Posted by: Administrator | 17 January, 2005

3rd National Security Workshop at National Defense College

12 February 2004

Ladies and gentlemen, Assalam-o-Allaikum!

It is always a pleasure for me to be addressing the inaugural session, of the third national security workshop. I have addressed the previous two also. I would like to right away commend the National Defense college for the very successful completion of the, first. .two workshops. The feed back is excellent. So, therefore, continue to hold new workshops on an annual basis. I think we will have three workshops this year that is very good. I only hope that the participants of this national security workshop will comprehend the entire ambit of the national security and also that behind this workshop rewarding for themselves in acquisition of knowledge and understanding. National security issues.

I seriously feel that, there is a lack of understanding. Therefore, I think this contribution of the National Defense College in its understanding of national security matters is extremely critical. I am also very glad that the participants of the national security workshop include Senators, MNAs and, MPAs, Nazims, Businessmen and bureaucrats about 65 this year. There were 70 last year. I am very glad that there are lad es also we could have better gender balance and I am very glad that, there are so many ladies participating. I am also very glad that this group contains politicians from all the parties and addressing politicians from all parties, I would like to leave a food for thought for you right away.

Before I start talking. When one realizes national interests I feel, there are two urges that move a person, an urge of luck for the nation, patriotic urge, it is in all of us. We love our nation. We love this country. All of us love this country. We don’t want to bring harm to it. We want this country to prosper and progress. We love it. Also urge of disliking an individual or a group or a government, hating an individual, or a group or a government is also an human urge. May be I also hate some people but when you are in the leadership role, a time comes when you have to balance out, if a situation can bring harm to the nation. If you are hating a person, which urge should be stronger it should be your love for the nation. Urge which urge. I feel always stronger urge should always be love for, the nation So, if your hate for an individual or a group or a government I going to harm the nation, you should stop. That should be the limit to your hate or dislike otherwise I think there will be an imbalance There is a conflict that you are going to harm to the nation because you dislike an individual.

I believe in that I leave this as a food for thought for any one who are sitting in here which ever party he belongs to. 2 I would say on this nuclear proliferation issue. I think people have lost the sight. Is their dislike a person? May be dislike me is stronger, dislike me is stronger. There are prepared harm the nation, to carry on trying to harm the nation I leave this as a food for thought never should happen that nation comes first. Love for the nation comes first and whatever it is conflict with your hate to an individual, always give preference to love the nation. Right Come to the subject now, ladies and gentlemen to my mind national security is the ability of any nation to be fully sovereign and when I say fully sovereign what do we imply?

We imply then it should be able to defend its vital interests, it should be able to preserve its physical integrity, it should be able to maintain relations with other countries of the world on the honorable sovereign basis, on a basis of sovereign equality, it should also be able to protect its institution and governance from destruction. This is how I feel the issue of national security should be the requirements of perquisite of being a sovereign. Within this may you have seen the national security implying ability of a nation to be a fully sovereign. Two words emerge security and sovereignty. Now security I would like to explain each one because I need a very realistic understanding.

You need to have realistic understanding of the two items “security and sovereignty”. First of all total and absolute security I think is never possible. I mean 9/11 proved that sole super power of the world is not secure. So, therefore total security is never possible. Absolute and total sovereignty is also an illusion. Every country is living in a global village depends on the other countries and its sovereignty is very relative in its own economic strength, its own strength and its own dependence on others. So, therefore absolute sovereignty is also remaining an illusion. I would like to state one step further then an economically weak nation can never aspire for full sovereignty. Also a point to note for all of you operating within the world power equation limits sometimes have to be accepted on country’s sovereignty as a least level. Must note this point and all the issues confront Pakistan specially, one should always remember one point, I am making that operating within the world power equation limits sometimes have to be accepted on country’s sovereignty as a leaser level, always keep this thing in mind.

