Ambassador to US, Jehangir Karamat has said that South Asia was no longer the disturbed region that it once was, problems and unresolved issues remained but strategies had changed. "India and Pakistan have moved to the process of an institutionalised dialogue to resolve their issues. There is a cease-fire along the Line of Control that divides Kashmir, a bus and truck service has been started and there is discussion on trade, travel and economic issues. These events have changed the regional dynamics." He was addressing at the Dickinson College, Pennsylvania, on the topic: 'Leadership in a Disturbed Region: The Case of India and Pakistan.'
He said, "we must take into consideration the changes that have taken place most recently and the trends that are influencing those changes. We may conclude that the region was disturbed but India and Pakistan, are now actually transforming the environment and that the region is not disturbed or, if you want to look at it differently, is as disturbed as any other region."
In the wake of 9/11, the Ambassador said, Pakistan became a US ally in the war on terror- "it was actually a revival of the long standing US-Pakistan alliance that had been interrupted by the US pullout after the defeat of the Soviet Union." Like all strategic re-orientations, this decision was to have enormous consequences and implications.
"There may be divisions just beneath the surface but the US presence has a significant influence that extends much beyond Afghanistan."
He said, there was a sudden influx of capital into Pakistan through an increase in remittances, relocation of funds and new investments, US aid was resumed and the macroeconomic restructured environment proved to be a timely step.
He said Pakistan achieved economic sovereignty, brought external debt under control, built up reserves further, reduced fiscal deficit and inflation and stabilised the exchange rate. The financial sector was reformed and deregulation was introduced. Enormous emphasis was laid on the neglected social sectors - health, education, higher education, vocational training and science and technology. Bilateral policies governing relations with the neighbours to the east and west now focused on harmony and co-operation, instead of hostility and confrontation. The US policy in the region facilitated progress, Karamat maintained.
He also spoke of privatisation, exports, investment and local governments in Pakistan adding, "the elected government focused on governance and started resolving political issues - a process that is continuing." Ambassador said in 2003-2005 period, economic reforms gathered further momentum.
With Afghanistan, he said, the relations improved after Pakistan's combing operations in the border areas in support of Afghan elections. After President Karzai's recent visit to Pakistan, there had been great progress in co-operation, trade and co-ordination in policies.
He said, "regional harmony is now a reality as there is talk of trade and energy hubs and transit corridors." The relationship with the US deepened as the proliferation issue that surfaced was tackled jointly with total co-operation.
The next step, he said was to tackle the domestic situation through organisational, command and control arrangements to plug all loopholes. This also involved securing of assets through upgraded means and personnel reliability programs.
"US policy for South Asia became clearer and linkages with the Greater Middle East and the Greater Central Asia regions emerged," Ambassador to US said.
He said that by opting to become a US ally in the war on terror Pakistan indicated that it wanted an end to regional conflict and wanted to strengthen itself internally to resist the forces of extremism, terror and intolerance.
"Pakistan broke the al Qaeda network by dealing with over 650 mid and high level leaders in its urban areas. Pakistan also carried out operations in the border areas with Afghanistan to deny sanctuaries to terrorists. "The co-operation against terror continues and prepares for future terror threats - maritime, WMD or information technology," Karamat observed.