year_book_2003_04

Pakistan Foreign Relations 2003-04

YEAR BOOK

2003-2004

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CONTENTS

Page Message from the Minister for Foreign Affairs Foreword by the Foreign Secretary Foundations of Pakistan’s Foreign Policy Foreign Policy Objectives Foreign Policy Successes

I. Neighbouring Countries

- Afghanistan- China- India- Iran

II. Asia- South Asia- Central Asia - East Asia

III. Africa2


IV. Middle East

V. Americas

VI. Europe and Russian Federation

VII. International/Regional Organizations

- United Nations- Non-Aligned Movement (NAM)- Organization of the Islamic Conference (OIC)- South Asian Association for Regional Cooperation (SAARC)- Economic Cooperation Organization (ECO)- Developing Eight (D-8 Group)- Commonwealth

VIII. Economic and Commercial Relations

IX. Foreign Office Publications

X. Important Speeches/Statements

- Address by the President, General Pervez Musharraf to the inaugural session of the 13th Summit of the Non-Aligned Movement (NAM XIII): Kuala Lumpur; 24 February 2003

- Address by the President, General Pervez Musharraf to the 58th Session of the UN General Assembly: New York; 24 September 2003

- Address by the President, General Pervez Musharrafto the 10th OIC Summit: Putrajaya (Malaysia; 16 October 2003

XI. High Level Visits from and to Pakistan during 2003-June 2004

XII. Agreements/Memorandums of Understanding signed during 2003 – June 2004

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MESSAGE FROM THE MINISTER FOR FOREIGN AFFAIRS

Pakistan consolidated achievements of the foreign policy of the earlier years, during 2003-04. In these challenging times, the direction of our foreign policy has enabled us to make the right choices and protect the vital interests of Pakistan’s security and promote its economic and social development.

In South Asia, thaw in relations with India began during the year. Pakistan and India took a number of Confidence Building Measures to lower tensions and agreed on 25 November 2003 to a cease-fire on the Line of Control and Siachen. That cease-fire is holding. The two countries agreed to enter into composite dialogue to address all outstanding issues including the issue of Jammu & Kashmir. It remains our hope that the dialogue process would be result-oriented and progress will be achieved on all issues including the issue of Jammu & Kashmir.

With our western neighbour, Afghanistan, Pakistan has forged close relations. We have maintained high level contacts and we have extended full support to the Karzai Government and to the Bonn process, since a peaceful, stable and a prosperous Afghanistan is in our national interest.

Pakistan’s constructive role in the dealing with Dr. A.Q. Khan’s issue has been well received by the international community. The Government through various measures was able to address individual lapses of the past and improved institutional controls. The international community now recognizes Pakistan as a responsible nuclear power, which has acted with maturity in this case.

Pakistan’s pro-active approach in its foreign policy has been manifested by our growing engagement with European Union, East Asia including ASEAN and Japan. During the period under report, strengthening of time-tested friendship with China, enhancement of ties with the Islamic world and conclusion of a five-year military and economic assistance package with the US, took place.

In the context of Iraq, we had opposed invasion of Iraq and have called for the withdrawal of foreign troops as soon as possible. At the same time we remain committed to territorial integrity and national unity of Iraq. Pakistan played a moderating role as a member of the Security Council. Pakistan has also consulted regularly with other friendly countries including Saudi Arabia, Iran and Turkey about the situation in Iraq.

Pakistan continued its policy of active support during 2003-04 to the international coalition against terrorism and its contribution in strengthening

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regional peace and international security. This has contributed to various recent successes of the foreign policy, including successful hosting of 12th

SAARC Summit by Pakistan, designation of Pakistan by USA as a Major Non-NATO Ally, ratification of Third Generation Agreement with EU, readmission of Pakistan to the Commonwealth and admission of Pakistan to the ARF.

The survey of the foreign policy of Pakistan in the year 2003-04 should prove useful to all those who follow with interest the developments in the foreign relations of Pakistan.

( Khurshid M.Kasuri )

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FOREWORD BY THE FOREIGN SECRETARY

Pakistan seeks peaceful and mutually beneficial relations bilaterally and to promote the principles and purposes of the United Nations Charter multilaterally. We are convinced that agile and intelligent use of political factors is critical for ensuring desired economic outcomes.

In the period under review, Pakistan’s Foreign Policy, with its multifaceted political and economic dimensions, while grappling with many challenges, has seen positive developments.

We successfully hosted the XIIth SAARC Summit in January 2004 in Islamabad. As Chairman, Pakistan has made serious efforts to tap SAARC’s full potential and to develop it into a viable and vigorous regional organization capable of channeling the aspirations of the people of the region. At the Summit we agreed to the establishment of the South Asian Free Trade Area which is expected to become operational on 1 January 2006.

The President of Pakistan met the Prime Minister of India Mr. A. B. Vajpayee on the sidelines of the Summit. The meeting launched the stalled composite dialogue between the two countries. The framework of bilateral engagement and the composite dialogue chalked out at the meeting has been adhered to by both sides. President Pervez Musharraf’s meeting with Prime Minister Manmohan Singh in New York in September 2004 on the sidelines of the UNGA has helped move the process forward.

Pakistan-China relations continued their upward trend. During former Prime Minister Mir Zafarullah Khan Jamali’s visit to China in February 2004, it was decided that our relationship be steered to focus on its economic dimension. The Chinese Government offered a US $ 500 million Buyer’s Credit Facility for Chinese entrepreneurs investing in Pakistan. The two countries also signed a Preferential Trade Agreement in November 2003.

Pakistan continued to extend full support to the Government of President Hamid Karzai in Afghanistan. Pakistan’s positive contribution to the recent Afghan Presidential elections has been recognized by the international community and the UN. We continue to support Afghan efforts at reconstruction of the war ravaged infrastructure and the rehabilitation of Afghan refugees.

The President’s visit to the US in June 2003, helped in crafting a broad based bilateral relationship. A US $ 3 billion US assistance package for a five year period for Pakistan was finalized during the visit. In June 2004 the US President officially notified the designation of Pakistan as a “Major non-Nato

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Ally”. To respond to the demands of our community, we opened two Consulates in Chicago and Houston.

Our “Vision East Asia” policy envisages establishing strong linkages with countries of the East Asian region. An important development, in the period under review, was Pakistan securing membership of the ASEAN Regional Forum (ARF) and acceding to the Treaty of Amity and Cooperation in South East Asia in July 2004.

Our relations with the EU and its member states were also given a framework through the ratification by the European Parliament of the 3rd

Generation Agreement between Pakistan and the EU on 29 April 2004. The agreement could further enhance cooperation between Pakistan and the EU in the political, economic, technological and developmental fields.

Pakistan’s membership of the Commonwealth was also reinstated in the period under review. Pakistan’s membership of the UN Security Council for the term 2003-04 helped us play an important role in the maintenance of international peace and security. Pakistan chaired the Council twice during its term. Pakistan was also elected to a number of important international bodies including the Economic and Social Council, the Commission on Human Rights, ICAO Council and the Councils of the Universal Postal Union.

The international campaign against terrorism continued. Pakistan remained in the vanguard of this campaign and played a pivotal role in combating and containing the scourge of terrorism. Leaders around the world have appreciated our successes and sacrifices in this fight.

The Ministry of Foreign Affairs continues to work for promoting Pakistan’s political and economic interests abroad. We have sought to broaden and strengthen Pakistan relations with all our partners.

We shall continue to gauge international developments and trends to be prepared for any challenges that may emerge and any opportunities which can be utilized for Pakistan’s benefit.

(Riaz H. Khokhar)

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FOUNDATIONS OF PAKISTAN’S FOREIGN POLICY

Quaid-e-Azam Muhammad Ali Jinnah, the Founder of Pakistan and its first

Governor General, in a broadcast talk to the people of the USA in February

1948, outlined the following goals of Pakistan’s foreign policy:

“Our foreign policy is one of friendliness and goodwill

towards the nations of the world. We do not cherish

aggressive designs against any country or nation.

We believe in the principle of honesty and fair play in

national and international dealings and are prepared

to make our utmost contribution to the promotion of

peace and prosperity among the nations of the

world. Pakistan will never be found lacking in

extending its material and moral support to the

oppressed and suppressed peoples of the world,

and in upholding the principles of the United Nations

Charter.”

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FOREIGN POLICY OBJECTIVES

Safeguarding our vital security and geo-strategic interests, including Kashmir.

Promoting Pakistan as a dynamic, progressive, moderate, and democratic Islamic country.

Creating macro-political framework for pursuit of economic and social interests abroad.

Consolidating our commercial and economic interests.

Safeguarding interest of expatriate community.

Developing friendly relations with all countries of the world, especially major powers and immediate neighbours.

Ensuring access to resources for national development.

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FOREIGN POLICY SUCCESSESDURING 2003-04

The foreign policy of the country during the year 2003-04 has been a success story. The following events highlight some of the accomplishments of Pakistan’s Foreign Policy:

Enhancement of Pakistan’s prestige abroad;

Positive turn in relations with the US, Europe and Japan after joining war against terror;

Strengthening of relations with the Islamic world, China, Russia and Southeast Asian nations;

Successful hosting of the 12th SAARC Summit in January 2004 in Islamabad, which was attended by Heads of State/Government of all member countries including India;

Resumption of composite dialogue with India;

Re-admission to the Commonwealth;

Admission to the ARF and plans to host the 4th ACD Ministerial meeting in Pakistan;

Ratification of Third Generation Agreement with the European Union;

Approval by China and Russia of Pakistan’s admission to the Shanghai Cooperation Organization;

Endorsement of President Musharraf’s concept of “Enlightened Moderation” by the OIC Summit at Putrajaya (Malaysia), and its appreciation in the West;

Pakistan’s election, for the 6th time, to the 15-member UN Security Council. The two-year term commenced on 01 January 2003;

Pakistan’s election, for the 8th consecutive term, in May 2004, to the UN Commission on Human Rights;

Pakistan’s election to the UN Economic & Social Council, Council of ICAO, and Councils of the Universal Postal Union.

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Pakistan’s prominent position as Coordinator of the OIC, Asian Group and G-77 in the UN;

Recognition and appreciation at different forums of Pakistan’s role as the oldest, largest and most consistent contributor of the UN Peacekeeping Operations since 1960; and

Designation of Pakistan by USA as a Major Non-NATO Ally.

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I. NEIGHBOURING COUNTRIES

AFGHANISTAN

Pakistan values close friendly relations with Afghanistan. They are based on the principles of mutual trust, sovereign equality and non-interference. Pakistan extended full support to the Karzai government and to the Bonn Process and signed the ‘Kabul Declaration on Good Neighbourly Relations’ on 22 December 2002, along with other neighbours of Afghanistan. Pakistan has also pledged a grant of US $100 million for reconstruction of Afghanistan at the Donors Conference on Afghanistan, held in Tokyo in January 2002, out of which, US $35 million have already been utilized.

Visits

On the invitation of President Karzai, Prime Minister Jamali visited Kabul on 12 January 2004. He was the first Head of Government to visit Afghanistan after the adoption of new Afghan Constitution. The visit helped further enhance economic ties between the two countries. Earlier, our Foreign Minister had visited Kabul from 21 - 22 August 2003. The Foreign Minister represented Pakistan at the Berlin Conference on Afghanistan from 31 March - 01 April 2004. At the Conference, Pakistan, along with other States, signatory to the Kabul Declaration on Good Neighbourly Relations, signed a Declaration on Counter Narcotics. A number of other ministerial visits also took place during the year under review, including the visits to Pakistan by Afghan Interior Minister Ali Ahmad Jalali, Vice President Hedayat Amin Arsala and National Security Adviser Dr. Zalmai Rassoul.

Economic Relations

Pakistan-Afghanistan Joint Economic Commission (JEC), headed by Finance Ministers of the two countries, held its second meeting at Islamabad from 4 –5 August 2003. The third session of the Commission was held in Kabul on 11 January 2004. It identified priority projects for our assistance to Afghanistan including reconstruction of Torkhum-Jalalabad Road. Work on the project has already commenced and will be completed by July 2005. Feasibility study for Chaman-Kandahar rail link has also been completed.

Pakistan has taken steps to facilitate Afghan Transit Trade, including rationalization of port and railways carriage charges, notification of Port Qasim as additional entry point, establishment of an additional border crossing point at Ghulam Khan in North Waziristan Agency and deletion of all but 6 items on the Negative List of Afghan Transit Trade. Duty on import of Afghan fruit has been reduced from 25% to 5%.

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Bilateral trade between Pakistan and Afghanistan increased from US$192.14 million in 2001 – 2002 and US $350.516 million in 2002 – 2003 to US $540 million in 2003-2004. Balance of trade remained in favour of Pakistan. Bilateral trade figures are expected to cross the US $ 1 billion mark soon.

Afghan Refugees

On 17 March 2003, Pakistan signed with UNHCR and Afghanistan an Agreement on Voluntary Repatriation of Afghan Refugees. The Tripartite Commission on Afghan refugees, established to review the process of voluntary repatriation, held three meetings during the year. According to UNHCR, 1.56 million refugees living in Pakistan voluntarily repatriated to Afghanistan in 2002; 343,074 repatriated in 2003 and 130,194 had repatriated upto June 2004 since the beginning of the year.

Pakistan-Afghanistan-US Tripartite Commission

To address mutual concerns related to terrorist activity in the border areas, a Tripartite Commission was established in June 2003. The Commission draws together senior diplomatic and military officers from Pakistan, Afghanistan and the US. It has held seven meetings upto 30 June 2004, and has established two sub-committees on Border Posts and Military Information Exchange and Planning. The Commission has been working satisfactorily in accordance with its mandate.

CHINA

The relations between the people of China and the Indus valley civilization span over several millennia and are extremely close and friendly. This deep-rooted, all-weather friendship between the two countries has grown from strength to strength with each passing generation. Pakistan was one of the first countries, which recognized People’s Republic of China and established diplomatic relations on 21 May 1951. Since then, these relations have weathered many vicissitudes and have been strengthening despite domestic changes or those at the regional and global level. The relations between the two countries are based on mutual trust and confidence. The two countries have convergence of views on several regional and international issues. Over the years, Pakistan and China have developed a comprehensive partnership in political, economic, defence, cultural and other fields.

Both countries believe in the principles of peaceful co-existence and have shared aspirations for peace and stability in the South Asian region. Pakistan-China Friendship has also helped the promotion of international peace, understanding and amity among the countries of the world in general and in the Asian region in particular.

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Visits

Frequent bilateral interaction at the highest level has been the hallmark of Pakistan-China relations since 1950s.

President Musharraf visited Boao and Beijing from 1 - 5 November 2003. In Boao, the President was a keynote speaker at the Annual Conference of the Boao Forum for Asia (BFA). During his visit to Beijing (from 3 - 5 November), the President held talks with President Hu Jintao, National People’s Congress Chairman Wu Bangguo, Premier Wen Jiabao, Chairman CPPCC Jia Qinglin and Chairman of Central Military Commission Jiang Zemin.

The President’s visit not only provided an opportunity to establish personal contacts with the new Chinese leadership, but was also an important occasion for re-affirmation of the close traditional friendly relations between Pakistan and China. An important objective of the visit was to provide an opportunity to give impetus to our growing cooperation in the economic, commercial, scientific, technological and cultural spheres. The focus of the visit was on economic relations with special emphasis on private sector collaboration.

Prime Minister Mir Zafarullah Khan Jamali visited China from 24-26 March 2003. He was the first foreign dignitary to be received by the new Fourth Generation leadership of China, elected in March 2003 at the 10th National People’s Congress. The Prime Minister had important bilateral discussions with President Hu Jintao and Prime Minister Wen Jiabao in addition to his meetings with other Chinese leaders.

During the visit, MOUs were signed on Cooperation in the Railways Sector, and on Designation of Pakistan as a Tourist Destination. The Prime Minister announced formation of Pak-China Friendship Forum. The first meeting of Pakistan-China Friendship Forum was held in Islamabad on 22-23 September 2003. The two sides agreed on the need to broaden and deepen cultural cooperation and understanding between Pakistan and China. Several proposals were made to enhance cultural cooperation, which ranged from exchanges in sports, fine arts, architecture, music, literature and archaeology. The two sides also stressed on promoting understanding and knowledge of each other’s culture, language and history.

Prime Minister Jamali’s second visit took place in April 2004 on the eve of the BOAO Forum’s “Asia Annual Conference 2004”. The Prime Minister was a keynote speaker on the occasion. During the visit, he also held important discussions with President Hu Jintao in which the whole gamut of Pakistan – China relations was discussed.

At the invitation of the Chinese Foreign Minister, our Foreign Minister visited China from 6-9 April 2004. He held discussions on a wide range of issues with his Chinese counterpart and was also received by the Chinese Prime

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Minister. During his visit, both countries also signed a Protocol on cooperation between the two Foreign Ministries. The Foreign Secretary visited China to hold annual bilateral consultations from21-23 February 2003. The whole range of relationship between the two countries came under discussion during the visit. The Chinese government offered a US$500 million Buyer’s Credit facility for the Chinese entrepreneurs investing in Pakistan.

From the Chinese side in 2003-2004, the dignitaries who visited Pakistan included, Mr. Wang Yi, Vice Foreign Minister (18-21 October 2003); Mr. Jia Qinglin, Chairman, Chinese Political Consultative Conference (3 – 7 December 2003); Gen. Cao Gangchuan, Defence Minister (22-26 March 2004) and Mr. Li Tieyin, Vice Chairman of NPC (6-9 June 2004).

Economic Cooperation

Pakistan-China economic relations are strong and robust. China has made valuable contribution to Pakistan’s economic development, particularly in the development of infrastructure and setting up of basic industries.

Although Pakistan and China have vibrant economic cooperation with each other and the bilateral trade is to the tune of US$ 2.5 billion, there is still scope for further enhancement of economic relations between the two countries. Some of the major exports from Pakistan to China are raw cotton and cotton yarn, textile items, synthetic fabric, leather, carpets and fresh fruits. Our imports include machinery and parts, iron and steel products, sugar, chemical materials, chemical elements and medical and pharmaceutical products.

At present there are more than 60 major Chinese companies working in Pakistan. Some of the important projects undertaken jointly in Pakistan include: Karakoram Highway, Pakistan Aeronautical Complex, Saindak Metal (Copper/Gold) Project, Heavy Mechanical Complex, Heavy Rebuild Factory, Guddu Thermal Power Station, Jamshoro Power Station, Chashma Nuclear Power Plant, Ghazi Barotha Power Project, Indus Highway and Thar Coal Power Generation Project, etc.

Some of the other ongoing projects, which were agreed upon during Chinese Premier Zhu Rongji’s visit to Pakistan in May 2001 and President Pervez Musharraf’s visit to China in December 2001 include: Gwader Deep Sea Port Project, Locomotives and Coaches for Pakistan Railways, and Saindak Copper and Gold Mines Project, etc.

In November 2003, both Pakistan and China signed Preferential Trade Agreement to promote economic and commercial relations between the two countries. Pakistan has already announced the establishment of a special industrial/export-processing zone for Chinese investors. We are now moving

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towards a comprehensive economic partnership with China including establishment of Joint Ventures and Free Trade Arrangements.

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INDIA

The period under review marked a crucial phase in Pakistan-India relations. After an extremely tense phase in Pakistan – India relations during which India mobilized troops against Pakistani border, the process of normalization began in April 2003. Initiation by Pakistan of Confidence Building Measures led to improvement in the atmosphere between the two countries. High-level contacts took place, which reached the climax when Prime Minister Vajpayee visited Islamabad in January 2004 to attend the SAARC Summit. Following the meeting, the framework of bilateral engagement and a composite dialogue was chalked out, which has been adhered to by both sides to date, despite the change of government in India.

At a rally in Srinagar on 18th April 2003, the Indian Prime Minister announced that he was willing to extend a hand of friendship to Pakistan. Since Pakistan has always advocated resolution of all issues between India and Pakistan including the core issue of Jammu and Kashmir through peaceful means, Prime Minister Jamali welcomed the announcement and called the Indian Prime Minister on telephone inviting him to visit Pakistan. A formal invitation was also sent.

The Prime Minister of Pakistan offered on 6 May 2003, the resumption, with immediate effect, of train and bus service, restoration of air link between India and Pakistan, immediate release of all Indian fishermen, 22 Sikh youth, resumption of sporting ties between the two countries beginning with cricket and hockey, restoration of full strength of diplomatic missions in respective capitals and convening of the 12th SAARC Summit in Islamabad well before the end of that year. Thus Pakistan initiated a process of Confidence Building Measures which resulted in significant improvement of relations between the two countries.

President Musharraf’s Peace Proposals in UNGA Session - 2003

President Pervez Musharraf addressed the United Nation’s General Assembly on 24 September 2003. He:

i) invited India to join Pakistan in a sustained dialogue to resolve the Kashmir dispute;

ii) invited India to observe jointly with Pakistan, a complete cease-fire along the Line of Control;

iii) conveyed Pakistan’s preparedness to encourage a general cessation of violence within Kashmir, involving reciprocal obligations and restraints on Indian forces and the Kashmir freedom movement;

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iv) stated that if India is genuinely concerned about cross-LoC infiltration, it should agree to a viable mechanism to monitor this on both sides. The UNMOGIP could be enlarged for this purpose.

Indian Proposals of 22 October 2003

India proposed on 22 October 2003 the hosting of technical level discussion in New Delhi for resumption of civil aviation links, resumption of bilateral sporting encounters including cricketing ties, holding of visa camps, increasing the capacity of the Delhi-Lahore bus service by running more buses, in convoys, on the already agreed days and establishment of links between the maritime authorities of the two countries.

Pakistan’s Response

Pakistan responded positively to the Indian proposals of 22 October and announced on 29 October 2003 the holding of second round of technical level talks for the resumption of air links between the two countries on 1-2 December 2003 and the holding of technical level talks for the resumption of train links between India and Pakistan in the first half of December 2003. Pakistan also welcomed India’s acceptance of Prime Minister’s offer for the resumption of sporting links including cricketing ties. We stressed the need to revive Samjhota Express at the earliest by de-linking it from resumption of air links and proposed to start Lahore-Amritsar Bus Service. We also announced that establishment of Bus / Rail link between Khokhrapar and Munabao would be discussed in the composite dialogue.

In addition, Pakistan, for the benefit of Kashmiri people, offered 100 scholarships for the Kashmiri students in its professional institutions at graduate and post-graduate levels, treatment for disabled Kashmiris and compensation for widows and victims of rape through international human rights organizations.

Pakistan’s Announcement of Unilateral Cease-fire

Prime Minister Mir Zafarullah Khan Jamali on 24 November 2003 announced the following proposals to further improve relations with India:

a) Observance of a cease-fire by Pakistani forces along the LoC with effect from Eid-al-Fitr i.e. 26 November 2003.

b) Pakistan’s readiness to host talks on the revival of Khokhrapar-Munabhao route.

c) Pakistan’s preparedness to establish a Bus service between Muzaffarabad and Srinagar.

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d) Need for full restoration of the staff strength of the two High Commissions.

e) Immediate resumption of air-links between the two countries.

f) Issuance of notification regarding permission for the senior citizens (65 years) to cross at Wagah on foot.

g) Proposal for commencement of a Lahore-Amritsar Bus service.

h) Pakistan proposed to hold technical talks for the resumption of Samjhota Express between the Railway authorities in Pakistan in the first half of December 2003.

i) The feasibility of ferry service between Karachi and Mumbai could be discussed between the two sides.

j) Pakistan proposed that the Interior/Home Ministries of Pakistan and India work out a mechanism to resolve the problem of prisoners in each other’s jails, who have completed their sentence terms but have neither been released nor repatriated.

Indian Reaction

The initial reaction of the Indian Ministry of External Affairs (MEA) to the Prime Minister’s offer of unilateral cease-fire was that of “guarded welcome”. The subsequent reaction from the Indian side was, however, forthcoming. The Indian Minister for External Affairs stated on 24 November 2003, that “we responded to the Jamali offer in a very, very positive manner”. Defence Minister George Fernandes said that the cease-fire should be looked at from a positive angle and there were “enough reasons to believe that it could take them to a final solution as it was implemented after serious thoughts”.

The Indian print and electronic media was generally positive to the Prime Minister’s initiative. Prime Minister Vajpayee’s announcement at Lucknow on 27 November, that he would travel to Pakistan for SAARC Summit and meet everyone there, was attributed to be a direct result of improved atmospherics created due to Prime Minister Jamali’s peace initiative.

President Prevez Musharraf on 30 November 2003 announced that as a good will gesture, Pakistan would agree to the resumption of over- flights with India. At the second round of technical talks for the resumption of air links on 1 – 2 December 2003, it was announced that the two countries would resume air links and allow over flight facilities w.e.f 1 January 2004. A Memorandum of Understanding was signed to this effect during the talks.

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President’s 4-step Approach

President General Pervez Musharraf reiterated on 12 August 2003 his four-step approach to resolve the Kashmir dispute. He proposed a “win-win” strategy for finding a peaceful settlement. The four steps are:

a) Both Pakistan and India should agree to serious and substantive talks on all outstanding issues.

b) Both sides should agree to the centrality of the Kashmir problem, Kashmir cannot be sidelined.

c) Any solution unacceptable to the three parties is eliminated.

d) From the possible acceptable solutions, the best, having the support of all three (i.e. Pakistan, India and Kashmir) to be adopted.

Additional Indian CBMs

On 31 December 2003, the Indian Government proposed the following additional CBMs:

i) Removal of all restrictions imposed on the movement of Missions’ personnel since January 2002.

ii) Increase of 20 officials in the strength of the respective High Commissions. This would enhance the total strength to 75.

iii) Holding of technical level discussions on starting of a bus service across Khokhrapar-Monabhao check post during the week starting from 12 January 2004.

iv) Holding of technical level talks on commencing a bus service between Muzafarabad and Srinagar during the week starting on 19 January 2004.

Pakistan agreed to the increase in the official strength and removal of restrictions on their movement. We also offered to hold technical level talks on starting a bus service across Khokhraphar-Monabhao on 8-9 march 2004 and Muzaffarabad-Srinagar route on 29-30 March.

Prime Minister Vajpayee’s Visit to Islamabad – January 2004

Prime Minister Vajpayee visited Islamabad from 4–6 January 2004 to participate in the 12th SAARC Summit. On the sidelines of the Summit, he

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met Prime Minister Jamali and President Musharraf. During the meeting, they discussed regional as well as bilateral issues.

A Joint Statement was also issued on this occasion. It was agreed to commence the process of the composite dialogue in February 2004, which would lead to peaceful settlement of all bilateral issues, including Jammu and Kashmir, to the satisfaction of both sides.

Official / Technical Level Talks

In pursuance of the Joint Statement of 6 January 2004, bilateral talks between the two countries were held on 16-17 February 2004 at Director General level, and on 18 February at Foreign Secretary level. The two sides finalized dates for the Technical Level Talks on the re-opening of Khokhrapar-Monabao & Srinagar-Muzzafarbad Bus routes. It was also decided that Expert Level Talks would be held on nuclear CBMs.

Accordingly, Technical Level Talks on Khokhrapar-Munnabao Bus Service were held in Islamabad on 9 and 10 March 2004. The Technical Level Talks for Srinagar-Muzzafarbad Bus Service were also scheduled to start from 8 th

April 2004. The talks however were postponed at the eleventh hour.

Talks on Drug Trafficking and Smuggling between the two countries were held on 15 and 16 June in Islamabad after a hiatus of seven years. The two sides decided that the representatives of the customs intelligence from both sides would also attend the quarterly meetings between the Pakistan Rangers and BSF of India.

Experts Level Talks on Nuclear CBMs between the two sides were held on 19 and 20 June in New Delhi. The two sides agreed to recommend to their respective Foreign Secretaries that the existing hotline between the DGMOs should be upgraded, dedicated and secured; a dedicated and secured hotline would be established between the two Foreign Secretaries, through their respective Foreign Offices to prevent misunderstandings and reduce risks relevant to nuclear issues and that both countries should work towards concluding an Agreement with technical parameters on pre-notification of flight testing of missiles, a draft of which was handed over by the Indian side.

The Foreign Secretary Level Talks on Peace and Security including CBMs and Jammu & Kashmir were held on 27 and 28 June in New Delhi. The two sides reiterated their commitment to the principles and purposes of the Charter of the United Nations, and their determination to implement the Simla Agreement in letter and spirit. The two sides approved the measures recommended by the Expert level meeting on Nuclear CBMs in New Delhi on 19-20 June 2004. They agreed to conclude an Agreement on pre-notification of flight testing of missiles, and entrusted the Experts to work towards finalizing the draft Agreement.

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The two sides proposed a comprehensive framework for conventional CBMs aimed at initiating and enhancing communication, coordination and interaction.