Ladies and Gentlemen: National security rests on two pillars, track is the same, a nation’s military strength and its economic strength and national security is threaten extremely and internally from outside and from inside. I would like to speak on each of them. By the grace of Allah militarily Pakistan is strong. Pakistan follows a strategy of minimum deterrence on conventional and non- conventional fields. We have quantified minimum deterrence into force level conventional and unconventional and that which we maintain always in order So, to present a no will situation to. any enemy :that threatens Pakistan and that is the minimum deterrence level that: I am speaking of So; therefore, war is prevented through presenting a. no will situation to an enemy, through maintaining a quantified deterrence level, conventional and unconventional. So, this is the way, we preserve our national security from external threat Alhamdolilla, we are maintaining this.

We, the armed forces of Pakistan are maintaining this Deterrence level and retaining this capability: of security of Pakistan from external threat I would like to give a word in continuation of sovereignty and the ability as it implies 3 preservation or security of vital, interests. 1 would like to say a few words on interests because I think in the nation sometimes we confuse this also. As you all know all, strategies, all policies of various government functions flow from the national purpose and national interest which needs to be crystallize. Any nation must crystallize what are its national interests and from that flows its national aims and objectives to attain those national interests. and once you have formulated your national aims and objectives,: you formulate base to attain those aims and objectives, various policies and strategies whether it is foreign policy or military, policy, defense policy or economic policy or industrial policy or anything but coming to interests all nations must define.

Ladies and gentlemen, There are two types of interests. One can say, our vital national interests, which are never to be compromised. Nations go to war when those vital national interests are threatened. We must identify our vital national interests which that we will never compromise and I keep saying this all along in my speeches we can never compromise on the Kashmir cause. We have to resolve it peacefully. We cannot compromise on our strategic assets because that gives us national security from external threat. These are our vital national interests. All others are interests, which are adjustable, which are changeable according to environment. So, if anyone says oh, we were behaving in a certain way in Afghanistan. Now we are behaving and doing, obviously, yes, why not what is the problem? The whole world like that. You maintain your own interest and you move along in accordance with international, regional environment changing, preserving your interest. You formulate your response. So, these interests are adjustable according to environment and so should Pakistan keep doing that. One should hot think that all interests minor, major are now changeable that is the very rigid and naive understanding of interests.

You have to identify your vital national interests, also there. They remain as long as their environment remains constant. They change when the environment changes. Now I would like to share with you the three years’ experience that I had and also the state of Pakistan now since 1999. So, in the last four years because this is now what we are talking of security from internal destabilization. I have spoken about security from external threat. I would also like to give this out because we here in Pakistan suffer from short memories.

I would like to talk of things, which we had confronted and we have now put behind. I think in 1999 when I came into governance Pakistan’s state of national security from the internal threat was terrorists. We were almost being declared a failed state or terrorist country and we have no resources to rectify the ills of the economic failure of Pakistan. The military pillar was sound but with the developments, with the increase in the threat potential, we lack the resources to correct the disequilibrium to maintain that deterrence level. We lack the resources to carry on maintaining that deterrence level that we believe.

We have defaulted with economy, with a foreign exchange reserves of, (with the government or State Bank) only about 300 million dollars which were two weeks of imports and they say for a stable economy. A country’s foreign exchange reserves should be of .6 months; Foreign exchange reserves of about 6 months imports is good foreign exchange reserves. We are only two weeks equal. Debts were 4 soaring at 1-1/2 billion dollars per annum, they had crossed 38. There were about 38-1/2 million dollars. As a result of which debts service was 64 percent of our national annual budget, leaving only 36 percent for development, for defense, for establishment cost. Our fiscal deficit was high which means our expenditures were much higher than our earnings. They were around 8 percent. In fact some years back in the 1990s there were about 10 percent fiscal deficit. Our budgetary current account deficit or balance of payment was in deficit by about 5-1/2 billion dollars annually. As a result of which we had to borrow money to pay 5-1/2 billion dollars every year and when we borrowed money, we increased our debt services liability that means the percentage of debt service to the budget was kept rising 64 percent, it could have kept rising, crossing 70 percent and that much lesser money available for you to development and anything that you want to for the nation. So, this was basically the state of the economy very briefly.

