SPEECH BY H.E. KHURSHID M. KASURI
FOREIGN MINISTER OF PAKISTAN

BROOKINGS INSTITUTION
JUNE 9, 2005

PAKISTAN-US RELATIONS: CHALLENGES AND OPPORTUNITIES

Mr. Strobe Talbot, President Brookings Institution
Professor Stephen Cohen, Senior Fellow
Ambassador Jehangir Karamat
Distinguished Guests
Ladies & Gentlemen

It gives me great pleasure to be here at Brookings once again. I will share with you my thoughts on bilateral relations between our two countries and how we can realize the potential of this relationship in addition to what has already been achieved since we became partners once again in yet another global effort. I will also touch upon Pakistan’s role in the region in which we see US playing a valuable role.

Ladies & Gentlemen,

Pakistan’s location at three concentric geographical regions – South Asia, Central Asia and West Asia/Middle East presents its own challenges and opportunities. Our policies are accordingly devised. It should not therefore be surprising that we are members of SAARC and ECO. We are also evolving a growing relationship with the East Asian community.

Pakistan has been engaged for the last few years in countering the threat posed by the menace of terrorism whether occurring within or emanating from outside but having an equally devastating effect within Pakistan. After the abhorrent incidents of 9/11, the world saw us as a frontline state in this war. However, a victim of this phenomenon for years, Pakistan had already started taking steps to check this menace. Various extremist outfits were banned before 9/11.

The struggle continues though we can justifiably claim credit for achieving more notable successes than perhaps any other country. The apprehension of over 700 suspected al-Qaeda operatives and affiliates including Khalid Shaikh Mohammad, Ramzi Bin Al-Shibh and most recently Abu Farraj Al-Libbi testify to that. These successes have not been without cost - both material and human. Many precious Pakistanis lives have been lost. Over 70,000 troops had to be deployed along the border with Afghanistan to check extremist elements from crossing over.

We actively work with the UN to freeze assets of such individuals and groups. But we remain unwavering in our principled stance – the dangers to our top leadership notwithstanding. Terrorism is a menace not only to the international community but to our own security and political and economic well-being.

Terrorism will however, not be defeated by military means alone. The root causes will have to be addressed. The sense of deprivation will have to be tackled. There can be no selectivity in the application of UN Security Council resolutions if comprehensive long-lasting solutions are to be found.

Another challenge is the improvement of relations with India and the resolution of outstanding issues including Jammu and Kashmir. A promising start has been made. People to people contacts have improved. Economic and cultural exchanges increased. We are glad that Indian leadership has reciprocated our efforts. We intend to pursue this path. This would of course, involve addressing substantive issues in a meaningful way.

The commencement of Muzzaffarabad-Srinagar Bus Service is a win- win situation for all the parties involved especially the Kashmiris themselves who have long suffered deprivations. For durable peace between Pakistan and India, the issue of Kashmir needs to be resolved. It is axiomatic that for this to happen the people of Kashmir have to be involved in the peace process.

Kashmir has bedeviled relations for 57 years. We must take pains to see that no new issues come up. I am specifically referring to Baghlihar and Kishanganga projects that India plans to build. These are emerging serious issues. The resultant peace and security in South Asia will allow diversion of resources towards addressing the pressing problems of poverty, illiteracy and disease.

As a friend of both countries, the US has played a positive role in urging the two sides to move forward. Its continued engagement is essential to ensure that the momentum is not lost.

An energy corridor from Iran to Pakistan to India will be a significant confidence-building measure between the two countries besides meeting our critical energy needs. I know many of you in think-tank circles see the proposed Iran-Pakistan-India Gas Pipeline from this perspective. We hope that the US Administration will see it similarly. I may also add that this is one of the three projects - the other being the Turkmenistan-Pakistan pipeline and the Qatar-Pakistan-India pipeline.

Ladies & Gentlemen,

The transformation in relations with Afghanistan has been no less dramatic. We have made steady progress in not only confronting the common challenges the two countries face, but also realizing the potential of our proximity and religious, cultural and ethnic bonds.

We see a peaceful and stable Afghanistan being in our interest. In our effort to improve relations with the Government and the people of Afghanistan, we are guided by the principles of mutual trust, sovereign equality and non-interference in each other’s internal affairs. Pakistan supports the Bonn Process and President Hamid Karzai’s efforts for national reconciliation and development.

Relations between the two countries have registered marked improvement. Frequent interaction among the top leadership of our two countries testify to that. President Hamid Karzai’s presence as the Chief Guest on Pakistan Day Parade symbolizes the level of closeness achieved between our two countries.

This closeness is also reflected in the very impressive growth in bilateral trade which jumped from $ 20 million three years ago to $ 1 billion now. Partly, this is the result of steps taken by Pakistan to facilitate bilateral trade, including the manifold reduction in duty on imports from Afghanistan. Pakistan provides that country with easy access to the Arabian Sea.

Despite its meager resources, Pakistan has pledged $ 100 million for support to our Afghan brethren. Of this, over 40 million has already been utilized for infrastructure developments, health and education sectors. Afghan officials, including diplomats, police and custom personnel, are receiving training in Pakistan.

