Five years later, the nation's political and economic institutions stand salvaged. The negative trend of institutional failures throughout the 1990s that affected Pakistan's integrity has been reversed. And the national morale is on the rise. Pakistan today is stronger militarily, resurgent economically, and on the right path to assume a more visible role as a responsible player on the world stage.
The extent of the turnaround that has been achieved since 1999 cannot be appreciated without recalling the scale and magnitude of the failures that faced Pakistan in the closing years of the 20th century. The transformation is a testament to focused and sincere leadership, and to the Pakistani nation's resilience and talent. In a mere five years, Pakistan has been positioned for progress, growth and success.
The administration of President General Pervez Musharraf assumed office in October 1999 facing serious and difficult problems. Pakistan was a nation with sagging national morale. All public sector organizations were running at a loss. There was a heavy external and domestic debt with almost no means of servicing it. Expenditure exceeded the revenues, and revenue-generation was weak. Pakistan was perceived as a highly corrupt country at the highest levels. The reserves were barely sufficient to buy five to six weeks of imports and were inadequate to service the country's debt obligations.
The reckless economic mismanagement had tarnished the investor friendly image of Pakistan. The lingering dispute with independent power producers - all of them foreign investors - and the freezing of foreign currency deposit accounts of nonresident Pakistanis created a distrust that has not yet been completely erased. Pakistan's international credibility was at its lowest ebb.
After the military's corrective action of October 12, 1999, the economic team of the new Pakistani administration set a clear goal: Managing the crisis, and ensuring that Pakistan avoided default. Later, a tough reform plan was pursued with vigor, targeting the nation's politics and the economy.
The most dramatic shift introduced by the military-led administration is in promoting good economic governance. Discretionary powers were curtailed and the values of transparency, consistency, and predictability were introduced. Freedom of the press and access to information has had a constructive effect on the behavior of decision makers. On the political front, power to take administrative and financial decisions on public services has been devolved and shifted to local governments across Pakistan. And a culture of stringent accountability has been introduced that takes to task those indulging in corruption through a rigorous process of detection, investigation, and prosecution.
This report, Five Years: An Agenda of Reforms, Rebuilding & National Consolidation, offers in a simple and brief language the extent of transformation and revival that has taken place in Pakistan over the past five years. Everything is not rosy and there is a long way to go. But Pakistan now stands well positioned to deal with the challenges.
The findings in this report confirm what most Pakistanis have known all along but are only beginning to achieve. An honest and sincere leadership can unlock the great resilience, resourcefulness and the potential of the Pakistani nation.
10 WAYS PAKISTAN STANDS STRONGER AND MORE CONFIDENT
1. Pakistan in 2004 is a nation in renaissance. The world nowadays is marking the arrival of Pakistan. Islamabad today is an international player whose voice is heard, and whose views and influence are elicited. That was the case when Pakistan sat as a nonpermanent member on the United Nations Security Council during major events in 2003 and 2004.
Pakistan made its way back into the Commonwealth unconditionally, without compromising its unique political circumstances. Today, the world better understands and appreciates the special path to resurgence and stability that Pakistan has to take to play a responsible and stabilizing role in the world. Pakistan is recognized as a pivot between Central Asia, West Asia, and South East Asia, and is emerging as a force for understanding between the great religion of Islam and the world's other great religions, civilizations and cultures.
2. Pakistan in 2004 is a country on the path to building strong, durable institutions. Democratic freedoms and choices in today's Pakistan are unparalleled compared to any other time in its modern history. Pakistanis today are openly debating culture, politics, ethnicity, and religion within an umbrella of nationhood and national belonging.
Religious and political diversity is respected and celebrated on both the official and private media; political parties have been pushed toward more transparency, openness and coalition building.
For the first time, today's ruling coalition, the Pakistan Muslim League, is probably the only political party in modern Pakistani history that relies more on consensus building, coalition building, forging alliances and partnerships between different interests, away from personality worship that remains rampant in most of the country's other political parties, a reminder of the nation's long history of unhealthy and debilitating politics. A more honest, transparent, and result-oriented form of governance has been introduced in Pakistan.