It was highly unsatisfactory and our sovereignty that much was compromised because of the weakness of our economy. So, major internal threat was posed by the weakness of our economy Now, I would like to very briefly recount what we did and what we have achieved. If you remember, we selected four areas of focus. In December 1999, we selected these areas; economic revival because that we posing the internal threat, threat of being declared a failed State, bringing good governance into Pakistan because all corporations, all institutions had collapsed. NA, Steel Mill, National Shipping Corporation, Railways, everything had collapsed. They indebt billion of rupees and were losing billion of rupees per annum. So, therefore, good governance could be brought to turn them around.

Poverty alleviation, third, poverty was rising, is steering. We are only able to check it a little. We need to turn it around and lastly political restructuring. We selected these four areas of focus. Let me take the most important pillar of the economy, because this was creating the internal threat of a failed state. First of all the route to everything was three areas, on which we focus now.

􀂏 We thought we must control our fiscal deficit, control our expenditures, and increase our earnings. We managed that, we brought it down to 4.6 percent and we hope to take it down further. This is a key, you must tailor your coat according to cloth as they say you must spend as much as you earn. So, this fiscal deficit gap was reduced.

􀂏 Secondly, debt was issue. So, we struck at reduction on debts and, therefore, reduction in debts service. So, we went for rescheduling through the Paris Club. We asked for debt write offs. So, therefore, through debt write off, through debt rescheduling in the Paris Club and through our own efforts to return debts. Alhamdolilla now the debt stands at 33.5 billion dollars from 38-1/2 and we will pay one billion dollars more this year Insha- Allah with no affect on foreign exchange reserves. So, through this achieved reduction in the debt service liability from 64 percent of the budget, we are at 30/3 1 percent. We hope we will reach under 25 percent this year. So, we have over 40 percent additional amount 5 available for our development, for Pakistan needs. This was the second area that we struck and Alhamdolilla, we succeeded.

􀂏 The third area turned the balance of payment around. Every year if you are to borrow 5 billion dollars to pay your debt service will keep increased and you will keep going down. You will keep getting into the phobia. So that had been changed. Alhamdolilla, we changed it. Balance of payment which was suffering deficit of 5 billion dollars, last year was changed to surplus of 2 billion dollars roughly.

How did we achieve that? Through reduction of debt servicing, and increasing our exports and increasing our remittances. Remittances from abroad increased, our exports increased, our earnings our exports crossed 11 percent, remittances 4 percent. So, we crossed 15-1/2 billion dollars earnings. Our expenditure of imports and debt servicing reduced to 2-1/2 billion. I think, roughly, imports increased from 11 to 13-1/2 i.e. 2 billion dollars surplus. This is the third achievement or key area which affected the economy. So, fiscal deficit, debt servicing, debt reduction and balance of payment deficit changed into surplus.

These were the three areas in which we have greater successes, which turned the economy around. Therefore, our foreign exchange reserves now have increased and crossed 12 billion dollars. This is 12 months of imports. I said a stable country is said to be able over 6 months imports. We have 12 months of imports available with this foreign exchange reserve.

The GDP is doing well. It was not doing well in the past. It was 5.1 percent last year. This year we fixed the target at 5.3 percent but very positively we will cross 5.3 percent. We will cross it well beyond Insha -Allah. It is quite good and now good enough. We must cross 6 percent and must be around 7 percent. Our exports and our revenues are at a record high. Alhamdolilla, they continued to be doing well. We fix the target of over 12 billion dollars for export Insha -Allah, we will cross that. First 6 months indicators are excellent. So, there is no tukkabazi going on it. First 6/7 months are excellent. So, we are deadly sure that we will cross 12 billion dollars. Revenues, we have fixed 510 billion rupees from 460. In 1999 we were at 200 billion rupees we took it to 460 billion surplus i.e. 260 rupees more in these three years and now another 50 billion jump, Alhamdolilla, the first 5 months is excellent. We will attain the 510 billion rupees revenue target. So, we are doing very well.

A stock exchange you know what it is doing? It sometimes, worries me also because it is doing so well. Credit taking is going up, much better, exchange rate consistent, rupees strength is consistent and consistency of foreign exchange rate. Is very good from investment point of view. So, the economy has done well.

