It is an honour and privilege for me to address to you on the occasion of the Russia Day, which our country celebrates on June 12, 2007. If one looks at the history of Russia in the 20th century we shall see the country that survived many severe hardships: revolutions, civil war, world wars and economic collapse.
Having passed many hurdles of a transition period, nowadays Russia builds up new institutes basing on the principals of a real democracy - democracy, which is efficient and bases on a market economy, supremacy of law and accountability of authority to society. We understand very well that none of the non-democratic states has become really booming. We have a lot of things to do in this direction. At the same time we are aware of all problems which we are facing: over-dependence on minerals markets and still existing large gap in the incomes of the population, which is decreasing.
In spite of some difficulties we see ourselves in the 21st century as a developed country with a strong economy, as a reliable trade and foreign-policy partner as Russia historically was for many centuries. Today we do not force anyone to love Russia but we shall not allow anyone to do harm to it. We shall strive for respect to the Russian nationals as well as to the Russian state as a whole by means of a responsible conduct and showing our successes and not by force.
I would like to express confidence that in the near future the Russian economy will be able to fully realise not only our historic mandate of an energy and transport centre of Eurasia but become one of the largest scientific centres of the world. There are all necessary prerequisites for reestablishment of our country's position in this sphere. Moreover its financial market would become one of the most efficient in the world.
With the real GDP growth at 60 percent since the year 2000, Russia's economy has grown at an average rate of about 7 percent per annum during the last six years, thus positioning itself as one of the fastest growing markets. There is macroeconomic stability, inflation is less than 9 percent and foreign debt is less than 20 percent of the GDP.
In 2006 Russia became the tenth country in the world, which GDP exceeded 1 trillion USD. It took first place in oil production in the world. From 2001 to 2007 our position in the rating of the largest economies of the world improved for 10 points. I would like to stress that Russia turned into creditor-country from debtor- country.
Our country becomes an active participant of positive processes of international development including write off debts of the poorest countries. And what is more important we have started to invest in the economies of these states. Our country pursues a dynamic foreign policy and the Russian-Pakistani relations occupy a special place among its priorities.
Recently they were marked by the further development of political contacts between the two our countries including those at the highest level. They become more regular and their spectrum becomes wider. We have added to them meetings within the framework of the Shanghai Cooperation Organisation (SCO). In 2006 Mr Vladimir Putin, President of Russia met with General Pervez Musharraf, President of Pakistan (June 15, 2006, Shanghai) as well as Mr Mikhail Fradkov, Chairman of the Government of Russia met with his Pakistani counterpart Mr Shaukat Aziz, Prime Minister of Pakistan (September 15, 2006, Dushanbe).
We maintain an intensive dialogue between the foreign ministries of our countries both at the level of ministers (Mr Sergey Lavrov, Foreign minister of the Russian Federation visited Islamabad in November 2006) and in the form of interministerial consultations, Joint Working Groups on counterterrorism and other new challenges to international security as well as on strategic stability.
In April 2007 Mr Mikhail Fradkov, Chairman of the Government of the Russian Federation paid an official visit to the Islamic Republic of Pakistan for the first time. Important and useful talks were held with the leadership of Pakistan. The results of our mutual cooperation for the last years were summarised during his visit.
In particular, it was noticed, that on the background of the growth of interaction in the political sphere and on the international arena between our countries, the level of bilateral trade and economic relations is still very low. Both countries can't be satisfied neither with volume (411 million USD) nor with the structure of the bilateral trade turnover. In this regard our joint priority is to substantially broaden economic component of bilateral relations.
The main aim of the activity of the revived bilateral Intergovernmental Commission on Trade and Economic, Scientific and Technical Cooperation is to achieve this goal. We hope that its first meeting will be conducted soon.
Following bilateral agreements were signed during the visit: Protocol on Prolongation of the Agreement between the Government of the Russian Federation and the Government of the Islamic Republic of Pakistan for Cooperation in combating illicit trafficking and abuse of narcotics drugs and psychotropic substances signed on July 8, 1997 and Programme of cultural, educational and scientific exchange between the Government of the Russian Federation and the Government of the Islamic Republic of Pakistan for 2007-2009.
Besides Russian companies JSC "KAMAZ" and JSC "AHK Azot" signed memoranda on establishment of joint ventures with the Pakistani companies "Bobojee Services" and "Fauji Fertilisers".
On the whole we proceed from the fact that a substantial potential for the development of our interaction lies not only in a traditional trade but also in an economic cooperation. Our country is interested in participation in technical re-equipment, modernization and development of the Soviet production and technological base broadly presented in Pakistan and in construction of new industrial projects. Russia is capable to deliver complete set of equipment, modern industrial technologies and render technical assistance at a competitive price and at a proper quality.
We are ready for cooperation in oil and gas sector taking into account mutual interests and on the basis of the Memorandum of understanding between JSC "Gazprom" and the Ministry of Petroleum and Natural resources of Pakistan signed in October 2005. We also ready for the working out of the electric power supply project from Central Asian republics. Russian side studies the issue of assistance in modernization and construction of new railways in Pakistan.
From our point of view investments, telecommunications and high technologies are the most prospective spheres of cooperation. In the near future we shall have to create necessary legal base for our cooperation in these and other spheres (in particular, to sign the Agreements on avoidance of double taxation as well as on promotion and mutual protection of capital investments). There are certain elaborations and plans for mutual investments also, for example, in textile sector.
I also would like to mention a joint struggle against international terrorism. Our country appreciates the role, which Pakistan plays in antiterrorist coalition and efforts of the Pakistani government in neutralising of extremists organisations and combating terrorism. We do realise that it is not an easy task for the Pakistani leadership and support its policies aimed at the maintenance of the unity and stability of the country.
I wish to extend to the government and friendly people of Pakistan the warmest greetings and best wishes and to express my hope that our relations will develop more actively for the mutual benefit of the two countries.
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