This system may be imperfect. But it is evolving, moving ahead, and is the best chance Pakistan has had for real nation building in decades.
3. Pakistan has reestablished its credibility as a serious player in the international financial community. Pakistan in 2004 is close to saying farewell to an important component of foreign aid offered by the International Monetary Fund.
The county has upgraded its credit ratings, boosted its foreign exchange reserves to an unprecedented US$ 12.5 billion. Pakistan entered the international financial market last year to raise US$ 500 million in Eurobonds.
The response was overwhelming and the floatation was oversubscribed four times over. Pakistan still has a long way to go, but it stands poised for a leap.
4. Pakistan's defense is indestructible today than at any other time in its modern history. At the outset of a new century, Pakistan is emerging as a responsible and dependable military power, a force for stability in a troubled region and world. Pakistan's military prowess is an asset for United Nations peacemaking and peacekeeping missions in the world's trouble spots. In South Asia, Pakistani military tipped the balance toward peace and continues to advocate a balance for peace. In Central Asia and the Middle East, Pakistan's policies act as a force for stability. In 2002, Pakistan's defense capabilities thwarted an external eight-month long exercise in coercive diplomacy. The experience offered a Pakistani lesson in diplomacy and military wit, and firmly established the strength of national defense.
5. Pakistan shows leadership in bridging the Islamic World with the rest of the world. In a post-9/11 world, Pakistan is the quintessential example of creative diplomacy geared toward peace. Working with others, Pakistan is pushing the novel strategy of Enlightened Moderation that tests the capacity of both the Islamic world and the West for moderation and tolerance. Where Muslims are called to arrest and reverse their intellectual decline, the West is called to use its superior influence to ensure justice in world conflicts that involve Muslims.
The Enlightened Moderation, promoted by President Musharraf, was unanimously adopted by the leaders of the Islamic world at their summit meeting in Malaysia last year.
6. Pakistan takes the lead in showing the way to resolve one of the world's most intractable conflicts. The peace overtures and the confidence building measures spearheaded by Pakistan to resolve the conflict over the disputed region of Jammu & Kashmir are unprecedented and compelling. Without compromising its interests and the right of the Kashmiris to self determination, Islamabad has shown flexibility and courage, beginning with declaring a unilateral ceasefire on the Line of Control in the disputed region. In seeking peace, Pakistan is guided by the right of all people in the region to live in peace, justice, and dignity.
7. Pakistan is emerging as a source of culture, humanism, and civilizational dialogue. Pakistan's ambassadors of peace are bringing the world's disparate cultures together. Pakistan's Sufi heritage, which emphasizes peace and wisdom, has been blended with a mixture of Pakistani, eastern and western music to produce a unique synthesis. Pakistani artists, musicians, painters, and fashion designers are projecting their talent at home and abroad, showing aspects of the Pakistani nation that the world had failed to see in the past.
8. Pakistan is poised to play an active role in the global march toward an IT-based, market-oriented economy. A liberalized policy is positioning Pakistan for a market boom. At present, an ambitious effort is underway to train and launch Pakistani IT & telecom professionals, attract more foreign capital, and strengthen the existing productive sectors of the economy. The Government now is taking the indicators of a healthy economy to the next level by ensuring a better utilization of the nation's human and natural resources.
9. Pakistan is pushing for intercontinental trade, contributing to regional peace and a safer tomorrow. Pakistan's policy thrust in the past five years has built up its role as a facilitator of trade that would inspire and strengthen regional peace. Islamabad is at the center of regional talks to give priority to prosperity for all. Pakistan is building regional consensus on its vision of inter dependability.
The gas pipeline project from lran to India across Pakistan will serve stability, and the effort to build trade routes across Central-West-South Asia offers hope for a region in transition.
10. Pakistan stands today as one nation more than at any other time since Independence. One of the first things President Musharraf said after taking charge of government was, "We will raise the national morale." Today, Pakistan is no longer the despondent and disappointed nation of the past decade. The national morale and cohesion weakened in the past decade because of repeated disappointments in governance. Today, Pakistanis have embarked on a fresh national discourse where differences and interests are negotiated, in a process that is also laying down the foundation for better and improved domestic politics.