We are interacting with the international entrepreneurs. I am making all possible efforts that are why I went to Devos that is why I go around, wherever, I think, the business community will come here. I get there business community and there were 7800 people gathered, all business community. In China, Japan, Malaysia or anywhere I go to draw, I try investment. We will draw investment Insha-Allah They will come. 6

We want to issue two licensees for mobile telephones. There are 33 applicants today. The top companies of the world want to come to Pakistan. You will see in a month or two Insha-Allah and there is lot of feed back on people corning to invest. Unfortunately, investments were shied away because of poor policies. Prime Minister Shu Rong Jee Words give a digressing a little he has a statement on investment and he said like pigeons, your government takes wrong policy decisions like freezing of foreign exchange i.e. your foreign currency account etc. All investments, all the pigeons fly together, they run away. When he wants to thaw them back, they come one by one. They don’t come together. So, we are trying to give Dana, Dana dal UN KO. We are trying to do so to get them back one by one. So, they are coming. Insha-Allah they will come. If we continue on the correct economic path, they will keep coming. I am very sure.

We are emphasizing on the power sector, a cruelty done to this nation was in the power sector through going for fourteen IPPs in 1994 at the cost of 7 cents per unit which comes to five rupees or 4-1/2 rupees per unit. While from water you can generate electricity at 70 paisa per unit almost 1/10th from coal, from gas similar. Certainly we have got gas, we have got coal, we have got water but we went for oil and at exorbitant rate. We are getting electricity from Iran in the coastal belt at 3 cent now. In 1994 we were given for 7 cent and we are getting it at 3 cent now. In 1994 we were given for 7 cent. It turned the ratio of electricity from 60 percent water and 40 percent oil to 70 percent oil and 30 percent water. This killed us and that is what they are killing the nation when they says electricity ke keemut Ziada hae to kia kia jae. We are trying to turn that around. It will take a little time; by concentrating on hydro electricity, coal and gas in this regard 10 percent difference has been made through Ghazi Brotha completion. Oil has been reduced from 70 to 60%. We will carry on doing this. A number of hydro electricity projects, Thar coal projects, converting a maae to gas that are continuing. So we want to change this ratio around again so that we can reduce the cost of electricity.

So that business in Pakistan becomes cheaper. Industry in Pakistan becomes more cost effective. We are doing that. We will do it. In a few years it will happen and I am very sure that in a few years we must reduce the cost of electricity. We will do it. Gwadar port is coming up. I don’t want to into details it will boost our economy because we will have that as free economic zone and give special facilities and incentives.

Lastly, PSDP, (Past Structural Development Programme) road, rail, ship making the ports and also increasing allocation for the social sector. Which means education and health? So, all the PSDP focus is on poverty alleviation and economic revival both together, they go in hand and gloves that is for economic revival of Pakistan. We come to poverty alleviation, the second area of focus that I spoke of. I don’t want to go into detail but I want to leave some food for thought for all the students who have come, one should not call them students, they are not of students age but all those participants of the workshop of the security workshop. Ladies and gentlemen, Poverty alleviation is not a joke, I will never say, I will remove poverty from Pakistan. This is political slogan of anyone I undo.

One can start reducing poverty, yes. We will. 7 We must reduce poverty but if anyone say, we will finish poverty from Pakistan is talking politics. Now we have to evolve a strategy, how to do it? It is not a joke. Subsidies is not the answer, please understand. If you think, It costs money. 1It comes that did not increase the price of petrol but decrease it. from somewhere else. You have only one cupboard, did not full it with money They will go from the national exchequer in once, I did in the three years of my governance for 15 days the fuel price has been increased and we did not increase it. There was a reason. We suffered a loss of 6 billion rupees; people said that decrease the price of flour, the price of flour is constant. There is price constant. We must ensure that rate of items of price for the poorest must remain constant. for your information, I calculate If we increase the price of flour, 18 million flour is consume its mean 18 billion rupees will less in your cupboard. You know better that what will they do, they stopped to construct Gwadar and Gomal dams. 18 billion rupees we do not pick from tree.

