April 1, 2006	Saturday	Rabi-ul-Awwal 2, 1427

ISLAMABAD, March 31: President General Pervez Musharraf said on Friday that Pakistan was actively promoting cooperation in the region and striving hard to make Saarc a dynamic vehicle for development.

He was addressing a banquet hosted in honour of visiting Sri Lankan President Mahinda Rajapakse

“The conclusion of South Asian Free Trade Agreement is a milestone on the road to regional prosperity,” Gen Musharraf said.

Referring to decisions taken at the Dhaka summit of the South Asian Association for Regional Cooperation last year, he observed that the admission of Afghanistan as a member and observer status for China and Japan would help shape Saarc’s future direction.

“This will reinforce the capacity of the organisation to secure the cause of peace and prosperity in South Asia.”

About the peace process between Pakistan and India, he said Islamabad remained committed to the process which had helped build confidence and improve political environment.

He, however, underlined the need for grasping the opportunity to resolve the Kashmir dispute.

“Time has now come to move forward to resolution of disputes, in particular Jammu and Kashmir, which has been at the heart of tension and conflict between the two countries.

“We must seize the opportunity and demonstrate sincerity, flexibility and courage to solve this longstanding dispute and usher in a new era of progress and harmony in South Asia,” he emphasised.

Pakistan, he said, had forwarded substantive proposals of demilitarisation and self-governance of Kashmir to India.

On bilateral relations with Sri Lanka, President Musharraf said political relations between the two Saarc members were excellent and stressed that now it was time to translate them into robust and mutually beneficial economic ties.

“The operationalisation of free trade agreement, the first ever signed by Pakistan with any other country, and the existing bilateral investment treaty provides the basis to realise the full potential of our markets.”

He said both Pakistan and Sri Lanka had been victims of terrorism and they were determined to overcome terrorism and extremism for the sake of “our values and principles and in the interest of peace and progress of our societies.”

Referring to resumption of peace talks with the Tamil Tigers, the president expressed the optimism that Sri Lanka would achieve peace and stability.

In his speech, President Rajapakse said Sri Lanka attached great importance to its relations with Pakistan.

On economic cooperation, he agreed with Gen Musharraf’s emphasis that increased interaction between the business communities of the two countries would set the pace for higher trade to their mutual benefit.

“I hope our business delegations will explore the possibilities of going into joint ventures and investment.”

Mr Rajapakse referred to his talks with President Musharraf earlier in the evening and said Sri Lanka and Pakistan had been able to build on the strong foundation of their relations based in history and culture.

About Pakistan’s heritage, he said Moenjodaro, the cradle of civilisation, charmed the heart of every South Asian. He also mentioned Taxila and Buddhist civilisation in Pakistan saying these reflected the closeness of historical bondage between the two peoples.

He noted that South Asian lagged behind other regions in terms of development and stressed that peace, security and economic development were interdependent.

Prime Minister Shaukat Aziz was present on the occasion.

ARRIVAL: Earlier, the Sri Lankan president was accorded a red carpet welcome at the Aiwan-i-Sadr at the start of his three-day visit to Pakistan.

President Musharraf received the visiting leader on his arrival.

National anthems of the two countries were played. The Sri Lankan president reviewed a guard of honour presented by a contingent of armed forces.—APP