Today, the nation understands and feels that Pakistani nationalism is stronger and that Pakistan must come first in all policies and future planning.
10 SIGNS OF ECONOMIC REVIVAL
"The most dramatic shift introduced by the military government in Pakistan, and later pursued by the elected governments, is in promoting good economic governance. Transparency, consistency, predictability, and rule-based decision making have begun to take roots."-Dr Ishrat Husain, Governor, State Bank of Pakistan
"Pakistan's recent economic turnaround is the result of honest intentions, leadership, and farsighted policies. Our resources are the same but we have made the most of them because we are honest in our intentions. And that has made all the difference."-President Musharraf, September 2004
1. The past five years present an unprecedented record in the history of economic management in Pakistan. An economic laggard in 1999, Pakistan is a resurgent economy in 2004. Pakistan is enjoying a budget surplus for the past three consecutive years after a decade of deficits. The country successfully implemented the International Monetary Fund (IMF) programs without any delay or interruption, establishing Islamabad's credibility as a serious player in the international financial community.
2. Pakistan's credit rating has improved from a negative Selective Default (SD) in 1999, to B2/B in 2004. on the basis of this record, Pakistan entered the international markets to raise US$ 500 million in Eurobond last year. There was an overwhelming response and the floatation was oversubscribed four times the initial value. The transaction's success amounted to a vote of confidence by the international investor community in Pakistan's economic policy and the Government's reform agenda.
3. In the 5th year of tough economic reforms, Pakistan will have the distinction shortly of completing IMF's Poverty Reduction Growth Facility. Pakistan will be the first country in this program to do so - a sign of good economic management.
4. Pakistan has more money in its treasury today than it did in over a decade. President Musharraf began his government in 1999 with US$ 1.7 billion, barely enough for 5 to 6 weeks of imports. In June 2004, Government accounts boasted a reserve of US$ 12.3 billion - enough for 44 to 45 weeks of imports.
5. Pakistanis are beginning to feel signs of economic improvement. The process is slow because of the flaws and errors of the past that need remedy and reform. But the pace of improvements is steady. Check the following trends:
a. The salaries of Government employees have risen 3 times in the past 5 years, thanks to Government's improving finances.
b. Pension payments for retired Government employees have risen 3 times in the past 5 years.
c. The income levels of widows, pensioners, and senior citizens have been diversified through the creation of high-yielding Pensioner's Benefit Account and Behbood Savings Certificates within the National Savings Schemes.
d. Electricity charges for general and Industrial consumers and for agricultural tube wells have been reduced. Telephone charges have been substantially slashed for users across Pakistan.
e. The people of Pakistan have been protected from the unusual hike in oil prices. Since May 1, 2004, the Government is absorbing the rise in oil prices instead of passing it on to the Pakistani consumer. This has meant taking a budgetary hit of over Rs. 20 billion.
f. Pakistani banks are offering easier facilities for car and personal loans to enable middle and lower middle class families improve their lives. These unprecedented steps, including housing finance to own and build homes, are also spurring economic activity. Over 80% of Pakistan's banking and finance industry is in the hands of the private sector as a result of reforms in the banking industry.
g. It took 19 years (1980-99) to add US$ 3.5 billion in export earnings. But it took only 5 years (1999-2004) to add US$ 4.9 billion - which means almost one billion US dollars every year for the past five years.
h. Imports jumped from US$ 9.6 billion in 1999 to $ 13.6 billion now - an increase of 42%.
i. Remittances from oversees Pakistanis increased from US$ 1.1 billion in 1999 to almost $ 4 billion in 2004 - an increase of 264% in 5 years.
j. Tax collection has become user-friendly. Millions of Pakistanis can file their returns in a simple, easy, and organized way. Unlike the 1990s, Pakistan is no longer the country with the poorest tax collection system in the region.
k. It took 9 years (1990-99) to collect additional tax revenue of Rs. 197.5 billion. But it took only 5 years (1999-2004) to collect Rs. 211 billion.
l. The interest rate on agricultural loans has been substantially reduced, from 14% to around 8 to 9%. Powers to recover loan payments through police arrest have been withdrawn from the ZTBL, the country's main agricultural bank.