So, what I am trying to say subsidy is not the answer. If it decrease the poverty then we ready to taken this step but it not happen. If somebody ensure me that poverty will decrease, I am ready to taken this step. If it eliminate poverty than we ready to increase the price, not one rupee but four rupee. Then why should we do not spend 60 or 70 rupee to reduce poverty. That is not the answer. The answer lies in a strategy and we have done that and that is what is going on? Our poverty resides in the villages who are 60 percent people in the villages. Where the society is agrarian. They are banking on agriculture. So, therefore, water resource management to increase their capacity for growing crops and earning money is required to benefit 60 percent of the population and that is why canals and dams are essential. So we are concentrating on that. Then we have to bring investment. Whether it is a Pakistani or from Pakistanis abroad or foreign investment. They must come and put factories here.

Investment must come to Pakistan that will generate jobs. And then information technology which is our capacity, our strength, nobody utilized it in the past. Never was it utilized. Indians are earning billions of dollars from information technology. We are not earning even hundred million dollars, increase it up to a billion at least. We were at 10/15 and million dollars whereas we have the same potential, we speak well English; we can utilize this power war. We have developed an infrastructure now information technology which can gives jobs to young people and is also earning jobs.

So, poverty alleviation through creation of jobs, through investment, information technology and that is what we are doing.

There are several universities opened. NADRA alone employed 15,000 young boys and girls giving them about 5 to 8 thousand rupees. So, this is poverty alleviation. Give them jobs and address their agricultural issue through water. So, this is poverty alleviation, which we are following.

Third is good governance, I know, I don’t want to go into details. We have turned all corporations around. This is not a mean achievement. NA makes 2-1/2 billion rupees. This year, Insha-Allah, it should make about 3-1/2 or 4 billion rupees profit. We are buying new Boeing-777, another one coming very soon, two or more coming next month 1 Translate into Urdu 8 and five coming next year. We are not to change the Fokker fleet. This is what of PTA. There was a time when we came in, when everyone was saying lets privatize, even if we sell it at one dollar.

 Now it is making money. Pakistan National Shipping Corporation bought three oil tankers from their own money. Talk of Steel Mill. It is making billion of rupees profit. Again people were saying, it sells only for one rupee. It is making billion of rupees profit. So, all corporations have been turned around. Then issue of social sector, education and health. Thousand of percent additional money has been given on education and health so, we are concentrating on the social sector, on the governance and that much for that. We have taken a holistic approach with more allocation of funds and better organization for improving them. This is much for poverty alleviation, good governance, and economic revival. Short word on political restructuring, I will welcome any question later on.

Why political restructuring was required because our history showed that democracy never functioned in Pakistan 1947 to 1988 three Martial Laws and 1988 to 1999 no Martial Law, civil governance but never completed its tenure. Four times prime ministers changed, three times Presidents changed, supreme court was assaulted, army chief removed, this was how democracy was going on. So, we must change path. Should we continue on that path? And maintain status quo, I am not a status quo man. So, therefore, change was required, change will at least better than what we were. We identified what is the change required. We thought, there are two issues. We must take democracy down to the grass root level. Let the people of Pakistan take part in democracy. Therefore, the local government and we must have checks and balances in all those who were running government, the power brokers of Pakistan, because they happened to be the biggest culprits, unfortunately.

So, therefore, the checks and balances are required. And this is what we have done. We introduced local government taken the democracy empowered the people of Pakistan. We have empowered the women of Pakistan. We have empowered the poor of Pakistan. Now that is real political restructuring and we have introduced the checks and balances at the top so that democracy continues, sustainable democracy continues in Pakistan. Elections were held, assemblies are running. There was a problem the LFO, I don’t want to go into details, we have put that aside. The LFO issue stands resolved. So, ladies and gentlemen, this is all that I had to say but I would still like to take you along with my vision of carving a role for Pakistan. So, I have told you on the national security issues, internal and external threat, how we have met it? How we need to keep going? How we have taken Pakistan out of the internal threat dimension? But we are not out. T

he internal threat dimensions are still there. I would like to give a word. So, I would like to talk of my vision of carving a role for Pakistan, we need to take a glance at the world at large, we are a part of this world. And it is a global village. With passage of time we are getting more and more integrated, the world is getting more integrated. Nobody is living in the vacuum and then I would like to take the situation of the Ummah, the Muslim World because we are a very important component of the Muslim World. And then I would like where Pakistan or we stand in this perspective.

