic reform and renewal The present leadership in Pakistan firmly believes that strength abroad flows from strength at home. We have, therefore, been working tirelessly to build a solid domestic foundation to shape a favorable external environment for Pakistan. In the late 1990s, economic vulnerability, political instability, poor governance, rampant corruption, and institutional incapacity were an essential part of the narrative on Pakistan. We now have a fundamentally different reality in Pakistan. Our reform and national renewal efforts since 1999 have yielded concrete results. Today s Pakistan is economically resilient, politically stable, institutionally stronger, and a better governed country. Along with sound economic policies, we have been pursuing a policy of Enlightened Moderation which in President Musharraf s words envisages internal reformation in Muslim societies along with Western. We are closer to the vision of Quaid-i-Azam Mohammad Ali Jinnah, the founder of Pakistan, as a modern, progressive, democratic, Islamic state. The hallmarks of our economic reform policies are de-regulation, liberalization, and privatization. As a result, Pakistan is today among the fastest growing economies in Asia. We have maintained a robust economic growth pattern for several years now. The foreign exchange reserves are at all-time high. FDI inflows are unprecedented and projected to cross $3.5 billion this year as against 300 million a few years ago. Agricultural and industrial productivity is on the rise. Unemployment and poverty levels are declining. This momentum is being sustained with second-generation structural
reforms focused on institution-building, infrastructure development, and investment in human capital. A recent World Bank study listed Pakistan among the top 12 reformers in the world. Our toughest domestic challenge is religious extremism. We remain determined not to allow a fringe element to hijack our noble faith, steal the Quaid s vision, jeopardize our economic well-being, undermine our moderate outlook, and hurt our international standing. We regard this fight against extremism and terrorism as a battle for the very soul of Pakistan. We cannot and will not lose this battle. To combat this scourge, we are pursuing a multi-pronged strategy with military, political, and economic tracks. The strategy hinges on rejection of violence, enforcement of the rule of law, broadening of political participation, spread of education, and expansion of economic opportunities. An elaborate FATA Development plan for the Tribal areas of Pakistan has been designed, including initiatives like Reconstruction Opportunity Zones (ROZs). The effort is to wean vulnerable people away from the appeal of extremism. We are resolved to stay the course and will make sure these efforts are successful. It is our conviction that no enlightened society can thrive without the full participation of all its citizens. WE have, therefore, consistently endeavored to ensure the protection and promotion of women and minorities rights. These vulnerable segments of our society need affirmative action by the state. Many steps have been taken to safeguard their rights, protect them from discrimination, and enhance their status. Several other steps are in the pipeline. Notwithstanding some setbacks along the way, the overall trend remains encouraging. In sum, our domestic agenda is vast and ambitious. We still have formidable challenges like spreading the fruits of economic growth to the common man; strengthening the social sector, especially education and health; winning the battle against extremism; and enabling our women to realize their full potential. Yet, the trend lines are positive and consistently upward. The progress achieved thus far ahs created immense space for us to make a substantial contribution to international peace and security. In turn, our initiatives for regional and global peace give us the space and means to reinforce our domestic reform agenda. This is a mutually-reinforcing process that we are resolved to sustain. Core foreign policy principles The quintessence of our policy is what Quaid-i-Azam Mohammad Ali Jinnah emphasized as, Peace within, and peace without. We believe in an international system based on the principles of justice and fair-play, mutual respect and sovereign equality, peaceful settlement of international disputes, respect for inalienable rights including self-determination, an equitable economic order, and international cooperation for the larger well-being of mankind.
