KARACHI, Feb 2: President General Pervez Musharraf inaugurated here on Wednesday the Expo 2005 trade exhibition, the largest of its kind held in the country, and told entrepreneurs that Pakistan was a rising economy and poised to serve as a regional hub of trade and economic activities.

Addressing participants from 77 countries, the president recounted the economic achievements of Pakistan in recent years and said its geo-strategic location, consistency of policies and efforts to develop a wide communication infrastructure would turn it into a centre of trade.

Pakistan, he said, must also be seen as a regional hub because of its key geo-strategic location; it would serve as a centre of trade between Central Asia, the Gulf, the western parts of China and South Asia.

He said that Pakistan was a moderate country where greater investments would play a vital role in reducing poverty and curbing extremism. "The entrepreneurs, traders, exporters and businessmen contribute indirectly to fighting extremism as investment widens the industrial base, creates jobs, reduces poverty, and thus curbs the menace of extremism."

He said: "I have a strong hope that this landmark event will help correct misperceptions about the country, and project the reality of Pakistan, which is much better," he said.

Pakistan, he said, was on the forefront in the fight against terrorism and the government was striving for a societal transformation so that the vast majority might get voice and contain the extremist minority.

President Musharraf said Pakistan's recent economic turnaround and a string of internationally acknowledged achievements clearly established that Pakistan had awakened and was a rising and dynamic country.

He said Pakistan held out great promise for investors as it offered a conducive environment, where investment enjoyed legal protection and foreign entrepreneurs enjoyed a level-playing field and labour was talented but inexpensive.

The president expressed the hope that Pakistan would touch a growth rate of 7.5 per cent during the current fiscal year. He said Pakistan offered a double-digit profitability on investment which could go upto 50 per cent.

This was the best possible return on investment anywhere in the world, he added. The president said that in Pakistan no foreign investment was ever harmed. Even during the nationalization in the 70's, no foreign firm was nationalized.

Regarding security, the president said, terrorism was not a problem in any part of the country, including Karachi, Lahore, Faisalabad and Gujranwala. These are the places where business activities are flourishing

He said Pakistan had been able to break the back of extremism and terrorism. "Let me assure you with full confidence that your investment will be secure in Pakistan," he added. About the stability and predictability of the country's economy, President Musharraf said Pakistan's economy was fully stable today.