The Foreign Secretary of Pakistan made the following substantive proposals to India on Kashmir:

i) Agreement in principle to “associate” the True Representatives of the Kashmiri people with this process for a final settlement of the Kashmir dispute.

ii) Agreement of the Government of India to work out mutually acceptable “modalities” for associating the True Representatives of the Kashmiri people.

iii) Agreement of the Government of India to engage “purposefully” in finding a final settlement of the Jammu and Kashmir dispute and in this regard fixing the “time lines” for reaching a just solution.

iv) Agreement of the Government of India to work out with Pakistan “modalities” for addressing the Jammu and Kashmir issue substantively and purposefully.

v) Agreement of the Government of India to respect the human rights of the Kashmiri people.

The Foreign Secretaries reiterated the hope that the dialogue will lead to peaceful settlement of all issues, including Jammu and Kashmir, to the satisfaction of both sides. They held detailed exchange of views on Jammu & Kashmir and agreed to continue the sustained and serious dialogue to find peaceful negotiated final settlement.

It was agreed that the strengths of the respective High Commissions would be restored immediately to the original level of 110; it was also agreed in principle to re-establish Pakistan’s Consulate General in Mumbai and India’s Consulate General in Karachi. Modalities would be worked out by the two governments. All apprehended fishermen in each other’s custody would be immediately released and mechanism put in place for the return of unintentionally transgressing fishermen and their boats from the high seas without apprehending them.

The Foreign Secretaries also agreed that the meetings of the remaining six subjects of the Composite Dialogue on Siachen, Wullar Barrage/Tulbul Navigation Project, Sir Creek, Terrorism and Drug Trafficking, Economic and Commercial Cooperation, and Promotion of Friendly Exchanges in Various Fields, would take place between the third week of July and the first half of August 2004.

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The Foreign Secretary of Pakistan conveyed invitations from the President of Pakistan to the President and Prime Minister of India, and to Ms. Sonia Gandhi.

It was agreed that the Foreign Secretaries would again meet in the third week of August to review progress achieved in the Composite Dialogue and prepare for the meeting of the Foreign Ministers which would immediately follow.

KASHMIR DISPUTE

The year 2003-2004 saw certain important developments with regard to Jammu and Kashmir. Pakistan continued with its policy of maintaining a principled position on the Kashmir dispute, i.e. to seek a peaceful resolution in accordance with UN Security Council Resolutions and the aspirations of the Kashmiri people, through a dialogue process.

The President of Pakistan in an interview published in the local press on 20 June 2004 said that both the governments of Pakistan and India need to approach the Kashmir issue with flexibility. He clarified that when parties come to a negotiating table to find a solution, each one cannot afford to hold on to a maximalist position. These positions will have to be compromised by all in a spirit of flexibility.

Human Rights Violations in IOK

According to reports, since 1989 to May 2004, 88,942 people have been killed in Jammu and Kashmir. 104,678 houses and shops have been burned, 106,166 children have been orphaned and 9,526 women have been molested, while more than 22,000 have been widowed.

The Indian government continues to use black laws like the Armed Forces Special Powers Act, 1990, the Jammu and Kashmir Public Safety Act, 1978 and the Jammu and Kashmir Disturbed Areas Act, 1990 to crush the freedom struggle in Kashmir. According to the Indian NGO, the Association of Parents of Disappeared Persons, nearly 8,000 people have disappeared since the conflict started in 1989.

International human rights organizations like Amnesty International and Asia Watch have criticized the violations of human rights in Indian Occupied Kashmir by Indian Security Forces in their latest reports. Similarly the Annual Report on Human Rights 2003 issued by the British Foreign and Commonwealth Office and the US State Department’s human rights report of 2004 have also been highly critical of the human rights situation in IOK, and have asked the Indian authorities to give international human rights organizations access to Kashmir.

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Projection on Multilateral Forums

At the 59th Session of the Commission on Human Rights held in Geneva (17 March to 25 April 2003), delegation of Kashmiri representatives as well as the Pakistan delegation drew international attention to the massive violations of human rights in IOK.

The OIC Foreign Ministers and senior officials met in Tehran (28-30 May 2003) and adopted two resolutions on Jammu and Kashmir and reaffirmed their support for the Kashmiri people and their right to self-determination in accordance with the relevant UN resolutions. The conference also called for appointing a special representative of the OIC Secretary General on Jammu and Kashmir and for sending an OIC Fact Finding Mission to Kashmir. The conference expressed its support to the Government of Pakistan’s efforts to seek a peaceful resolution to the Kashmir dispute in accordance with the wishes of the Kashmiri people. The Foreign Minister also addressed a meeting of the OIC Contact Group on Jammu and Kashmir.

The President of Pakistan while addressing the UN General Assembly in September 2003, reiterated his “action plan” for peace between Pakistan and India, in which he invited India to open a dialogue with Pakistan. He offered a reciprocal cease-fire along the Line of Control in Kashmir. He offered to encourage a general cessation of violence within Kashmir; involving reciprocal obligations and restraints on Indian forces and the Kashmir freedom movement. He offered enhanced monitoring of the Line of Control on both sides in Kashmir. The UNMOGIP could be enlarged for this purpose. Regrettably, India has rejected this eminently reasonable proposal for peace in the region.

The OIC Summit was held in Kuala Lumpur in (16-18 October 2003). The Summit adopted four draft resolutions on Kashmir:

i) Draft Resolution on Jammu and Kashmir dispute.

ii) Draft Resolution on the Escalation of tension in Jammu and Kashmir.

iii) Draft Resolution on Assistance to the Kashmiri people and

iv) Draft Resolution on the destruction of Charar-e-Sharif Islamic Complex in Kashmir and other Islamic sites therein.

A meeting of the OIC Contact Group on Kashmir at the Summit level was held on the sidelines of the OIC Summit. The President of Pakistan also addressed the meeting.

At the 60th Session of the Commission on Human Rights held in Geneva from (17 March to 22 April 2004), the Kashmiri and Pakistani delegations once

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again spoke on all aspects of the human rights situation in Indian occupied Kashmir and called on the international community to ask the Government of India to end its repression.

The OIC Foreign Ministers met for their Annual session in Istanbul from 13-17 June 2004. The OIC once again adopted long-standing resolutions on the Kashmir dispute and welcomed the ongoing peace process between India and Pakistan. The Foreign Minister attended the OIC Contact Group meeting on Jammu and Kashmir and addressed the meeting.

IRAN

Iran was the first Muslim country to recognize Pakistan. Since the birth of Pakistan the two countries have maintained a close cooperative relationship, which served their security interests. Iran has also been supportive of the settlement of Kashmir issue in accordance with UN resolutions and the aspirations of Kashmiri people. Both are founding members of ECO & OIC and actively cooperate on the International and regional forums.

Visits

During the period under review, a number of high level visits were exchanged between the two countries. On 29 August 2003, Foreign Minister Dr. Kamal Kharrazi visited Pakistan and held wide-ranging talks with his counterpart. He also called on the President and Prime Minister and delivered a letter from President Khatami to President Musharraf.

On the invitation of the Iranian President, Prime Minister Jamali visited Iran from 21-23 Oct 2003. The visit, which came only 10 months after the visit of President Khatami to Pakistan, was a manifestation of their deep desire to further enhance the existing relationship. During his visit, the Prime Minister held wide-ranging talks with President Khatami and First Vice President Dr. Aref, which focussed on improvement of bilateral relations and discussion of regional and international issues. It was also agreed to take all necessary steps for the enhancement of economic cooperation, which remains below the two countries’ actual potential. The Prime Minister’s emphasis that the two countries were partners and not competitors in the region was well received in Iran. The early revitalization of the trilateral commission among Pakistan, Afghanistan and Iran for reconstruction activities in Afghanistan was also agreed upon. The Prime Minister again visited Tehran from 17-19 February 2004 to attend the D-8 Summit.

The First Vice President of Iran, Dr. Reza Aref visited Pakistan from 4-6 March 2004. His talks in Islamabad centered on further strengthening the existing cooperation between the two countries. Dr. Aref also called on the President and met the Ministers for Finance and Foreign Affairs. The following agreements were signed during the visit:

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MoU between the Export Promotion Bureau of Pakistan and the Export Promotion Centre of Iran

Preferential Trade Agreement

Programme of Cultural, Scientific and Technical Exchanges

MoU to Establish a Joint Investment Company

MoU of 14th Session of Joint Economic Commission

Exchange of Instrument of Ratification of the Agreement for Avoidance of Double Taxation

Customs Cooperation Agreement

The Deputy Foreign Minister of Iran, Mr. Mohsen Aminzadeh visited Pakistan in January 2004 and held a regular annual session of political consultations with the Foreign Secretary. They reviewed the overall bilateral relations with special emphasis on the issues, which required special attention for speedy implementation of the ongoing/pending projects.

Mr. Ijazul Haq, Minister for Religious Affairs visited Tehran in May 2004 to attend the International Conference on Iranian Revolution. During the visit, he called on his Iranian counterpart, Mr. Masjed Jamei and Chairman Expediency Council, Mr. Akbar Hashim Rafsanjani.

Economic Relations

Despite geographical proximity and various trade-related agreements, bilateral economic cooperation between Iran and Pakistan remains below the desired level. During the year 2003-04, the volume of bilateral trade was around US$ 376.3 million. Exports from Pakistan valued US$92.4 million, while imports from Iran were to the tune of US$283.9 million. Trade and economic cooperation was discussed in detail at the 14th Session of the Joint Economic Commission held on 3-4 March 2004 at Islamabad. It reviewed the whole range of economic activity between the two countries and discussed ways and means to enhance the cooperation.

Relief Assistance to the affectees of Bam earthquake

Pakistan offered relief assistance to the earthquake victims of Bam in December 2003. Relief assistance worth Rs.5 million was provided. It included tents, blankets, medicines and foodstuff. Pakistan also sent an Army Field Hospital and Engineers to assist Iranian authorities in its relief efforts in the affected area.

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II. ASIA

SOUTH ASIA

Having treated India separately in the Second Chapter of the book, now we will have a look at Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives, which are also important countries of South Asia. Pakistan has friendly and cordial relations with all these countries at the bilateral as well as at the regional plane.

BANGLADESH

Pakistan and Bangladesh are linked by common faith and history and have similarity of perceptions on a wide range of regional and international issues. They are members of important regional and international organizations like, UN, SAARC, OIC, Commonwealth, NAM, D-8, and a host of other sub-regional, trans-regional and international bodies.

Pakistan is viewed in Bangladesh as a friend, with shared Islamic values, common interests, mutual goodwill and great potential for bilateral co-operation. On important issues, Bangladesh’s stand has been close to that of Pakistan.

Visits

Foreign Minister Khurshid Mahmud Kasuri visited Bangladesh from 10 – 12 September 2003 to deliver an invitation letter to Prime Minister Begum Khaleda Zia for attending the 12th SAARC Summit. Bangladesh attended the 12th SAARC Summit at Islamabad in January 2004. On the sidelines of the Summit, our President and Prime Minister had bilateral meetings with the Prime Minister of Bangladesh. The President also offered 75 scholarships for Bangladeshi students in various disciplines to study in Pakistan.

In pursuance of the agreement singed by the President during his visit to Dhaka in July 2002, the first round of bilateral consultations at the Foreign Secretary level was held in Islamabad on 25 July 2003. The second round of bilateral consultations was held in Dhaka on 4 – 6 May 2004. During these consultations, both sides expressed satisfaction at the state of bilateral relations. Broad-ranging discussions were held on a number of regional and international issues concerning both the countries. It was agreed to take concrete steps to further strengthen the bilateral relations.

The Chairman of Joint Chiefs of Staff Committee of Pakistan Armed Forces, General Aziz Khan paid an official visit to Bangladesh from 6 – 10 September 2003. He called on Prime Minister Begum Khaleda Zia and also held

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important meetings with other dignitaries to further strengthen defence relations between the two countries. Pakistan’s Chief of the Naval Staff also paid an official visit to Bangladesh in May 2004. A 17-member Bangladeshi National Defence College (NDC), team visited Pakistan in September 2003.

Trade

Pak-Bangladesh trade amounted to US $ 240.9 million in 2003-2004, comprising Pakistan’s exports worth US $ 195.0 million and imports of around US $ 45.9 million, showing an upward trend as compared with the previous year. Major items of export from Pakistan include cotton fabrics (woven), rice, cotton, synthetic fabrics, cotton yarn, fruits and chemical materials. Major imports from Bangladesh include tea, jute, medical and pharmaceutical products. A 13-member trade delegation, led by Vice-Chairman of Export Promotion Bureau of Pakistan, visited Dhaka from 2-5 February 2003 and held important meetings with the local businessmen and government officials.

A free trade agreement was discussed by the Pakistani Commerce Minister and his Bangladeshi counterpart during the WTO Mini-Ministerial Meeting, held at Sharm El-Shaikh in June 2003. A Working Level Technical Delegation visited Dhaka from 16-17 November 2003 to participate in the first round of consultations on a Free Trade Agreement with Bangladesh. The second round of consultations would be held in Islamabad and a Technical Level Team from Bangladesh would visit Islamabad later during 2004.

BHUTAN

Pakistan – Bhutan bilaterally and in the context of SAARC enjoy friendly relations. Pakistan offers scholarships to Bhutanese students as well as different training courses in professional banking.

Visits

There have been regular contacts between the leaders of two countries at different International Fora, besides the SAARC Summits. Bhutan attended the 12th SAARC Summit at Islamabad in January 2004. On the sidelines of the Summit, our President and Prime Minister had bilateral meetings with the Prime Minister of Bhutan.

Trade

Major exports from Pakistan are cotton yarn, articles of textile materials, cotton fabric (woven), sports goods and leather. Imports by Pakistan include raw jute, crude rubber, oil seeds, cork and chemical materials/products. Economic cooperation between the two countries is minimal, owing to high freight rates and difficulties to access landlocked Bhutan. The existing bilateral trade is about half a million US dollars.

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MALDIVES

Pakistan and Maldives have traditionally enjoyed close and cordial relations in the bilateral and regional context, characterized by shared perceptions on global and regional issues. Pakistan offers scholarships and training courses for the Maldivian nationals.

Maldives attended the 12th SAARC Summit at Islamabad in January 2004. On the sidelines of the Summit, our President and Prime Minister had bilateral meetings with the President of Maldives. The Foreign Secretary held bilateral consultations with the Foreign Secretary of Maldives on the sidelines of SAARC Standing Committee meeting in Kathmandu from 9 – 11 July 2003.

Trade

The economic relations with Maldives are minimal due to lack of direct shipping services between Male’ and Karachi. Total trade between the two countries in 2003-04 was just US$2.1 million.

NEPAL

Since the establishment of diplomatic ties in 1961, Pakistan-Nepal relations have traditionally been friendly and cordial. Both countries share perceptions on major global and regional issues. Pakistan offers scholarships and training courses for Nepalese nationals.

Visits

The Prime Minister of Nepal participated in the SAARC Summit held in Islamabad from 4- – 6 January 2004. On the sidelines of the Summit, our President and Prime Minister had bilateral meetings with the Prime Minister of Nepal.

The first round of Pakistan-Nepal bilateral consultations on Foreign Secretary level was held in July 2003 at Kathmandu. The consultations covered bilateral issues as well as regional and international developments. The Foreign Secretary also called on Prime Minister Surya Bahadur Thapa.

A delegation from the Nepalese Administrative Staff College visited Pakistan from 25 – 31 May 2003. They visited Islamabad and Lahore, called on the Finance Minister and attended various briefing sessions at different Ministries.

Trade

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Pakistan - Nepal trade remains small and total trade during 2003-04 was to the tune of US$8 million.

SRI LANKA

Diplomatic relations between Pakistan and Sri Lanka were established in 1948. Since then, the two countries have consistently maintained close, cordial and mutually supportive relations. Pakistan unequivocally supports the sovereignty, independence and territorial integrity of Sri Lanka.

Visits

Sri Lanka attended the 12th SAARC Summit at Islamabad in January 2004. On the sidelines of the 12th SAARC Summit, our President and Prime Minister had bilateral meetings with the President of Sri Lanka. The Foreign Minister paid an official visit to Colombo to deliver a formal invitation letter from the Prime Minister of Pakistan to the Prime Minister of Sri Lanka for the Islamabad SAARC Summit. The President held a bilateral meeting with the President of Sri Lanka on the margins of XIIIth NAM Summit in Kuala Lumpur on 25 February 2003. Both the leaders exchanged views on SAARC, regional issues, Iraq and bilateral relations.

The Interior Minister paid an official visit to Sri Lanka from 31 July to 3 August 2003. The purpose was to enhance cooperation in counter terrorism and to discuss measures to combat human smuggling. The Minister also called on the President and Prime Minister of Sri Lanka. The Interior Minister of Sri Lanka Hon.John A.E. Amaratunge visited Islamabad on 13 September 2003. An agreement was signed between the Ministries of Interior of Pakistan and Sri Lanka to cooperate in the prevention and suppression of terrorism, drug trafficking, smuggling, forgery, illegal human transportation during the visit.

General Muhammad Aziz Khan, Chairman Joint Chief of Staff Committee visited Sri Lanka from 14 – 18 September 2003 and held talks with the President, Prime Minister and Defence Minister of the country. A team from the Pakistan Administrative Staff College, Lahore visited Sri Lanka in May 2003. The members of the team held useful interaction and called on officials of the Sri Lankan Government.

Trade

Sri Lanka is an important trading partner of Pakistan in South Asia. The volume of trade between the two countries has been fluctuating over the years. During 2003-2004, the total trade volume with Sri Lanka was to the tune of US$146.2 million, of which Pakistan’s exports equaled to US$97.8 million.

Free Trade Agreement (FTA) Framework

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The Framework Agreement for the FTA was signed by their respective Commerce Ministers during the visit of President of Pakistan to Sri Lanka on 01 August 2002 at Colombo. In order to complete the task, Technical Teams headed by our Minister of Commerce visited Sri Lanka from 15-19 September and again from 3-5 October 2002. A Sri Lankan technical team visited Islamabad in March 2003. During these visits lengthy negotiations took place and both sides covered lot of ground. The FTA is expected to be concluded soon.

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CENTRAL ASIA

After the demise of the Soviet Union, Pakistan was quick to recognize all the five Central Asian Republics and Azerbaijan and establish diplomatic relations with all the newly independent states.

Pakistan’s relations with the Central Asian Republics are featured with the centuries old shared cultural heritage and close geographical proximity. Pakistan has continued to enjoy close and cordial relations with all the republics in Central Asia and Azerbaijan. These relations have been further strengthened through the establishment of Joint Economic Commissions with each state and conclusion of about 160 bilateral agreements with them, over the years. These agreements provide basis for cooperation in the spheres of trade, economy and other areas for mutual benefits and interests. The primary objective of Pakistan’s foreign policy with regard to the Central Asian Republics is to promote economic cooperation with the landlocked countries by providing them in the coming years, access to the ports in Karachi and Gwader for their trade with the countries in the South Asian Region and the regions beyond. However, the continued instability in Afghanistan has been a major hurdle so far in realizing these long-term objectives. Once complete peace returns to Afghanistan, Pakistan has all the capability and potential to act as a hub for the Central Asian Republics’ trade with the regions outside. Pakistan, despite difficult conditions, is constructing the Torkham-Jalalabad road, which, when linked to Termez in Uzbekistan through Mazar-e-Sharif, will provide overland access to the landlocked Central Asian Republics upto the sea in South. Similarly, the bulk of the Central Asian Republics' external trade will be routed through the Gwader port when it becomes operational in year 2005.

A country-wise account of important events during the period under report is as follows:

KAZAKHSTAN

Mr. Nursultan Nazarbayev, President of Kazakhstan visited Pakistan from 8-10 December 2003. His visit was preceded by the 5 th meeting of the Joint Ministerial Commission (JMC). The following agreements were signed during the visit:

Agreement on Reciprocal Promotion and Protection of Investments

Agreement on Cooperation between the State Bank of Pakistan and the National Bank of Kazakhstan

Agreement establishing relationship between Akimat of Astana and Capital Development Authority, Islamabad

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Agreement on Cooperation between National University of Modern Languages, Islamabad and Ablai Khan University, Almaty

The two sides also decided to hold annual summits between the Presidents of the two countries alternately in Islamabad and Astana to enhance relations, as well as to promote greater identity of views on issues of mutual interest. A bilateral consultations meeting between the Foreign Ministers of the two countries was held in Astana on 9 April 2004. Kazakhstan agreed to relax its strict visa regime for Pakistani businessmen.

KYRGYZSTAN

The inaugural Session of Pakistan-Kyrgyzstan Joint Ministerial Commission (JMC) was convened from 25-26 August 2003. A number of decisions were taken to enhance bilateral economic cooperation between the two countries.

Mr. Altay Borubayev, Speaker of the Parliament of Kyrgyzstan visited Pakistan form 11-18 May 2004. During his visit, it was decided to enhance cooperation between the Parliaments of the two countries with a view to promoting people to people contact and mutual understanding.

TAJIKISTAN

Mr. Emomali Rahmonov, President of Tajikistan visited Pakistan from 12-14 May 2004. The visit was preceded by the inaugural session of the Joint Ministerial Commission in Islamabad from 6-7 May 2004. During the visit of the Tajik President, the following agreements were signed:

Agreement for Abolition of Visas for Holders of Diplomatic Passports

Agreement for Cooperation in Combating Drug Trafficking

Agreement for Cooperation between the Tajik Information Agency and Associated Press of Pakistan

Agreement for Promotion and Protection of Investments

Agreement for Avoidance of Double Taxation

Agreement for Economic and Industrial Cooperation

Agreement for Cooperation between the Ministries of Education

Agreement for Cooperation in Tourism

Earlier, the Foreign Minister of Tajikistan visited Pakistan in January 2004.33


AZERBAIJAN

The Deputy Foreign Minister of Republic of Azerbaijan, Mr. Khalaf Khalofov visited Islamabad on 17-19 May 2004. He held the first round of bilateral consultations meeting with the Foreign Secretary. He also called on the President and Secretary Economic Affairs Division.

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EAST ASIA

Pakistan accords great importance to its relations with the countries in the East Asia and the Pacific Region. Our “Vision East Asia” encompasses establishing strong linkages with the countries of the region, both at the bilateral and multilateral planes. Pakistan secured membership of the ASEAN Regional Forum (ARF) and acceded to the Treaty of Amity and Cooperation in South East Asia on 2 July 2004.

A brief overview of relations with the countries in the East Asian region during the period under report is given below:

BRUNEI DARUSSALAM

Visit of the Sultan

Pakistan and Brunei have excellent bilateral relations. The Sultan of Brunei Darussalam visited Pakistan from 18-20 May 2004. The visit gave a new impetus to our bilateral relations. The two sides agreed to initiate a consultative process for enhancing trade and investment promotion and facilitation between the two countries. These steps would lead gradually toward a Comprehensive Economic Partnership.

During the visit of the Sultan of Brunei, Pakistan offered 10 scholarships to Brunei in its educational institutions in the fields of medicine, engineering and information technology etc. The following MoUs were signed during the visit:

MoU on Counter Terrorism and other Transnational Crimes.

MoU on Defence Cooperation

MoU on Consultation and Cooperation between the Foreign Ministries of Pakistan and Brunei Darussalam

Trade

The volume of two-way trade between Brunei Darussalam and Pakistan in the past two years was as follows:

(Million US$)Year Exports from Pakistan Imports from Brunei 2002-2003 3.860 1.3612003-2004 3.405 0.225

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CAMBODIA

Pakistan and Cambodia enjoy cordial and friendly relations. Pakistan recognized the National Government of Cambodia (NGC) and the Supreme National Council (SNC) formed under the UN auspices in October 1991. Pakistan also participated in the UN Peace Keeping Operations in Cambodia (which included mine clearance, etc). In 1992, a contingent of 1320 Pakistani personnel was sent to work under the United Nations Transitional Authority in Cambodia (UNTAC). Pakistani personnel also assisted in the UNTAC- sponsored elections there in May 1993. However, despite our interaction with Cambodia under the UN auspices, bilateral exchanges at the political leadership level have been far and few. Cambodia gained importance after it joined ASEAN in 1998. Following its support of our candidature in the ARF meeting, held in Phnom Penh in May 2003, relations between the two countries have taken a new turn.

In June 2003, Foreign Minister Khurshid M. Kasuri met with his Cambodian counterpart Mr. Hor Namhong on the fringes of the 2nd Asia Cooperation Dialogue (ACD) Ministerial meeting in Thailand. The Foreign Secretary visited Cambodia in March 2004.

In the absence of resident diplomatic missions, our Ambassador to Thailand is concurrently accredited to Cambodia, while Cambodian Ambassador in China is concurrently accredited to Pakistan.

Prime Minister’s Visit to Cambodia

Prime Minister Mir Zafarullah Khan Jamali paid a two-day visit to Cambodia on 27-28 April 2004. It was the first ever visit by any Head of State or Government from Pakistan. Besides meeting the Prime Minister, Mr. Samdech Hun Sen, Prime Minister Jamali also called on Samdech Chea Sim, President of the Cambodian Senate and the Acting Head of State.

During the Prime Minister’s visit, the two sides signed a Joint Declaration setting the future direction of bilateral relations. In addition, MoUs on Cooperation and Consultation between the two Foreign Ministries, on Combating Terrorism and other Transnational Crimes, and an Agreement on Promotion and Protection of Investment were signed. The Prime Minister announced a US$10 million Concessional Loan Facility for Cambodia and conveyed that Pakistan would open its Resident Mission in Phnom Penh in the near future. As a follow up of Prime Minister Jamali’s visit, the Secretary for the Cambodian Ministry of Finance and Trade visited Pakistan in May 2004 and finalized an MoU with the Ministry of Finance for the loan facility.

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Trade

Pakistan-Cambodia bilateral trade in 2003-04 was to the tune of US$ 9.6 million, including US$ 8.4 million exports from Pakistan and US$ 1.2 million imports from Cambodia. Pakistan’s main exports to Cambodia are cotton fabrics, hide and fur skins, cotton yarn and synthetic fabrics. Our imports from Cambodia include synthetics, chemical materials and products, medicinal and pharmaceutical products.

INDONESIA

Bilateral relations between Pakistan and Indonesia are warm and friendly. The leaders of the two countries laid the foundation of close relations at the time of independence of Indonesia.

Visit of President Megawati

President Megawati Soekarnoputri of Indonesia paid a state visit to Pakistan from 14-16 December 2003. Bilateral relations between Pakistan and Indonesia were comprehensively reviewed during the visit. Areas of cooperation that were touched upon included economy, trade, industry, communications, energy, banking, health, education, culture, combating international terrorism, intelligence sharing and defence. Pakistan and Indonesia agreed to establish a Preferential Tariff Agreement and work towards a Free Trade Arrangement.

During the visit the following documents were signed:

Joint Statement between the Islamic Republic of Pakistan and the Republic of Indonesia;

MoU between the Government of the Islamic Republic of Pakistan and the Government of the Republic of Indonesia on Establishment of Joint Commission for Bilateral Cooperation;

MoU between the Government of the Islamic Republic of Pakistan and the Government of Republic of Indonesia on Combating International Terrorism.

Trade Agreement.

Chairman, National Accountability Bureau (NAB) Lt. Gen. Munir Hafiez visited Jakarta in March 2003 to attend the Steering Group Meeting of the Action Plan hosted by ADB - OECD. Dr. Abdul Hafeez Shaikh, Minister for Privatization and Investment represented Pakistan at the Asian African Sub-Regional Organizations Conference (AASROC) at Bandung from 28 – 30 June 2003.

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Technical Collaboration

Each year Pakistan offers six training courses in railways and four courses in banking to Indonesia. In addition, one place is reserved for admission of an Indonesian student in a medical college on an annual basis.

Trade

The two-way trade figures for the last two years are as under:

(Million US$)Year Exports from Pakistan Imports from Indonesia2002-2003 31.5 111.52003-2004 44.531 357.65 JAPAN

Diplomatic relations with Japan were established in 1952 providing the framework for signing agreements on trade, culture, commerce, investment etc. Japan is a major trade and investment partner and a top donor of Pakistan. It has contributed tremendously for the social, economic and infrastructure development of Pakistan through soft term loans, grants and technical cooperation.

Consequent upon the nuclear tests by Pakistan, the Japanese Government imposed economic sanctions against Islamabad. The situation was revised after 2001. The Japanese Government announced grant assistance of US$ 300 million for Pakistan and rescheduled our bilateral debt of US$ 4.5 billion under the Paris Club Agreement. Bilateral Economic Dialogue

During President Musharraf‘s visit to Japan in March 2002, the Prime Minister of Japan, Mr. Koizumi had suggested that both the countries should start bilateral economic dialogue, which may include discussions on resumption of yen loans.

Two rounds of the Dialogue have been held so far, in September 2003 and February 2004 in Tokyo and Islamabad, respectively. The Dialogue proved quite useful at the time of the formulation of Japan’s country specific programme for Pakistan. It provided us with a chance to brief the Japanese partners about the macro economic policies of Pakistan and highlight the improvement in Pakistan’s economy during the last 3 years.

Pakistan-Japan Security Dialogue

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The idea of Pak-Japan Security Dialogue was initiated in 2001 by the then Foreign Minster of Japan Ms. Makiko Tanaka and was agreed during President Musharraf’s visit to Japan in March 2002. The purpose of the Dialogue is to exchange views on security and disarmament related issues on the lines of a similar dialogue with India.

