ISLAMABAD, March 27: Former Virginia governor James Gillmore III said Pakistan needs maximum 'democratic stability' along with improved law and order to attract more foreign investment particularly from the United States.

Talking to Dawn at the sidelines of a convention of Pakistan-American Business Association here on Saturday, the former Virginia governor said Pakistan could expect more visits from US businessmen if it was able to bring down risks associated with domestic political instability and security.

Although, he said, things were getting better and there was a desire to resolve them on priority basis as the government seemed to be really anxious to cope with major security concerns. After overcoming such things, he added, Pakistan would become a good option for foreign investment.

Mr Gillmore said Kashmir was an issue and there was a desire on the part of contending parties to resolve it. "It is my conviction that the economy will not develop as long as the issue of Kashmir is not resolved," he remarked.

"There is no danger to life here. I will tell my people in my own capacity that Pakistan is a safe place for investment," he remarked. But, he said: "We have also to be mindful of the global scenario - the war on terrorism and that there is still fear of re-emergence of Taliban which gives ground to uncertainty."

Regarding Wana operation, he said that it would benefit Pakistan immensely in the long run. He did not rule out the possibility that it would also help the interest of the Americans as well. It would certainly help both countries in combating terrorism, he added.

He said that all the issues came under discussions during his meetings with the ministers for finance, commerce, foreign affairs, chairman board of investment and some officials from the information technology.

He was optimistic about the success of his trip and added that it could contribute a lot to the political and business opportunities of both the countries. "We are looking for more opportunities to establish and promote trade between the two countries," he said.

He said that the long-term solution for Afghan refugees was not to remove them from one place to another, but there was a need to strictly implement the rule of law. Replying a question, he said it was very hard to stop terrorism, but one could strive hard to control it.

He avoided comment on nuclear proliferation issues.