ROME, Sept 28: President Pervez Musharraf said here on Tuesday Pakistan was winning the war on terror but urged the Western world to help solve the 'core issues' which were breeding terrorists and terrorism.
Addressing a big and first-ever gathering of Pakistani and Italian businessmen here at the majestic St Regis Grand hotel, the president said Pakistan was a "front-line state" in the war on terror and was fighting terrorists not only in Pakistan but in its neighbourhood.
Pakistan, he said, had arrested 600 terrorists, who included some of Al Qaeda's leading figures, and was taking action in the tribal areas to rid Pakistan of the curse of terrorism. "They are on the run," he said.
Acknowledging that no investment could take place in an atmosphere of uncertainty and conflict, the president dwelt at considerable length on the steps Pakistan was taking to promote peace and harmony in the area.
The president said Pakistan was making determined efforts to improve relations with India, and he was happy to note that during his meeting with Indian Prime Minister Manmohan Singh he got the distinct impression that there was a chance for the first in half a century that Pakistan and India could achieve real peace.
Pakistan, he said, was fighting terrorism not only within the country but also in its neighbourhood by supporting Afghanistan. Islamabad, he said, stood by the Bonn process and was supportive of the parliamentary and presidential elections dues in Afghanistan, for which Pakistan had contribute five million dollars. Overall, he said, Islamabad had committed $100 million to Afghanistan for its reconstruction.
The president dwelt at length on the war on terror, the detente with India and the policies toward Afghanistan to reassure Italian investors that their investment would be safe because Pakistan was creating an atmosphere of peace and harmony in the area.
The president again referred to his passionate belief in 'enlightened moderation' and said he expected a two-way traffic. While Muslims should shun extremism, the Western world, especially, the US and the European Union, should help solve the core issues that were the causes of unrest and terrorism in the Muslim world. The core issues, he said, included poverty and illiteracy in the Muslim world.
The president dwelt at considerable length on his government's determination to eradicate terrorism to assure Italian businessmen that their investment would be safe in Pakistan.
The president, who spoke extempore with the help of notes, referred to Pakistan's economic revival and explained to the Italian businessmen the changes that had occurred in the economy during the last four years.
He said foreign exchange reserves and exports had gone up, inflation was down to four per cent, fiscal deficit had been brought down to less than four per cent, the GDP growth was at 6.4 per cent, the Karachi Stock Exchange was one of the world's best stock exchanges among the emerging markets.
The president said Pakistan's revival was in sharp contrast to the days when the country was considered "a one-tranche country". He also gave figures about labour costs in China, Pakistan and India to prove that it was the cheapest in Pakistan and should help ensure better returns to those who invest in Pakistan.
To reassure the Italian businessmen against nationalisation, he said no government in Pakistan had ever hurt foreign businesses. Even when there was a large-scale nationalisation in the past, foreign businesses had not been hurt. At present 700 foreign companies were operating in Pakistan.
The president later had a short question and answer session with the businessmen. Earlier, State Bank Governor Ishrat Hussain outlined the main features of Pakistan's economy, and said the financial sector had begun to show "demonstrable effects" after the State Bank achieved autonomy.
He said corruption at the higher levels had "almost disappeared because a strong accountability mechanism was able to secure successful conviction of several hundred politicians, senior bureaucrats and businessmen who were previously considered untouchable."