We are happy to note that this improvement in the relationship with Afghanistan enjoys full support of the US.

Ladies & Gentlemen,

To promote peace and understanding between Islam and the West and to address the challenges that we confront both within Pakistan and around us, President Musharraf has propounded a vision of ‘Enlightened Moderation’. This envisages a two-pronged strategy. The first is for the Muslim world to shun militancy and extremism and adopt the path of socio-economic uplift and human resource development. The second is for the West to help resolve longstanding political disputes justly and to assist in the socio-economic development of the deprived Muslim world. We are happy to see that the concept has found increasing number of takers. The US supports it. The OIC has endorsed it too.

Based on this vision we want to create a modern, tolerant, democratic Islamic country. Moderation will bring society together, build a new culture of cooperation and economic development. As the second largest Muslim country with moderate outlook and located in a geo-politically important region, Pakistan is well-poised to play its role. It can also act as a bridge between Islam and the West.

This approach of moderation and accommodation guides on the approach to domestic political reform. Elections to local bodies will be held this year. The general elections are set for 2007. Thus within two years we would be well ahead on the path of sustainable democracy.

Ladies & Gentlemen,

Pakistan’s relations with the US continue to expand. Both countries find it in their interest to do so. But the reasons for this upward trajectory are manifold not the least of which is the similarity of perceptions over the situation in our region and an appreciation of the path of Enlightened Moderation that Pakistan has chosen for itself.

President Bush and other senior officials have reiterated US commitment to a broad and sustainable long-term relationship with Pakistan. We see a bipartisan consensus on this. The recommendations of the bipartisan National Commission on Terrorist Attacks on the US itself calls for an enhanced and long term relationship with Pakistan. This approach provides the basis for addressing challenges of terrorism, poverty, literacy etc. and tapping opportunities where available.

For the last 4-5 years Pakistan has been aggressively pursuing economic reforms to alleviate the lot of its poor. This we feel can be achieved through rapid economic growth. Our economy has made a dramatic turn around. GDP growth in the current fiscal year has been 8.4%, making Pakistan one of Asia’s fastest expanding economies. The task is far from over. The fruits of this growth have to be shared by all segments of the society.

Pakistan’s education and economic reforms have been welcomed by US who has responded by extending tangible support in this sector. We appreciate this assistance which supplements the government’s own efforts. The welcome US annual assistance of $ 600 million plus is in keeping with the pledge made by President Bush to President Musharraf when they met at Camp David in 2003.

Ladies & Gentlemen,

We highly value the trade relationship with the US. It is after all our largest trading partner. Last year, Pakistan’s exports to US stood at $ 3 billion and imports at $ 1.3 billion. We are confident that our textile sector in particular, is well-placed to compete for its share in the US market. Better access to this market through a level playing field with our competitors will be of great benefit to us. We could take the trade volume to much higher levels.

US investment into Pakistan has gone up; facilitated by the resumption of the activities of US EXIM Bank and the Overseas Private Investment Corporation (OPIC). Our two countries have been discussing a Bilateral Investment Treaty (BIT). Two rounds have been held. Once we conclude the negotiating process and take the prerequisite steps, the Treaty would realize the enormous investment potential.

The country’s chosen path of moderation, and to improve the lot of its people would remain unfulfilled if we did not acquire a sense of security due to arms imbalance in our region. A secure and confident Pakistan would be a source of stability in the region. The US can contribute by providing the requisite defence equipment and training. We welcome the decisions to supply PC-3 and F-16 aircraft, Phalanx guns, and communication equipment etc.

Ladies & Gentlemen,

Pakistan takes its responsibilities as a nuclear weapons state seriously. That is why when confronted with the challenge of nuclear proliferation two years back, we took immediate steps to help dismantle this international smuggling network. Our cooperation with the IAEA was entirely voluntary. To prevent the recurrence of a similar situation, a comprehensive export control legislation was passed by Pakistan’s parliament last year. Additional measures have been taken as well. We are pleased to note that the American leadership has publicly and repeatedly praised Pakistan’s efforts.

Pakistan requires nuclear technology to meet its own growing energy demands. In view of the scarcity of fossil fuel reserves and our energy requirements we need to generate 8800 MW of nuclear power by 2020. The present generation capacity of approximately 500 MW is manifestly inadequate. In order to meet this challenge of energy shortage, we will have to expand more into the civilian nuclear area. This provides yet another opportunity for bilateral cooperation with the US. A good start has been made by the Pakistan Nuclear Regulatory Authority and the US Nuclear Regulatory Commission. We must take this cooperation further.

We understand the Administration’s concerns relating to the safety of their nationals when they travel abroad. Due to its assessment of the security risks, it has placed a restrictive Travel Advisory for visits to Pakistan. This challenge of ensuring the safety of its nationals will have to be balanced by the economic costs it imposes on both countries as they are unable to avail of the business opportunities available. We feel that this Travel Advisory can be modified without seriously undermining security. The benefits will be more than economic. Greater people to people contacts would lead to better appreciation of each other’s point of view.

I thank you all. I’ll be happy to respond to any questions you may have.