The first session of the Dialogue was held in Islamabad on 24 January 2004. The Japanese delegation held separate discussions in the Ministry of Foreign Affairs and the Ministry of Defence.

The Japanese Foreign Minister, Ms. Yoriko Kawaguchi contributed an article in the Press in May 2004, entitled “Pakistan’s Indispensable Role”. In her article, she appreciated Pakistan’s role as a “front line state” in fight against terrorism and Pakistan’s progress in democratization and its robust economic growth.

The Japanese government’s stand on ballistic missile tests by India and Pakistan is in line with its policy of emphasis on nuclear non-proliferation. It calls on both countries to respond sincerely to the efforts by the international community for non-proliferation of weapons of mass destruction.

Trade

Bilateral trade between the two countries amounts to US$1 billion annually. Our exports to Japan were worth US$ 134.8 million in 2003-04, while imports from Japan for the same period were worth US$ 936.3 million. Japanese FDI in Pakistan amounted to US$ 9.3 million during the same period.

Lao PDR

Pakistan and Lao PDR enjoy friendly relations. Lao PDR became a member of the ASEAN in 1997. Since then, its significance for Pakistan has considerably increased. Foreign Minister Khurshid M. Kasuri met Mr. Soulivong Daravong, Commerce Minister of Lao on the sidelines of the 2nd Asia Cooperation Dialogue (ACD) Ministerial meeting held in Chiang Mai, Thailand on 22 June 2003 and discussed bilateral relations.

In February 2004, the wife of Lao’s Deputy Prime Minister/ Foreign Minister Mrs. Lengsavad represented the Laotian First Lady at the 3rd Summit of the Steering Committee of the First Ladies of Asia-Pacific, held in Islamabad. The two countries are now cooperating for uplifting of social status and alleviation of poverty of the rural women in Asia-Pacific region.

In the absence of any resident diplomatic missions, our ambassador to Thailand is concurrently accredited to Lao PDR, while Lao PDR’s ambassador in India is concurrently accredited to Pakistan.

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Prime Minister’s Visit to Lao PDR

Prime Minister Mir Zafarullah Khan Jamali paid a three-day visit to Lao PDR from 21-23 April 2004. It was the first ever visit by a Head of State or Government from Pakistan. Besides meeting Lao’s Prime Minister Mr. Bounnhang Vorachit, Prime Minister Jamali also called on President Kamtay Siphandone.

At the conclusion of the visit, a Joint Statement outlining the future direction of bilateral relations was issued. In addition, the two sides signed MoUs on Cooperation and Consultation between the two Foreign Ministries, Combating Terrorism and Other Crimes, and an Agreement on Promotion and Protection of Investments. Prime Minister Jamali announced a US$10 million Concessional Loan Facility for Lao PDR. He also conveyed that Pakistan would open its Resident Mission in Vientiane in the near future.

MALAYSIA

Pakistan's relations with Malaysia have been marked by friendship and understanding.

Visits

High-level exchanges have made a positive contribution to the strengthening of relations between the two countries. During the period under report, President Pervez Musharraf visited Malaysia for the NAM and OIC summits held in Kuala Lumpur in February and October 2003, respectively. The Foreign Secretary visited Malaysia in March 2004. A Malaysian Parliamentary delegation came to Pakistan in the first week of January 2003 and held meetings with the Deputy Speaker of the National Assembly and the Foreign Minister.

An MoU between the Governments of Pakistan and Malaysia was signed in 2003 for the export of manpower and labour to Malaysia. Another Memorandum of Understanding was signed between the State Bank of Pakistan and Bank Negara, Malaysia in November 2003. It is aimed at promoting bilateral cooperation between the two countries in the area of trade and finance relations.

Trade

The two-way trade figures during the last two years are as under:

(Million US$)FY(July-June) Exports from Pakistan Imports from Malaysia2002-2003 78.457 567.072003-2004 80.480 602.52

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Besides Palm Oil, Malaysia’s other exports to Pakistan include electronic items, timber, chemicals and machinery. Pakistan’s exports to Malaysia comprise textile yarn and its products, rice, seafood products, fruits, vegetables, sports goods and carpets.

THE PHILIPPINES

Political relations between Pakistan and the Philippines have been traditionally cordial, marked with friendship and understandings and dating back to early years after independence. The two countries have an identity of views on most of the regional and global issues since the establishment of diplomatic relations in 1949.

Annual Policy Consultations

The Annual Policy Consultations between the Ministries of Foreign Affairs of the two countries were instituted under the MoU signed in March 1997 in Islamabad during the visit of the then Philippines President Fidel Ramos. The Foreign Secretary attended the second session of Annual Policy Consultations on 01 April 2004 in Manila.

During the bilateral consultations, the Foreign Secretary offered to negotiate preferential trade arrangements leading to signing of FTA with the Philippines in order to boost bilateral trading relations. The Foreign Secretary also offered to promote cooperation with the Philippines in the fields of defence and security. He also stressed the need for signing the extradition treaty with the Philippines.

Trade

Bilateral trade figures for the last two years are as under:

(Million US$)Year Exports from Pakistan Imports from Philippines2002-2003 25.727 8.012003-2004 26.41 10.79

SINGAPORE

Relations between Pakistan and Singapore are cordial and trouble-free. Both countries have a shared perception on a wide range of international and regional issues.

During the period under report, Finance Minister Shaukat Aziz visited Singapore on 6-9 February 2004. Ambassador Lee Chiong Giam,

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Deputy Secretary, International Cooperation visited Pakistan on 15-17 January 2003 as a Special Envoy of the Prime Minister of Singapore, to solicit support for Singapore’s candidature for election to the ICAO Council. Singapore Ministerial Investment and Trade mission led by Dr. Balaji Sadasivan, Minister of State for Health and Environment visited Pakistan on 18-23 April 2004. On the invitation of his Singaporean counterpart, the Foreign Secretary visited Singapore on 02 April 2004. He met Prime Minister Goh Chok Tong, Foreign Minister S. Jayakumar and held bilateral discussions with the Permanent Secretary of the Ministry of Foreign Affairs. In addition, the leaders of the two countries also met on the margins of multilateral fora. The Foreign Ministers of Pakistan and Singapore met during the ACD Ministerial Meeting held in Chiang Mai in June 2003. The Commerce Ministers of Pakistan and Singapore met during the WTO talks at Sharm El-Sheikh and Cancun.

Visit of Singapore’s Prime Minister

The Prime Minister of Singapore visited Pakistan from 21-23 June 2004. During the visit both countries agreed to co-operate in fight against terrorism, promote regional peace and security, expand defense cooperation, develop people to people contact through student exchanges and academic collaboration, and encourage joint ventures between their private sectors. It was also agreed to initiate discussion on Pakistan – Singapore Free Trade Agreement.

The following documents were signed during the visit:

MoU on Consultation and Cooperation between the Ministries of Foreign Affairs of Pakistan and Singapore

Joint Declaration between Pakistan and Singapore

Trade

The volume of trade between the two countries during the last two years was as under:

(Million US$)Year Exports from

PakistanImports from Singapore

2002-2003 86.72 322.7722003-2004 116.975 491.530

Major imports include data processing machines, parts for machines, spices, textile yarn thread, telecommunication equipment,

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photographic supplies, refined petroleum products, hydro carbons, television receivers, etc.

Technical Cooperation

Singapore government invites nominations on annual basis for various fully funded short courses, under Technical Assistance Programme, the Colombo Plan, Third Country –JICA training programme.

SOUTH KOREA

The diplomatic relations between Pakistan and South Korea were established in 1983. South Korea is a valuable market for our exports and has the potential to become an important source of private foreign investment in Pakistan.

President’s Visit

President Musharraf visited Seoul in November 2003. The MoUs/Agreements signed during the visit included:

MoU for cooperation in oil exploration/production in Pakistan;

Arrangement for cooperation in IT and related technologies;

Arrangement for Pakistan-Korea Joint working group on energy and mineral resources cooperation;

Cooperation Agreement for EDCF loan, credit, export credit and re -lending facilities; and

MoU on mutual cooperation between private sector software associations/ companies.

Trade

South Korea is Pakistan’s seventh largest export market and eleventh largest import market. Pakistan exported goods worth US$220.1 million to South Korea, while imports were to the tune of US$380.5 million during 2003-04. Major Korean enterprises such as Daewoo, LG International, Hyundai Engineering and Construction have significant investments in Pakistan.

Pakistan’s major exports to South Korea include cotton yarn, leather, woven fabrics of cotton, naphtha, equipment for gymnastics, fish, vegetable products, copper waste and scrap. Our major imports from RoK include Cyclic Hydrocarbons, parts of transmission apparatus, radar apparatus, television receivers, motor cars, Synthetic filament yarn, parts and

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accessories of the motor vehicles, woven fabrics of synthetic filament yarn, air conditioning machines, etc.

THAILAND

The relations between Pakistan and Thailand have been marked by cordiality, mutual trust, warmth, cooperation and shared perceptions on various regional and international issues of common concern.

Visits

The momentum in the relations was maintained by frequent visits at the ministerial and senior official level, particularly from Pakistan side. Twice during 2003, in February and October, President General Pervez Musharraf made brief stopover at Bangkok airport. Foreign Minister Khurshid M. Kasuri visited Thailand to attend the 2nd ACD Meeting in June 2003. Finance Minister Shaukat Aziz transited Bangkok during August 2003.

At the invitation of H.E. Dr Thaksin Shinawatra, Prime Minister of Thailand, Prime Minister Zafarullah Khan Jamali paid a three-day official visit to Thailand from 28-30 April 2004. The two sides agreed to fully utilize the mechanism of the Joint Economic Commission (JEC) to explore ways and means to expand bilateral trade and investment. They also agreed to work towards realizing Comprehensive Economic Partnership and in this regard, mandated the JEC to expeditiously set up a Joint Study Group to discuss Preferential Tariff Arrangement and possible benefits of FTA.

The following bilateral agreements were signed during the visit:

MoU on Combating Terrorism and certain other crimes;

MoU on Scientific and Technological Cooperation;

Protocol on Consultation and Co-operation between the Ministries of Foreign Affairs of Thailand and Pakistan.

Trade

The bilateral trade had been hovering around US$ 300 million for quite a number of years, which both sides acknowledge is far below its true potential. Thailand ranks 22nd as an export destination for Pakistani commodities. Trade figures for the last two years are as follow:

(Million US$)Year Exports from Pakistan Imports from Thailand2002-2003 60.8 231.82003-2004 63.217 269.197

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The main items being exported from Pakistan to Thailand are cotton fabrics and yarn, precious stones, crude edible oil, leather, footwear, pharmaceutical & surgical goods and fisheries.

Imports from Thailand comprise chemical products, sugar, polymers, synthetic fiber, auto parts, plastic products, refrigerators and parts, air conditioning machines and parts and iron & steel products and rubber products. VIETNAM

Pakistan’s relations with Vietnam have continued to grow in strength over the years.

Visit of President Luong

At the invitation of the President General Pervez Musharraf, Mr. Tran Duc Luong, President of the Socialist Republic of Vietnam paid a state visit to Pakistan from 24-27 March 2004. At the end of the visit both sides issued a Joint Statement, and signed four Agreements/MoUs, i.e.:

Agreement on Cooperation in the Field of Science & Technology;

Agreement on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income;

MoU on consultation and Cooperation between the Foreign Ministries; and

MoU between the State Banks of the two countries.

The President of Vietnam was accompanied by a large business delegation, and businessmen of both countries jointly established Pakistan-Vietnam Business Forum.

Earlier, Mr. Le Cong Phung, Deputy Foreign Minister of Vietnam visited Pakistan from 10-20 March 2004 to make preparations for the first ever visit of the President of Vietnam to Pakistan.

Trade

The Total bilateral trade between Pakistan and Vietnam during 2003-04 was to the extent of US$ 35.7 million. Pakistan’s exports to Vietnam were to the tune of US$ 18.9 million, while imports totaled US$ 16.8 million. The main items of our exports were cotton yarn, ready-made garments, leather, wheat, and chemical products.

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III. AFRICA

Pakistan greatly values its relations with the African countries and is committed to developing stronger ties with them. Pakistan has had a historical relationship with African countries, going back to their independence movements, when Pakistan provided moral, material and diplomatic support to countries such as Algeria, Kenya, Sudan, Zimbabwe, Namibia and South Africa.

Pakistan’s relations with all African countries have always remained close and cordial. These fraternal ties have been further strengthened by a broad similarity of views on a number of international and regional issues. To foster and further consolidate these relations, Pakistan has established resident missions in 13 African countries while others are covered through concurrent accreditation.

In subsequent paras, a country-wise account of developments vis-à-vis relations with Pakistan is given.

ALGERIA

Visits/Agreements

The President, General Pervez Musharraf visited Algeria on 16-17 July 2003. During the visit he held detailed discussions with President Bouteflika on issues of bilateral as well as international interest. The Algerian President asked President Musharraf to facilitate a solution of the issue of Western Sahara.

The following Memorandums of Understanding/Agreements were signed during the visit:

Memorandum of Understanding (MoU) on consultations between the Ministry of Foreign Affairs of the Islamic Republic of Pakistan and the Ministry of Foreign Affairs of the People’s Democratic Republic of Algeria.

Agreement on Cultural Cooperation between the Government of the Islamic Republic of Pakistan and the Government of the People’s Democratic Republic of Algeria.

Memorandum of Understanding (MoU) on Promotion of Foreign Trade between Export Promotion Bureau of Pakistan (EPB) and the Algerian Office for Foreign Trade Promotion (PROMEX).

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Memorandum of Understanding (MoU) between the Federation of Pakistan Chambers of Commerce and Industry and the Algerian Chamber of Commerce and Industry.

Makhdoom Syed Faisal Saleh Hayat, Minister for Interior & Narcotics Control visited Algeria from 24-26 March 2003. During the visit, he signed Extradition Treaty between Pakistan and Algeria. The Minister also called on the Algerian President, Mr. Abdelaziz Bouteflika and delivered him a letter from President Musharraf. He held meetings with Ministers of Justice and Interior and discussed matters of bilateral interest.

Chairman Senate, Mr. Mohammad Mian Soomro along with a six- member delegation visited Algeria from 29 August to 2 September 2003. During the visit, the Chairman Senate called on President Abdeulaziz Bouteflika, Prime Minister Ahmed Ouyahia, Foreign Minister Abdelaziz Belkhadem, President National Assembly of Algeria Karim Younes, President Conseil de law Nation (Algerian Senate) Abdelqader Bensalah, Algerian Commerce Minister and various other dignitaries. The Chairman Senate held discussions on political, social and economic issues pertaining to both brotherly countries.

The Chief of Staff of the Algerian People’s Army, General Mohammad Lamari along with a four-member delegation visited Pakistan from 13-17 December 2003 at the invitation Chairman, Joint Chiefs of Staff Committee. During the visit, he called on the President of Pakistan, Chairman, Joint Chiefs of Staff Committee, Chief of Naval Staff and Chief of Air Staff. He also visited National Defence College, Pakistan Military Academy Kakul, Pakistan Aeronautical Complex Kamara, Heavy Industries Taxila and Pakistan Ordnance Factories. The visit opened new vistas for military cooperation between the two countries.

ERITREA

The Eritrean Foreign Minister, Mr. Ali Said Abdella accompanied by Minister for Education, Mr. Osman Salh visited Pakistan from 10-15 January 2003. The Eritrean Foreign Minister extended an invitation to the Foreign Minister of Pakistan to visit Eritrea on mutually agreed dates. The Eritrean government also opened its resident Mission in Islamabad at the Ambassadorial level in June 2003.

KENYA

The 3rd Joint Ministerial Commission (JMC) between Pakistan and Kenya was held in Nairobi from 29 to 30 July 2004. Mr. Humayun Akhtar Khan, Minister of Commerce co-chaired the JMC from Pakistan side.

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A number of protocols/agreements in the fields of Information Technology, Culture, Education and Tourism were signed during the JMC Meeting.

LIBYA

A 44-member trade delegation from Pakistan participated in “Tripoli International Fair” from 02-12 April 2003 in Tripoli. The delegation consisted of businessmen dealing in furniture, onyx, carpets, textile items, leather, leather garments, etc. Their products evinced keen interest from the local population. Encouraged by the past year’s experience, a 46- member trade delegation from Pakistan again participated in “Tripoli International Trade Fair” held from 02-12 April 2004 in Tripoli, and exhibited their products which got substantial response from the local importers in particular and the people in general.

MAURITIUS

Mr. Ahmud Swalay Kasenally, Advisor to the Prime Minister of Mauritius visited Pakistan in March 2004 as a Special Envoy of the Prime Minister. He called on the President and delivered him a written message of the Mauritius Prime Minister.

Bilateral trade with Mauritius is improving. Our exports to Mauritius during 2003-04 were to the tune of US$ 38.3 million while imports valued at US$ one million. We have also raised the number of seats from 4 to 8 in our medical colleges for students from Mauritius under the ‘Technical Assistance Programme”. MOROCCO

Bilateral Visits/Agreement

President General Pervez Musharraf paid an official visit to Morocco from 17-19 July 2003. He held talks with King Mohammed VI on bilateral cooperation and important international issues, like Western Sahara, Kashmir, Indo-Pakistan relations and the Middle East. The King conferred Morocco’s highest award “ The Order of Wissam Al Mohammadi ” upon the President for his efforts to consolidate and strengthen bilateral relations between Pakistan and Morocco.

Prime Minister Driss Jettou and Foreign Minister Benaissa called separately on the President. The President’s meetings with the Prime Minister and other leaders offered an opportunity to exchange views and develop better understanding on the wide-ranging subjects of mutual, regional and international concerns. International issues and bilateral cooperation with Morocco including in the field of defence were the subjects of the discussion. Later, the Commander of the Moroccan forces called on the President and

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had detailed discussion on possibilities of cooperation in defence matters. During the visit the following agreements were signed:

Agreement for Cooperation in the field of environment between the Governments of Pakistan and Morocco.

Agreement for Cooperation in the field of Science and Technology between the Governments of Pakistan and Morocco.

Agreement of Islamic Cooperation between the Governments of Pakistan and Morocco.

Mr. Ismail Alaoui, accompanied by Mr. Mohamed Boutaleb, Moroccan Minister for Energy and Mines visited Pakistan from 7-9 May 2003 as a Special Envoy of the King of Morocco, He delivered a message from the King to the President and held meetings with Chairman Senate, Speaker National Assembly, Foreign Minister, Minister for Water & Power and Minister for Information Technology.

Choudhry Amir Hussain, Speaker National Assembly of Pakistan along with three parliamentarians visited Morocco from 3-7 March 2004 at the invitation of Mr. Abdelouahed Radi, President of the House of Representative. This was the first ever-bilateral visit undertaken by a parliamentary delegation to Morocco since establishment of diplomatic relations between the two countries. During the visit, the Speaker called on the Prime Minister, Minister of Finance & Privatization, Minister of Energy and Mining, his counterpart and presidents of various groups in Moroccan Parliament.

Dr. Ishrat Hussain, Governor State Bank of Pakistan, Mr. Tariq Rangoonwala, Chairman of Borad of Rangoonwala Group of Companies and Mr. Nazir Piracha of Shahpur Textile Mills, visited Marrakech to attend a meeting of the International Chambers of Commerce (ICC) held from 6-9 June 2004. The meeting gave a fresh insight about the financial and monetary activities of the member countries of the International Chambers of Commerce. Our Ambassador to Rabat, Ms. Attiya Mahmood also attended the meeting.

NIGERIA

Chairman, Joint Chiefs of Staff of Committee, General Muhammad Aziz Khan visited Nigeria from 29 February to 6 March 2004. He was accompanied by a three-member delegation. During the visit, he called on President Olusegun OBASANJO, Vice President, Defence Minister, Minister for Federal Cabinet Territory, Chief of Defence Staff of Nigerian Armed Forces and various other civil and military dignitaries.

SOUTH AFRICA

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The Federal Minister for Religious Affairs, Mr. Ijazul Haq visited South Africa in April 2004 to attend the “10 years of Democracy” celebrations.

The Director General ISI, and the Chief of Air Staff visited South Africa in February and September 2003, respectively. Three senior South African generals as well as a South African National War College team, comprising 30 student officers also visited Pakistan during 2003.

SUDAN

Visits

During the OIC Summit at Kuala Lumpur on 16-18 October 2003, the President of Sudan, H. E. Omer Hassan Ahmed EI-Bashir met President Musharraf. The Foreign Ministers of Pakistan and Sudan also held bilateral meetings in London, New York and Kuala Lumpur during 2003.

Professor Dr. Atta-ur-Rehman, Minister Incharge Science & Technology visited Sudan from 19-23 July 2003. During his stay in Khartoum, he called on the President and signed an Executive Protocol for Cooperation in the field of Science and Technology, which facilitates training/research facilities to Sudanese scholars at Ph.D level in Pakistani Universities. On the invitation of our President, the Sudanese Minister for Science & Technology, Prof. Dr. El Zubair Bashir Taha visited Pakistan for the COMSTECH General Assembly Session on 25-27 December 2003.

On the invitation of Sudanese Minister for Transport, our Minister for Railways, Mr. Ghous Bux Khan Maher visited Sudan from 6-9 December 2003 and signed a Joint Statement for co-operation in the transport sector of the two countries. As a result of this visit, a Pakistani RAILCOP team has established its office at the Sudanese Railways Headquarters, Atbara, which is a beginning of further co-operation in the field between the two countries. The Sudanese Minister of Health, Mr. Ahmed Bilal Osman paid an official visit to Pakistan from 11-14 August 2003.

A four-member delegation from Karachi Shipyard & Engineering Works under the leadership of Cdre N. M. Sabir visited Sudan from 3-10 May 2004 and discussed with the Minister of Transport and others in the Transport Ministry the ways and means of co-operation in ship-building, marine transport and related fields.

In the private sector, Mr. Sadruddin Hashwani, Chairman, Hashoo Group of Pakistan, visited Khartoum from 26-29 August 2003 and signed an oil exploration agreement as well as a deal for construction of a five-star hotel at Khartoum.

On the invitation of the ruling National Congress Party of Sudan, a representative of the PML leadership, Senator Dr. Shehzad Wasim attended

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the General Conference of the National Congress Party of Sudan at Khartoum from 7-11 October 2003.

TUNISIA

Visit of the President

President of Pakistan General Pervez Musharraf paid an official visit to Tunisia on 14-16 July 2003. He was accompanied by the First Lady, Foreign Minister and Chairman, Export Promotion Bureau.

While in Tunisia, the President held one-on-one talks with President Zine El Abdine Ben Ali. They discussed mutual and international issues. The President thanked him for his country’s continued support on the Kashmir issue. The Tunisian President emphasized upon the need for greater cooperation with Pakistan in economic and scientific fields. Foreign Minister Khurshid Mahmud Kasuri held talks with his Tunisian counterpart Mr. Habib Ben Yahia on bilateral, regional and international issues.

An exhibition of Pakistani products by the members of the Trade Delegation, which traveled to Tunis on the occasion of the presidential visit, was held on the sidelines of the meeting on 15 July 2003. Tunisian businessmen and traders appreciated the quality of Pakistani products and expressed great interest in developing trade ties between the two countries.

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IV. MIDDLE EAST

Pakistan’s relations with the countries of the Gulf and the Middle East are of vital concern to us for a variety of reasons, including geographical proximity, religious and historical affinity, common views on international issues of mutual concern, close trade and economic ties, as well as the presence of substantial Pakistani community in these countries.

Our brotherly relations with these states are based on common faith and cultural affinities. Pakistan shares identical views on regional and world issues with the Gulf and Middle East countries. These countries have consistently supported Pakistan’s position on Kashmir in the OIC and other international fora and have shown an understanding to our position on the fight against terrorism, as well as on our efforts to bringing lasting peace in South Asia.

In subsequent paras, a country-wise account of development in relations vis-à-vis Pakistan is given.

BAHRAIN

Pakistan and Bahrain enjoy close and cordial relations. Over the years these relations have grown and are progressing steadily due to shared interests and common concerns. The exchange of official visits between the two countries was infrequent until a few years ago. The development process in Bahrain, which started to gather momentum from the mid 1970s, led to the influx of a substantial number of Pakistanis for work in all walks of life and their contribution to Bahrain’s progress and prosperity is duly appreciated. Our nationals also form the backbone of Bahrain’s internal security agencies, with almost half of the Police force consisting of Pakistani nationals.

Visits

Prime Minister Jamali visited Bahrain from 29-30 January 2003 and held discussions with the King, Crown Prince, Acting Prime Minister, and the Cabinet members of the Kingdom on all bilateral, regional, and international issues of mutual concern. The Prime Minister also announced reduction in registration fee from Rs. 4000 to Rs. 2500 for the overseas Pakistanis living in Bahrain.

The visit of Commander National Guard, Kingdom of Bahrain, Shaikh Mohammed Bin Isa Al-Khalifa, in June 2003 was the first high level bilateral visit from Bahrain, after the visit of late Amir Shaikh Isa bin Salman for the second OIC summit in 1974.

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Trade

The volume of trade between Pakistan and Bahrain has been proportionate with the increase/decrease of imports of petroleum produces from Bahrain. The total trade between Pakistan and Bahrain for the year 2003-04 stood at US $112.5 million, including exports of US$38 million and imports worth US$74.5 million. Pak-Bahrain Joint Economic Commission, established in 1983, provides a strong base to promote relations in the economic, commercial, technical, and cultural fields.

Agreements and Bilateral Cooperation

Deputy Governor Khalid Al Bassam of Bahrain Monetary Agency (BMA), and his counterpart from the State Bank of Pakistan, Tawfiq Husain, signed a Memorandum of Understanding (MoU) between Bahrain and Pakistan on 7 December 2003 to enhance cooperation in the financial services sector.

The Under Secretary of Civil Aviation Affairs at the Ministry of Transportation, Captain Abdulrahman Al Goud, on behalf of the Government of Bahrain and Chaudhry Qamar Zaman, Joint Secretary, Ministry of Defence, on behalf of the Government of Pakistan signed a Memorandum of Understanding (MoU), with three major clauses i.e. allowing Gulf Air and PIA to operate to northern cities of Pakistan, code-sharing between the two airlines and avoidance of double taxation in the aviation related areas, in April 2004. Air Services Agreement was also signed between Pakistan and Bahrain, paving the way for the Gulf Air and Pakistan International Airlines (PIA) to operate two direct weekly flights to Peshawar and Lahore, respectively.

Under the Pakistan Technical Assistance Programme (PTAP), educational facilities in various faculties like in MBBS, B-Pharmacy and B.Sc. Engineering are annually provided to Bahrain. Apart from this, short-term training facilities in Central/Commercial banking are also offered.

The first ever, Pakistan Single Country Exhibition in Bahrain took place in February 2003. Our Minister for Industries and Production inaugurated the exhibition.

EGYPT

Pakistan and Egypt enjoy friendly relations. Both countries cooperate in a number of areas and support each other in international fora on various regional and world issues. Bilateral relations between the two countries got a fresh impetus when President Musharraf visited Egypt in April 2000 and again in 2001. The two sides decided to explore ways and means for further improving bilateral relations, especially in the trade and commercial fields, where there is a lot of potential of cooperation.

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Visits

During the past one year a number of ministerial visits from Pakistan to Egypt took place, including those by Federal Minister for Education, Ms. Zubeda Jalal from 19-24 December 2003, Minister for Industries and Production, Mr. Liaquat Ali Jatoi from 18-20 February 2004, Minister for Health, Muhammad Nasir Khan from 16-18 February 2003, Minister for Information and Broadcasting from 23-27 February 2003, Interior Minister Makhdoom Syed Faisal Saleh Hayat from 17-19 March 2003 and State Minister for Information Technology, Raza Hayat Harraj from 4-8 May 2004.

To further augment our defence ties with the brotherly country of Egypt, Vice Chief of Army Staff, General Mohammad Yousaf Khan visited Cairo in December 2003. The Chairman, Joint Chiefs of Staff Committee, General Aziz Khan visited Egypt in January 2004 to explore various possibilities of further strengthening of defence collaboration between the two countries.

Trade

Our gross trade with Egypt was to the tune of US$87.9 million during 2003-04, exports valued at US$46.4 million, while imports were estimated at US$41.5 million. During the year 2003-04, Pakistan exported nearly 300,000 tons of wheat to Egypt. Egypt had earlier banned the import of wheat from Pakistan. The ban was lifted after strenuous and extraordinary efforts of our Mission in close liaison with the TCP and public and private business organizations in Egypt.

The Egyptian Ministry of Foreign Trade levied 29% “safeguard duty” on Pakistani safety matches for five years. The Embassy of Pakistan has raised the matter with the concerned Egyptian authorities.

IRAQ

Pakistan accords great importance to national sovereignty, territorial integrity and political independence of Iraq. With this in view, Pakistan welcomed the establishment of the Iraqi Governing Council on 13 July 2003, and induction of the new Cabinet, as steps forward in allowing the people of Iraq their say in deciding their future. Pakistan also welcomed the new Interim Government and the handing over of the sovereignty to Iraq in June 2004.

