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Pakistan wants trade not aid, says Zardari
Published in The Saudi Gazette on 02 - 11 - 2008

Having frequently visited Islamabad for the last 15 years, I was taken aback on arriving in the city on Oct. 30 for an interview with Pakistan President Asif Ali Zardari, by how much Pakistan's capital city has changed this time around.
To my surprise, good old quiet Islamabad was nowhere to be found. Instead, there was heavy deployment of law-enforcers, and security check-posts were in every nook and corner.
It sent shivers down my spine.
I arrived in the city at 9a.m. and was scheduled to meet the president at noon. But I was told that the appointment had been put off to 3p.m.
I waited and eventually reached the President House promptly as rescheduled, but he was still locked in a meeting with Baloch intellectuals.
I waited again, thinking about the good old days spent in an entirely different Islamabad. Finally at 3:30 p.m., the president's press secretary, Farhatullah Babar, appeared and escorted me to the reception room
It was my first meeting with President Zardari, though President House, or Aiwan-e-Sadr, was not new to me.
Entering the sprawling reception room, I noticed two large pictures of former prime ministers Zulfikar Ali Bhutto and his daughter Benazir Bhutto, adorning the walls, with President Zardari's picture alongside.
Warmly welcomed by the president, I offered my condolences over the assassination of his wife, Benazir Bhutto, whom I had interviewed and met a few times.
Suddenly realizing my mistake, I apologized for reminding him of the ghastly incident. He very politely said: “You should not apologize. I want everyone to remind me of her so we keep on realizing her sacrifices and determination.”
He went on: “We got the prime minister's post, speaker's post and finally I got the presidential post – just because of her.”
I started posing questions and found him confident and optimistic in the face of Pakistan's critical situation on the economic, security and political fronts.
The president was all praise for Saudi Arabia.
I left Islamabad later that night. It was the shortest work-visit ever in my 22 years of journalism.
I left wondering how the president would ever handle the crises confronting Pakistan.Q: Pakistan and Saudi Arabia have enjoyed a historical relationship for decades. What is your assessment of the progress made in this partnership?
A: Pakistan-Saudi Arabia relations are of a unique and exemplary nature, clearly manifested by the frequency of high-level visits exchanged between the two states. The leadership from both sides have had unanimity on all bilateral, regional and international issues. This is further reflected in the presence of an over one-million-strong Pakistani community in Saudi Arabia who are contributing towards the progress of the Kingdom and adding to the strength of our mutual friendship. The multi-faceted cooperation between the two countries is firmly based on institutional linkages and strong trade and commercial ties. Saudi companies have made significant investments in Pakistan in diverse fields. Our bilateral trade currently stands at around $ 5.7 billion.
Saudi Arabia has always provided assistance to Pakistan in difficult times. The generous relief assistance extended by the Saudi Government to the victims of the devastating earthquake will remain etched in our memories. The Saudi Fund for Development has been playing an important role in financing various uplift projects in Pakistan .
Recently, the Board of Investment, in collaboration with the Saudi Arabia General Investment Authority (SAGIA) and the Council of Saudi Chambers, held two Investment Conferences in Riyadh and Jeddah. The conferences were a big success, attended by around 360 traders and industrialists from both sides.
Q: November 4 will be the first time you'll be visiting Saudi Arabia as the President of Pakistan. How will your visit help enhance mutual relations?
A: The purpose of my visit is to upgrade existing relations in all fields. The focus of my visit would be to explore more avenues of cooperation and to increase bilateral trade and investment, besides increasing our manpower in Saudi Arabia. I would encourage more Saudi investment to avail of the investment opportunities in Pakistan .
I would aso exchange views with the Saudi leadership on the challenges faced by the Ummah and the need to effectively tackle the menace of terrorism and extremism, as well as their root causes.
I would solicit Saudi support for the ‘Friends of Pakistan' initiative. I sincerely hope that with the steadfast support of the Saudi government, it will achieve the desired objectives.
Pakistan could further increase its trade with Saudi Arabia and other Gulf countries if the proposed Free Trade Agreement (FTA) with the GCC materializes. I would seek Saudi support for the early finalization of a Pakistan-GCC FTA.
Q: Despite effective cooperation on security issues and against terrorism, no formal agreement has so far been signed between Riyadh and Islamabad. Are you keen on signing such a pact?
A: Both the countries are fully cognizant of the need to cooperate in the fields of security and combating terrorism. An agreement on cooperation in combating crimes is in the final phases and is expected to be signed shortly.
Q: With the world in a severe economic crisis, how do you see the new challenges being faced by Pakistan and worldwide? How much money is your government is expecting from the International Monetary Fund (IMF)?
A: Pakistan, being part of the global community is also passing through an economic crisis and has devised an indigenous economic stabilization plan to re-invent its internal economy.