First of all the 9 world, as you know it is an unsafe world. It is a very unsafe place with all these suicide killings and all that is going on all over the world. The theory of clash of civilizations and unfortunate part of all that is happening involves Muslim countries. Therefore, giving rise to two terrible dangerous misperceptions.

 One Muslims feeling threaten that Islam is being threatened, is being targeted as a religion and the West thinking, misperceiving that Islam, the religion Islam is a religion of extremism, terrorism, fundamentalism etc., etc. This is the misperception in the world due to therefore, Afghanistan, Iraq, Palestine and Kashmir. So that an unsafe world and if we want to live in a safe world, if we want our future generations to live in a safe world, we need to act, the world needs• to act and we are part of the world, can we continue to make the world a better place to live in? That is a question. Let’s come down.

Let’s see the Ummah. Ummah is actually at the receiving end on all political disputes everywhere in the world and we are the most disunited. We are the most backward. All social indicators of the Ummah may be the poorest in the world and also we are destroying ourselves. Whatever we are doing, we are causing harm to ourselves and we continue to go down. This is my honest reading of the Ummah. Now where is Pakistan?

Pakistan, ladies and gentlemen, is a powerful nation. It is a nation of 150 million people and is a nuclear and a missile state, the only nuclear state in the Muslim world. We are a powerful nation. We must understand our power. We have all the resources that God Almighty can give to be powerful, if we put our act together. However, we are in the eye of the storm. We are in the eye of four dangerous misperceptions or perceptions or half truths, which one we are before, I have been saying many times all that is happening in Afghanistan, Al-Qaeda, Taliban is happening from Pakistan. It is a half truth or it is a quarter truth, I would say, even less than quarter truth, all that is happening in Kashmir, Indian Held Kashmir is from Pakistan.

I would like to give it a point, one percent truth but this is a perception. All the proliferation that has taken place in the world nuclear’ is from Pakistan. Again half truth. And over and above that our society is a terrorist, extremist, intolerant society. Now we are in the eye of the storm. We have all the potentials, we are at a cross-road, rather where we have the potential, we are at a point where we can rise. We are the important players of the world, influencing even in the Muslim world and the world at large and doing well for ourselves bringing prosperity, progress into Pakistan and living as an honorable contributing member in the comity of nations. This is one path and we are at that path. The other is, go down, mismanage ourselves and go down in history. Future generation will not spare us because we did not utilize this opportunity. This was never it is there before now. Now what is the way forward in this choppy waters that we are in.

First of all, our contribution to the world and to the Ummah is the strategy of Enlightened Moderation that 1 propound in the OIC Summit which is a two prong strategy. Let’s do something for the world. Let us do also something for the Ummah. This strategy looks at forth. Let’s bring peace to the world. Let’s emancipate ourselves, through a two prong strategy where Muslim Ummah rejects extremism, fundamentalism and goes on the path of social development, socio economic development. Because we are the worst of?

Look at the countries of the Muslim world; on the other side we cannot do this on our own. We require joining by the West. They must resolve political disputes which involve Muslims 10 with justice, and also help us in our social sector fro socio-economic development. This is the propounding, if this is durable. If we progress, I think, we will play a role. We can play a role in contributing towards this. We will call a place for ourselves internationally in the Ummah.

 I am very glad that we have taken a first step that the OIC Summit at least has approved this and we are in the process of creating a commission of the Ummah to give proposals for restructuring the OIC in order to meet this challenge of the Enlightened Moderation. So, I am sure this will meet and this will present its proposals and hopefully if it gets approved and we restructure the OIC and we move forward on this path of emancipation of the Ummah, socio economic emancipation where Pakistan can play a role in helping the Ummah. We have the power. We have the potential. Let me tell you, Kyrgyzstan owed five million dollars or 10 million dollars, I don’t remember exactly. We have written that off. It gives a good feeling that we are also capable of writing off debts of others. Let’s do that. We have the potential, let’s develop. We can help others. We are not a small nation. We must stop this begging. We must be giving, not asking.