Pakistan remains concerned over the suffering of the Iraqi people, exacerbated by the deteriorating security situation in the country. In May 2003, Pakistan announced a humanitarian relief assistance package worth US$ 3.3 million for the brotherly people of Iraq. The Government of Pakistan also announced an amount of US$10 million at the Abu Dhabi Donor Conference in February 2004. This includes the amount of US$3.3 million for which relief goods were sent to Iraq in June and August 2003, respectively. Pakistan has decided that our assistance will be on bilateral terms,

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depending on the needs of the Iraqi people. Pakistan also provided training to ten Iraqi diplomats at the Foreign Service Academy during 2003.

Pakistan expressed its dismay over the abuse of Iraqi prisoners at the Abu Ghareb prison, which were reported in the International media in May 2004. Pakistan holds that occupying powers in Iraq are obligated to address the humanitarian and other basic needs of the Iraqi people, as well as to restore public order.

Following an increase in kidnapping incidents, and in most cases, killings of foreign workers, Pakistan issued travel advisories to its nationals cautioning them not to travel to Iraq. However, our workers, particularly the truck drivers employed with foreign supply companies, continued to travel to Iraq. In June 2004, a Pakistani diver was kidnapped by some unknown persons. He was released after strenuous efforts by the government and our embassy in Baghdad.

Following the transfer of limited sovereignty to Iraq in June 2004, many countries, including Pakistan came under pressure for contribution of troops to the Multinational Force in Iraq. Pakistan maintained its principled stand on the issue, reiterating:

a) The invitation must come from the Iraqis themselves;

b) The Muslim countries should show their desire and willingness to collectively participate in the task of restoring peace and order in Iraq;

c) The UN Protection Force should be established under a separate command; and

d) The decision to send troops must have the approval of our Parliament.

JORDAN

Visits

The close and cordial relations between Pakistan and Jordan are based on religious affinity and commonality of views on important issues. His Royal Highness Prince Hasan bin Talal of Jordan is among the best friends of Pakistan in the Arab world. Being an advocate of moderation, he shares with our leadership, concerns over the challenges faced by the Ummah. The Prince visited Pakistan from 3-5 March 2004 and exchanged views on matters of mutual interest with the Pakistani leadership. The Afghanistan issue, the ongoing fence mending measures between India and Pakistan, war against terrorism and the Middle East issues were discussed during these meetings.

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Three Agreements namely: i) Avoidance of Double Taxation; ii) Agreement on Tourism; iii) Cultural Exchange Programme for the period 2004-2006 have been finalized by the Ministries concerned of the two countries for signatures, shortly.

Trade

The balance of trade between Pakistan and Jordan has generally remained in favour of Jordan. Major items of imports from Jordan are rock phosphate and fertilizer. Major items of Pakistan’s exports to Jordan are cotton and textile materials. After concerted efforts, our rice has now been introduced in Jordan albeit not on a regular basis, as Jordan requires round grain varieties of rice, which are not available in Pakistan. Trade figures for the past two years are given below: -

(Million US$)Year Exports from Pakistan Imports from Jordan2002-2003 26.899 48.8242003-2004 21.9 28.3

Pakistan’s investment in Jordan’s Qualifying Industries Zones (QIZ), which provides Pakistani entrepreneurs access to US market owing to Jordan-US Trade Agreement, has reached the US$ 42 million mark. The newly established Pakistani ventures in Jordan’s QIZ are also instrumental in increasing exports of textiles and fabrics from Pakistan.

KUWAIT

Pakistan and Kuwait enjoy close and cordial relations, which have grown consistently over the years. These relations are fortified by the binding interest of both the countries in each other’s well being, stability and security.

Visits

Relations between the two brotherly countries received an impetus in the wake of the Foreign Secretary’s day long official visit to Kuwait in September 2003, to brief the Kuwaiti authorities about Pakistan’s endeavours to initiate a meaningful dialogue with India. Minister of State/ Chairman, Export Promotion Bureau visited Kuwait in April 2003 and again in January 2004 to further cement trade relations between the two countries. Speaker, National Assembly, Chaudhry Amir Hussain visited Kuwait in January 2004 as head of a parliamentary delegation. The Speaker called on the Prime Minister, Shaikh Sabah Al Ahmed Al Sabah and discussed issues of mutual interest. He also met Kuwaiti Deputy Prime Minister and Minister of State for Cabinet

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and National Assembly Affairs and addressed a community gathering organized in the Pakistan Embassy.

Pak-Kuwait JMC

The second session of Pak-Kuwait Joint Ministerial Commission took place in Islamabad in February 2004. Mr. Abdullah Abdurrahman Al Taweeol, Minister for Commerce and Industry led the Kuwaiti delegation, while the Pakistani side was led by Mr. Shaukat Aziz, Minister for Finance and Economic Affairs. A number of issues came under discussion in the JMC meeting, including exchange of trade delegations, single country exhibition and joint ventures in industrial projects. Pakistan offered Kuwait to invest in its privatization programme. The possibility of launching of a Kuwaiti Bank in Pakistan and vice versa was also deliberated upon. The next session of the JMC will be convened in Kuwait in 2005.

A Memorandum of Understanding (MoU) on Bilateral Air Service Agreement was signed between the two counties in February 2004.

Trade

Pakistan exported goods worth US$71.8 million while imports from Kuwait were to the tune of US$991.5 million during 2003-04.

LEBANON

Lebanon is an importer’s market and our bilateral trade has risen following the cessation of civil war in Lebanon and re-opening of Pakistan Embassy in Beirut. During 2003-04, we exported goods worth US$13.4 million and imports from Lebanon were to the tune of US$2.3 million.

Pakistan’s textile products have made quite an impact on the Lebanese market, while Basmati rice has also made gradual inroads against tough competition from the American and Indian rice.

OMAN

Oman is the nearest Arab State to Pakistan in terms of physical distance, and is our fifth neighbour for overlapping of our Maritime boundaries.

Pakistan and Oman have traditionally enjoyed cordial relations. Oman supports our position on Kashmir at OIC summits and ministerial meetings. Oman is also supportive of resolving our all-outstanding issues including Kashmir with India through talks.

Oman has contributed significantly to various infrastructural projects in Gwader, and to the proposed IT Chairs being established at the University of Engineering and Technology, Lahore and NED University, Karachi.

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The fourth session of Pak-Oman Joint Ministerial Committee was held in Islamabad on 10-11 March 2003. Various areas of cooperation in different fields were identified between the two countries. Under the Technical Assistance Programme, 8 seats are offered to Omani students in the institutions of professional education in Pakistan.

Trade

For the year 2003-04, the total trade between Pakistan and Oman stood at US$65.4 million: imports being worth US$15.4 million while exports were to the tune of US$50 million. Petroleum products accounted for our major imports from Oman.

PALESTINE

Pakistan continued extending unflinching support to the Palestinian cause. Pakistan firmly believes that the only way to have enduring peace in the Middle East is through an early-negotiated settlement of the Arab-Israel conflict in accordance with UN Security Council Resolutions 242 and 338, the Quartet’s Road Map and the Abdullah Peace Plan leading to a two-state solution.

However, Israel’s disregard of her obligations under the Quartet Road Map has put the entire initiative in jeopardy. The construction of the so-called “security wall”, targeted killings of top leadership of Hamas and Israeli Prime Minister’s plan of unilateral disengagement from Gaza, have dimmed the prospects of a durable peace.

Pakistan considers the construction of the “security wall” in the occupied Palestinian territory as illegal and violative of bilateral agreements and the International Law. In this context, Pakistan conveyed its position to the International Court of Justice at The Hague, where the matter was heard. Pakistan welcomed the ICJ’ decision of 8 June 2004, describing the Israeli separation wall as illegal and against the International Law.

In February 2004, the Palestinian Foreign Minister and Head of the Political Department of the Palestinian National Authority, Mr. Farooq Qaddaumi visited Pakistan. He apprised our leadership of the latest developments in the Middle East region. Pakistan assured him of its continued support to the just struggle of the Palestinian nation in getting their rights, including the right to an independent sovereign state with Al-Quds Al-Sharif as its capital.

Pakistan has played a special role in preparing the Palestine National Authority for its eventual transformation into a Government. Pakistan has trained Palestinian nationals in a number of fields including police, customs, banking, diplomacy and public administration etc. Similarly, Pakistan continued providing education to Palestinian students in medicine and

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engineering. Pakistan Armed Forces institutions have also been providing training facilities to PLO officers on a regular basis.

QATAR

Pakistan-Qatar relations characterized by warmth and friendship are based on abiding bonds of common faith and cultural affinity, as well as geographic proximity. The two countries have identical views on important issues. Qatar has consistently supported Pakistan’s position on Kashmir in the OIC meetings. Pakistan and Qatar have concluded an MoU for formal cooperation between their Ministries of Foreign Affairs.

Prime Minister’s Visit

Prime Minister Mir Zafarullah Khan Jamali paid a two-day visit to Qatar in January 2003, as a part of his five-nation Gulf tour. His visit to Qatar within a few months of assuming the office was a manifestation of the importance Pakistan attaches to its relations with Qatar. Foreign Minister Khurshid M. Kasuri visited Doha on 4-5 March 2003 as head of Pakistan delegation to the Second Extraordinary Session of Islamic Conference. On the sidelines of the conference, he met the Qatari Minister of State for Foreign Affairs, Ahmed Abdullah Al-Mahmoud. The Foreign Minister again visited Doha from 24-26 February 2004 and also called on the Amir of Qatar, besides consultations with his counterpart.

SAUDI ARABIA

The relations between Pakistan and Saudi Arabia are based on shared faith, values and traditions. The bilateral relations encompass diverse areas including religious, political, commercial, educational, scientific, technical and security related fields. There is convergence of interests and positions between the two countries on most of the regional and international issues.

Visits

Exchange of high level visits and consultations is an abiding feature of bilateral relations. The President of Pakistan visited Saudi Arabia from 11-12 June 2003. He discussed with the Crown Prince the situation in the Middle East and Iraq. The two sides emphasized the need to pressure Israel to end its occupation of Arab territories and to establish an independent Palestinian state with Jerusalem as its capital. The two sides also urged the occupying forces in Iraq to restore peace and stability, and to allow the Iraqis to run the affairs of their own country.

The President also expressed his condolences over the victims of 12 May Riyadh bombings. The President of Pakistan again visited Saudi Arabia on 7-8 March 2004. In-depth discussion took place between the leadership of both countries on bilateral, regional and international issues of common concern.

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The situation in Palestine, situation in Iraq, terrorism and Pak-India talks also came under discussion.

Prime Minister Jamali visited Saudi Arabia in August 2003 and May 2004. He called on Khadim Al-Haramain Al-Sharifain and held meetings with Crown Prince Abdullah and Prince Sultan, Second Deputy Premier, Minister of Defence and Aviation. The talks between the two sides focussed on major international issues including Palestine and Iraq and ways and means to further strengthening bilateral cooperation. The Prime Minister also met with Interior Minister Prince Naif, and expressed Pakistan’s support to the Kingdom’s efforts to combat terrorism and drug trafficking. From the Saudi side, Crown Prince Abdullah Bin Abdul Aziz, accompanied by seven Cabinet Ministers, including Foreign Minister Prince Saud Al-Faisal, visited Pakistan on 18-19 October 2003. This was his second official visit to Pakistan, the last one being in October 1998. He was warmly received by the President and the Prime Minister at the Airport, and thousands of people greeted the Saudi leader on arrival. The talks between the President, Prime Minister and the Crown Prince were held in an atmosphere of understanding and showed close identity of views between the two brotherly countries.

The two sides discussed bilateral, regional, and international issues of common interest. They noticed with concern the orchestrated campaign branding Muslims as extremists and terrorists and agreed on the need to project the correct image of Islam, based on the concept of “Enlightened Moderation” throughout the world. The two sides also underlined the imperative of restoring peace in Iraq by allowing the UN to play its due role, leading to full restoration of sovereignty to the Iraqi people, within a specified time frame. Regarding the Middle East problem, they stressed unconditional implementation of the Quartet's road map, Crown Prince Abdullah’s peace plan and the UN resolutions, leading to the creation of an independent and viable Palestinian State with secure borders.

Trade

The intensity of cooperation in bilateral political collaboration is not commensurate with our trade and economic relationship. Of the total bilateral trade of US$2127.2 million, US$348.5 million exports took place from Pakistan during the year 2003-04.

Educational Exchanges

Under Technical Assistance Programme, Pakistan extends training assistance to Saudi Arabia in railways, commercial/central banking, MBBS and B.Sc. Engineering. Currently several hundred Saudi students are undergoing education in Pakistan in various fields including medicine, engineering, computer sciences, Islamic studies, economics, etc.

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A delegation of 17 Vice Chancellors of Pakistani Universities visited Saudi Arabia from 23-29 April 2004. The visit of the delegation was sponsored by the Saudi Ministry of Higher Education. The delegation visited the various Universities in the Kingdom. The Saudi and Pakistani Universities agreed to foster collaboration in the fields of engineering, health, veterinary science, agriculture and general education, besides academic teaching and research.

SYRIA

Visits

A six-member delegation of the People’s Assembly of Syria, Centre of Islamic Studies, Ministry of Auqaf and Ministry of Higher Education visited Pakistan from 2-5 April 2004. The delegation called on Deputy Speaker, National Assembly, Education Minister, Vice Chancellors of the International Islamic University and the Quaid-e-Azam University, and Secretary, Ministry of Religious Affairs, Zakat and Ushr. The delegation had useful exchange of views on the issues confronting the Muslim Ummah.

Additional Foreign Secretary dealing with Middle East and Africa visited Syria from 3 - 6 May 2004 as a Special Envoy of the Government of Pakistan. He discussed bilateral matters and issues pertaining to the affairs of Pakistan Embassy School and College, Damascus. He called on the Syrian Prime Minister, Mr. Naji Otari, Deputy Foreign Minister, Mr. Essa Darwaish and discussed bilateral and regional issues and the situation in the Middle East.

Trade

The total trade between Pakistan and Syria during 2003-04 amounted to US$41.2 million. Our imports totaled US$16.4 million, while exports to Syria were to the tune of US$24.8 million

UNITED ARAB EMIRATES (UAE)

Pakistan and the UAE enjoy close fraternal relations which can be traced back to the UAE’ formation in 1971, and have since developed into a broad-based cooperation in various fields.

Visits

Prime Minister Mir Zafarullah Khan Jamali visited the United Arab Emirates in January 2003, as part of his tour of GCC States. During the visit, he met with President Shaikh Zayed Sultan Al Nahyan and other UAE leaders to discuss bilateral ties and the regional situation, especially in the context of the Iraqi conflict.

Deputy Prime Minister and Minister of State for Foreign Affairs, His Highness Shaikh Hamdan Bin Zayed Al-Nahyan accompanied by His Highness

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Mohammad Nakaira Al Dhahiri, Minister of Justice, Islamic Affairs and Awqaf visited Islamabad in March 2004. During his visit, he conveyed a message from their President to the President of Pakistan, to further strengthen the existing fraternal ties between the two brotherly countries. An Extradition Treaty, a Judicial Agreement and a Memorandum of Understanding on Cultural/Educational Cooperation were concluded during the visit. Frequent visits have been undertaken by various Federal Ministers to the UAE during the period January 2003-June 2004.

Trade

The total volume of trade between Pakistan and the UAE during 2003-04 was to the tune of US$2651.5 million. Pakistan exported goods worth US$942.9 million, while imports from the UAE totaled US$1708.6 million.

YEMEN

Pakistan’s relations with Yemen have been warm and friendly, though avenues remain to be explored for further enhancement. There is a great reservoir of goodwill for Pakistan both among the Yemeni intelligentsia and the populace. They appreciate Pakistan's advancement in the field of education, science and technology. The Yemeni leadership views Pakistan as an important leader of the Islamic World. They highly value our defence capability and professionalism of our armed forces. There is a visible desire to expand and further strengthen bilateral relations with Pakistan.

There is a close understanding in Yemen of Pakistan's position on various foreign policy issues. The Yemeni Government supported our candidature to the Board of Governors of Asian Organization of Supreme Audit Institutions (ASPSAI) and the Executive Council of the Organization for the Prohibition of Chemical Weapons (OPCW) for the year 2004-2006. On the Kashmir issue, Yemen has supported us at the Non-Aligned Movement and OIC fora. On the economic front, an agreement on commercial relations signed between Pakistan and Yemen provides the framework for developing bilateral trade relations.

Visits/Agreements

The 4th Session of Yemen-Pakistan Joint Ministerial Commission (JMC) was held in Sana’a from 1-2 March 2004. The Pakistan delegation was led by Mr. Humayun Akhtar Khan, Minister for Commerce. On the conclusion of the JMC meeting, the two sides signed the following agreements;

Agreement on Trade

Agreement on Cooperation in the Field of Health

Agreement on Avoidance of Double Taxation62


Protocol on Economic Cooperation between the Yemen Chamber of Commerce and Industry, and the Federation of Pakistan Chambers of Commerce and Industry.

The Yemeni Deputy Foreign Minister visited Pakistan on 25-26 April 2004 on the invitation of our Foreign Secretary, and a Memorandum of Understanding for the Establishment of a Political Consultation Mechanism between Pakistan and Yemen was signed.

Trade

The balance of trade with Yemen has remained favourable to Pakistan and our exports have increased considerably during the last few years. For the year 2003-04, our total trade with Yemen stood at US$59.3 million, with US$ 50.7 million exports and US$8.6 million imports.

Technical Assistance Programme

Pakistan annually provides three seats in MBBS and one in B.Sc. Engineering for Yemeni students under its Technical Assistance Programme. Courses in pharmacy, banking, construction machinery and airline training have also been availed by the Yemenis. The Foreign Service Academy offered a seat to a junior Yemeni diplomat who completed the course in 2003.

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V. AMERICAS

U.S.A.

During 2003-04, the bilateral relationship between Pakistan and the United States has deepened and acquired greater significance for both countries. Frequent visits from both sides provided opportunities for exchange of views on areas of ongoing and prospective cooperation.

Visits

The President’s visit to the US from 20-29 June 2003 was part of the intensive engagement between Pakistan and the US aimed at crafting a broad-based and durable bilateral relationship. President Bush received our President at Camp David. The interaction between the two leaders was extremely useful. During the visit, an assistance package of $3 billion over 5 years was agreed upon. The annual break-up of the package is $600 million, equally divided into Economic Support Fund and military assistance components.

Pakistan and the US also signed two important agreements during the visit. The Trade and Investment Framework Agreement is aimed at strengthening and diversifying commercial relations. The Agreement on Cooperation in the field of Science and Technology would enhance collaboration in this important sector and serve as an engine of growth and development

The Prime Minister visited the United States from 28 September to 8 October 2003 on the invitation of President Bush. He had meetings with President Bush and Vice President Dick Cheney. Secretary Defence Donald Rumsfeld and Secretary of State Colin Powell called on the Prime Minister.

Other important bilateral visits during 2003 were: visits by the Foreign Minister to the US from 18 January -7 February 2003 and 12-15 May 2003; visits to Pakistan by Assistant Secretary of State Christina Rocca from 27-28 February 2003 and again with Deputy Secretary of State Mr. Armitage on 8 May 2003; Congressional delegation led by Senator Warner on 18 February 2003 and a six-member delegation of State legislators of New Hampshire from 24 February-2 March 2003.

Significant bilateral visits during 2004 were by: Foreign Minister Kasuri (19-21 May 2004); US Secretary of State Colin Powell (17-18 May 2004); US Assistant Secretary of State Christina Rocca (10-13 May 2004); Ambassador Robert Zoellick, US Trade Representative (15 February 2004); Ambassador Cofer Black, US Coordinator for Counter Terrorism (27 February to 01 March

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2004); Tommy Thompson, US Secretary of Health and Human Services (6-7 April 2004) and Kenneth I. Juster, US Undersecretary for Industry and Security, Department of Commerce (16-17 May 2004). Pakistan Minister for Information (3-6 February 2004), Minister for Finance (22 April 2004), and Speaker, National Assembly (23-28 April 2004). The Chairman, Senate participated in the funeral of former US President Ronald Reagan on 11 June 2004.

Economic Cooperation

The US is Pakistan’s largest trading partner. Over the last three years, Pakistani exports to the US have increased significantly. The balance of trade is in Pakistan’s favour. The total bilateral trade during 2003-04 was to the tune of US$4.27 billion. Pakistani exports to the US valued US$2.943 billion, while Pakistani imports from the US totaled US$1.327 billion. The US is also Pakistan's largest foreign investor. The US share in the total FDI in Pakistan between 1990-2004 is 37.8% and amounts to $2938.2 million. The US Exim Bank and OPIC have resumed business with Pakistan. Presently, a Bilateral Investment Treaty is being negotiated with the US.

In June 2003, Pakistan and the US signed the Trade and Investment Framework Agreement and the Agreement on Cooperation in the field of Science and Technology. Both Agreements have come into force. The US economic assistance for Fiscal Year 04 was $395 million (in addition, there were other small ancillary loans/programmes). In the FY05, the total allocation for Pakistan is US$ 701 million. In addition to US$ 600 million, that is part of the $3 billion 5-year package, separate smaller packages have been proposed for various cooperation projects. The FY 05 allocation has already been approved by the Congress.

The US Secretary of State Colin Powell during his visit to Pakistan in March 2004 announced opening up of the US EXIM Bank for business with Pakistan in recognition of Pakistan’s economic reforms programme and to encourage US business concerns to participate in Pakistan’s economic progress. A joint US EXIM Bank and OPIC delegation visited Islamabad in May 2004. The delegation was briefed about trade and investment opportunities in Pakistan. They appreciated the economic gains made by Pakistan over the last three years and expressed the hope that improved economic conditions would lead to increase in Pak-US economic interaction.

Defence Cooperation

Defence cooperation between the two countries was further strengthened during the period under report. The US President on 16 June 2004 officially notified designation of Pakistan as a “Major non-NATO Ally”. This status would facilitate further expansion of defence cooperation between the two countries.

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US Role in South Asia

Pakistan and the US share the perception that resumption of dialogue on all outstanding issues between Pakistan and India including the core issue of Kashmir was important to peace in South Asia. The US welcomed the meetings of the Indian Prime Minister with the President and Prime Minister during the SAARC Summit held in Islamabad in January 2004. The US has expressed support for the current engagement between the two countries.

Pakistani Community and Consular Issues

The Pakistani community in the US is estimated at over half a million, scattered around the country with major concentrations in New York, Washington, Houston and Florida. It has a sizeable component of businessmen and professionals. The Community is making an ingress into US politics. There are a number of important community organizations engaged in political and cultural activities.

After the 9/11 attacks, the US has introduced very stringent immigration laws. New visa and immigration laws, tighter airport controls and security checks have created problems for not only Pakistani travelers but also for visitors from other countries. This is an issue, which we continue to raise with the Administration.

CANADA

Canada was among the first countries to establish diplomatic relations with Pakistan. Pakistan’s strategic location, promised potential in terms of economic growth and natural resources, influence in the Islamic World, moderate and progressive orientation, common approaches and shared interests in the Commonwealth were some of the factors that have helped to foster a mutually beneficial relationship between the two countries. A member of G-8, Canada is a major industrial and an important economic partner of Pakistan.

Visits

The President’s visit to Canada in September 2003 was a significant milestone in the bilateral relations. The visit provided a major impetus to Pak-Canada relations. As a manifestation of the new friendship in our bilateral relations, the Canada-Pakistan Parliamentary Association was also launched during the visit.

Other important bilateral visits exchanged during 2003-04 included: from Canadian side, Mr. Len Good, President, CIDA (January 2003); Mr. Bill Graham, Foreign Minister (6-7 September 2003); Mr. Allan Rock, Minister for Industry (October 2003); Ms Diane Marleau, MP leading a seven-member Parliamentary Delegation (October 2003); Mr. Hau Sing Tse, Vice President

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CIDA (7 June 2004) and Mr. Muneer Sheikh, Associate Deputy Finance Minister of Canada (29 June 2004). From Pakistan, important visits were by Mr. Humayun Akhtar Khan, Minister for Commerce (July 2003); and Mr. Nasim Ashraf, Minister of State and Chairman National Commission for Human Development Fund (3-6 June 2004).

As a country with keen interest in South Asia, the Canadian Foreign Minister welcomed the resumption of full diplomatic relations between Pakistan and India and the initiative taken by both countries to resolve outstanding differences peacefully, including the core dispute of Jammu and Kashmir.

Canada monitors the situation in Jammu and Kashmir with great interest, and takes every appropriate opportunity to raise issues of human rights with India and other governments in the region. Canada supports a peacefully negotiated solution to the Kashmir conflict, one, which would take into account the interest of the Kashmiri people.

Economic and Commercial Relations

Pakistan has ranked high among the recipients of official Canadian assistance. Since 1951, Canada had invested over C$ 2 billion in development programs in Pakistan. Projects like the Warsak Dam, KANUPP and the first cement plant (Maple Leaf) are a testimony to this fact. Canada is assisting Pakistan in several important projects that include the Women Health Professional Project of the Agha Khan University and McMaster University, the SAP Communication Project, Pakistan Environmental Programme and the Lahore University of Management Sciences (LUMS)-11 Project.

CIDA has also provided approximately C$ 32 million for Pakistan’s Oil and Gas sector through Alberta based oil companies. Canadian assistance has been available to Pakistan lately in Information Technology related fields. Canadian firms have acquired more drilling concessions in Pakistan than any other country. Canada’s Export Development Corporation (EDC) has also been supporting development projects in Pakistan. It has invested C$ 300 million during the past 4-5 years in Jordan Fertilizer Company, the Fauji Kabirwala Project, Karachi Mass Transit Project and some Independent Power Projects.

The total trade between Pakistan and Canada crossed $500 million in 2003-04, which is more than 50% higher than the preceding year due to large imports of canola oil by Pakistan, which account for 63% of Canada’s total exports of $ 146 million to Pakistan.

Pakistani Community

There are about 200,000 Pakistanis in Canada. The first generation came as scientists, researchers, professors and accountants in 1950s and 1960s. The

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subsequent generations of migrants have been small and medium entrepreneurs and IT experts, recently. Pakistanis have played a prominent role in the infrastructure development of the country. The majority of Pakistani Canadians is well established and enjoys equal status in a multi-cultural Canada, keeping their linkages with Pakistan.

LATIN AMERICA

Latin America and the Caribbean comprise 40 countries with a total population of 540 million. The States of the region have formed a number of economic groupings and the region as a whole represents a large and emerging market. Traditionally, Pakistan’s relations with Latin America and the Caribbean region have been cordial and friendly. We have three resident Missions in the region: in Argentina, Brazil and Mexico. There exists an identity of views and commonality of interests on most international issues. Latin American countries and Pakistan cooperate closely at international fora, including the United Nations, the Non-aligned Movement and the Group of 77. The countries in the region often take leading roles in promotion of many social and developmental issues of direct concern to Pakistan.

Pakistan’s exports to the region amount to US $130 million. Pakistan’s major trading partners in the region include Chile, Argentina, Brazil, Mexico and Colombia. Argentinean companies participated by supplying CNG technology in Pakistan’s programme to use compressed natural gas as a fuel in motor vehicles. Pakistan also imports edible oils, chemical products, and pharmaceuticals from Argentina and Brazil. As the Latin American markets have become more open and lowered their tariffs, Pakistan’s traditional exports of textiles, sports goods and surgical items have grown steadily. The Latin American markets also hold potential for Pakistan’s non-traditional exports in the engineering sector.

Visits

Ch. Amir Hussain, Speaker, National Assembly of Pakistan visited Mexico from 9-12 September 2003 to attend a Parliamentary Conference; Mr. Humayun Akhtar Khan, Minister for Commerce visited Mexico from 10-14 September 2003 to attend 5th Ministerial Conference;. Mr. Mohammad Mian Soomro, Chairman, Senate visited Mexico from 13-15 November 2003 to attend the 10th General Assembly of the Asia Pacific Parliamentarians Conference; and Mr. Sikandar Hayat Khan Bosan, Minister of State for Food, Agriculture & Livestock visited Mexico from 9-11 December 2003 to sign the UN Convention against Corruption.

The Speaker of the National Assembly, Chaudhary Amir Hussain again visited Mexico City in April 2004 to participate in the 110 th Assembly of the Inter-Parliamentary Union (IPU). Minister for Investment and Privatization, Dr. Abdul Hafeez Shaikh and Chairman Export Promotion Bureau, Mr. Tariq

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Ikram visited Sao Paulo, Brazil in June 2004 to attend the UNCTAD and G-20 meetings, respectively.

Vice Minister for Foreign Affairs of the Republic of Cuba, Mr. Manuel Aguilera de la Paz visited Islamabad in March 2004 to seek Pakistan’s support on UN resolution against Cuba.

These visits have helped in identifying further steps to upgrade relations with Latin America.