In this effort, Pakistan is supported through a series of negotiations by various world economic bodies. We are also interacting with the ‘Friends of Pakistan' group in a bid to restore our economy to a stable position whereby our people get consequential relief. Getting aid from the IMF is our last option.
Q: How can Pakistan prevent its financial crisis from aggravating because of the current global situation? What are the measures taken by your government to tackle the situation?
A: Pakistan's economy is currently facing one critical challenge – that is, the challenge of an unprecedented rise in tne international price of oil, which recently peaked at $150 per barrel. Such an increase has come at a time when economic activity was accelerating in the country, leading to an upsurge in demand for POL products. In just five years, our oil bill has increased from $3 billion to over $12 billion, thus creating pressures on our balance of payments.
Such an increase is straining our budget as we have tried to protect our people from the rising cost of energy by subsidizing fuel and electricity, within the given limits of the budget
In the long-term, we are also moving towards identifying alternative energy sources, and we have formed an Alternative Energy Board to lessen our oil import bill.
Such an increase in oil prices is also contributing to a general hike in the prices of essential commodities. The economics of various commodities has changed altogether because of the oil price rise. Countries are converting food commodities into bio-diesel, ethanol etc. and thereby creating shortages for human consumption. As a result, global food inflation is hovering between 35 and 40 percent and Pakistan is no exception.
Without wasting a single day, the present government has been active in controlling food prices in the country. The Secretaries Committee under the chairmanship of the finance minister is meeting frequently and regularly to ensure adequate supplies of essential food items at affordable prices.
The government has also initiated the Benazir Income Support Program (BISP) to provide direct cash support to the most vulnerable segments of the society. This will cover around seven million households in the country. To ensure that Pakistan continues to remain on a high growth trajectory, we will be allocating substantial resources towards strengthening and enhancing the country's physical and human infrastructure. Currently, we are spending over 80 per cent of our Public Sector Development Program (PSDP) in these two areas.
Unfortunately, for decades Pakistan was being managed by people who had no perspective or imagination. Otherwise, Pakistan is rich in all sorts of resources. We have land, water and manpower.
Q: We are witnessing the birth of a new world economic order, a new world financial architecture. What are your comments on this?
A: The world economic order is an ever-changing phenomenon, which is effected primarily by political changes taking place in various parts of the world. However, the current economic crisis is just a temporary phenomenon and not a part of this overall international economic order. Therefore, it would be difficult to say whether this crisis would have any bearing on the world's economic architecture in the long run.
Q: How do you see the US- civilian nuclear deal with India . Are you concerned?
A: We have asked for a level playing field by evolving an objective, non-discriminatory and criteria-based approach for peaceful uses of nuclear energy. This is important for preventing an arms race and also for the credibility of international non-proliferation regime.
Notwithstanding the grave implications of the discriminatory agreement, Pakistan will continue to act with responsibility and will not enter into an arms race. However, we will neither be oblivious to our security requirements nor to the needs of our economic development.
Q: As per some reports, China politely declined to bail Pakistan out of its economic crisis. What is your comment and did this serve as a serious wake-up call for the government?
A: Pakistan and China are old and good friends. Our friendship is ‘all-weather' and ‘time-tested.' These relations enjoy a permanence and strength as they are rooted in the minds and hearts of our people. In Pakistan , the Chinese people will always have a trusted and steadfast friend.
This month we signed a dozen Memorandums of Understanding (MoUs) and agreements with China, paving the way for a massive investment in Pakistan by Chinese entrepreneurs, which will benefit both the countries.
Q: Is it true that the Chinese have responded in kind by offering two nuclear reactors instead of $5 billion in cash?
A: Nuclear power generation is an important source of alleviating the acute energy shortage that Pakistan is presently confronted with. We have had more than 30 years of experience in this field and greatly value and highly appreciate Chinese cooperation with Pakistan.
Chashma-I has already been constructed with the assistance of China, and Chashma-II is nearing completion. Both these facilities are under the IAEA safeguards. Pakistan looks forward to a similar assistance by the international community in meeting our shortfall in the energy sector.
It is not correct to assume that Pakistan asked for a $5 billion cash infusion and China responded by offering two nuclear reactors. China has already helped build Chashma-I and Chashma-II nuclear power plants and will now also build Chashma-3 and Chashma-4 nuclear reactors for power generations.
Q: What is your vision as regards the future of India-Pakistan relations? Are you ready to compromise on the Kashmir issue?
A: Pakistan looks forward to improving relations with India and is happy to see the progress made in the ongoing peace process. As for the Kashmir issue, the present democratic government remains committed to a just and peaceful resolution of the dispute in accordance with the aspirations of the people of Kashmir.
The commencement of the Cross-LoC trade on Oct 21, 2008 is a welcome development. We hope that commencement of this trade, as well as other Confidence Building Measures (CBMs), will help create an environment conducive to resolution of all disputes between the two countries, including that of the Jammu and Kashmir.