m. The Government has increased the support price for Pakistani wheat by 33%. This means that Pakistan farmers received last year an additional income of Rs. 25 billion (assuming an average wheat production of 20 million tons). Farmers are expected to earn a similar amount in additional income in the coming wheat season.
n. Real GDP growth has accelerated to 6.4% this year from 4.2% in 1999.
o. Large scale manufacturing grew by 18.1% in 2004 compared to 3.6% in 1999.
p. Agricultural growth has risen to 2.6% in 2004 against 1.9% in 1999.
q. Overall inflation stood at 4.6% in 2004 compared to 5.7% in 1999. And core inflation - which is non-food and non-energy inflation - declined to 3.7% this year against a staggering 6.2% in 1999.
6. Pakistan's Karachi Stock Exchange has been judged as the best performing market in the world during 2002 and was one of the five top performing markets in 2003.
The KSE Index grew over 400% in 5 years (from 1055 to 5279). The KSE has US$ 20 billion in market capitalization now - over 390% increase in 5 years. The KSE has a 15% return average on investment. Over 700 listed companies show this return average. The tough five-year reform agenda has turned Pakistan into an attractive market to invest for foreign portfolio investors.
7. The cost of doing business in Pakistan has been brought down. And the slide continues. The Government has reduced maximum tariffs on finished industrial goods down to 25%, with the minimum tariff maintained at 5%.
8. It is easier and more profitable to do business in Pakistan today. Foreign Direct Investment has risen sharply to US$ 949.4 million this year as compared to $ 376 million in 1999 - an increase of 152.5% in 5 years.
9. Trade barriers are on their way out. No government permission is required to invest in most sectors to the economy; foreign investors can own their businesses 100% in the industrial and services sectors, and can take their entire capital, profits and dividends out of the country. Just last month, the minimum limit to foreign investment has been slashed to half, down to US$ 150,000.
10. External debt has declined from US$ 37.6 billion to $ 35.3 billion in 2004 - a decline of $ 2.3 billion in 5 years. The risk of default on external debt, which loomed large in 1999-2000, stands almost vanished today. They remaining debt has not only been restructured but, more importantly, Pakistan's ability to repay it has considerably improved.
Back in December 1999, the military-led administration harnessed some of the best Pakistani minds to create an economic revival program. Thanks to a sustained and unfailing commitment to this program, even in the face of highly adverse developments such as the wars in Afghanistan and Iraq, Pakistan today is reaping high dividends.
There is still a lot to be done. Unemployment is one of few indicators that have not worsened but did not improve dramatically. The unprecedented revival of the past five years, however, better positions Pakistan now to focus on those sectors of the economy that can yield maximum levels of job creation.
10 SIGNS OF BUILDING GENUINE DEMOCRACY
1. COMPONENTS OF DEMOCRACY. Massive reforms have targeted all the areas that can create appropriate conditions for the nurturing and evolution of a healthy democratic culture: Pakistan's failing institutions were rescued; tough political reforms have introduced accountability and discipline; political parties have been made transparent; a five-year economic management record has been set that is unprecedented in the country's history; power has been devolved to local governments; and people have been given unparalleled access to information and freedom of expression. The military-led corrective action of President Musharraf has contributed more to creating real and lasting Pakistani democracy than the entire period of quasi-democratic rule between 1989 and 1999.
2. GOVERNMENT AT THE GRASSROOTS. Power has been devolved to more than six thousand local governments spread across Pakistan. This has empowered ordinary Pakistanis, including peasants, women and minority groups, who can now influence administrative and financial policies in their own neighborhoods either personally or through elected representatives. And they do not have to belong to elite class to participate. The local governments are empowering the middle and the lower middle classes to come forward and take charge, reversing a trend in Pakistani politics that has blocked genuine democratic evolution for the past 57 years.
3. GROOMING LEADERSHIP. In a political culture centered on personality cults, the devolution of power and the local government system is playing the role of an incubator for future leadership. Over a long term, this system will change the political culture in the country toward pluralism, choice, and issues-based politics.