Pakistan is a nation of 160 million hardworking and enterprising people. We are strategically located at the confluence of three key regions: South Asia, West Asia, and Central Asia. Our human and material potential, strategic location, and vision of Pakistan s place and role in the world places a huge responsibility on us. We regard Pakistan as an anchor for peace and stability in the region and beyond. We are making efforts in all directions to build bridges of understanding, friendship and cooperation. Building durable peace in South Asia Durable peace in South Asia is essential if the nations of this region are to make consistent progress and achieve their full potential which is enormous. A necessary condition in this context is a stable, conflict-free, cooperative relationship between India and Pakistan. It is with this perspective that Pakistan has vigorously pursued the peace process with India. Over the past two years, the two countries have traveled a long distance from the dangerous eyeball-to-eyeball confrontation of 2002-03. Two rounds of composite dialogue have been completed and the third is almost nearing its end. Some progress has been made on Confidence-Building Measures (CBMs) and people-topeople contacts. Measures like opening bus services, rail links, and crossing points along the LoC are aimed at alleviating people s hardship and easing contacts on both sides. There are increasing cultural exchanges, sporting events, visits to religious sites, and interaction among civil society. All this has served to improve the atmospherics. While this is a welcome development, there has to be progress towards resolving outstanding issues. Forward movement is essential on the Jammu and Kashmir dispute, Siachen, Sir Creek and Wullar barrage. Meaningful movement towards conflict resolution is critical to the sustainability of the peace process. Pakistan has often underlined that we need sincerity, flexibility and courage on both sides. For our part, President Musharraf has been bold and imaginative in presenting ideas to break the logjam. His proposals on demilitarization, self-governance and jointmanagement have generated an enthusiastic response among the Kashmiris. We await a serious response from New Delhi. It is equally important, meanwhile, to improve the human rights situation in IOK a need acknowledged by Prime Minister Manmohan Singh himself recently. Ways must also be found to associate the Kashmiris with the peace process. Pakistan remains open to any ideas on this score. Our international partners have an important role to play. For far too long, the international community remained focused on conflict management in South Asia. Now is the time to shift the paradigm and work on conflict resolution. We welcome President Bush s commitment of U.S. support for a Kashmir solution acceptable to all sides. The
U.S. must use its considerable influence in the area in encouraging the peace process and facilitating a solution acceptable to Pakistan, India, and the people of Kashmir. This would serve the strategic interests of all of us and help transform the political and economic landscape in South Asia. Promoting peace and stability in Afghanistan It is almost axiomatic to say that Pakistan has a vital stake in Afghanistan s peace, stability, and prosperity. We are bound by the ties of faith, culture and shared history. Instability in Afghanistan has always had a deleterious effect on Pakistan. A stable Afghanistan, at peace with itself, is in our core interest. Since 2001, Pakistan has supported the Boon process, the Karzai government, measures for constitution making, and the elections in Afghanistan. We still continue to host about 3 million Afghan refugees. Pakistan is also contributing substantially to reconstruction in Afghanistan. We have pledged $250 million, of which $60 million have already been spent and $190 million earmarked for different projects. The projects assisted by Pakistan relate to infrastructure, education and health sectors, and human resource development. Our overall relationship has vastly improved. The two countries have exchanged almost a dozen visits at the level of Head of State/Government. A record number of agreements 12 have been signed within a short span of about 3 years. This is in sharp contrast with the past when 1 agreement was singed in 40 years. Our bilateral trade is expected to reach the unprecedented level of $1.5 billion. Pakistan has facilitated Afghanistan s entry into SAARC. These expanding ties in the political, trade, economic, and reconstruction fields provide the overall perspective in which the Pakistan-Afghanistan relationship must be viewed. The issue of security along the Pakistan-Afghanistan border indeed casts a shadow. We do not accept insinuations that Pakistan is responsible for instability inside Afghanistan after all that we have done to secure the border and the sacrifices rendered by our valiant personnel. We have over 80,000 troops deployed in this most difficult and inhospitable terrain. The forces have also entered the Tribal Areas for the first time ever. Over 80 operations have been conducted in the region, in which hundreds of Al-Qaeda and Taliban have been captured or killed. We have lost over 700 brave men. Still, our resolve remains firm. Against this backdrop, calls to Pakistan to do more are unfair particularly when securing the border is a shared responsibility. All sides must do more. The level and quality of information and intelligence-sharing has to be improved. We have taken a number of steps to foster coordination within the Tripartite Commission (TPC) and bilaterally with Afghanistan. To address the trust deficit, we are further intensifying cooperation within intelligence and political realms. It has been agreed to have monthly meetings between the Intelligence Chiefs and quarterly meetings between the Foreign