My meeting with Indian Prime Minister Manmohan Singh in New York last month was held in a very cordial atmosphere. We agreed to work for the normalization of relations between the two countries on the basis of mutual respect and non-interference, and that too without delays. So, the two governments are working together for the improvement of relations.
Q: How can Pakistan and Saudi Arabia, which are moderate forces, work together to enhance the concept of peaceful coexistence, dialogue and tolerance so as to find solutions to the issues facing the Ummah ?
A: Pakistan and Saudi Arabia, being the founder members of the OIC, attach great importance to the cause of the Ummah. Both the countries have traditionally supported all Islamic causes.
Both Pakistan and Saudi Arabia strongly advocate dialogue among cultures, civilizations and faiths, so as to remove misgivings among the followers of different faiths. Incitement to racial and religious hatred has been identified as a threat to international peace and security. It is our firm belief that tolerance for cultural, racial, religious and linguistic diversities is essential for international understanding and friendship.
Both the countries will continue to support and participate in all initiatives designed to promote inter-faith and inter-cultural harmony.
Q: How do you see King Abdullah‘s interfaith dialogue initiative, which opened in Madrid last summer?
A: Pakistan welcomes King Abdullah's initiative to convene international conferences on an interfaith dialogue. We support the declaration issued by this conference that calls for upholding respect for the diversity of religions, and condemning acts of desecration, insults to their symbols, religious discrimination, the exploitation of religions, and combating the menace originating from these vices.
The initiative will go a long way in removing the misunderstandings between various religions and will promote a culture of tolerance. Pakistan will participate in the follow-up conference, which is scheduled to take place during a high-level session of the UN General Assembly on Nov. 12 and 13, 2008.
The need for interfaith understanding and dialogue has never been as great as it is today.
Q: What is your opinion on the Arab Peace Plan initiated by King Abdullah and endorsed by the Arab countries?
A: As for the Arab Peace initiative of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz Al-Saud, announced in 2002, allow me to say that we have been consistently supporting it.
Pakistan is seriously concerned over the situation in Gaza. The denial of basic amenities to the Palestinian people has turned their lives miserable. The international community must take urgent steps to mitigate the sufferings of Palestinians in Gaza.
I would like to say that Pakistan has been extending consistent support to the Palestinian cause, the fundamental elements of which include: total withdrawal of Israel from occupied Arab territories including Jerusalem; restitution of inalienable rights of the Palestinian people; establishment of an independent homeland with Al-Quds Al-Sharif as its capital, and right of return of refugees.
I must reiterate that our recognition of Israel is linked to the resolution of the Palestinian issue, and coordination with our brotherly Muslim countries of the OIC.
Q: How do you evaluate the situation in Iraq . How can this crisis be solved?
A: The situation in Iraq is a matter of concern for the entire Muslim world. There is a dire need for a political dialogue among various factions inside Iraq so as to mitigate the multifaceted differences.
Q: The PPP had initiated the movement to oust the former president Musharraf with full support of the PML (N). However, it is alleged that the PPP entered into a deal with the army and the PPP agreed to provide him with a safe passage. What is your comment ?
A: I am sure that since the PPP and the PML-N have come together after a great struggle for democracy and, having learnt a lot from our past mistakes, better counsel would definitely prevail while resolving all the issues.
We had agreed in the Charter of Democracy that the defense budget would be placed in parliament. Honoring this commitment, we presented the defense budget in parliament for the first time this year.
Likewise, we had agreed in the CoD that the all important Public Accounts Committee of tparliament, which served as watchdogs over the government ,would be headed by an MP of the opposition. Honouring this commitment, an opposition MP has been made the chairman of the Parliament's Public Accounts Committee. As far as the future of the former president Pervez Musharraf is concerned, it will be decided by the parliament.
However, let me also add that we do not believe in taking revenge. We believe that democracy is the best revenge.
Q: US presidential candidate Obama has said that if he wins, he'll shift the focus of America ‘s war on terrorism to Afghanistan and Taleban militants based in Pakistan. What are your comments on this?
A: Pakistan is committed to combating terrorism and extremism in its own national interest. Pakistan and the US have close counter-terrorism cooperation.
We have consistently said that this is a long-term struggle, with complex challenges, requiring a multi-pronged approach combining political, military and development tracks.
Our view is recognized by our partners. The forum of “Friends of Democratic Pakistan” is a response of the international community to support Pakistan in meeting these formidable challenges.
In order to effectively fight terrorism, a special joint meeting of parliament was convened recently, which adopted unanimously a 14-point resolution on the issue. So the nation is united on this issue.
We have also made it clear that incursions inside Pakistani territory by foreign forces is not acceptable. It only undermines the fight against militancy. __


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