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VI. EUROPE AND RUSSIANFEDERATION

EUROPEAN UNION (EU)

Pakistan has traditionally enjoyed friendly and close co-operative relations with the countries of Europe. The European Union is fast growing in political and economic importance and its role in the global scene is increasing. Europe as a whole and the European Union’s importance to Pakistan cannot be understated. Our interests in the region, which include political support on issues of importance including the Kashmir dispute, market access, defense relations, and transfer of technology have to be pursued both at the bilateral level and in the context of the European Union.

Visits

In 2003 two EU Troikas visited Pakistan. The first visit was on 7 June 2003, followed by the second one on 21 October 2003. A host of issues came under discussion during the talks, including bilateral relations, situation in Afghanistan, relations between India and Pakistan, non-proliferation, terrorism, democratization & Human Rights.

A European Parliamentary delegation also visited Pakistan from 27-31 October 2003. The delegation called on the President, the Prime Minister, Speaker National Assembly, Chairman Senate, and other dignitaries and had in-depth exchanges on a number of issues of mutual interest. This was the first visit by a European parliamentary delegation since the restoration of democracy in Pakistan. The primary objective of the visit was to assess the working of the democratic institutions and to make recommendations for progress on ratification of the Third Generation Agreement by the European Parliament.

A second European parliamentary delegation visited Pakistan from 7-11 December 2003. This was a fact-finding mission on the situation in Kashmir. The delegation called on the President and the Prime Minister of Azad Kashmir and Representatives of the AJK Assembly. They also visited a Refugee Camp and the Line of Control. The visit took place as a result of intensive efforts on part of Pakistan and provided an opportunity to promote and project our point of view on Kashmir, particularly in the context of the current situation there.

The Foreign Minister, Mr. Khurshid Mehmood Kasuri visited Brussels from 5-6 November 2003. During his stay in Brussels, he held discussions with a number of high ranking EU officials including Mr. Chris Patten, EU

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Commissioner in charge of External Affairs, Mr.Javier Solana, EU High Represtnative on Common Foreign and Security Policy, and Mr.Elmar Brok, Chairman Foreign Relations Committee of the European Parliament. The Foreign Minister briefed his interlocutors on a number of issues including Pakistan’s relations with India and the situation in Afghanistan. He also highlighted the government’s efforts for major social reforms, strengthening of the democratic system, elimination of terrorism and extremism and efforts for the restoration of peace and stability in the area.

A ministerial-level EU Troika visited Pakistan in mid - February 2004. The delegation was headed by the Irish Foreign Minister (term President) and included the Dutch Foreign Minister (subsequent term President) and the EU External Affairs Commissioner, Mr.Chris Patten. Extensive discussions were held on a wide range of issues of mutual interest.

Third Generation Agreement

The European Parliament ratified the Third Generation Agreement on 29 April 2004. This was a major diplomatic victory for Pakistan as the ratification is on a number of important subjects, of political, economic, technological and developmental significance. At a time when the EU is increasing its global role in all these fields, this has been a welcome development. Pakistan looks forward to the formation and working of the Joint Commission for the implementation of the Agreement.

The following section discusses Pakistan’s bilateral relations with the various European countries and the Russian Federation.

BELGIUM

Belgium and Pakistan have traditionally enjoyed close and cordial relations, characterized by shared perceptions on major global and regional issues. The two countries have been co-operating with each other at international forums. Since Belgium co-ordinates its position on Foreign Policy issues with other EU Member States, its stance on major issues relating to Pakistan is largely in line with the EU. However, it has been a voice of moderation for Pakistan in the European Union.

Trade and Investment

Belgium is a major exporter of textile machinery and chemicals to Pakistan and several Belgian companies have participated in a variety of projects in Pakistan, including dredging and port development. Belgium - based ARTEL Group has invested in drinking water units, food processing industries, poultry including Kentucky Fried Chicken, with an investment of about US$ 100 million. Another Belgian company, Tractable, has shown interest in taking over a privatised KESC.

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Pakistan and Belgium enjoy cooperative relations. There is a sizeable trade of US$ 524. 358 million between the two countries, with exports to Belgium at US $ 262.35 million and imports from Belgium at US $ 262 million, indicating a tiny trade surplus for Belgium.

CYPRUS

Pakistan and Cyprus enjoy good relations. A large number of Pakistani students are studying in educational institutions in Cyprus. Trade between the two countries comprises exports of textiles, leather, carpet, rice and surgical goods from Pakistan and import of garments, shoes, cosmetics etc from Cyprus. The volume of trade is around US $ 9.22 million. Our Ambassador at Beirut is concurrently accredited to the Republic of Cyprus, whereas the Cypriot Ambassador at Beijing is concurrently accredited to Pakistan.

DENMARK

Pakistan and Denmark maintain close and friendly relations and share common perceptions on most international and regional issues. Pakistan can benefit from Danish expertise in the areas of agriculture, dairy and poultry industry. We have bilateral agreements on Avoidance of Double Taxation and Promotion and Protection of Investments. There are great opportunities of investment in Pakistan for Danish investors.

Foreign Secretary’s Visit to Scandinavian Countries

The Foreign Secretary paid a 4-day official visit from 12-15 May 2004 to three Scandinavian countries – Denmark, Norway and Sweden. During the visit, he held meetings with his counterparts and other high-ranking officials of these countries. Apart from discussions on bilateral relations, he briefed them about the political and economic developments in Pakistan. Other subjects discussed included Pak-India relations, situation in Afghanistan and Iraq, Middle-East peace process, counter-terrorism, and nuclear non-proliferation.

FRANCE

France is an important partner of Pakistan in Europe and the two countries enjoy close cooperative relations in diverse fields.

President’s Visits

President General Pervez Musharraf visited France from 2-4 July 2003. During the visit, he held meetings with President Chirac and Prime Minister Jean-Pierre Raffarin. The situation in Iraq, the global fight against terrorism, the dispute between India and Pakistan over the troubled region of Kashmir and the Middle East peace process were all on the agenda for the talks. The

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President also met with parliamentary deputies, and attended a conference on “Investment in Pakistan” organized by French business leaders. He also met and addressed the Pakistani community in France.

Prime Minister’s Visit Prime Minister Jamali paid an official visit to France from 7-9 December 2003. The Prime Minister held talks with the Prime Minister of France, Mr. Jean Pierre Raffarin. They reviewed bilateral cooperation and exchanged views on current regional and international situation. The Prime Minister had a meeting with the Director General of UNESCO during his stay in Paris. He also met government members and parliamentary leaders in the French capital.

Other important visits from Pakistan during 2003-04 were by the Finance Minister (January 2003), Defence Minister (March 2003), Interior Minister (March 2003), Agriculture Minister (June 2003), and Minister for Information and Telecommunication Technology (October 2003). The Foreign Secretary visited France for Pakistan-France Annual Bilateral Consultations held in Paris on 7 April 2003. From the French side, their Foreign Minister visited Pakistan in February 2004.

GREECE

Pakistan-Grece relations are friendly, but there is a need for further strengthening of political and economic interaction. Pakistanis are the third largest expatriate community in Greece figuring approximately 35,000. Relations between the two countries had strained timely, following the grounding of Tasman Spirit and subsequent detention of crew and the Salvage Master. On 17 April 2004, the Captain, his crew and the Salvage Master were granted permission to leave Pakistan as a gesture of goodwill and in the spirit of further cementing the cordial relations that exist between the two countries.

Trade

The terms of trade with Greece are generally in favour of Pakistan. The volume of trade between the two countries during the year 2003-04 stood at US $ 99.045 million, with exports to Greece at US $ 90.074 million and imports at US $ 8.971 million, showing favourable balance of trade of US $ 81.103 million for Pakistan.

GERMANY

Over the years, relations between Pakistan and Germany have gained roots in various fields. With Germany we have a substantial trade relationship. Germany supports various development programmes in Pakistan and a number of German firms are engaged in Pakistan.

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President’s Visit

President General Pervez Musharraf visited Germany from 30 June to 2 July 2003. During the visit, the President held wide-ranging talks with President Johannes Rau and Chancellor Schroeder on bilateral and important international issues. The President thanked the German leaders for re-scheduling Pakistan’s debt and also the assistance Germany provided to facilitate the Paris Club. He also briefed the members of the German Foreign Affairs Committee of Bundestag about the security situation in South Asia. The President held a meeting with top German businessmen and apprised them of investment friendly policies of his government, besides the strides Pakistan’s economy had made during the last three years.

Another important visit from Pakistan during 2003-04 was by Foreign Minister Kasuri (6-8 February 2004) to attend the 40th Munich Security Conference. The Vice-President of the German Federal Parliament, Dr. Norbert Lammert visited Pakistan on 16-20 February 2004. The next significant visit from the German side was by Mr. Klaus-Werner Jonas, Member of the German Bundestage, who visited Pakistan on 23-25 February 2004.

HUNGARY

Hungary was one of the first countries to recognize the Islamic Republic of Pakistan, and to establish a diplomatic/commercial mission in Karachi in 1949. Since then, the relations between our two countries have been cordial and free of irritants. Hungary has developed a balanced approach between Pakistan and India and proposes peaceful resolution of all disputes between the two countries through dialogue.

During the period under report, Mr. Gyorgy Kery, Director General of Asia in the Ministry of Foreign Affairs of Hungary visited Pakistan on 8-11 March 2003. Mr. Andras BARSONY, Political State Secretary, Ministry of Foreign Affairs of Hungary held bilateral consultations with the Foreign Secretary of Pakistan on 15 September 2003.

Trade

Pakistan’s trade with Hungary during 2003-04 totaled US$36.3 million, exports being to the tune of US$18.4 million, while the imports were of US$17.9 million value.

IRELAND

Pakistan and Ireland have a tradition of close and friendly relations. In order to further develop closer bilateral ties, Pakistan opened its resident Mission in Ireland in March 2001. Dublin was the only EU capital where Pakistan did not have an Embassy. This was also a demand of the Pakistani community in

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Ireland, numbering around 7000, comprising mostly doctors, IT specialist, students, small scale businessmen and unskilled labourers. Ireland is also keen to establish its resident Mission in Islamabad, and necessary spadework is under way.

Ireland assumed the Presidency of European Union for six months from 1 January 2004. The Irish Foreign Minister, Mr. Brain Cowen visited Pakistan in February 2004 as head of the EU Troika delegation in his capacity as the rotating President of the EU to hold discussions with the Foreign Minister.

Trade

Pakistan is Ireland’s 12th largest trading partner in Asia with the volume of trade between the two countries exceeding US$ 48.29 million. Exports during the year 2003-04 stood at US $ 31.097 million and imports for the same year touched US $ 17 million, showing favourable balance of trade of US $ 13.904 million.

ITALY

Pakistan and Italy enjoy cordial relations and have maintained regular bilateral contacts. The two countries are also collaborating on the issue of UN reform and expansion of the UN Security Council.

Italy is an important member of the European Union, G-8 and NATO. According to the Italian Government’s official figures, there are 30,500 Pakistanis living in Italy, engaged in various fields of activity.

Visits

The exchange of visits has increased since 1997. The Italian Under-Secretary of State, Ms. Margherita Boniver visited Pakistan in May 2004. Foreign Minister Khurshid Mahmud Kasuri visited Rome on 6-8 July 2004, and held talks with his counterpart, Mr. Franco Frattini on bilateral matters and international issues of common interest. Enhancement of co-operation between Pakistan and Italy and between Pakistan and the EU also came under discussion.

Pakistan and Italy have institutionalised Annual Bilateral Consultations between the two Foreign Ministries. Three rounds of bilateral consultations had been held upto 30 June 2004.

Trade

Italy is one of the ten leading trading partners of Pakistan. It is Pakistan’s 3 rd

largest buyer in Europe and 14th largest source of imports. Pakistan’s exports to Italy comprise of raw cotton and cotton yarn, textiles and hosiery, leather and leather products, sports goods, surgical instruments and carpets and rugs.

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Imports from Italy include machinery, chemical and pharmaceutical products, vehicles and auto parts, chemical products, textile machinery and telecommunication equipment. The volume of trade with Italy in 2003-2004 was US$ 766.69 million, with US$ 454.048 million in exports and US$ 312.644 million, in imports, reflecting a positive balance of trade of US$ 141.404 million for Pakistan.

THE NETHERLANDS

Traditionally, Pakistan-Dutch relations have been cordial There are around 35,000 Pakistanis living in the Netherlands working in different fields of activity.

Visits

Pakistan’s Foreign Secretary, Mr.Riaz H. Khokhar, visited the Netherlands in May 2003 to hold bilateral consultations with his counterpart, Mr.Hugo Siblesz. He also visited the Organization for Prohibition of Chemical Weapons (OPCW) where he was briefed by the Deputy Director General. A ten-member delegation of Dutch parliamentarians visited Pakistan on 12 January 2004. The delegation called on the President and held an in - depth exchange of views on various issues of mutual concern.

Trade

Pakistan exports textiles, leather garments, sports goods and surgical instruments, while it imports industrial machinery, chemicals and cosmetics from Belgium. The volume of trade between the two countries stands at US $ 555.6 million with exports to the Netherlands at US $335.158 million and imports at US $ 220.418 million, portraying a significant balance of trade in favour of Pakistan worth US $114.7 million.

NORWAY

The Non Proliferation Treaty, Missile Technology Control Regime, fight against terrorism and human rights are some of the areas of interest to both Pakistan and Norway. The Norwegian Government has committed grant assistance of around $ 9.00 million in the field of Education, Good Governance, Culture and Environment for the year 2004, which is expected to continue during the next five years. Norway also contributes troops to UNMOGIP.

The following major exchanges took place between the two countries during 2003-04:

The fourth round of Annual Bilateral Consultations was held at Islamabad on 01 December 2003

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Annual Bilateral Economic Consultations were held at Islamabad on 2 December 2003.

POLAND

Pakistan’s relations with Poland are cordial and friendly. Despite Poland’s being Euro-centric it is supportive of strengthening ties with Pakistan. Pakistan attaches great importance to its relations with Poland and expresses satisfaction that Poland’s membership of the EU will provide further opportunities for cooperation.

The important visits, which took place during the year 2003-2004, included one by Dr. Boguslaw Zaleski, Deputy Foreign Minister, who visited Pakistan to hold bilateral consultations in April 2003. The Polish Ambassador at large, Mr. Handzlik and Chairman of Missile Technology Control Regime (MTCR), came to Pakistan in July 2003.

The Foreign Minister of Pakistan paid an official visit to Poland on 10-12 February 2004. A Memorandum of Understanding on Bilateral Consultations was also signed during the visit.

SPAIN

Pakistan and Spain enjoy close and cordial relations, characterized by shared perceptions on major global and regional issues. There are around 20,000 Pakistanis living in Spain.

Visits

Foreign Minister Khrushid Mehmood Kasuri visited Spain from 23-28 October 2003 to participate in the International Donors’ Conference on Iraq. He also held a bilateral meeting with his Spanish counterpart Ms.Ana Palacio. He invited the Spanish Foreign Minister to visit Pakistan and proposed that the dialogue between the two countries should be institutionalized, so that talk could be held at regular intervals.

The Spanish Secretary of State for Foreign Affairs, Mr. Ramon Gill Casares visited Pakistan from 13-16 November 2003. He called on the Foreign Minister and discussed a wide range of subjects of mutual interest including relations with India; the situation in Afghanistan, Iraq and the Middle East. The Foreign Minister briefed the Spanish Secretary of Foreign Affairs on the steps taken by the government for rejuvenating the economy, and highlighted the importance of expanding trade relations between Pakistan and Spain.

Trade

Pakistan’s exports to Spain include textile, leather garments, sports goods, cotton yarn etc. Imports from Spain mainly comprise industrial goods and

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chemicals. The two-way trade between Pakistan and Spain amounted to US $ 339.76 million in 2003-2004. Exports were estimated at US $267 million and imports at US $ 72.776 million, giving a trade surplus of US $ 194.2 million in Pakistan’s favour.

SWEDEN

Sweden was the first Scandinavian country to establish diplomatic relations with Pakistan in 1949, and has been a member of Aid to Pakistan Consortium since 1963. It is also an important member of the EU and has supported Pakistan’s case against EU decision to levy anti-dumping duty on Pakistani bed linen. SIDA offers scholarships to Pakistani students and government officials. Pakistan has dual nationality arrangement with Sweden. Sweden contributes its troops to UNMOGIP. During the period under report, Dr. Anders Liden, Director General Swedish Foreign Office visited Pakistan in March 2004, while from Pakistani side Foreign Secretary Riaz H. Khokhar visited Sweden in May 2004.

SWITZERLAND

Switzerland & Pakistan have traditionally enjoyed cordial and friendly relations. In the early seventies, when the relations between Pakistan and India were severed, Switzerland looked after our interests in India. The Swiss Government supports the efforts aimed at resolving bilateral problems between India and Pakistan

Visits

President General Pervez Musharraf visited Davos from 22-24 January 2004 to participate the annual meeting of the World Economic Forum, and Prime Minister Jamali attended the World Summit on Information Society (WSIS) in Geneva on 10-11 December 2003.

TURKEY

Pakistan and Turkey are bound in an exemplary and time-tested relationship. The diversified commonalties of history and faith, culture and tradition between their peoples are reinforced by the strong resolve of their leadership to intensify mutual co-operation in all fields.

Visits/Agreements

Exchange of visits both at the highest political level and at the functional plane are an important feature of Pak-Turkey relations.

Dr. Abdullah Gul, Deputy Prime Minister and Foreign Minister of Turkey visited Pakistan in May 2003. It was the first high level contact after installation of new governments in the two countries. It was followed by the

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landmark visit of Prime Minister Recep Tayyip Erdogan to Pakistan in June 2003. The visit reflected the close and cordial relations that exist between the two countries and the importance Turkey attaches to relations with Pakistan. Important decisions taken during the visit related to closer trade and economic as well as security cooperation. Relations with India, the Kashmir dispute, Pakistan’s efforts to de-escalate tension and promote peace and security in South Asia also came up for discussion. Prime Minister Erdogan reiterated his country’s support for Pakistan’s principled position on Kashmir. The Prime Minister of Pakistan reaffirmed support for Turkish efforts to resolve the Cyprus problem.

The following agreements were signed during the visit:

Agreement on Protection of Environment

Bilateral Road Transport Agreement

Agreement on Fighting Illicit Trafficking in Narcotic Drugs and Psychotropic Substances.

In October 2003, the President of Pakistan had a meeting with his Turkish counterpart on the sidelines of the 10th OIC Summit in Malaysia. President Ahmet Necdet Sezer lauded President Pervez Musharraf’s vision of Enlightened Moderation. He renewed Turkey’s support to reform the OIC to convert it into a vibrant and effective organization, capable of furthering Muslim causes.

President Pervez Musharraf paid an official visit to Turkey from 19-22 January 2004 on the invitation of President Sezer. He had in-depth exchange of views with the Turkish leadership on the whole gamut of bilateral relations as well as global and regional issues of mutual interest. The Turkish Prime Minister and Foreign Minister also called on the President. The President addressed the Turkish Parliament, reflecting the special nature of relations between the two countries.

It was agreed that bilateral economic cooperation be increased to the level of its real potential. A joint investment company would be set up, meeting of the Joint Economic Council (JEC) be held at Islamabad in 2004 and the target of $1 billion was set for bilateral trade by the year 2005. The following agreements / MoUs were signed during the President’s visit:-

Agreement on Cooperation in the field of Health

Agreement on Fight Against International Terrorism and Organized Crime

Framework Agreement on Preferential Trade Arrangement

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Framework Agreement on Comprehensive Economic Partnership

MoU between the State Bank of Pakistan and Supervision Agency-Turkey

Earlier, the Turkish Minister for Foreign Trade, Mr. Kursat Tuzmen visited Pakistan in July 2003 and held useful talks with his Pakistani counterpart on the guidelines agreed during the visit of the Turkish Prime Minister to enhance economic cooperation. The Turkish Minister for Industry and Trade was in Pakistan in December 2003 for the 11th General Assembly Session of COMSTEC. The Turkish Interior Minister, Mr. Abdul Kadir Aksu, visited Pakistan in May 2004 to discuss illegal immigration, cooperation in the field of civil defence, training of police officers and counter terrorism. The Minister for Industries and Production, Mr. Liaqat Ali Jatoi visited Turkey in June 2004 to discuss the bilateral trade.

Mr. Baki Ilkin, Special Envoy of the President of Turkey visited Islamabad in June 2004 and delivered a letter to the President from his Turkish counterpart, conveying Turkey’s gratitude for Pakistan’s consistent support on Cyprus.

Regular bilateral consultation is another important feature of Pak-Turkey relations. Foreign Secretary, Mr. Riaz H. Khokhar visited Ankara in August 2003 and held in-depth discussions with his Turkish counterpart on bilateral relations and important regional and global issues.

Cultural Cooperation

Cultural relations between the two countries are conducted under the Bilateral Cultural Exchange Programme for cooperation in the fields of Education, Science, Culture, Health and Sports for the years 2002-2005. During the period under review, cultural troupes exchanged visits and won acclamation for excellent traditional /folk performance in the major cities of each other. A large group of Pakistani folk artists visited Turkey in June 2004 and performed in Istanbul and Ankara.

Economic Relations

The trade volume between Pakistan and Turkey during 2003-04 was US$296.7 million, with the balance mostly being in Pakistan’s favour. Pakistan’s goods worth US$218.8 million were exported to Turkey, whereas imports from Turkey totaled US$77.9 million. Efforts are underway to reactivate Joint Economic Council (JEC), Joint Business Council (JBC), Joint Tourism Commission (JTC) and the Steering Committee on Agriculture to add greater economic content to relations.

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UNITED KINGDOM

Pakistan and Britain have traditional relations rooted in historical association, which predates our independence. The 800,000 strong Pakistani community in Britain is a permanent link between the two countries. The UK and Pakistan are co-operating extensively on a variety of issues under Pak-UK Joint Judicial Cooperation Working Group, British Pakistan Law Council, Britain Pakistan Business Advisory Group, Pakistan Britain Trade Investment Forum, Defence Cooperation Forum, etc.

Visits

The President of Pakistan paid a working visit to the United Kingdom on 17-20 June 2003 at the invitation of the British government. The Chief of Defense Staff, Sir Michael Walker, Secretary for International Development (DFID) Baroness Amos and the Leader of the Opposition Lain Duncan Smith called on the President. The Foreign Minister, Mr. Khurshid Mahmud Kasuri visited UK on 3-4 November 2003 to hold bilateral consultations with his British counterpart. Mr. Jack Straw, Secretary of State for Foreign and Commonwealth Affairs, reciprocated by visiting Pakistan on 3-5 March 2004.

Commercial Relations

The United Kingdom is Pakistan’s 3rd largest trading partner in terms of exports and 5th in terms of imports. The volume of trade during the year 2003-04 stood at US $ 1378.918 million with trade surplus of US $ 502 in Pakistan’s favour. Exports in the year were registered as US $ 940.711 million and imports as US $ 438.207.

Britain remains the largest foreign investor in Pakistan with more than 90 British companies operating in various sectors. Total investment from UK since 1989-90 to-date is US $ 5,804.5 million. Pakistan has also signed an investment treaty and Avoidance of Double Taxation Agreement with the UK.

Pakistani Immigrants

The United Kingdom has one of the largest concentrations of Pakistani immigrant residents outside Pakistan. According to the Office for National Statistics, Pakistanis make up 1.4% of the total population of 58.7 million. The major areas of concentration of Pakistanis are Birmingham, Bradford, Manchester, London and Glasgow. Almost 95 per cent of these Pakistanis are British citizens. They are the second largest minority community in the United Kingdom after the Indians. Some Pakistanis have made their mark in British society and exercise influence in both political and social spheres. Two Pakistanis are in the House of Commons and one in House of Lords. There are about 180 Pakistani councillors, including 7 Mayors in various cities/ country councils (majority of them belong to the Labour party). Pakistanis provide about 7% of hospital doctors.

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Pakistan appreciates UK’s support on the Third Generation Agreement with the European Union and on the reinstatement of Pakistan’s membership to the Councils of Commonwealth.

RUSSIAN FEDERATION

Pakistan - Russia relations, mired in the mistrust of the Cold War and the invasion of Afghanistan, turned a new leaf after the events of September 2001, when Pakistan assumed the role of a front line state against terrorism in the region.

President’s visit

President’s historic visit to Moscow in February 2003 provided the necessary impetus to Pakistan - Russia relations. The high point of the visit was one-on-one meeting between President Musharraf and President Putin, which enabled the two leaders to understand each other’s perceptions on important issues of regional and international concern. A perceptible change has now appeared in Russian statements on Pak-India relations, in particular on Kashmir. Four bilateral documents were signed during the visit, i.e. i) MoU on Cooperation between the Interior Ministries of the two countries: ii) Cultural Programme for 2003-2006: iii) MoU on Cooperation between the Diplomatic Academies: and iv) MoU on Expansion of Pakistan Steel Mill, Karachi. The two Presidents also agreed to expand and diversify bilateral economic cooperation by activating Inter-Governmental Commission on Trade and Economic Cooperation.

Other Visits

The tempo and the momentum generated by the President’s visit was sustained by subsequent four ministerial level visits from our side. Those were by: Mr. Yar Muhammad Rind, Minister for Food, Agriculture & Livestock (18 July 2003), Mr. Awais Ahmad Khan Leghari, Minister for Information Technology & Telecommunication, (21-25 July 2003), Mr. Liaqat Ali Jatoi, Minister for Industries & Production (23-26 September 2003) and Ch. Amir Hussain, Speaker of the National Assembly, who led a parliamentary delegation to Russia in October 2003.

From the Russian side, Mr. Igor Ivanov, Foreign Minister visited Pakistan in June 2003. Mr. Sergey Stepashin, ex-Prime Minister of Russia, presently Chairman of the Accounts Chamber of the Russian Federation paid a visit to Islamabad in December 2003 and signed a Memorandum of Understanding with the National Accountability Bureau. Mr. Anatoly Safonov, Deputy Foreign Minister visited Pakistan and led his team at the second meeting of Pak-Russia Joint Working Group on Counter Terrorism, held in Islamabad from 23-26 February 2004.

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LITHUANIA

On 01 February 2003, the agreement on trade and economic cooperation between Pakistan and Lithuania came into force after fulfillment of formalities on both sides. The agreement was signed on 27 September 1999 during the visit of Lithuanian Minister for National Economy, Mr. Eugenijus Maldeikis to Pakistan.

In March 2004, Mr. Evaldas Ignatavicius, Undersecretary of Lithuanian Foreign Office led a delegation to Pakistan and held meetings with the various government functionaries in Islamabad. During his meetings with the Secretaries of Ministry of Science & Technology and Ministry of Culture, the two sides agreed to exchange drafts of Agreement on cooperation in science & technology, and cultural cooperation Agreement.

Lithuania is particularly advanced in laser & biotechnology, education sector, forestry and conservation of nature, and Pakistan can benefit from her in these fields.

UKRAINE

Relations between Pakistan and Ukraine have witnessed a steady growth in various fields over the past decade. During the year 2003-2004, mutual efforts continued apace to expand and diversify bilateral relations. A number of delegations from Ukraine visited Pakistan and vice versa. Bilateral cooperation in the field of defence also progressed satisfactorily. Mr. Leonid Kuchma, President of Ukraine was invited by President General Pervez Musharraf in 2002 to visit Pakistan. The visit was scheduled in end February 2004, but could not materialize due to indisposition of President Kuchma.

A seven-member delegation led by Mr. Kostiantyn Frolov, Deputy Chairman of the Executive Board, Joint Stock Company Naftogas of Ukraine visited Pakistan from 4-7 August 2003. The delegation called on Minister for Petroleum and Natural Resources Ch. Naurez Shakoor, Minister for Industries and Production Liaqat Ali Jatoi, Chairman Sui Southern Gas Company Ltd., Country Director of Asian Development Bank, Director General Economic Coordination, Ministry of Foreign Affairs and Managing Director Oil and Gas Development Corporation Ltd. The members of the Ukrainian delegation included representatives from Naftogas, Interbudmontazh and Sumy Scientific Production Enterprise.

Mr. Vladislov Tchernyaev, first Deputy Minister for Fuel & Energy/ Chairman of the Board of Governors of the Naftogas, Ukraine paid a visit to Islamabad and held talks in the Ministry of Petroleum & Natural Resources with Mr. Iftikhar Ahmad, Additional Secretary on 29 April 2004. The two sides explored the possibilities of increased cooperation in the oil & gas sector.

Mr. Naurez Shakoor Khan, Minister for Petroleum and Natural Resources visited Ukraine from 2-5 December 2003 on the invitation of Mr. Yurii A.

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Boyko, First Deputy Minister for Fuel and Energy/Chairman of the Executive Board of Naftogas. The Minister held meetings with various Ministers and representatives of private concerns in Ukraine and explored areas of cooperation in sectors like oil & gas, construction, heavy machinery, metallurgy, exploration & mining, seismic technology and training of Pakistani technicians.

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VII. INTERNATIONAL/REGIONAL ORGANIZATIONS

UNITED NATIONS

Introduction

During recent years, there have been important developments in the international scene in terms of the United Nations’ role in the promotion of global peace and security, as well as prosperity of people through promotion of the agenda of sustainable development.