Ministers. I had the first meeting with my Afghan counterpart in Islamabad in June. I intend to visit Afghanistan son for the next meeting. It is important to take a holistic view of the situation in Afghanistan. Despite many challenges, Afghanistan has made commendable progress in diverse fields. The successful completion of the Bonn process is a very significant development. Afghanistan now has an enlightened constitution, an elected President, Parliament and provincial councils. The national institutions, with their capacity steadily improving, would contribute positively to stability in Afghanistan. The international community must continue helping this process. As reconstruction gathers pace, the economy improves, corruption and inefficiency are brought under control, and the menace of narcotics is addressed, things will stabilize. Taliban will find less and less support. The Afghan people want peace. They need progress and prosperity. They will not side with the forces of instability. For its part, Pakistan will continue to work constructively with international partners to address the myriad challenges faced by Afghanistan. Our vision of Pakistan serving as a corridor for the flow of trade, commerce and energy remains contingent upon durable peace and stability in Afghanistan. Fighting the war against terrorism As for the fight against terrorism, there should be absolutely no doubt that Pakistan s participation is fully consistent with our own national interests. We are not doing this at anyone s behest. President Musharraf has stated that fighting extremism and terrorism is essential for Pakistan s own security and development. Winning this fight is critical to the kind of Pakistan and the world we wish to bequeath to our succeeding generations. At the same time, we must ensure that fighting this war does not result in compromising our principles and values and that it is waged within the bounds of law and human rights. Pakistan has made a huge contribution. Our actions speak louder than words. Owing to our efforts, the terrorist network has been disrupted and many of its top leaders, as well as over 700 operatives, apprehended to be brought to justice. We remain firm in our resolve and commitment. As we move forward, it is important to work together at the international level to build capacity of states to effectively fight terrorism and address the conditions leading to extremism. Any credible international counter-terrorism strategy must address problems like poverty, disease, deprivation, dispossession and hopelessness. It should promote just solutions of long-standing political disputes. Forging cooperative ties between Islam and the West Since 9/11 we have witnessed a troubled relationship unfold between Islam and the West. Despite claims to the contrary, the gulf of misunderstanding continues to grow. President Musharraf had earlier cautioned against an iron curtain descending between the Islamic
and Western worlds. The troubling situations involving Muslims in various parts of the world, particularly the Middle East, accents the push towards a deeper divide. Provocations like the caricatures add further fuel to the fire. People of goodwill in all faiths need to come forward and build bridges of understanding. President Musharraf has proposed the two-pronged strategy of Enlightened Moderation as a way forward. Our focus in promoting this strategy has largely been in the OIC. We also wish to engage the west in a constructive dialogue leading to better understanding and effective cooperation. Pakistan with its counter-terrorism credentials and a prominent role in the Muslim world can help promote such understanding. We remain prepared to work with credible partners to promote inter-faith harmony. Addressing the treat of proliferation Pakistan fully recognizes the serious threat that proliferation of weapons of mass destruction poses to international peace and security. Let me reaffirm here at Carnegie this citadel of non-proliferation that Pakistan is firmly against proliferation. As a nuclear power, we view any further spread of nuclear weapons, sensitive technologies and know-how as undermining Pakistan s strategic interests. Pakistan s acquisition of nuclear weapons capability must be viewed in its historical perspective. Given the history of conflict and tension between the two countries, the nuclear test by India in 1974 posed a qualitatively new threat to our national security, obliging us to take counter-measures. We have developed nuclear capability only to deter aggression. After India tested again in 1998, Pakistan was compelled to test to demonstrate our capability and to ensure against any miscalculation or misadventure. Our test removed any ambiguity and restored the strategic balance. We fully subscribe to the doctrine of minimum credible deterrence. We have no intentions to engage in an arms race. Pakistan has proposed a