WASHINGTON, June 28: The United States will stay engaged in South Asia to resolve long-standing differences between India and Pakistan, a senior US official said on Saturday.

Assistant Secretary of State for South Asian Affairs Christina Rocca told a gathering of Pakistani-Americans in Washington that the Bush administrations regards “the difficult relationship between India and Pakistan” as “a critical issue for the United States” as well.

“Progress in resolving these long-standing differences will inevitably be slow, but ... the initiatives we are witnessing now represent a real commitment by India and Pakistan to continue and build on this process,” she told the 11th annual meeting of the Pakistani American Congress.

Ms Rocca said that during the past few weeks Indian and Pakistani leaders had taken several “courageous initiatives” leading to a very “positive movement” in their otherwise thorny relations.

The United States and Pakistan, she said, shared a common interest in the stability of South Asia.

Pakistan, she said, was also assisting US efforts in building a stable, democratic Afghanistan with secure border regions that are free from terror and extremism.

“It was against this backdrop of shared interests and common goals that President Musharraf arrived in Washington this week. Most importantly, President Musharraf was welcomed to the US as a close friend. President Bush’s invitation to President Musharraf to meet with him at the presidential retreat at Camp David on Tuesday is recognition of this friendship,” she said.

“But our focus on this visit was very much to look beyond the war on terrorism and our immediate concerns to address our commitment to the long-term health and well being of US-Pakistan relations.”

At the centre of the effort to build a “strong, long-term, reinvigorated relationship is a substantial programme of economic and security assistance,” she said.

“Pakistan needs investment and a vibrant private sector to put people to work and enhance the government tax base,” she added.

To promote US investment in Pakistan, she said, the two countries this week signed a trade and investment framework agreement.

The US Overseas Private Investment Corporation, she said, is also providing an additional &75 million in private sector lending guarantees that will provide potential investors with an additional layer of confidence as they make decisions about investing in Pakistan.

Ms Rocca said that this week Pakistan and the United States also signed an agreement to enhance science and technical cooperation. The United States, she said, will invest $2 million in implementing this agreement, to be matched by a $500,000 contribution from Pakistan.

Christina Rocca said both US and Pakistan would work together, over the next several years to:

— Work together to improve the quality of life for all Pakistanis, giving young people through improve education and expanded economic opportunities the hope in the future they need to turn away from extremist ideas and movements.

— Encourage US business to join with Pakistani entrepreneur in expanding Pakistan’s private sector.

— Work together to strengthen Pakistan’s democratic institutions. A restoration of civilian rule, accountability and good government are essential for Pakistan to emerge as a democratic and moderate Muslim nation, an example to the Muslim world.

— Address means to strengthen Pakistan’s legal system to allow quick, sure and accessible justice to all Pakistanis.

— Reinforce the commitment by Pakistan and India to achieve a resolution to their differences including Kashmir. “There is no more difficult challenge in South Asia, but it is one we will not walk away from.”

— Finally, as the assistance package proposed by President Bush shows, we are prepared to enter a long-term programme to assist in enhancing Pakistan’s security.