Prime Minister Shaukat Aziz has stressed the importance of dispute resolution for exploiting the true potential of the Saarc and said that peace and harmony in the region could change the fate of South Asia, home to 1.4 billion people.
Speaking in CNBC TV's programme 'Encounter', to be aired on Sunday, he said: "Saarc has a lot of potential, but dispute resolution, particularly the Kashmir issue, and peace and harmony are a must to realise this potential."
The Prime Minister, who will represent Pakistan at the 14th Saarc Summit, being held in New Delhi on April 3, said that Pakistan welcomes, and gives importance to the entry of, Afghanistan as member, as well as some other countries as observers, in the regional organisation. He expressed hope that if all stakeholders showed will and commitment, which he viewed now apparent, the disputes within the Saar region would be resolved.
About Pakistan-India relations, and the confidence-building measures (CBMs) for the resolution of Kashmir dispute, he said that talks between the two sides were in progress, at different levels, including diplomatic, and through the composite dialogue and back channels.
The Prime Minister said that Pakistan wants a peaceful and amicable solution of the lingering Kashmir dispute, fulfilling the wishes of the Kashmiris. In reply to a question about the situation in Wana, he referred to the on-going operation by local tribesmen against the foreign miscreants and fighters in the area, and said that it had vindicated success of the government's peace accord with local Jirgas.
"The government's peace accord with the local tribesmen, which initially received criticism from some quarters, is bringing positive results," he added.
The Prime Minister said that the peace accord could be a model for others to follow, particularly Afghanistan, as it would help restore peace in the region.
About the Jamia Hafsa issue in Islamabad, he said the government desires, and is striving, to resolve the issue amicably. But it would not allow anyone to challenge the writ of the government, and would take every action to maintain it, he added.
The Prime Minister did not agree with the view that some isolated law and order incidents in the country were fallout of the government's security efforts in tribal areas along the Afghan border, and said that with the local population taking action against the foreign elements the situation in North and South Waziristan had changed.
He said that Pakistan does not want its territory to be used as safe haven by foreign miscreants to launch terrorist activities across the border, or within the country, as it hurts the country's efforts for peace and prosperity.
"We want peace and prosperity, and do not want any hurdle in Pakistan's efforts towards achieving economic progress and raising our stature", he added. About investment climate, Shaukat said that owing to the government's consistent and prudent economic policies and reforms measures pursued over the last more than seven years, there has been a boost in investors' confidence and the country was attracting record foreign direct investment, with all macro-economic indicators showing positive trends.
He attributed the macro economic stability and unprecedented surge in foreign investment, which used to hover around $200 to $500 million before 1999, to consistency and transparency in policies, professional approach, clarity of vision, quality of management and leadership, and the market of 160 million people.
He said that it was due to the economic stability and high growth that the country withstood the shock of the earthquake and high oil prices. He said that despite over-heating of the economy the government managed to control inflationary pressures through effective monetary policy and strengthening the supply side, which also led to reduction in the prices of various commodities including LPG, sugar, cement and pulses.
The Prime Minister said that Pakistan's economic outlook was positive with sustained growth, and it was being described as a land of opportunities by various international agencies. He said that the government has been successful in its vision of sustaining the growth rate in the range of 6-8 percent and expected to maintain the growth trend during the current fiscal year as well.
He said that the benefits of economic growth have already started to trickle down, with per doubled capita income, increased purchasing capacity and poverty being down by 10 percentage points from 34 percent to 24 percent.
He said that due to increased purchasing power and growing farm income the sale of consumer goods in rural areas had increased during last few years. The Prime Minister said that due to the government's subsidy in phosphate fertiliser prices, the country expects a bumper wheat crop this year.
He also mentioned 1.5 million per month growth in phone users as an indicator of improved socio-economic situation of the masses. He said that with inflation, current account and the exports being focused the government was following a nimble and proactive approach to deal with the problems and creating opportunities.
He said that it were the government's credibility, a big market, ease of doing business, confidence in policies and the human capital, which attracted the foreign investors to Pakistan.
The Prime Minister particularly mentioned the fact that 100 million human capital in Pakistan, out of a total of 160 million population, were below the age of 25 years and said it fascinates the investors to establish their businesses and industry in Pakistan. "Our youth and human capital are an asset, which provides us hopes for future progress, development and prosperity of the country", he remarked.
Responding to a question, he said that Pakistan and Iran enjoy deep-rooted historic, diplomatic and good neighbourly relations, with increased trade and investment relations and expanding communication links. He mentioned the agreement on establishment of Pak-Iran Investment Company, increased trade, plans to take the Gwadar Coastal Highway up to Iranian border, power purchase agreement and the proposed Iran-Pakistan-India (IPI) gas pipeline as some of the initiatives to strengthen the relations.
About Iranian nuclear issue, he said that Pakistan's stand on this issue was very clear as it was opposed to nuclear proliferation. He, however, added that every country, including Iran has the right to use nuclear technology for peaceful purposes under the guidelines of International Atomic Energy Agency (IAEA).
Prime Minister Aziz said that Pakistan does not support the use of force against Iran and wants the issue to be resolved peacefully and through diplomatic means, in which some major countries like Russia, China and the European Union can play a key role.
He also made it clear that in case of a military action, Pakistan will never allow its territory to be used by anyone against Iran. To a question about Pakistan-US relations, the Prime Minister said divergence of views on different issues in the bilateral relations of any two sovereign countries was a healthy sign, as it was impossible for any country to always have complete harmony of views.
He, however, added that now there was a greater understanding in the United States about Pakistan's approach vis-à-vis situation in Afghanistan, as it is now supportive of Pakistan's ideas of implementing a Marshal-like plan as well as ensuring the eradication of drugs problem in Afghanistan.
The Prime Minister said Pakistan wants gradual and systematic repatriation of three million Afghan refugees from Pakistan, so that these refugee camps are not used as safe haven by the terrorist elements from across the border.
To a question about the whereabouts of Osama Bin Laden and Mulla Omar, he said that no country in the world, including Pakistan has information about them and if anyone had tangible information about them they would have taken action against them.
Replying to a question, he said that the United States was supportive of the policies of President General Pervez Musharraf and considers his leadership and role very important for peace and progress in the region.
He, however, added that Pakistan is a sovereign country and the nation should have self-confidence, as the country's independence and sovereignty are not so fragile that it can be harmed by others' views. "Pakistan knows what it is doing. We have the full capacity to defend ourselves and to explain our point of view," the Prime Minister stressed.
Replying to another query, he said that next general elections would be held after the current assemblies complete their tenure and all political parties are allowed to play their role. As far as the participation in the elections by leaders living outside the country was concerned it would be their own decision as well as in accordance with the country's law, the Prime Minister added.