As always, the United Nations General Assembly and its various Committees remained the main forum for debate on important issues including terrorism, unilateralism versus multilateralism, the US led military action against Iraq, reform and expansion of the Security Council, overall reform of the United Nations, globalization and development.

Pakistan actively participated in the deliberations and maintained a high profile at all UN organs, subsidiary bodies and UN specialized agencies.

Pakistan’s profile and stature have grown internationally and especially within the UN system recently because of its unequivocal support and contribution towards UN efforts on counter-terrorism in the aftermath of the tragic events of September 2001.

58 th Session of the UN General Assembly

The 58th Session of the UN General Assembly was held in the backdrop of extraordinary developments on the global scene.

The world body grappled with the divisions that had emerged amongst the major powers over the Iraq war. Simultaneously, it was required to address a series of other conflicts and threats, such as in Afghanistan, the Middle East and Liberia.

The US-led war against terrorism remained an urgent theme at the General Assembly. The US’ pre-emptive war in Iraq raised concerns that the UN would lose its “relevance” (due to its inability to ‘act’ in the Iraq crisis).

Secretary General Kofi Annan in his address to the UN General Assembly suggested that the UN must commit itself to a radical change to deal with global threats such as terrorism, Weapons of Mass Destruction (WMDs) and nuclear proliferation.

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President Musharraf’s Participation

President General Pervez Musharraf led the Pakistan delegation to the 58 th

Session of the UN General Assembly and delivered his address on 24 September.

In his address to the General Assembly, the President called for fighting terrorism comprehensively with vision and understanding. He emphasized that the fight against terrorism must not be hijacked by those who seek to use it as an excuse to suppress other peoples. The President outlined his proposal for “Enlightened Moderation” to promote harmony and moderation, calling on Muslim nations to assume their responsibility for internal reform and renewal, to eschew extremism and confrontation and to embrace the march of human civilization.

He called on the international community, especially the West, to help resolve political disputes and situations where Muslims were being suppressed, such as in Palestine and Kashmir. He also emphasized that the West should reject attempts to equate terrorism with Islam; and assist the Muslim world in poverty alleviation and socio-economic development. On the relevance of the United Nations, the President said that the crises and conflicts of the last decade had enhanced rather than diminished the relevance of the United Nations.

The statement received wide approbation and was the focus of many press reports and articles.

He held bilateral meetings with President Bush, President of Ukraine and President of Afghanistan and held informal meetings with Presidents of Mexico, Indonesia, Germany, France and other leaders. The President also met UN Secretary General Kofi Annan. US Secretary of State Colin Powell called on the President. The President addressed an International Conference on Terrorism hosted by the Norwegian Prime Minister. He highlighted Pakistan’s frontline role in the fight against terrorism, while emphasizing the need to address this scourge at its source.

Pakistan's Membership of Security Council

The 58th UNGA took place during Pakistan's membership of the Security Council, which commenced for a two-year term on 1 January 2003. Pakistan actively participated in the deliberations of the Council on all issues on its agenda, which were overwhelmingly dominated by African conflicts and the Iraq war.

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India-Pakistan Relations and Kashmir Dispute

The Secretary General, in his annual report to the General Assembly on the Work of the Organization, took note of India-Pakistan tensions. The report stated that relations between India and Pakistan had improved: High Commissioners had been exchanged, and rail, road and air links were being restored, along with other confidence-building measures. In the report, he hoped that the resumption of sustained dialogue between Pakistan and India would lead to a peaceful settlement of their outstanding problems, including that over “Jammu and Kashmir.”

Pakistan continued to draw attention of the international community to the plight of the Kashmiri people and to the need for finding a just and lasting solution to the Kashmir issue. President General Pervez Musharraf, in his speech to the General Assembly, urged India to resume a meaningful and sustained dialogue and offered several proposals to address the Kashmir dispute and other outstanding issues. During relevant debates in the Security Council, General Assembly and the Committees, we highlighted Kashmir as the main source of tension between India and Pakistan.

Kashmir at OIC Deliberations in New York

The Kashmir issue was also comprehensively raised in the Annual Coordination Meeting of the OIC Foreign Ministers, which was held in New York from 26 to 30 September 2003, parallel to the General Debate in the General Assembly.

The OIC Secretary General expressed the hope that the relatively improved relations between Pakistan and India would create an enabling climate for resolving the conflict on the basis of relevant Security Council resolutions and guarantee the Kashmiri people their legitimate right to self-determination.

In our statement, we highlighted the fragile and precarious security situation in South Asia due to the unresolved Kashmir issue. Several delegates expressed support for the Kashmir cause in their statements and called for peaceful solution through dialogue.

The OIC Contact Group meeting on Jammu and Kashmir was attended by its members: Niger, Pakistan, Saudi Arabia and Turkey and a delegation of Kashmiris, led by the President of AJK. The OIC Secretary General, in his report to the Group, stressed the relevance of the international resolutions for peaceful solution of the dispute.

The Members of the Contact Group in their statements expressed solidarity with the Kashmiri people and their concern over the continued violations of human rights in the Indian occupied Kashmir. The Foreign Minister briefed the Contact Group about the lack of progress on resolving the Kashmir issue, because of India’s refusal to hold talks with Pakistan.

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Terrorism

During the year 2003-04, Pakistan submitted comprehensive reports to the UN Security Council on the measures taken by the government towards implementation of the Council’s resolutions imposing sanctions against the Taliban and Al Qaida. Besides, efforts were made to curb domestic terrorism promoted by extremists, fundamentalists as well as violence motivated by ethnic and sectarian interests. In our reports, we highlighted the following:

Administrative and legal measures taken against individuals, organizations, groups or entities associated with Al-Qaida and the Talibans, mentioned in the Security Council’s consolidated list;

Financial and banking measures to deal with freezing of assets, anti money laundering legislation, and Hawala transactions; and

Arms embargo, and travel ban on suspected terrorists.

The United Nations and members of the international coalition lauded the important role played by Pakistan in fighting global terrorism. They acknowledged our unswerving commitment to this cause despite limitation of resources and domestic opposition from certain quarters.

UN Peacekeeping

Pakistan is one of the largest and consistent contributors of troops to UN peacekeeping operations in Africa, Asia and Europe. During the reporting period, there are approximately 8,000 Pakistani troops deployed in nine different missions.

Pakistan acknowledges the fact that over the years, peacekeeping has become an essential tool for maintaining international peace and security. We consider the success of the United Nations in this field as our own. Pakistan, has also been stressing at relevant UN fora that rules of engagement of peacekeeping troops need to be made more robust and strong, and should be uniformly applicable across the missions. The Security Council needed to provide clear, realistic and achievable mandates to peacekeeping missions.

In our statement in the United Nations, we reiterated our support for the call made by the Chairman of the NAM Group for greater representation of developing and troop contributing countries in UN headquarters, for accelerated reimbursement of troops and equipment costs and for urging the uniform application of United Nations rules of engagement in peacekeeping operations. We continued to call for greater cooperation between the

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countries contributing the troops, the Security Council and the UN Secretariat for effective coordination on mission-related work. Pakistan remains committed to peacekeeping operations, not just as a contributor of troops but also as a host of one of the oldest peacekeeping operations in form of the United Nations Military Observer Group in India and Pakistan (UNMOGIP). The UNMOGIP continues to serve the vital purpose of monitoring the Line of Control by both sides. Pakistan has made several proposals on how to utilize and expand the UNMOGIP to promote peace and strengthen confidence building in Kashmir.

UN Reforms – Establishment of High-Level Panel

In recent years, there has been a lot of stress on reforming the UN to enable it to meet the challenges of the new Millennium. On 4 November 2003, Secretary General Kofi Annan announced the establishment of a 16-member High-Level Panel on “Threats, Challenges and Change.” The Panel was given the mandate to examine the major threats and challenges faced by the world regarding peace and security, including economic and social issues, and to recommend changes necessary to ensure effective UN collective action, including a review of the principal organs of the United Nations.

Our delegation remained actively engaged in the activities pertaining to the UN reform process. We have been apprising the Secretariat and like-minded countries that the answer lies in reinforcing the existing UN mechanisms, streamlining existing processes to optimize outcomes and results, and to introduce imaginative changes which would enhance the representative character of the institutions and bolster their efficiency.

Pakistan has also emphasized that any reform must not diminish the UN principles of democracy and sovereign equality, and must not become an instrument in the hands of a few to govern the rest.

Revitalization of General Assembly

In December 2003, the General Assembly adopted a resolution, which had several important elements regarding revitalizing the organ. It called for enhancing the authority of the Assembly through greater interaction between the Presidents of the General Assembly, Security Council and ECOSOC, submission of special subject-oriented SC reports to the GA, and strengthening of the Office of the President of the General Assembly.

It also called for improving the working methods of the GA through: greater organizational role by the General Committee, and spreading the work of the main committees to two substantive periods: from September to December and from February to May.

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Security Council Reforms and Expansion

The Open-ended Working Group on Security Council expansion and reform continued its deliberations during 2003-04, but did not make any progress on the difficult question of expansion. The Secretary General, in his Report on the Implementation of the UN Millennium Declaration, issued in September 2003, called for reforms in the UN system including the Security Council. The report observed that the Security Council decisions lacked legitimacy in the eyes of the developing world, whose values and interests were insufficiently represented among decision-makers. The report also noted that the composition of the Security Council has remained unchanged in its essentials since 1945 and was at odds with the geo-political realities of the 21st century.

In our speeches and discussions with other nations at the United Nations, we maintained that the Security Council certainly needs to be reformed to become more representative, democratic, participatory, transparent, and accountable. However, the deadlock over its expansion is due to the clash between the general aspirations for democracy versus the particular demand by some bigger countries to seek privileged position by becoming permanent members.

Pakistan supports Non-Aligned Movement’s position that in the absence of an agreement on broader issues of reform, expansion should take place only in the non-permanent category to make the Council more representative. Pakistan also believes that until a solution emerges to the complicated issues, ways could be explored to enhance the effectiveness of the Council through improvement of its working methods.

Pakistan ‘s Election to the UN Commission on Human Rights

During the organizational Session of the Economic and Social Council in May 2004, Pakistan was re-elected as a Member of United Nations’ Commission on Human Rights for the sixth consecutive tenure of three years. The re-election was recognition of Pakistan’s contribution towards global promotion and protection of human rights.

60 th Session of the UN Commission on Human Rights

During the 60th Session of the Commission on Human Rights from 15 March – 23 April 2004, Pakistan had the honour of being appointed as the Coordinator of the Asian Group and the OIC on human rights issues. In its capacity as the Asian Group Coordinator, Pakistan participated in the activities of the Bureau of the Commission. Pakistan had a crucial role to safeguard and promote the Asian Group’s interests in the Bureau’s deliberations.

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During the 60th Session of the Commission on Human Rights, Pakistan maintained its policy of opposing politically motivated country specific resolutions. We used the Session to highlight the human rights violations of the Kashmiri people and urged the world body to assist the occupied people of Kashmir in realization of their inalienable right to self-determination. Pakistan was also able to project the legislative, administrative and institutional measures adopted by the government for the protection and promotion of human rights of all Pakistani people, especially the vulnerable and marginalized segments, such as minorities, women and children. Pakistan rebutted the motivated criticism against the government coming from externally sponsored Non Governmental Organizations. As a result of our delegation’s skillful conduct and its close collaboration with OIC and the Like Minded Group of countries, Pakistan was able to avert any direct or indirect reference in any formal outcome of the Commission.

We maintained our advocacy and leadership on economic and social issues and Islamic causes. We articulated the Islamic countries’ concerns on violation of human rights of Islamic communities, Islamophobia and other violations in the name of fighting terrorism. Pakistan on behalf of the OIC rejected the notion of associating Islam with terrorism. Pakistan played an important role in the Commission’s decision on condemning the extra judicial assassination of Sheikh Yasin by Israeli forces in the Occupied Palestinian Territory. Pakistan on behalf of the OIC also made an important statement during the Commission’s Special meeting to remember the victims of genocide in Rwanda.

Economic and Social Council (ECOSOC)

The 54-member Economic and Social Council (ECOSOC) serves as the central forum for discussing international economic and social issues, and for formulating policy recommendations addressed to Member States and to the United Nations. It makes or initiates studies and reports; makes recommendations on international economic, social, cultural, educational, health and related matters; and promotes respect for, and observance of, human rights and fundamental freedoms. Subsidiary bodies, commissions and committees of ECOSOC carry out its year-round work.

On 26 April 2004, the ECOSOC held its annual high-level meeting with Bretton Woods Institutions that included IMF and World Bank. The thematic focus of the meeting, this year, was on seeking ways to consolidate global partnership for increasing policy coherence and coordination for the implementation of the Monterrey Consensus on financing for development.

The Minister for Finance and Economic Affairs, Mr. Shaukat Aziz, led Pakistan delegation to the special meeting. He attended the plenary session, round table discussions, working breakfast and working luncheon hosted by the President of ECOSOC. In recognition of the consistent and constructive association of

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Pakistan with the financing for development process, the Finance Minister was invited to chair one of the six round tables.

Election of Functional Commissions of ECOSOC

The Commission on Sustainable Development held its elections wherein Algeria, Burkina Faso, Ghana, Sierra Leone, Iran, Kazakhstan, Pakistan, Qatar, Georgia, Macedonia, Brazil, Colombia, Paraguay, Austria, Finland, France, Luxembourg were elected by acclamation. The countries will serve for three-year terms, beginning at the organizational meeting of the Commission's thirteenth session in 2004 and expiring at the close of its fifteenth session in 2007.

Fourteen members of the Executive Board of the United Nations Development Programme/United Nations Population Fund were elected by acclamation, i.e. Botswana, Cameroon, Congo, Eritrea, Gambia, China, Indonesia, Iran, Poland, Denmark, Germany, Netherlands and Sweden. They will serve three-year terms beginning on 1 January 2004.

Pakistan along with Senegal, India and Russian Federation was elected to the Executive Board of the World Food Programme for a three-year term beginning on 01 January 2004.

World Summit on Information Society

The World Summit on the Information Society (WSIS) was held in Geneva (Switzerland) from 10 to 12 December 2003. The Summit was held under the patronage of the UN Secretary General Kofi Anan and was organized by the International Telecommunication Union (ITU), the UN's specialized agency for telecommunication.

Prime Minister Jamali led the Pakistan delegation to the Summit. Members of the delegation included Federal Ministers for Commerce, Information and Media Development, and Information Technology, as well as the Foreign Secretary.

The WSIS was of great significance for all developing countries including Pakistan. In today's world, information has emerged as a powerful tool for development. The ICTs (Information and Telecommunication Technologies) have, therefore, become indispensable for overall national development. No country can aspire to attain sustainable development without the application of ICTs in all walks of life.

The Prime Minister's engagements at the Summit included an Address to the WSIS Plenary Session for General Debate, a meeting with the Pakistani community in Geneva, bilateral meetings with President Mohammad Khatami of Iran, President Pascal Couchepin of the Swiss Confederation, Secretary General of ITU Yoshio Utsumi, and Director General of WTO Dr. Supachi Pamotchpakdi.

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Meeting of the Commission on Social Development The forty-second session of the Commission on Social Development was held at the UN Headquarters in New York from 4 - 13 February 2004. The Pakistan delegation comprised representatives from the Foreign Office, Economic Affairs Division and our Permanent Representative’s Office in the UN.

The agenda of the forty-second session included the priority theme "Improving public sector effectiveness" as well as a "Review of the relevant United Nations plans and programs of action pertaining to the situation of social groups".

Eighth Special Session of UNEP Governing Council/Global Ministerial Environmental Forum (GC/GMEF)

The 8th Special Session of UNEP Governing Council/Global Ministerial Environmental Forum (GC/GMEF), was held in Jeju, Republic of Korea on 29-31 March 2004. The aim of this special session was, inter alia, to prepare UNEP's inputs for the 12th Session of the Commission on Sustainable Development to be held in New York from 14-18 April 2004.

Pakistan, as the Chairman of G-77 and China, Nairobi Chapter played a prominent role. In the inaugural statement, the High Commissioner of Pakistan to Nairobi, made a statement on behalf of the Group of 77 and China. The statement reflected the views of the Group on all important aspects of the IEG process as well as on the issues of water, sanitation and human settlement. Throughout the session, the Pakistan delegation represented the Group of 77 and negotiated the draft decisions. A separate drafting group was created to negotiate draft decisions, which was chaired by the Pakistan Delegate.

Twelfth Session of the Commission on Sustainable Development

The Twelfth Session of the Commission on Sustainable Development (CSD-12) was held in New York from 14-30 April 2004. The Commission discussed preparations for the International meeting on the 10-year Review of the Programme of Action for the Sustainable Development of Small Island Developing States (SIDS) from 14-16 April 2004.

The high level ministerial segment took place from 28-30 April 2004. During this segment the Ministers held interactive discussions on the three themes and cross cutting issues. The Ministers/Heads of delegations also held informal meetings before the start of the session each morning.

The delegation of Pakistan to CSD 12 was led by the Minister of State for Environment, Mr. Tahir Iqbal and included members of our Mission in New York

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and Nairobi and the Ministry of Environment. The Pakistan delegation participated actively in deliberation of all sessions during the Commission's meeting.

In line with the general policy brief of the Government, the delegation made suitable interventions on all issues, highlighting the policies and actions of the Government of Pakistan in meeting its obligations arising out of MDGs (Millenium Development Goals) and other internationally agreed targets. The challenges and obstacles faced in the efforts were highlighted. The Minister of State for Environment also held bilateral meetings including one with the Executive Director of UNEP on 29 April 2004.

Arms Control, Disarmament & Non-Proliferation Matters

Pakistan is committed to arms control, disarmament and non-proliferation ideals. It has underscored its commitment to work as a partner with the international community in the drive against proliferation of Weapons of Mass Destruction which is evidenced by the actions taken by Pakistan against A.Q.Khan and others, and the efforts to develop the consensus on United Nations resolution on non-proliferation. Furthermore, a comprehensive legislation titled “Draft Bill on Export Control of Goods, Technologies, Material and Equipment related to Nuclear and Biological Weapons and their Delivery System –2004”, prepared by the Ministry of Foreign Affairs in consultation with other Ministries, was approved by the Federal Cabinet on 5 May 2004 and submitted to the National Assembly on 5 June 2004 for adoption as an Act of Parliament to strengthen internal mechanism against proliferation.

NON-ALIGNED MOVEMENT (NAM)

Pakistan participated in the XIII NAM Summit held in Kuala Lumpur from 24-25 February 2003. The Summit was preceded by the Ministerial Meeting on 22 February and the meeting of senior officials from 20-21 February. The President of Pakistan led our delegation at the Summit.

In his address to the NAM Summit, the President underlined that two supreme cases for the realization of the right of self-determination stood out: – those of the oppressed people of Kashmir and Palestine. He stressed that NAM must press for the realization of these just causes and shun a selective approach to UN resolutions. He highlighted the flagrant violations of international humanitarian law in Kashmir and Palestine.

On this occasion, the President held bilateral meetings with a large number of Heads of State/Government, including Prime Minister Mahathir Mohammad (Malaysia); President Hamid Karzai (Afghanistan); Prime Minister Khalida Zia (Bangladesh); President Chandrika Bandranike Kumaratunga (Sri Lanka); Prime Minister Lokendra Bahadur Chand (Nepal); Prime Minister Rafiq Hariri (Lebanon); President Fidel Castro (Cuba); Vice President Abdul Haleem Khaddam (Syria) and Prime Minister Sheikh Khalifa

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Bin Salman Al-Khalifa (Bahrain).The President also called on the King of Malaysia.

ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC)

During the period under review, Pakistan projected a high profile role in the OIC. Besides actively participating in all the scheduled conferences and meetings of the Organization, the Government of Pakistan, responding to the threats and challenges facing the Ummah in the post 9/11 world, undertook the initiative to obtain the OIC endorsement for the strategy of Enlightened Moderation. This two-pronged strategy, envisioned by the President of Pakistan, addresses the critical issues of the Ummah, such as internal reform and renewal in the Islamic world, resolution of the political conflicts involving the Islamic countries, revitalization of the OIC, and bridging the gap with the West by containing extremism and promoting moderation and dialogue.

Major OIC events for the period under review are reproduced below in chronological order.

OIC Emergency Summit on Iraq: Doha, 5 March 2003

The OIC convened a Special Summit in Doha, on 5 March 2003 to discuss the situation in Iraq. The Pakistan delegation to the Summit was led by the Foreign Minister.

In his speech at the Summit, the Foreign Minister opposed any unilateral military action against Iraq. He emphasized the need to allow the UNMOVIC complete its task to verify the existence of WMDs in Iraq and submit its findings, as mandated by the UN. The Foreign Minister particularly stressed that sovereignty and territorial integrity of Iraq must be preserved.

Unfortunately, the allied forces led by the United States attacked Iraq within two weeks of the Doha Summit.

30 th ICFM: Tehran, 28-31 May 2003

The 30th Session of the Islamic Conference of Foreign Ministers was held in Tehran from 28-31 May 2003. The ICFM adopted our two resolutions on Jammu and Kashmir. These resolutions condemned the continuing massive human rights violations of the Kashmiri people, and called for peaceful settlement of the Kashmir issue, in accordance with the relevant UN Security Council resolutions.

The Conference endorsed the President's offer to India of a cease-fire along the Line of Control and a general cessation of violence in Indian held Kashmir on the basis of reciprocal obligations.

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A meeting of the OIC Contact Group was convened on the sidelines of the Conference. The Contact Group received a memorandum from the “True Representatives of the Kashmiri People”, and adopted a declaration in support of the fundamental rights of the Kashmiri people, including the right to self-determination in accordance with UN Security Council resolutions.

Annual Coordination Meeting: New York, 26-30 September 2003

The Foreign Minister led Pakistan delegation to the Annual Coordination Meeting of the Foreign Ministers of the OIC countries, held in New York on 26-30 September 2003, on the sidelines of the 58th Session of the United Nations General Assembly. The meeting reiterated its support for the right of the people of Jammu and Kashmir to self-determination in accordance with the UN resolutions. The “True Representatives of Kashmiri People” addressed the meeting and presented a Memorandum to the meeting of the OIC Contact Group on Jammu and Kashmir. A Declaration on Jammu and Kashmir in support of the right of self-determination of Kashmiri people was also adopted by the meeting.

11 th General Assembly Session of COMSTECH:Islamabad, 25-27 December 2003

The 11th General Assembly meeting of the OIC Standing Committee on Scientific and Technological Cooperation (COMSTECH) was held in Islamabad from 25-27 December 2003. The President, in his capacity as the Chairman of the COMSTECH, addressed the opening session of the meeting. In his inaugural address, the President stressed the need for improving the financial status of the COMSTECH through increased contributions by the member states. The meeting agreed on a number of steps to enhance the level of scientific and technological cooperation among the Islamic countries.

10 th OIC Summit Conference: Putrajaya, 16-17 October 2003

The 10th Summit Conference of the OIC was held in Putrajaya, Malaysia on 16-18 October 2003. The Summit endorsed its unanimous support for the settlement of the Jammu and Kashmir dispute in accordance with UN Security Council resolutions and the wishes of the people of Kashmir.

Enlightened Moderation : The 10th OIC Summit adopted Pakistan's resolution on the President's vision of Enlightened Moderation, entitled "Islam and the Muslim world in the 21st Century - the Path of Enlightened Moderation".

In his speech at the Plenary, the President explained at great length his two-pronged strategy of Enlightened Moderation, which is meant to advance internal and external aspirations of the Muslim World in a peaceful manner. In pursuit of this strategy, the Muslim World will focus on poverty reduction,

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science and technology, higher education, health and human resources development. Simultaneously, the international community shall fulfil its responsibilities by helping to secure just solutions for political conflicts, where Muslim people are unjustly oppressed; and by assisting the Muslim World in its efforts to promote socio-economic development.

OIC Commission of Eminent Persons : The Resolution on Enlightened Moderation decided to constitute a Commission of Eminent Persons from among the leading OIC countries, which would prepare a plan of action for the 21st Century, examine the ways and means to promote Enlightened Moderation, and also make recommendations on reform and restructuring of the OIC. The Commission would submit recommendations to an Extra-ordinary OIC Summit to be held in 2004.

The Commission of Eminent Persons is being constituted by Malaysia. Senator Mushahid Hussain Syed, Chairman, Senate Standing Committee on Foreign Affairs and Dr. Mohammad Kamal Hassan, Rector International Islamic University Kuala Lumpur have already been confirmed as members of the Commission from Pakistan and Malaysia, respectively. Sudan, Iran and Indonesia have also finalized their members for the Commission. The Commission will be completed once the remaining designated countries – Saudi Arabia, Qatar, Morocco, Senegal and Burkina Faso confirm the names of their members to the Chair of the OIC Summit.

Seminars on OIC

In order to pave way for the work of the Commission and to crystallize thoughts on Enlightened Moderation, the Ministry of Foreign Affairs, Government of Pakistan, organized a national Seminar on Enlightened Moderation in Islamabad on 17-18 April 2004. The Seminar was attended by more than 30 prominent scholars and academicians from Islamabad and provincial capitals, who gave their views on how the Islamic world and the OIC should respond to the contemporary challenges.

As a follow-up, an “International Seminar on OIC: Challenge and Response” was held at the Jinnah Convention Centre, Islamabad on 1-2 June 2004. The Seminar was attended by 30 scholars from leading OIC countries including Malaysia, Indonesia, Saudi Arabia (represented by its Ambassador in Islamabad), Iran, Bangladesh, Egypt, Jordon, Syria, Senegal, and Morocco. The Secretary General of the OIC, Dr. Abdelouahed Belkeziz and 3 senior officers of the General Secretariat also attended the Seminar. Malaysia was represented by Dr. Mohammad Kamal Hassan, Malaysia's Member of the Commission of Eminent Persons. A panel of 9 scholars from Pakistan was also associated with the Seminar.

The Inaugural Session of the Seminar was addressed by the President of Pakistan. The President's thought provoking speech dwelt at great length on the concept and strategy of Enlightened Moderation, highlighting the twin

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challenges of extremism, terrorism and the socio-economic backwardness in the Muslim World, and the need for a positive and constructive response from the Ummah, in cooperation with the West, so as to improve the lot of the Ummah on the one hand and to seek just and equitable solutions to the political conflicts of the Muslim World on the other. The President also underlined the need to reform and restructure the OIC to make it an effective and dynamic world body of the Muslim World.

Based on the written and verbal presentations by the participants, the Seminar compiled its recommendations in a comprehensive document, which was later circulated among all member states by the OIC General Secretariat. 31 st ICFM: Istanbul, 14-16 June 2004

The 31st Session of the Islamic Conference of Foreign Ministers was held in Istanbul from 14-16 June 2004. The Istanbul ICFM re-endorsed Pakistan’s strategy of Enlightened Moderation and called for an early establishment of the Commission of Eminent Persons. The Final Communiqué and Istanbul Declaration paid tributes to President General Musharraf for this timely initiative.

Through its resolution on Jammu and Kashmir dispute, the Istanbul ICFM reiterated OIC’s full support for the right of self-determination of the Kashmiri people in accordance with the relevant UN resolutions. This position was reflected in clear terms in the Final Communiqué and the Istanbul Declaration.

The Istanbul ICFM also adopted our Resolution on peace process with India, Babri Mosque, Charar-e-Sharif, Financial Assistance to Kashmiris and support for the Regional Institute of Complementary Education (RICE), Islamabad.

The Contact Group of the OIC on Jammu and Kashmir met on the sidelines of the ICFM. The meeting was attended by the Secretary General OIC, the Foreign Ministers of Turkey, Saudi Arabia and Niger. A delegation of the “True Representatives of the Kashmiri People” from AJK and IOK addressed the meeting and also presented a memorandum. The Contact Group reiterated its support for the rights of the Kashmiri people and called for an end to the massive violation of their human rights by the Indian troops.

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)

Regional cooperation provides a vehicle for bringing into play economic complementarities for faster economic growth and development. It is a function of growing interdependence. The South Asian region cannot ignore

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this imperative. We attach high priority to the effective functioning of SAARC to promote greater cooperation in diverse fields.

12 th SAARC Summit: Islamabad; 4-6 January 2004

Pakistan has always stood for a frequent interaction at various levels among all the SAARC Member States. The Twelfth SAARC Summit held in Islamabad on 4-6 January was a manifestation of this desire. The Heads of State / Government of all SAARC countries i.e. Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka attended the Summit, which was an eminent success. The Summit was preceded by 24th Session of SAARC Council of Ministers, 29th Session of Standing Committee and 24th Session of Programming Committee. The conducive atmosphere thus created has strengthened the resolve of the SAARC member countries to build economic synergies that could transform the quality of life for the people of South Asia.

The Summit adopted the Islamabad Declaration, which reaffirmed Pakistan’s determination to create a just and equitable partnership for peace, development and prosperity in the region. The leaders of SAARC countries expressed their commitment to the objectives and principles of SAARC and pledged to reinvigorate regional cooperation.