4. EXPANDING FREEDOMS. When it comes to freedom of expression, President Musharraf's administration cannot be compared to any previous military of democratically-elected governments in Pakistani history. The extent to which the freedom of expression was officially encouraged in the past five years is not only unprecedented but has expanded in positive ways. Today, Pakistan's official and private media encourages a culture of dialogue over controversial issues, such as women-related legislation.
5. NEW BROADCAST CULTURE. In 2001, the military-led administration took a bold decision with the most far reaching consequences for the evolution of Pakistani politics and public opinion. The opening up of television and radio broadcast media has opened avenues for political opposition that the country's political elite has not been accustomed to. Today, ten private television broadcast licenses have been awarded, and many of them are on air, giving Pakistani viewers a healthy dose of diversity in political and cultural discourse. The Government has received 34 more applications for more private TV channels. This comes in addition to the Government-owned PTV Network.
6. Similarly, 20 FM private radio stations are on air throughout Pakistan, competing with the transmission of the Government-owned Radio Pakistan.
7. EMPOWERING WOMEN. During the past five years, Pakistani women have been empowered like never before. Over 25,000 of them sit now on local government bodies throughout Pakistan. The military-led administration set up in 2001 a top executive body at the federal level called Ministry of Women Development to ensure women are never neglected in Pakistan again. Women-related discriminatory laws are being reviewed and a national dialogue has been initiated to build consensus on outlawing gender bias punishable by Islamic and state law. In the past 5 years, the overall number of women in the federal and provincial parliaments has jumped from 1.4% in 1999 to 19.9% at present.
8. EMPOWERING MINORITY GROUPS. A longstanding demand of Pakistan's minority groups was the abolishment of the Separate Electorate System, which prevented them from coming together as force that candidates and political parties attach importance to. President Musharraf introduced the joint Electorate System that met this demand and allowed non-Muslim minority groups into the mainstream of Pakistani politics. Today, official and private Pakistani media is more sensitive to the needs of minority Pakistanis than ever before. Last year, 3,908 talented minority students received Rs. 4,701 million from the Government in university scholarship grants, part of a larger special fund at the disposal of the Prime Minister, who uses it to maintaining and renovating places of worship and to help deserving minority Pakistan.
9. SPURRING THE YOUNG. To broaden democratic activism in the country and activate a new generation of Pakistani voters, President Musharraf lowered the voting age from 21 to 18. The policies of his government have been instrumental in galvanizing Pakistan's younger generation and reviving the interest of many of its members in national politics.
10. ENCOURAGING DYNAMIC LEGISLATION. There is an increased activity both at the federal and provincial parliaments on eradication of the controversial custom of Karo Kari, or the so-called honor killing. Recently, the Parliamentary Commission on Human Rights has moved three bills in the federal Parliament to eliminate honor killings and safeguard the rights of senior citizens.
10 SIGNS OF EXPANDING IT, INTERNET, AND TELECOM NETWORKS ACROSS PAKISTAN
"The Government of Pakistan's concerted efforts have opened vast venues for investment in the IT & Telecom sector".-Merrill Lynch industry study on Pakistan
"The country is offering excellent opportunities for US citizens to invest [in telecommunications, which is] a major growth area."-US Department of Commerce's Country Report on Pakistan
"A new initiative from the Pakistan Government appears to offer an IT dream come true for UK businesses looking to cut costs by outsourcing software development offshore... '85 Westminster must follow Islamabad."-Computer Weekly editorial, Great Britain
1. Compared to the bottlenecks of the previous decade, Pakistan has made impressive leaps in just five years. Internet access has jumped from 29 cities to 1800 this year; bandwidth has increased from 32 to 930 megabytes per second; bandwidth cost has been slashed from US$ 87,000 to just $ 3,500 today; and fiber connectivity has spiked from 53 cities and towns to 405 today.
2. The Government is working on rolling out Microsoft Windows and Linux operating system in Urdu, and to introduce all the Microsoft Office and similar competing products in Urdu. The Government of Pakistan realizes at the highest level that without local language support on computers, the vast majority of Pakistanis will not be able to benefit from the current wave of globalization.
3. After 1999, the Government harnessed the potential of Pakistan's telecom sector, resulting in a cellular explosion that enlarged the market almost 180%, from 225,000 mobile phone users in 2001 to 4,000,000 mobile users today.