Now let much for the Ummah and the world where Pakistan has a role to play. The question is do you want to play this role or do you not want to play this role. Let’s talk of Pakistan now. We cannot play this role unless we put our house in order. We have to do away with those four misperceptions. We have to rectify the misperceptions, all of them and that is what we are trying to do. Firstly, on the western border, certainly everything is not happening from Pakistan but certainly something is happening from Pakistan. Let’s not bluff ourselves. Now what is happening from Pakistan must be stopped that is what we are trying to do. I

f there is any Al-Qaida, anybody ex-Taliban supporter, abattoirs we are running our own country. Their agenda is not Pakistani agenda. Their agenda is not Islamic agenda also. Their agenda is their own political, own issue with anybody. When it does not involve us why are they using, misusing, our territory, our country to project their own agenda. Go to some other country, go away from Pakistan. We will not have them here. So, therefore, all of us must act to finish to Al-Qaida, anybody acting from Pakistan territory. That is what which creates this misperception.

Now on the East, I am very glad that there is a breakthrough with India. I hope this peace process carries forward toward resolution of our disputes including Kashmir. I have said Kashmir is a vital national interest. I will be the last man to compromise on vital national interest that cannot be done. But we have to resolve it in a peaceful manner. We have to bring harmony to the region. It will be beneficial to us as well as to India as well as to the region. Therefore, the joint statement between me and Prime Minister, Vajpayee is a welcome step. The only thing I want to add. I had made it very clear that simultaneously relationship between going forward on the confidence building measures (CBMs) and dialogue process including Kashmir. We cannot carry on running a hundred meter direction in CBMs and going at tortoise like movement on the other side on the resolution of disputes, on the dialogue process, Kashmir specially. So, if we keep going together we will move forward. If we are not then the CBM, BBM all will crumble and we fall back because that is our national vital interest, it cannot be compromised. It can not be given 11 up. So, we are trying our best to correct this perception in the East. Nuclear proliferation, everything happens from Pakistan, half truth. Everything did not happen from Pakistan. Everything happens from many other countries but things happen from here also. There should be no doubt in anyone mind sitting here. Proliferation did take place from here and we need to correct our house and the argument that are other doing? Yes, we are telling the, what are you doing in country your side. etc. but two wrongs don’t make a right, Let’s put our house in order. We cannot say you are doing there for we are not doing say you are doing therefore for we are not doing and we are responsible nation. We must not proliferate. Therefore, we must correct our house and we will. Whatever action I have taken, the government has taken, I think, it is in line with correcting this perception that we will not proliferate. The last perception that we are intolerant society, that we are an extremist society. This is most terrible.

I personally have a conviction that this society, Pakistan society we are a moderate Islamic State. Everyone sitting here in this hall, I know is a moderate person. We may be religious but we are not extremists. This is the vast majority but unfortunately there is a minority of extremists whom I call terrorists. They are the ones who are misusing the name of Jihad in Afghanistan or Kashmir but actually striking at our roots internally causing destabilization inside. Now this is the group, which needs to be sorted out because they are destabilizing us internally. They think, they have a right to govern. They think, they have a right to project their thoughts and make the government implement their thoughts some is known as hizbul tehreer some is known as jaish all the these characters, they have their own perceptions of governance and they to impose it know every thing but actually they don’t know anything. So, we have to sort them out. We all collectively have to sort them out. Those who are unnecessarily destabilizing us internally, those extremists who are doing that as I said.

We are a moderate Islamic State; nobody can change our Islamic identity. Pakistan came into being on a two nation theory, on the basis of a separate homeland for Muslims of this subcontinent. Therefore, Islamic content can never be ignored but that does not mean that we bring about intolerance and extremism into the society. That is all that I had to say.

Ladies and Gentlemen, I know, I have taken a long time and whenever I start talking, it But I writing my own reports in Staff College am lack of intellectual discipline, now I think myself. That is all that I had to say and in conclusion I would like to say, we are e passing through challenging times. We have to put out act together. We have to emerge successful. God created Pakistan for Islam and I am sure God will look after Pakistan.

Thank you very much.

PCPPI—2388(04)DFP–—20-4-2004—500.

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