Three important documents were signed during the Summit, including Agreement on South Asian Free Trade Area (SAFTA), Additional Protocol to the SAARC Regional Convention to Combat Terrorism and the SAARC Social Charter. The framework Agreement on SAFTA is an expression of the member countries’ commitment to strengthen intra-SAARC economic cooperation. It will come into force on 01 January 2006. However, prior to it, some pending issues (including Rules of Origin and Sensitive Lists) are to be negotiated / resolved by the Committee of Experts (COE), which has so far held three rounds of meetings since the Summit. The signing of these documents reflected the resolve of the Government of Pakistan and other SAARC member countries to transcend misgivings and misconceptions about each other and strengthen regional cooperation.

SAARC has gained considerable credibility at the international level after the successful conclusion of the 12th SAARC Summit. As the current Chairman of SAARC, a number of initiatives have been taken by Pakistan to consolidate this image and to actively contribute in furthering the goal of closer regional interaction in the South Asian region. Besides the Summit, Pakistan actively participated in a number of other SAARC related activities, including meetings at ministerial and senior officials level, related to various fields such as Poverty Alleviation, Social Development, SAFTA, Social Charter, Energy, Health, Information, Culture, Science & Technology, etc. Some of the important SAARC activities hosted by Pakistan during 2003-2004 are listed as under:

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Special Session of Committee on Economic Cooperation (23-24 December 2003)

Eighth Meeting of the Governing Board of South Asian Development Fund, (SADF) (9-10 April 2004)

Trainers’ Training Programme on Population, Environment and Development by SHRDC, (29 March – 11 April 2004)

Fourth Meeting of SAARC on Cooperation in Police Matters (20-21 April 2004)

Second Meeting of the COE on SAFTA (3-5 May 2004)

Workshop on Quality Management and Customer Care in Postal System (10-15 May 2004)

First Meeting of the Technical Committee on Science & Technology and Meteorology (10-11 May 2004)

First Meeting of the Working Group on Energy (15-16 June 2004)

Second Meeting of the Heads of University Grants Commission/Equivalent Bodies (15-16 June 2004)

First Meeting of SAARC Autonomous Women Advocacy Group.

SAARC Communication Ministers’ Conference (29-30 June 2004)

ECONOMIC COOPERATION ORGANIZATION (ECO)

The Regional Cooperation for Development (RCD) formed in 1960s by Pakistan, Iran & Turkey later served as a forerunner to the Economic Cooperation Organization (ECO). Formed in 1985, the ECO became fully operational in 1991. During 1992, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan & Uzbekistan also sought ECO’s membership. ECO thus transformed from a trilateral entity into a major grouping of ten Member States in 1992. The expanded ECO covers a territory of more than 7 million square kilometers; immensely rich in natural resources including oil & gas.

Significance of ECO for Pakistan

Pakistan attaches great importance to the efficient, effective and efficacious functioning of ECO to enable it to realize the objectives enshrined in its charter. For a variety of reasons ECO has not been able to make worthwhile

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progress on the crucial issue of economic integration of the region. To enhance effectiveness of the organization and to streamline its functioning, the 13th Council of Ministers (COM) adopted an initiative of the Government of Pakistan for establishment of an Eminent Persons Group (EPG) to look into the problems and recommend measures for early realization of the long cherished objectives of greater economic cooperation among the member states and integration of the region. The group has finalized its recommendations, which will be submitted to the Council of Ministers to be held in Dushanbe on 13 September 2004.

Pakistan's Role in the Organization

Since its inception Pakistan has been playing an active role to enable the organization to contribute effectively to the regional economic cooperation, the very purpose of the organization's creation. Pakistan hosted the meeting of ECO Commerce and Trade Ministers in Islamabad from 15 - 17 July 2003, which adopted the Islamabad Communiqué.

Subsequently, Pakistan convened the meeting of the ECO Finance Ministers in Islamabad from 29-30 January 2004, which took a number of important decisions to harmonize the fiscal and monetary policies.

The ECO Secretary General, Mr. Askhat Orazbay visited Islamabad from 7 - 9 June 2004. The ECO Secretary General besides his consultative meeting with the Additional Secretary (UN&EC), also paid courtesy calls on Foreign Secretary, Foreign Minister, Prime Minister and the President. He briefly informed them about the ECO plans to enhance its efficiency in the coming years and the events it was likely to organize during the current year. The ECO Secretary General was advised to mainly focus on the promotion of economic cooperation between the member states and evolve a permanent mechanism to follow up and implement the decisions being taken at various ECO forums.

Pakistan has been an active participant of all the ECO meetings and programmes and it will continue to do so in future too, as a part of its commitment to the organization.

DEVELOPING EIGHT (D-8)

Pakistan is a founding member of Developing Eight Group (D-8), comprising Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. The Fourth D-8 Summit was held in Tehran on 18 February 2004. The Pakistan delegation to the Summit was led by Prime Minister Mir Zafarullah Khan Jamali. The Tehran Declaration, which was unanimously adopted at the Summit, provided a roadmap for future cooperative endeavours under the D-8. All member countries were of the view that there was an urgent need to enhance the intra group trade. To this effect the role of the private

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sector of the member countries through the D-8 Business Forum was emphasized.

All the member states agreed to further intensify trade and economic cooperation under D-8. In order to enhance intra group trade, D-8 Preferential Trade Agreement is also under negotiation among the member countries.

Pakistan hosted the Second D-8 High Level Trade Officials Meeting in June 2004 to negotiate draft PTA and Agreement on Administrative Assistance in Customs Cooperation among member countries. Pakistan also hosted a Seminar on Water Conservation and Drip Irrigation early this year and is planning to organize a number of other D-8 activities including Seminars on WTO Issues and Small & Medium Enterprises (SMEs).

COMMONWEALTH

Taking into account the progress made by Pakistan regarding restoration of democracy, the CMAG decided to restore its membership to the Commonwealth, in a meeting held in London on 22 May 2004. The Group welcomed the progress made in restoring democracy and rebuilding democratic institutions in Pakistan, as well as the restoration of the 1973 Constitution, as amended by the 17th Amendment. It was, therefore, decided that Pakistan should no longer remain suspended from the Councils of the Commonwealth.

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VIII. ECONOMIC AND COMMERCIAL RELATIONS

Objectives

The emerging new international trade and economic dispensation, influenced in several different ways by the process of globalization, presents opportunities as well as challenges to developing countries like Pakistan. The task is indeed made more complex and difficult by the establishment and rapid expansion of WTO and the integrated treatment of trade, development and other related issues. The growing institutional linkages between international political and economic organizations are another important element to be factored into our economic diplomacy. Similarly, securing greater inflows of foreign direct investment, reduction of external debt, diversification of our export base, as well as export markets, enhanced market access and export competitiveness, are some of the other priority areas for our diplomacy.

Strategy

To achieve these objectives, Pakistan is committed to developing and strengthening trade and economic relations with the rest of the world, bilaterally, regionally and multilaterally. Pakistan has played a pioneering role in the development of the regional agreements like Economic Cooperation Organization (ECO), South Asian Association for Regional Cooperation (SAARC) and Developing-8 Countries (D-8). It has recently joined ASEAN Regional Forum (ARF) and is working towards membership of some of the other regional frameworks for economic cooperation.

Pakistan is closely monitoring the WTO process. While concerned over the failure of the negotiations to meet deadlines in all critical areas, we hope that the process will move forward and address, among others, the needs and concerns of the developing countries, particularly those with low-incomes.

Pakistan on its part remains committed to the success of multilateral trade negotiations under WTO. But in view of the unpredictable fate of the multilateral trading system, like other developing countries, we are concerned about the quality of future trading environment. We have adopted a proactive approach to convert the challenges of globalization into opportunities. One of the important initiative in this regard is to seek membership of as many regional trading arrangements as economically and politically viable. We have recently concluded South Asian Free Trade Area (SAFTA) under the South Asian Association for Regional Cooperation

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(SAARC) and Economic Cooperation Organization Trade Agreement (ECOTA) under the Economic Cooperation Organization (ECO). We are also negotiating Trade Preferential System under Organization of Islamic Conference (TPS-OIC) and Preferential Trading Agreement under the D-8.

The Government is attaching top priority to the development of institutional as well as physical infrastructure in the country. It believes that Pakistan’s strategic location supported by a well-developed road and transport infrastructure could transform the country into a regional trading hub for western, central and South Asian states. With Karachi port already serving the needs of the region and beyond, the new port at Gwader, with its early completion and commissioning, would go a long way in realizing these objectives.

It is indeed heartening to note that the institutional framework laid out by the Government in pursuit of its economic reform agenda has started to yield results, which are manifest in the phenomenal turn-around of the economy over the last four years or so. With the achievement of the macro-economic stability and record levels of growth, Pakistan is all set to embark on a course of sustained economic development. The most recent state of the economy is summarized below:

Pakistan’s Economic Performance during 2003-04

Riding on the strong economic fundamentals of previous year, Pakistan’s economy has gathered greater momentum during the fiscal year 2003-04. Acceleration in growth accompanied by a sharp pick up in industrial production, a strong upsurge in investment, and a further strengthening of the external balance of payments have been the hallmarks of this year’s performance. The pre-payment of high cost external debt, the strategic re-entry into the international capital markets through the floatation of a Eurobond and the re-basing of Pakistan’s national accounts have been the other important occurrences of the financial year 2003-04.

During this financial year, Pakistan succeeded in attaining 6.4% GDP growth, i.e. higher than targeted growth (5.3%), powered by significant growth in large-scale manufacturing and a continuing robust performance in services; a double-digit growth in per capita income, reaching $ 652; a strong rebound in investment, particularly in private sector investment owing to a rare confluence of various positive developments on the economic scene; low inflation and an investment-friendly interest rate environment; an unprecedented increase in credit to the private sector; sharp increases in the consumption of electricity and gas reflecting rising levels of economic activity; a reduction in the fiscal deficit; on target tax collection; a buoyant stock market with an all-time high aggregate market capitalization; a double-digit growth in exports and imports; remittances maintaining their momentum with the current account balance remaining in surplus for the third year in a row; a

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continued accumulation of foreign exchange reserves and stability in the exchange rate; a sharp decline in the public and external debt burden; a lowering of the interest cost through the pre-payment of $ 1.17 billion of high cost external debt; and a successful return to the international capital markets through the floatation of a Eurobond.

When compared with other developing countries in general and East and Southeast Asian countries in particular, Pakistan’s growth performance has been quite impressive. Developing nations grew, on average, by 6.1 percent while East and Southeast Asia countries like Hong Kong, Singapore, Korea, Indonesia, Malaysia, Philippines, Bangladesh and Sri Lanka registered growth rates ranging from 1.1 percent to 5.5 percent in 2003-04. Few countries in the region, namely China, India and Thailand grew faster than Pakistan during this period. Fiscal stimulus in the shape of large public sector spending and a conducive interest rate environment provided important support to this growth picture in Pakistan.

The highlights of the macro-economy during the FY 2003-04 are summarized as follow:

Total investments rose to 18.1 percent of GDP in 2003-04 against 16.7 percent last year. Most importantly, fixed investment rose sharply to 16.4 percent of GDP against 14.8 percent last year. What is highly encouraging is the significant rise in private sector investment – from 11.2 percent to 11.7 percent of GDP.

The inflation as measured by changes in the Consumer Price Index (CPI) averaged 4.6 percent during the last fiscal year.

Stock Market showed an impressive growth with the KSE index rising from 3403 points on 30 July 2003 to 5279 points on 30 June 2004 – an increase of 1876 points or 55 percent during the period.

Pakistan’s balance of payments gained further strength during the year under review. Both exports and imports registered robust growth; healthy increase in foreign exchange reserves continued despite heavy pre-payment of external debt; and the current account balance continued to remain in surplus for the third year in a row. A strong and broad-based recovery in the global economy also helped firm-up demand for Pakistani exportable goods. The inflow of workers’ remittances continued its rising momentum, albeit at a slower pace; the exchange rate remained stable; and a substantial increase in FDI was recorded.

Exports grew by 13.8%. The total value of exports was US$ 12.4 billion during the last financial year.

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Imports grew by 19.6%. Their total value stood at US$ 13.6 billion at the end of last financial year.

During the financial year 2003-04, Pakistan has succeeded in attracting $ 950 million in Foreign Direct Investment (FDI), which is 19% more than that of the previous financial year. The bulk of the FDI has come in the oil and gas, transport and communication, and banking sectors. These three areas have accounted for 71 percent of the FDI this year. Almost 85 percent of the FDI has come from Switzerland, the United States, the United Kingdom, the UAE and Saudi Arabia. Pakistan’s foreign exchange reserves continued to rise despite the pre-payment of $ 1.17 billion of high cost external debt. As of July 2004, foreign exchange reserves stood at $ 12.32 billion, sufficient to provide cover for almost one year of imports. In other words, Pakistan added $ 1.7 billion to its reserves during July-June 2003-04.

Until a few years ago Pakistan was facing serious difficulties in meeting its external debt obligations. Not only was the stock of external debt and foreign exchange liabilities growing at a breakneck pace but the debt carrying capacity remained stagnant. Consequently, the debt burden (external debt and foreign exchange liabilities as a percentage of foreign exchange earnings) reached an unsustainable level of 335.4 percent by 1998-99. Following a credible strategy of debt reduction, Pakistan has not only succeeded in reducing the stock of external debt and liabilities but at the same time built-up a substantial stock of foreign exchange reserves. The stock of external debt and liabilities were as high as $ 2 billion. The surplus in the current account coupled with a continued build-up in foreign exchange reserves and higher foreign exchange earnings and the prepayment of expensive debt are the major factors responsible for the reduction in the total stock of debt and liabilities. As a percentage of GDP, external debt and liabilities stood at 51.7 percent in end June 2000, declined to 43 percent in end June 2003 and further to 37.8 percent by end June 2004.

Special Technical Assistance Programmes for Africa and Central Asian Republics

Under the programme, the Ministry of Foreign Affairs organized diplomatic courses at the Foreign Service Academy, Islamabad for 86 diplomats from the friendly countries of Africa, Central Asia and Asia Pacific. Technical training programmes for Liberian banking officials and diplomats were also arranged. Besides, Pakistan provided technical assistance in some other areas to several other countries.

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Reconstruction of Iraq and Afghanistan

Pakistan is extremely responsive to the developments in Afghanistan, its neighbour, and has committed US $100 million towards reconstruction of Afghanistan.

The Government of Pakistan, while fully cognizant of the importance of assisting the reconstruction in Iraq and is committed to contribute to the efforts of International Community. Pakistan was one of the first countries to put together a relief and technical assistance package for Iraq. It had initially pledged an amount of US$ 3.2 million for relief assistance to Iraqi people. The amount has now been increased to $ 10 million and will be utilized for rehabilitation activities in Iraq.

Pakistan is also providing technical assistance for reconstruction of Afghanistan and Iraq and has already run a special diplomatic course each for 10 Afghan and Iraqi diplomats at the Foreign Service Academy, Islamabad.

President’s Visit to the World Economic Forum (WEF): Davos; 22-24 January 2004

President Gen. Pervez Musharaf visited Davos, Switzerland to participate in the World Economic Forum meeting from 22-24 January 2004. The WEF provided the President with multiple platforms to project Pakistan’s perspective on a variety of issues, ranging from the emerging scenario in South Asia to growing economic and investment opportunities.

The President took centre stage of the deliberations within the Forum and dominated the media headlines. On the sidelines of the Forum, the President held several meetings with the political and business leaders participating in the Forum. The President’s bilateral interactions with the global business leaders included meetings with the Microsoft Chairman, Bill Gates; CEOs of Merck, Nestle, General Motors, Bata Shoe Foundation, and Novartis.

The President was also the keynote speaker at a working dinner entitled “Investment Opportunities in Pakistan and Prospects for Regional Cooperation” which enlisted considerable interest from both political and economic leaders from around the globe. The President received overwhelming attention from the major international media organizations. The CNN, BBC, CNBC, Newsweek and Washington Post interviewed him. He was among the most sought after dignitaries at the Forum in which many other Heads of State/Government participated. He was recognized as the leading voice of the Islamic world and a key figure in promoting harmony, understanding and mutual trust between Islam and the West.

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Pakistan’s Participation in UNCTAD-XI

A high powered Pakistan delegation led by Dr. Abdul Hafeez Shaikh, Minister for Investment and Privatization participated in the Eleventh Ministerial Meeting of the United Nations Conference on Trade and Development (UNCTAD) held in Sau Paulo, Brazil from 13-18 June 2004. The Ministerial Meeting is held every four years. The UNCTAD is the focal point within the United Nations for the integrated treatment of trade and development and the inter-related issues in the areas of finance, technology, investment and sustainable development. Being an active member of the G-77 and China and the Group of 22, Pakistan’s participation in the conference was of great importance in the context of multilateral trade negotiations and the development aspect of trade. The Minister for Investment and Privatization at the meeting called for better market access, capacity building and the sustained and substantial flow of development financing, aimed at eradication of poverty and improved living conditions for the people in developing countries. The Minister also made a reference to Pakistan’s economic recovery achieved by the policies adopted under the leadership of President General Pervez Musharraf.

Overseas Pakistanis

One of the primary functions of the Ministry of Foreign Affairs is to look after the millions of Pakistanis living abroad. The present government has re-emphasized the importance of looking after the interests of Pakistanis residing abroad, and providing the best services and facilities to them. In this connection, all Pakistan Missions abroad were reminded to work towards the improvement of services provided to our expatriate community. Their responsibilities included: facilitating local burial or transportation of dead bodies of Pakistanis; making available the facility of 5-year visas for Pakistanis who had acquired foreign/dual nationality; facilitating the issuance of passports; according priority to the cases of imprisoned Pakistanis abroad, contacts with the local government at the level of Head/ Deputy Head of Mission; and regular visits by Embassy officials to imprisoned Pakistanis.

The Missions were asked to improve their functioning and standard of education of the community schools run by them. They liaised closely with PIA and nationalized banks to resolve the problems of the community. The Missions were also advised to motivate overseas Pakistanis to send remittances through Pakistani banks and other official channels. Our Embassies remained in close liaison with the Overseas Pakistanis Foundation so as to improve facilities for Pakistanis at home and abroad. It was stressed upon the Heads of Mission to make personal efforts for increasing employment opportunities abroad for Pakistani manpower. In order to facilitate the frequent entry of expatriate Pakistanis (holders of foreign passports of Pakistani origin) in their home country, they were granted a Pakistan Origin Card. The overseas Pakistanis were also issued 100-page passports valid for ten years.

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IX. FOREIGN OFFICE’ PUBLICATIONS

The Ministry of Foreign Affairs, Government of Pakistan, complies and disseminates the following publications on a regular basis:

i) Journal “Foreign Affairs Pakistan”

It is a collection of documents related to foreign affairs of the country e.g. speeches, statements, interviews, visits, messages, press releases, transcripts of spokesman’s press briefings, agreements, joint press releases, joint communiqué’s etc. The journal was launched in 1974 and now it is running into the 31st year of continuous publication. Its mailing list includes our Missions abroad, major public libraries, Area Study Centers, Universities, Federal Ministries/Divisions, Provincial Governments and all Directors and above in the Foreign Office.

ii) Year Book

The Year Book seeks to encapsulate in one volume a brief account of Pakistan’s relations with the rest of the world during the year under review. Upto year 2002, the Year Book of the Ministry of Foreign Affairs contained material for a calendar year i.e. January to December; but henceforth, under the instructions of the Cabinet Division, it would cover a fiscal year i.e. July to June. The Year Book in hand consists of material from January 2003 to June 2004 for the sake of continuity, and from the next year it would be a July to June affair.

The mailing list for the Year Book is quite extensive and includes our Missions abroad, Foreign Missions in Islamabad, major public libraries, Area Study Centers, Universities, Federal Ministries/Divisions, Provincial Governments, all officers of the Ministry of Foreign Affairs, Retired Ambassadors, intellectuals and media persons; besides, eighty copies to the Cabinet Division. The Ministry is also obliged to send a copy of the Year Book 2003-04 for the perusal of the Prime Minister.

The Year Book of the Ministry of Foreign Affairs was launched in 1997 and the present one is 7th of the series.

iii) Joint Communiqués 1947-1977 (2 Volumes)

It is a collection of joint communiqués that Pakistan has signed with the various countries since its independence on 14 August 1947. The work has been divided into two volumes: Volume-I, 1947-76 and Vol.-II, 1977-97. The

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two volumes are spread over 834 pages and contain a total of 471 joint communiqués/joint statements.

The work has been highly appreciated by diplomats, scholars and the media. Daily “The Nation” titled the review of the publication as “Well Done Foreign Office”. The Sri Lankan High Commissioner visited us for guidance as his government was also interested in a similar publication.

We have started working on the third volume (January 1998 onward), and the collection exercise is in progress.

iv) Transcript of Foreign Office Spokesman’s weekly Press Briefing

An edited transcript of Foreign Office Spokesman’s weekly press briefing is prepared and faxed/e-mailed to all our missions abroad, besides dispatch to senior officers at the Headquarters and other government agencies/departments. It provides guidance to our Missions abroad with regard to official position on various current issues. It is also placed on the website of the Ministry of Foreign Affairs, and can be visited at: www.mofa.gov.pk

v) Pakistan Treaty Series

The Ministry has recently undertaken a project, which aims at publishing all the agreements/treaties Pakistan signed with the various countries since its coming into being on 14 August 1947. It is a huge undertaking, involving compilation and printing of about 30 volumes of 600 pages each.

These publications are quite useful and serve as source material to those interested in the foreign affairs of the country. Diplomats, researchers, scholars and media people invariably turn to these publications while looking for a speech, statement, high-level visit from and to Pakistan, joint communiqué/joint statement, message and agreement etc. They keep on inquiring about the latest position of various publications, insisting on their updating.

All these publications are being managed by the Research Division of the Ministry, headed by Riaz Ahmad Syed, Director General Research. For further information, queries and suggestions, he can be contacted at: Ph: 9207943 and E-mail [email protected].

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mailto:[email protected].

http://www.forisb.org/


X. IMPORTANT SPEECHES/STATEMENTS

i) Address by the President, General Pervez Musharraf to the Inaugural Session of the 13th Summit of the Non-Aligned Movement (NAM-XIII): Kuala Lumpur; 24 February 2003

Dear Brother Prime Minister Dr. Mahathir Mohamad,Your Majesties and Royal Highnesses,Ladies and Gentlemen,

Allow me to extend my sincere felicitations to you, Mr. Prime Minister, on your assumption of NAM’s Chair. We have no doubt that your dynamic and visionary leadership will help transform this Movement in consonance with demands of the changed international environment. I also wish to thank South Africa, especially Presidents Mandela and Mbeki whose inspiring moral leadership galvanized NAM’s work and gave it a new spirit.

Mr. Chairman,

From Bandung in 1955 to Kuala Lumpur in 2003, our Movement has traveled a long distance. At the high noon of superpower rivalry, our Movement emerged to offer an independent middle path to the developing world. The next phase in our Movement’s evolution commenced in the post cold war period. We began a transition dictated by the new global realities and started paying increasing attention to economic issues.

We are now in the third phase of our journey, as we hold this first NAM Summit of the 21st century. This must become the phase of our complete transformation. It is truly befitting that “revitalization” is the theme of this Summit. The challenge before us, is to identify our common objectives and purposes, and evolve appropriate ways and means, as well as processes and mechanisms to promote these objectives.

Mr. Chairman,

First and foremost, NAM must be the voice of principle – not the voice of power. Asymmetry of power takes different forms, from unmatched military strength to unequal distribution of economic resources to permanent membership of the Security Council. Such asymmetry undermines collective good.

NAM must counter-balance the asymmetry of power by emphasizing principles. This approach should be anchored on the primacy of the UN Charter and the five principles of peaceful coexistence as well as the central

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role of the Untied Nations and other multilateral organizations in international relations. Above all, NAM should begin to play a pivotal role in conflict resolution. Chapter VI of the UN Charter provides the best framework for peaceful settlement of disputes. Pakistan supports the establishment of a Panel of Eminent Persons to more fully define and promote these objectives and processes. Pakistan would be happy to host the NAM mechanism for conflict resolution.

Secondly, NAM must be the strongest proponent of equal security of states. Asymmetry of power cannot be a stable and durable basis for the post-cold war architecture of international peace and security.

NAM must strive for equitable global disarmament – achieved through negotiated agreements rather than forcible actions. The linkage between disarmament and security must be strengthened. The balancing of power and security would provide us the political space for promoting multilateral solutions, to emerging threats to international peace and security.

Thirdly, NAM must be the voice of the people. We must give full life and meaning to the opening words of the UN Charter: “We, the people”. NAM would remain relevant as long as it continues to speak for the weak and oppressed. We must not shy away from the principle of self-determination for peoples fighting foreign occupation or suppression by force. Many of the nations assembled here today owe their very creation to this noble principle.

NAM must remain a symbol of hope for the peoples, who even today struggle to realize their inalienable right to self-determination. Two supreme cases stand out – those of the oppressed people of Kashmir and Palestine. The legitimacy of their cause is recognized by the United Nations. The Non-Aligned Movement must press for the realization of these just causes, and shun a selective approach to UN Resolutions.

Fourthly, NAM must be a strong, principled voice against terrorism, whether by individuals, groups or states. Our Movement must work to promote a universally accepted definition of terrorism – based on recognition of the fundamental fact that no cause justifies acts of violence against innocent civilians. At the same time, we must not allow anyone to manipulate the fight against terrorism to de-legitimize just struggles of peoples against illegal occupation. This travesty must be rejected with the contempt that it deserves. The fight against terrorism should not divide, but only seek to unite nations in this common cause. NAM must also underscore the imperative to address the “root causes”. Resolution of long standing disputes as also efforts to address injustice, the sense of frustration and powerlessness and objective realities like poverty, illiteracy and economic deprivation, would certainly help this cause.

Mr. Chairman,

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The economic agenda that our Movement must pursue in the 21st century is no less important. It is vital to the well-being and future prosperity of the billions that live in the NAM world.

NAM must support equitable growth and development. Paradoxically, while globalization has increased global prosperity, it has also deepened the levels of poverty and inequality. About 20% people in the North control 80% of the world resources. The world’s richest 1% receive as much income as the poorest 57%. Not unsurprisingly, therefore, in the South more than 1.2 billion people still live on less than one dollar a day, some 800 million lack basic amenities, 850 million are illiterate, and nearly 113 million children are out of school.

To address this, NAM should press for a new agenda for development. Development means enabling people to escape the vicious circle of poverty, hunger and disease. This would require a new “development consensus” centered on people, which should replace the present “Washington Consensus” built largely around the idea of liberalization of economies.

The new development paradigm should help realize the right to development, a fair trade regime, equitable distribution of international liquidity and debt reduction.

Mr. chairman,

Respect for international law should be the cornerstone of NAM’s approach to the international humanitarian order. Past decades have seen flagrant violations of international humanitarian law - in Rwanda, Kashmir and Palestine. This must be brought to an end now. We must raise our voice collectively against genocide and support the international criminal justice system. Oppression and unjust wars – waged for territory or resources – are incompatible with NAM’s ideals. These should be condemned.

Mr. Chairman,

Allow me to conclude by reiterating that this is both a moment of challenge and opportunity for NAM. The vision we develop here today would be critical to our ability to realize the Movement’s full potential in the 21st Century.

With you guiding our Movement in this defining moment, Mr. Chairman, we have no doubt that this ship will cruise to its coveted destination.

I thank you, Mr. Chairman.

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ii) Address by the President, General Pervez Musharraf to the 58th Session of the UN General Assembly: New York; 24 September 2003

Mr. President,

It is with great pleasure that I extend to you our warmest felicitations on your election. I also congratulate your predecessor, H.E. Mr. Jan Kavan, for his effective leadership during the last Session of the General Assembly.

We support Secretary-General Kofi Annan's efforts to infuse a new sense of mission in the United Nations and maintain the centrality of its role in the promotion of global peace and security. We pay tribute to the memory of Mr. Sergio de Mello and the other UN officials who sacrificed their lives in the service of peace.

Mr. President,

When the Berlin Wall collapsed, hopes revived for a new age of cooperation and peace, free of ideological confrontations. Sadly, these hopes were dashed:

by the ethnic cleansing in Bosnia, and then in Kosovo;

by the failure to end the occupation of Palestine, leading to the revived Intifada against Israeli occupation;

by the brutal suppression of the Kashmiris’ demand for self-determination and freedom from Indian occupation;

by the unending war in Afghanistan and the international neglect which created a climate in which extremism and terrorism could breed;

by the series of international financial crises and the rise of poverty as a consequence of unequal economic globalization.

The terrible terrorist atrocity of 9/11 jolted the foundations of the international system. The response has weakened Al-Qaeda. But, it has not eliminated its associates. Terrorists have struck repeatedly around the world - in Indonesia, Tunisia, Morocco, Saudi Arabia, Russia, Kenya - and in Pakistan.