4. Internet users have increased across Pakistan from 130,000 in 1999 to almost six million and a half by June 2004, and the number is increasing.
5. With the implementation of the Electronic Transaction Ordinance of 2002, the Government is preparing to introduce bills in the Parliament dealing with Data Protection, Cyber Crimes, and other relevant legislation. The country's law enforcement agencies are modernizing and special branches have been created to deal with cyber crimes.
6. Working telephone landlines across the country have jumped from 3,025,319 in December 1999 to 4,742,407 in the third week of Sept. 2004. Within the next few months, authorities are preparing to install another 200,000 fresh lines.
7. Having laid the foundation for the IT expansion, the Government now has set a growth target for exports in Pakistan IT-enabled services of US$ 100 million by the end of 2005-6. The current export range hovers around US$ 22-23 million.
8. A transparent process of deregulation is attracting international telecom players into the lucrative Pakistani market. In 2004, two multinational telecom giants from Europe and the Middle East injected US$ 780 million into Pakistan through open bidding, with more investment to come. This has established Pakistan's reputation as a serious and attractive international telecom investment destination.
9. The Government is currently implementing an ambitious project to create computer science laboratories and recruit and train teachers in 11% of government high schools, higher secondary schools and colleges across Balochistan, Sindh, NWFP, Punjab, Tribal Agencies, and the Northern Areas. The estimated cost of procurement of equipment under this project is more than Rs. 900 million, which will create a lost of economic activity in the sector.
10. The Government is working since 2002 on various e-government models in preparation of introducing a pilot project in Pakistan. This will enable Pakistanis in the initial stage to interact with government departments that provide civic services such as electricity, water, and telecommunications.
10 SIGNS OF TRANSFORMATION IN PUBLIC SECTOR ORGANIZATIONS
"When I came into power, we had to face a dismal situation in Pakistan. Everything that the government was doing, all corporations were running at a loss."-President Musharraf, January 2004
1. PIA: Five years ago, experts had given up hope on salvaging Pakistan International Airlines (PIA). Financial adventurism during the 1990s brought the airline to a real collapse. In early 2001, less than three months after the military-led administration of President Musharraf took over, PIA was unable to pay the salaries of its staff. It was running an after tax loss of Rs 1,882 billion. President Musharraf moved swiftly to appoint a new management in April 2001. In just one year, PIA earned an after tax profit of Rs 2,111 billion. PIA was able to achieve this despite the slump in the aviation industry following the events of Sept. 11, 2001. In June 2001, PIA earned an after tax profit of Rs 1.4 billion. Today, this organization is adding 3 new state-of-the-art Boeing 777 aircrafts, in addition to 15 other aircrafts of various models.
2. PAKISTAN STEEL MILLS: This example of organizational turnaround is unprecedented in the corporate history of Pakistan. After remaining stagnant for years, the unexpectedly good performance of the country's biggest engineering complex owes a lot to bold decision-making. This included timely decisions to retrieve the company from international price and raw material crises, price correction to stop black marketeering, and the introduction of employee-friendly policies such as improving work and living conditions at the plants and the living quarters for the low-paid workers at Steel Town.
3. Pakistan Steel has surpassed production, sales, and profits levels of the past three decades, thanks to the employees' renewed spirit and the financial and structural reforms ordered by President Musharraf in 1999-2000. These reforms were executed by Lieutenant General (Rtd) Abdul Qayyum, who was appointed as the organization's chief executive.
4. Pakistan Steel is setting a new record today. Sales in the last fiscal year reached Rs. 25.8 billion. The profits reached Rs. 6.28 billion, five times more than the market predictions. This way, this organization's accumulated losses over the last three decades - Rs. 7.65 billion - have been reduced this year to Rs. 1.58 billion. And this loss will be wiped out during the first half of the current fiscal year.
5. Setting new standards for transparency in Pakistan's public sector, Pakistan Steel's daily sales transactions can be tracked online at www.paksteel.com.pk
6. PAKISTAN TELECOM: This government monopoly has been transformed in the past five years into a dynamic telecommunications company preparing for domestic and international competition. Today's PTCL is an aggressive market player, expanding its networks, reducing tariffs, and introducing new services. Last month, it posted an after tax profit of Rs 29.1 billion, up almost 12% from last year.