Strategic Restraint Regime to India, and we hope India would consider it seriously. As part of global efforts against proliferation, Pakistan remains determined to prevent terrorists and extremists from acquiring WMD materials or know-how. We are part of the consensus in the Security Council that led to the adoption of Resolution 1540. We have effectively dismantled the A.Q. Khan network and helped curb the international nuclear black market. We have strengthened physical controls of our nuclear assets and instituted effective command and control mechanisms. We have adopted stringent export control laws and regulations to guard against any pilferage of sensitive nuclear materials and technology. Pakistan will never be the source of proliferation again. Meanwhile, our friends must understand that Pakistan can make a tremendous contribution to international non-proliferation efforts. But, we must be regarded as a partner, not a target. Exclusion and discrimination are counter-productive. Imaginative ways should be found to bring us out of the nuclear netherland and into the nonproliferation mainstream. Even IAEA Director-General Dr. El-Baradei has
acknowledged that the earlier approach of exclusion is no longer working. I am sure the non-proliferation expertise present here would come up with workable ideas on inclusion. On the US-India civil nuclear Agreement our position is well know. In our view, a package approach would have been preferable in addressing the legitimate civil nuclear energy needs of both India and Pakistan. Offering a corridor for trade and commerce Our strategic location at the cross-roads of South, Central and West Asia has shaped our vision to serve as a hub of trade, commercial and energy flows. Pakistan provides the shortest access to the seas fro the landlocked countries of Central Asia as well as to Western China through our ports at Karachi and Gawadar. We are looking at construction of gas pipelines from Turkmenistan to Afghanistan and Pakistan as well as from Iran to Pakistan and onward to India. We are also building road and rail networks so as to promote multi-sectoral linkages for intra-regional cooperation. This vision would fortify our economic reform process; contribute to progress and prosperity; better integrate Pakistan with the regional and international economy; and reinforce our various peace initiatives, particularly with Afghanistan. Besides developing the necessary infrastructure of ports and roads and negotiating import of gas and oil, we are seeking free trade arrangements with various countries/regions. Cumulatively, these projects should help us move closer to our vision. Fortifying relations with Major Power Our strategic partnership with some major world powers has enhanced our capacity to promote international peace and security. Pakistan s relationship with China is enduring and of strategic significance. The two countries have signed an agreement on Friendship and Cooperation, which will not only enhance bilateral relations in all fields, but also promote cooperation at the international level. Indeed, this time-tested friendship remains a critical factor for international peace and stability. Our engagement with Russia has qualitatively enhanced, culminating in President Musharraf s visit to Moscow and other recent bilateral exchanges. We hope to further deepen our cooperation across a broad spectrum of areas. The Pakistan-U.S. relationship is a critical component of the edifice we have built to promote international peace and security. The two countries affirmed a Strategic Partnership during President Bush s visit to Pakistan in March 2006. Earlier, Pakistan was designated as a Major Non-NATO Ally. These have strengthened the institutional basis of the relationship.
Under the Strategic Partnership, a Strategic Dialogue has been initiated and separate tracks opened to develop cooperation in energy, economy, education, and science & technology. The U.S. remains our biggest trade partner and is among top foreign investors. In 2003, we signed a Trade and Investment Framework Agreement (TIFA). Negotiations are continuing to conclude a Bilateral Investment Treaty (BIT). For the long-term, Pakistan is pursuing a free trade agreement with the U.S. U.S. economic assistance and support for social sector development has been notable over the years. The two countries are also working on initiatives like the Reconstruction Opportunity Zones (ROZs). We appreciate U.S. contribution to earthquake relief and reconstruction. Our counter terrorism cooperation is robust. Our defense cooperation is strong and growing. Pakistan and the U.S. have convergent interests on a whole range of regional and international issues including the fight against terrorism, stemming the proliferation of weapons of mass destruction, avoiding a destructive arms race in South Asia, peacefully resolving outstanding disputes including Kashmir, maintaining strategic and conventional stability, and promoting growth and prosperity in the region and beyond. Our strategic partnership with the United States provides a framework to further deepen and broaden our multifaceted cooperation in diverse fields and develop a strong, stable and sustainable relationship over the long term. Both sides must continuously work together to fight misperceptions and to ensure broader public support for strengthened Pakistan-U.S. relations.