19 July 2004	Monday	01 Jamadi-us-Saani 1425

NEW DELHI, July 18: Observing that India and Pakistan need to tackle all issues including Kashmir, Federal Finance Minister Shaukat Aziz has said that both are neighbours and they have to work to live in peace.

"War should be on poverty. We need to tackle all issues, including Kashmir. We have to evolve a thinking and take forward the Jan 6 joint statement," he said in an interview published by Indian weekly "Outlook" in its latest issue.

Replying to a question, Mr Aziz said: "Democracy is evolving (in Pakistan) and certainly not under stress. Democracy is gaining momentum. The assemblies are functioning.

Responding to another query, he said: "The political process in Pakistan will move forward. If there is improved governance, everyone will believe in it." Referring to his recent article, he said Pakistan, with President Gen Pervez Musharraf's vision of enlightened moderation, has been provided the ideal positioning to achieve its true potential.

"Pakistan is at historic crossroads. If we stay the course, we will excel. If we don't, we can derail easily. I have total conviction that we have the talent, competence and wisdom to achieve our objectives provided we can rise above individual agendas and differences and be driven by the national agenda," he emphasized.

About serving the country, Mr Aziz said that it was President Musharraf who gave him the right opportunity. "Even before this I was always thinking of Pakistan. I came several times with a team of Pakistanis from the US and met former prime ministers when they asked me for advice on financial issues."

Asked about the impact of economic policies on poverty during his stint as finance minister, he replied: "Look, we have controlled the rate of inflation from double digits. It is now in single digit. Poverty reduction is all about creating opportunity. I agree that poverty still exists in the country.

"Poverty has many facets that include lack of essential services and deprivation in different forms. Recent surveys in Pakistan indicate that accelerated growth is beginning to impact the people.

We are looking at the agriculture structure and bringing in reforms. For structural reforms, you need nerves of steel. Import duty on all agriculture goods have been slashed," he added. -APP