7. PAKISTAN RAILWAYS. A bloated and sleeping giant in 1999, Pakistan Railways is transitioning today into a lean operation. Under the government's reform agenda, PR has boosted its profitability to a record Rs.14.8 billion, up from Rs.9.9 billion five years ago.
8. Two months into the Musharraf Administration, the National Security Council and the Cabinet decided that Pakistan Railways is a strategic asset that will be transformed to support the country's communications interests. Today, PR has computerized its reservation offices at 11 terminals with 7 more terminals on the way; rehabilitated 272 kilometers of tracks, and 1000 freight wagons and 240 passenger coaches have been renovated at PR's own Railway Manufacturing Units across Pakistan.
9. PAKISTAN ORDINANCE FACTORIES: Although this is not a public sector organization, it demonstrates - along with other organizations like the Pakistan Steel - how focused leadership throughout the past five years laid the foundation for strong institutions. POF is currently planning to double the international sales of its indigenously-built military products within the next five years from its current exports of US$ 100 million. Most of the export strategy is centered on the world-class al-Khalid and al-Zarrar main battle tanks and the Mashshak trainer aircraft.
10. This track record of transformation in government-owned companies over the past five years shows consistency and commitment to enforcing discipline, innovation, transparency and reform; all governance values that President Musharraf's military-led administration has introduced in Pakistan.
10 SIGNS OF PAKISTAN'S RISING INTERNATIONAL STATURE
"Pakistan Zindabad, Pakistan Zindabad, Pakistan Zindabad!"-Saudi Crown Prince Abdullah, waving his fist while addressing Pakistanis at Jinnah Convention Center, Islamabad, 2003
1.BOLD DECISION MAKING: Pakistan moved decisively to safeguard its national interests in a changing world order, especially after the September 11 terrorist attacks in the United States. Pakistan is playing a crucial frontline role in helping the world fight the war against terror. Islamabad's multi-pronged effort has been instrumental in breaking the back of international terrorism. In this war, Pakistan has led the way because of bold leadership and timely decisions.
2. CHANGE IN PERCEPTIONS: Vigorous and creative Pakistani diplomacy helped achieve a turnaround in US policy toward Pakistan. The decades-old long relationship between the two countries has assumed a new dimension. This year, Washington has designated Islamabad a Major Non-Nato Ally.
3. INFLUENCING A GLOBAL DEBATE: As Pakistan helps the world fight terrorism, its diplomacy joins a global battle of ideas geared toward developing consensus on the just resolution of conflicts to secure global peace. Whether in New York, The Hague, Rome or Beijing, President Musharraf used his official visits as platforms to share with politicians, the academia, businessmen and the media powerful and provocative ideas on how best to achieve world peace and integration. His strategy of Enlightened Moderation offers a viable course for cooperation between the West and the Muslim Middle East.
4. STRENGTHENING OLD TIES: As soon as he assumed power, President Musharraf launched a diplomatic drive to further cement Pakistan's close and brotherly ties with the Muslim countries, banking on ideological, historical and religious ties. The Organization of the Islamic Conference (OIC) has unanimously endorsed Pakistani President's strategy of Enlightened Moderation and his ideas on revitalizing the OIC.
5. INCREASING PRESENCE AT WORLD FORUMS: Pakistan has been elected for the sixth time to the 15-member United Nations Security Council in September 2002, and reelected for the 8th consecutive term in May 2004 to the UN Commission on Human Rights. Today, Pakistan holds prominent positions as Coordinator of the OIC, the Asian Group, and the G77 at the UN.
6. PLAYING AN ACTIVE INTERNATIONAL ROLE: Pakistan now is invited and expected to play a growing regional and international role. Recently, Pakistan lent its goodwill to contribute to resolving the crisis in Sudan. The country's diplomatic and military goodwill is at work in peacekeeping missions under the UN umbrella in many troubled regions. Recently, Pakistan has been approached to contribute forces to stabilizing Iraq. Pakistan is the oldest, longest and the most consistent contributor to the UN's peacekeeping operations since 1960.
7. A DEPENDABLE GLOBAL PARTNER: The governments of China and Russia approved in principle Pakistan's admission into the Shanghai Cooperation Organization. Pakistan has also become a member of the ASEAN regional forum. And Islamabad was unconditionally reinstated to the Commonwealth.
8. A FORCE FOR PEACE: Pakistan is pursuing a regional vision of peace and economic cooperation in West, Central and South Asia. Islamabad is conducting a Composite Dialogue with India to achieve just peace that is based on sovereign equality, mutual interests, and the addressing of all disputes.
9. A RECOGNIZED GROWING ECONOMY: Pakistan has restored its reputation as a serious player in international financial markets. The interaction between Pakistan's boisterous business community and the rest of the world has been bolstered and multiplied. This continues to be one of the priorities of the Musharraf Administration.
10. AUGMENTING RELATIONSHIPS: Pakistan is expanding its relationship with the European Union. The Third Generation Agreement with Pakistan was endorsed by the European Union Parliament in April 2004.
10 COMMITMENTS TO PAKISTAN'S SUPREME NATIONAL INTEREST
"It's not an easy job. There's never been a dull moment for me in the last four years. We are in the eye of the storm, as they say. Anything that is important in the world today, Pakistan is in it, directly or indirectly. So this is the reality."-President Musharraf, addressing a special World Economic Forum session January 2004
1. "I am not the person who could yield to any pressure. I will be the last person accepting any pressure compromising Pakistan's interests."-President Musharraf talking to newsmen aboard the Presidential plane an route to Washington, September 2004.
2. "No leader in Pakistan can sideline Kashmir. If we think we can go ahead on all the confidence building measures and forget about Kashmir, [that is] not doable by any leader in Pakistan. Let me put it very bluntly: I don't think we can move forward on CBMs, I don't think we can move forward on economic interaction unless we move forward on resolution of all disputes including the Kashmir dispute."-President Musharraf addressing the India Today Conclave via satellite from Islamabad, March 2004.
3. "Let me make it clear: This fight against terrorism is our own because our first priority is Pakistan. Pakistan has earned a new prestige for itself. Our point of view is heard around the world. Other countries seek our viewpoint and listen to what we say. Gone is the time when we were told to do something. Whatever we do, we do in Pakistan's interests."-President Musharraf addressing the Pakistani community in Rome, Italy, September 2004.
4. "We are the main contributor to the war against terrorism. I'm really terribly disappointed when someone says Pakistan's not doing enough. Who else is doing anything? It's Pakistan alone that is doing something."-President Musharraf, interview to BBC, 2004.
5. "Action has to be taken before an iron curtain finally descends between the West and the Islamic world. The major powers of the West have yet to show movement by seriously trying to resolve internationally recognized disputes involving the Muslims."-President Musharraf, addressing UN General Assembly, September 2004.
6. "This is our soil. Our blood and sweat is mixed in it. We have no other place to go. In fact, without this country, we would never have what we have. So if someone or some region or some class of people has any complaints or grievances, then these must be directed at the rulers of this country who created these grievances. To betray this soil is treason."-President Musharraf, addressing Pakistani students at Jinnah Convention Center, May 2004, Islamabad.
7. "Pakistan is geographically a hub for the Middle East, for landlocked Central Asia, for Afghanistan where reconstruction is going ahead, and for South Asia. Pakistan is also one of the very few countries that have the maximum access to China. Pakistan is really in the center of half of the world. This is a population of two billion people."-President Musharraf addressing World Economic Forum, 2004.
8. "As far as Pakistan is concerned, our domestic environment is not conducive. It continues to be not conducive. We cannot be seen as an extension of the present forces there."-President Musharraf on requests to send Pakistani forces to Iraq, New York, September 2004.
9. "Pakistan's track record [in human rights] is in many ways better than many developed states."-President Musharraf, dismissing allegations made in a US State Department report, in Rome, September 2004.
10. "Pakistan will never roll back its nuclear program. In fact, we will improve it."-President Musharraf, press conference in Islamabad, March 2004.