The tragedy of 9/11 transformed security policies and changed geopolitical calculations. Pakistan took a strategic decision, based on the principles of humanity and our national interest, to support the war on terrorism. Our intentions should be in no doubt. Our actions speak louder than words. Our capabilities were limited but have been progressively improved. We are

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acting against Al-Qaeda and its associates effectively. We have also acted against other organizations or groups involved in any form of terrorism. Pakistan will remain in the forefront of the war on terrorism.

The war against terrorism must be fought comprehensively, on a global front, with vision and understanding. It should not erode the moral values of our societies. It must not be hijacked by those who seek to use it as an excuse to suppress other peoples. It must not be allowed to engender a clash of civilizations - a clash between Islam and the West.

It is unfortunate that great religions - which should be a source of hope, tolerance and peace - are seen as being pitted against each other. Many Muslims believe their eternal Faith is being demonized. They see Muslim peoples being cruelly suppressed for demanding freedom and equality or targeted for discrimination and worse.

On the other hand, the West perceives the Islamic world as volatile and hostile, bent upon striking at Western values. Muslims are often seen as fanatics, extremists and terrorists.

In this volatile milieu, the recent war in Iraq has evoked negative reactions in most Arab and Islamic countries.

This moment in history calls for reflection, introspection and action. The thesis of a clash of civilizations is a travesty. We must bridge the gulf of misunderstanding between Islam and the West. We must be the catalysts of change, not the prophets of doom.

Islam is a faith of peace, harmony and justice. Islam is democracy in action. It upholds human rights, social equality, non-discrimination, freedom of speech. The protection of minorities is an article of faith in Islam. It does not discriminate on the basis of color, caste, creed or religion. Our Faith is dynamic, promoting constant renewal and adaptation, through the process of Ijtehad (or interpretation through consultations), Islam's vision is not trapped in any one period of history; it is modern and futuristic. Islam must not be confused with the narrow vision of a few extremists.

Mr. President,

I believe the way forward is to adopt a two-pronged strategy - a double pincer - to build harmony, promote moderation, oppose extremism, and ensure justice. I call this strategy: "Enlightened Moderation".

On the one hand, Muslim nations must assume their responsibility for internal reform and renewal. They are at the crossroads. They must eschew extremism and confrontation. They must embrace the march of human civilization. They must address

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the deficits in their social and economic development. They must seek science and technology, higher education and human resource development.

The international community, specially the advanced countries of the West, must deliver the other pincer in the strategy of "Enlightened Moderation". They can do so:

by helping to resolve the political disputes and situations where Muslim peoples are being suppressed, such as in Palestine and Kashmir;

by rejecting attempts to equate terrorism with Islam; and

by assisting the Muslim World in poverty alleviation and socio-economic development.

The United Nations has a crucial role to play in the conception and execution of the strategy of "Enlightened Moderation".

Mr. President,

In this context, it is clear that a consensus must be quickly evolved at the United Nations on ways to restore Iraq's stability, security and sovereignty. Iraq cannot be allowed to remain an open wound. This will impact on the region and could inject a new dimension to the campaign against terrorism and extremism. The consensus evolved must enable the Iraqi people, through an inclusive political process, to determine the sequence of steps leading to a fully representative Iraqi government and an end to occupation. The Iraqi people should assume control of their resources and political destiny as soon as possible. They must receive the full support of the international community, including Iraq's neighbours and the Arab and Islamic countries, in building security and reconstructing their country. Pakistan would be prepared to help in a collective UN sanctioned Arab and Islamic effort to help the Iraqi people, if they wish us to do so.

Endeavours to stabilize Iraq will be enhanced by progress in promoting peace with justice in the Middle East. Hopes for a just and comprehensive peace were aroused earlier this year by the "Quartet's Road-Map". These hopes have been progressively dimmed. But, failure is not an option. The fate of the Palestinian people is the principal factor in determining public and political perceptions in the entire Islamic world. It is only progress towards a just peace that can marginalize the extremists. Therefore, we must revive faithful implementation of the Road Map and realize the vision of two States, Palestine and Israel, living side by side in peace within recognized boundaries.

Mr. President,

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We must ensure the successful implementation of the Bonn process in Afghanistan. The international stabilization force (ISAF) should be expanded and enlarged to ensure security and control over all parts of Afghanistan by President Karzai's government. Pakistan will continue to contribute to interdicting and arresting Al-Qaeda and associated terrorists. We will further intensify our economic cooperation with Afghanistan. It is essential that Afghanistan's territory is not used by third countries for interference or terrorism against Afghanistan's neighbours.

Mr. President,

Jammu and Kashmir has been rightly described as the most dangerous dispute in the world. A just solution of this dispute holds the key to peace and security in South Asia.

I am glad that India has stepped back from its dangerous and failed experiment in "coercive diplomacy" last year. Despite some improvement in atmospherics, India continues to suppress the legitimate struggle of the Kashmiri people to exercise their right to self-determination in accordance with the UN Security Council resolutions. It refuses Pakistan's offers of dialogue to address and resolve the Kashmir dispute.

India cites "cross-border" terrorism to refuse a dialogue. It knows fully well that the Kashmiri struggle is indigenous. India seeks to exploit the international anti-terrorist sentiment after 9/11, to delegitimize the Kashmiri freedom struggle. On the contrary, it is India which violates international law by refusing to implement Security Council resolutions and perpetrating gross and consistent violations of human rights in Kashmir.

Mr. President,

Once again, from this august rostrum, I invite India to join Pakistan in a sustained dialogue to resolve the Kashmir dispute. I am convinced that, with goodwill, we can find a just solution which is acceptable to India, to Pakistan and, above all, to the Kashmiri people.

I also invite India, jointly with Pakistan, to observe a complete ceasefire along the Line of Control in Kashmir.

Pakistan would also be prepared to encourage a general cessation of violence within Kashmir, involving reciprocal obligations and restraints on Indian forces and the Kashmir freedom movement.

And, if India is genuinely concerned about cross-LoC infiltration, we ask that it agree to a viable mechanism to monitor this on both sides. The UNMOGIP could be enlarged for this purpose.

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Apart from addressing Kashmir, sustainable security in South Asia requires India and Pakistan to institute measures to ensure mutual nuclear restraint and a conventional arms balance. Unfortunately, India is embarked on a massive build-up of its conventional and non-conventional military capabilities - advanced offensive aircraft, ballistic and cruise missiles, ABM systems, nuclear submarines and an aircraft carrier. This willdestabilize South Asia and erode strategic deterrence. Those powers which desire peace, stability and security in South Asia - and oppose the proliferation of Weapons of Mass Destruction - must review their decisions to offer such major strategic weapons systems to India. They must contribute to maintaining arms restraint and a military balance in South Asia.

Mr. President,

The crises and conflicts of the last decade have enhanced, not diminished, the relevance of the United Nations. The United Nations remains the central forum for dialogue and diplomacy. It must be strengthened. The Security Council must be made more representative by increasing the number of non-permanent members. New permanent members will only expand inequality. States which occupy and suppress other peoples, and defy the resolutions of the Security Council, have no credentials to aspire for permanent membership.

Mr. President,

We are on the cusp of a new Millennium. It is a decisive moment in history. We must decide whether to flow with the currents that threaten confrontation and the collapse of our civilization, or muster the collective will to chart the course of history towards a peaceful and cooperative global society. The leaders assembled here bear an enormous responsibility:

to rescue our world from war and violence, poverty and pestilence;

to redress inequity and impoverishment which breeds despair and destruction;

to collectively construct a new global architecture of peace and prosperity for all peoples and nations.

I thank you, Mr. President.

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iii) Address by the President, General Pervez Musharraf to the 10 th OIC Summit: Putrajaya ( Malaysia); 16 October 2003

Mr. Chairman, Mr. Secretary-General.Majesties and Royal Highnesses,Excellencies,Ladies and Gentlemen!

It is a pleasure and an honour to be here in fraternal Malaysia, together with so many great leaders from the Islamic world. Our welcome has been warm and gracious. We express our gratitude to His Excellency Prime Minister Mahathir Muhammad, and to the government and people of Malaysia.

The enterprise and energy, progress and prosperity achieved by Malaysia, under Prime Minister Mahathir’s sagacious leadership, is an example and beacon for the entire Islamic world.

I wish also to thank our outgoing Chairman, His Highness Sheikh Hamad Bin Khalifa Al-Thani. We are grateful for his wise guidance of the OIC since our Ninth Summit in Doha.

Allow me also to pay rich tribute to the Kingdom of Saudi Arabia. We are confident that the Kingdom, under the Khadim al Harmain Sharifain, will continue to provide its invaluable support to the OIC, which has its home in Jeddah.

Mr. Chairman,

We meet in a turbulent and troubled moment in history. The world is in turmoil. Reliance on military action and force define solutions to world disputes. Foreign occupation persists. Suppression of peoples has intensified. Power asymmetries are widening. Terrorism has spread. Economic recession threatens. Poverty is growing. Inequality is increasing.

The Islamic world is in the vortex of this emerging global crisis. Most of those under foreign occupation are Muslim peoples. Witness the tragedies of Palestine and of Kashmir. Witness the wanton attack against Syria and last year’s “coercive diplomacy” against Pakistan. Islamic nations are perceived as the sponsors of terrorism and proliferators of Weapons of Mass Destruction. Muslims are subjected to discrimination and exclusion. The insidious thesis of an inevitable clash of civilisations – between Islam and the West – is being openly propounded.

The question that arises is; should we adopt a confrontationist militant course? Will this lead to our emancipation and to the resolution of our

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problems? I am afraid this will only play into the hands of those who desire a clash of civilisations and to our own detriment.

We must recognize that, unfortunately, the crisis confronting the Islamic world is not only external. It is also internal. It is rooted in our own weaknesses and vulnerabilities. It flows from our economic, social and human underdevelopment; from our dependencies and vulnerabilities; from the divisions and differences within, and amongst, our societies and states.

Excellencies, Dear brothers,

We are at a defining moment in history; we can either seize the moment, and define history; or we can let the moment define our destiny. We must turn challenge into opportunity. We must reflect and act – quickly and collectively – for the sake of our suffering peoples and of our future generations. We must act to keep alive the immutable message of Islam and the glorious legacy of which we are the heirs.

Mr. Chairman,

The message brought by Islam in the 6th century – that of humanity, egalitarianism, moderation, tolerance, co-existence – was revolutionary in its appeal. That is why Islam emerged so swiftly as a distinct political, economic and social order. Islamic civilization flourished. Unfortunately, however, neither Islam nor the Muslim world today is known with reference to true Islamic teachings, our glorious past, or our core humanistic values.

Increasingly, our image is being shaped by the extremist actions of a tiny minority that exists on the fringes of Muslim societies. The practices and professions of this extremist minority are in conflict with the true teachings of Islam. This minority interprets our progressive and forward-looking religion in a very narrow, rigid and static framework. Some of our mosques and Madrassas are being misused to propagate the extremist version of our moderate religion. It seeks to cynically manipulate the anger in our societies against Western policies to sell sectarianism and anti-modernism.

Their acts of violence, perpetrated in the name of our noble Faith, are abhorrent and unacceptable. Such actions do not promote the just causes that these extremists claim to espouse. Their actions further equip our detractors to demonize Muslims and project Islam as a religion of violence.

Those who pay for the acts of these extremists are the majority of Muslims who are moderate and tolerant, as prescribed by Islam. They suffer discrimination and exclusion and oppression. We must break our silence. The terrorists and extremists do not represent Islam or Muslims. We must not allow them to hijack our religion, to preach religious and sectarian hatred with impunity, and to tarnish the image of Islam and Muslims. We must reclaim

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our Faith from these usurpers and project the real moderate and tolerant spirit of Islam to the world.

Mr. Chairman,

A clash of civilizations is inconceivable for Muslims. In our own interest and in the interest of the Global Society the world must join to avert this clash. We should take the lead in pioneering a new global pact between civilizations. We must evolve and execute a clear strategy and plan of action. After considerable reflection, I have, in all humility, suggested a two-pronged strategy to advance the internal and external aspirations of the Islamic world. I call this Strategy: “Enlightened Moderation”.

The first prong of this strategy has to be executed by us, ourselves. We have to address and overcome our internal weaknesses and vulnerabilities of the Islamic world, while simultaneously rejecting recourse to militancy and extremism. Our shortcomings are visible. Our human development indicators are among the lowest in the world; poverty is pervasive; literacy is less than 50%; institutions of higher learning are insignificant.

Poverty and illiteracy breed extremism and orthodoxy. Our economic underdevelopment consigns us to the margins of international power structure. Our intellectual impoverishment diminishes our ability to defend our just causes. Our shortage of scientific skills erodes our ability to energize our economies, to compete commercially and to cater for the defence of our countries.

Today, in the Islamic world, there is a disconnect between promise, potential and reality. Promise of a glorious destiny; potential of immense resources that we possess; and the reality of our failure to rise to the challenge of projecting the full weight and strength of the Ummah.

To promote dynamic development, prosperity and peace within our nations and societies, we must focus on poverty reduction, employment generation, expansion of production, science and technology, higher education, health and human resource development.

This will require considerable and focused investment of resources. These are limited but can be generated, domestically and externally, by policies that place the interests of our peoples at the center of our political agendas. We can also help each other. Collectively, we can, and must, assist the poorest amongst our members.

Socio-economic progress and growing prosperity will also provide the best antidote to extremism and violent proclivities which accompany it.

Mr. Chairman,

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With the Muslim world executing one prong of the strategy of rejecting extremism in favour of self-emancipation through human resource development, it is in the wider interest of the international community to simultaneously deliver the second pincer in the strategy of “Enlightened Moderation” for global peace and harmony. It can do so in two principal ways:

One, by helping to secure just solutions for the political disputes where Muslim peoples are being unjustly oppressed.

Two, by assisting the Muslim world in its internal strategy of socio-economic development within the Strategy of “Enlightened Moderation”.

Quite clearly this strategy of ‘Enlightened Moderation’ cannot be one sided, that the Muslim world responds positively while the West shows inaction in its prong. Both the prongs have to be launched simultaneously and both must succeed.

Excellencies, Dear Brothers & Sisters,

It is quite evident that world order and global peace cannot be restored without addressing the conflicts which beset the Islamic world today. Failure in resolving these disputes will be disastrous and cannot be accepted.

So long as justice is not done for the Palestinian people, it will be difficult to contain public anger in the Islamic world or to defeat extremism. The Quartet’s Road Map and the principle of land for peace set out in Crown Prince Abdullah’s Plan, to realize the vision of two States, Palestine and Israel, living side by side in peace within secure and recognized boundaries, must be implemented faithfully.

Iraq remains an open wound on the body politic of the Muslim world. International approach must be guided by the objective of restoring Iraq’s sovereignty and political independence; ensuring its unity and territorial integrity; upholding the right of the Iraqi people to determine their own future and control their natural resources. The political and stabilization processes in Iraq should involve and be owned by the Iraqi people, led by the United Nations.

In Afghanistan, the international community has an obligation to ensure the successful implementation of the Bonn process. The international stabilization force, ISAF, should be enlarged to ensure security and control over all parts of Afghanistan by President Karzai’s government. Pakistan will continue its actions on the border to interdict and arrest Al-Qaeda and associated terrorists.

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The plight of the people of Jammu & Kashmir is also a core Islamic cause. They are struggling – like the people of Palestine – for their right of self-determination recognized and promised to them in a series of Security Council Resolutions. Seven hundred thousand Indian troops have tried for over 12 years to brutally suppress the Kashmiri struggle. Eighty thousand Kashmiris have paid the ultimate sacrifice of their lives, for freedom. India must be made to realize that it cannot succeed in its strategy of military suppression of the Kashmiris. Its confrontation with Pakistan is dangerous and pointless. We have shown that Pakistan will never submit to Indian military coercion or blackmail.

Mr. Chairman,

At the UN General Assembly, on 24 September, I proposed an action plan for peace between India and Pakistan. Unfortunately, India has rejected the action plan. This Conference should ask India to reconsider its rejectionist and belligerent posture. It will, I am confident once again, uphold the Kashmiris’ right of self-determination.


The just and peaceful resolution of these, and other disputes, involving Muslim peoples will automatically marginalize those extremist groups in the Islamic world who preach violence and terrorism as the means of vengeance and redress against the West.

Mr. Chairman,

The OIC has a critical role to play in the successful execution of the strategy of “Enlightened Moderation”. It is the only forum that reflects the collective voice of the Islamic Ummah. The twin principles of our Organization reflected in our Charter were “unity within” and “solidarity without.” The member-states of the OIC are committed to make, I quote, “endeavors to enhance human well-being, progress and freedom everywhere and resolved to unite their efforts to secure universal peace which ensures security, freedom and justice for their people and all people throughout the world.” Unquote.

It is self-evident that our Organization has not lived up to the high objectives and principles. A considerable measure of the onus of failure rests with Member States. Yet, it is also clear that our Organization needs reform and restructuring to enable it to respond to the challenges and opportunities facing the Islamic world at this critical moment in history. The OIC should become the catalyst for the Ummah’s re-generation. It must transform itself into a dynamic functional organization.


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To realize the vision of internal revival and external action I have outlined, I would like to propose a set of actions for your consideration:

a. This Summit Conference may request the Chairman of the Islamic Conference to constitute a Commission of Eminent Persons, drawn from African, Arab and Asian member states. This Commission should:

(Firstly) develop a strategy and a plan of action for enabling the Ummah to meet the challenges of the 21st century in consonance with traditions of tolerance, emancipation and human exaltation.

Evolve clear recommendations for the reform and restructuring of the OIC system, including the General Secretariat, infusing dynamism into them.

Consider the question of establishing an Islamic Development Fund for financing OIC’s activities and programmes through mandatory contributions as a percentage of the GDP of each Member State.

b. Finally, to steer this effort towards fruition, we should convene an Extraordinary Session of the Islamic Summit Conference to consider and approve recommendations of the Summit-level Commission by the end of 2004.

Mr. Chairman,

The time has come to rise above our differences, build on our convergences, and create a bright image for our nations. We will give our people the dignity, fulfillment and development that they aspire for. And we will speak to other nations of the world with confidence and ask them to join us in our quest to ensure justice, to wipe out poverty, and spread enlightenment.

This is possible only with a changed mindset, a new outlook on the present challenges and our response, and greater vigor in our efforts within a restructured OIC. Allow me to conclude with a verse from our national poet, Allama Muhammad Iqbal. In his book Zarb-e-Kaleem, Iqbal prays:

Khuda tujhe kisi toofan sey ashna kar de,Keh tere beher ki mojon mein iztrab nahin!

May God introduce your spirit to a [new] tempest, For there is hardly a stir in the waters of your sea!I thank you, Mr. Chairman.

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XI. HIGH LEVEL VISITS FROM AND TO PAKISTAN DURING JAN 2003-JUNE 2004

VISITS FROM PAKISTAN

President’s Visits

4-6 February 2003 President’s visit to Russian Federation

20-25 February 2003 President’s visit to Malaysia to attend the 13th

NAM Summit

11-12 June 2003 President’s visit to Saudi Arabia

17-20 June 2003 President’s visit to UK

21-29 June 2003 President’s visit to USA

30 June 2003 – 2 July 2003

President’s visit to Germany

3-4 July 2003 President’s visit to France

14-19 July 2003 President’s visit to three Maghrib countries (Tunisia, Algeria and Morocco)

21-24 September 2003 President’s visit to New York to attend the 58th

Session of the UNGA

25-26 September 2003 President’s visit to Canada

15-19 October 2003 President’s visit to Malaysia to attend the 10th

OIC Summit

1-5 November 2003 President’s visit to China

5-7 November 2003 President’s visit to Korea

20-22 January 2004 President’s visit to Turkey

23-25 January 2004 President’s visit to Davos to attend the World Economic Forum

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Prime Minister’s Visits

25-31 January 2003 Prime Minister’s visit to five GCC countries

25-27 March 2003 Prime Minister’s visit to China

21-25 August 2003 Prime Minister’s visit to Saudi Arabia

28 Sept - 8 Oct 2003 Prime Minister’s visit to the USA

21-24 October 2003 Prime Minister’s visit to Iran

7-9 December 2003 Prime Minister’s visit to France

10-11 December 2003 Prime Minister’s visit to Geneva to attend the World Summit on the Information Society (WSIS)

12 January 2004 Prime Minister’s visit to Afghanistan

18 – 19 February 2004 Prime Minister’s visit to Tehran to attend the 4th D-8 Summit

22-30 April 2004 Prime Minister’s visit to Laos, Cambodia, Thailand, China and Hong Kong

25-26 May 2004 Prime Minister’s visit to Saudi Arabia

VISITS TO PAKISTAN

3-4 January 2003 Malaysian Parliamentary delegation

10-14 January 2003 Mr. Ali Said Abdellah, Minister for Foreign Affairs of Eritrea

27-29 January 2003 Mr. Dulat O. Kuanishev, Vice Foreign Minister of the Republic of Kazakhstan

27-30 January 2003 European Union delegation led by Mr. Nicolas Schermers

24-27 February 2003 UN High Commissioner for Human Rights, Mr. Sergio Vieira De Mello

5 March 2003 Special Representative of the UN Secretary General on Afghanistan, Mr. Lakhdar Brahimi

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14 March 2003 A two-member official Polish delegation led by Deputy Foreign Minister Dr. Boguslaw Zaleski

17 March 2003 Special Envoy of Oman, Ambassador Talib bin Miran Al-Raisi

19 March 2003 Special Envoy of the Iranian President

17 April 2003 US Ambassador Zalmay Khalidzed, Presidential Envoy to Iraq and Afghanistan

22-23 April 2003 President of the Transitional Islamic State of Afghanistan, Mr. Hamid Karzai

28-29 April 2003 Prince Amyn Aga Khan

2-3 May 2003 Prince Karim Aga Khan

7 May 2003 Mr. Moulay Smail Alaui, Special Envoy of King Mohammed VI of the Kingdom of Morocco

8 May 2003 US Deputy Secretary of State Mr. Richard Armitage

8-10 May 2003 Foreign Minister of Bosnia

20-21 May 2003 Dr. Abdullah Gul, Deputy Prime Minister and Minister for Foreign Affairs of Turkey

21-23 May 2003 Ms. Carol Bellamy, Executive Director of UNICEF

15 June 2003 Foreign Minister of the Russian Federation, Mr. Igor S. Ivanov

15-17 June 2003 Mr. Recep Tayyip Erdogan, Prime Minister of Turkey

8-9 July 2003 Foreign Minister U. Win Aung, Special Envoy of Myanmar’s Head of State

15-17 July 2003 Second ECO Ministerial Meeting on Commerce and Foreign Trade held in Islamabad

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27-29 July 2003 Foreign Secretary of Bangladesh

15 August 2003 Mr. Salauddin Quader Chowdhury, Special Adviser to the Prime Minister of Bangladesh

21 August 2003 Ms. Rini Mariani Sumarno Soewandi, Minister for Trade & Industry of Indonesia

29 August 2003 Foreign Minister of Iran

15 September 2003 Foreign Secretary of Hungary

15 – 16 September 2003 Foreign Secretary of South Korea

30 Sept – 2 Oct 2003 Prince Amyn Aga Khan

2 – 5 October 2003 Mr. Richard Armitage, Deputy Secretary of State, USA

11-15 October 2003 Mr. Allen Rock, Minister of Industry, Canada

18-19 October 2003 Visit of Saudi Crown Prince Abdullah Bin Abdul Aziz

27-29 October 2003 Ambassador Edmundo, Head of Asia and Oceania Division in the Brazilian Ministry of External Relations

1-2 December 2003 Prime Minister of Nepal, Mr. Surya Bahadur Thapa

2-7 December 2003 Prince Karim Aga Khan

4-6 December 2003 Chairman of the Chinese Political Consultative Conference, Jia Qinglin

8-10 December 2003 President of Kazakhstan

9-12 December 2003 Foreign and Commonwealth Office’ Minister of State, Mr. Mike O’ Brien

14-16 December 2003 President of Indonesia Megawati Sukarnoputi

25-27 December 2003 11th General Assembly of COMSTECH, held in Islamabad

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4-6 January 2004 12th SAARC Summit in Islamabad, attended by Heads of State/Government of all Member States

7-8 January 2004 US Congressional delegation led by Congressman Joseph R. Pitts

7-9 January 2004 UN Under Secretary for Peacekeeping, Mr. Jean Marie Guchenno

13-14 January 2004 Mr. Mohsen Aminzadeh, Deputy Foreign Minister of Iran

15 January 2004 Mr. Hilary Benn, British Secretary of International Development

26 January 2004 British Prime Minister’s Foreign Policy Adviser

28-30 January 2004 Mr. Talbak Nazarvo, Foreign Minister of Tajikistan

9-10 February 2004 Parliamentary Under Secretary at the British Foreign and Commonwealth Office, Mr. Bill Rammell

10-12 February 2004 Third Summit of the Regional Steering Committee for the Economic Advancement of Rural and Island Women of Asia Pacific Region, held in Islamabad

11-12 February 2004 Deputy Foreign Minister of Japan, Mr. Lehiro Fujisaki

16-19 February 2004 Ministerial level delegation of EU Troika

16-19 February 2004 Foreign Minister of Ireland

19-20 February 2004 US Congressional delegation led by Tom Davis, Chairman House Government Reform Committee

22-24 February 2004 Palestinian Foreign Minister, Mr. Farouk Kaddoumi

23-26 February 2004 Deputy Foreign Minister of Russian, Mr. Anatoly Safonov

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28-29 February 2004 Dr. Dominique De Villepin, Foreign Minister of France

3-5 March 2004 British Secretary of State for Foreign & Commonwealth Affairs, Mr. Jack Straw

4-6 March 2004 Dr. Mohammad Reza Aref, First Vice President of Iran

7-8 March 2004 Sheikh Hamdan Bin Zayed Al-Nahyan, Deputy Prime Minister and Minister of State for Foreign Affairs of UAE

11-12 March 2004 US Deputy Secretary of Department of Agriculture, James Mosely

17-18 March 2004 US Secretary of State Colin Powell

17-19 March 2004 A 3-member US Congressional delegation, headed by Senator John Warner

17-21 March 2004 Dr. Ahmud Swalay Kassenally, Adviser to the Prime Minister of Mauritius

23-26 March 2004 General Cao Gangchauan, Defence Minister of China

24-27 March 2004 State Visit of President of the Socialist Republic of Vietnam, Mr. Tran Duc Luong

26-28 March 2004 Manuel Aguilera De La Pa, Vice Minister for Foreign Affairs of Cuba

6-7 April 2004 Mr. Tommy Thompson, US Secretary of Department of Health and Human Services

7-10 April 2004 Mr. Jean Arnault, Special Representative of the UN Secretary General for Afghanistan

14-19 April 2004 A delegation of British Parliamentarians, led by Lord Nazir Ahmed of Rotherham

15-16 April 2004 Foreign Secretary of Bosnia

19 April 2004 Greek Deputy Foreign Minister

25-27 April 2004 Deputy Foreign Minister of Yemen

130


28-30 April 2004 Deputy Foreign Minister of Romania

30 April - 1 May 2004 Foreign Minister of Japan

3-7 May 2004 Mrs. Margherita Boniver, Italian Deputy Minister of Foreign Affairs

9-14 May 2004 British Parliamentary delegation led by Mr. Donald Anderson

10-13 May 2004 Ms. Christina Rocca, US Assistant Secretary of State

12-14 May 2004 President of Tajikistan

14-18 May 2004 Speaker, People’s Representative Assembly of Kyrgyzstan

16-17 May 2004 US Under Secretary of Commerce

18-20 May 2004 Sultan of Brunei

26-28 May 2004 Under Secretary of State of Cambodia

27-28 May 2004 Mr. Sardar Denktas, Deputy Prime Minister of TRNC

31 May – 2 June 2004 Secretary ,Foreign Affairs of the Philippines

7-8 June 2004 US delegation comprising representatives Exim Bank, OPIC and TDA

7-10 June 2004 Secretary General, ECO

8-11 June 2004 Ambassador Baki Ilkin, Special Envoy of Turkish President

28-30 June 2004 Second Conference of SAARC Communication Ministers, held in Islamabad

131


XII. AGREEMENTS/MEMORANDUMS OF UNDERSTANDING SIGNED DURING JAN 2003 - JUNE 2004

Algeria

MoU on Promotion of Foreign Trade between Export Promotion Bureau of Pakistan and Algerian Office for Foreign Trade Promotion

Singed during the visit of President General Pervez Musharraf to Algeria from 16-17 July 2003

MoU on Consultations between the Ministries of Foreign Affairs of Pakistan and Algeria

-do-

MoU between the Federation of Pakistan Chambers of Commerce and Industry and the Algerian Chamber of Commerce and Industry

-do-

Bahrain

MoU to enhance cooperation in the financial services sector

Signed by the Deputy Governor of Bahrain Monitory Agency and his counterpart from the State Bank of Pakistan on 7 December 2003

Air Services Agreement between Pakistan and Bahrain

Signed in Islamabad in April 2004

Brunei Darusslam

MoU on Counter Terrorism and other Transitional Crimes

Signed during the visit of the Sultan of Brunei to Pakistan from 18-20 May 2004

MoU on Defence Cooperation -do-

MoU on Consultation and Cooperation between the Foreign Ministries of Pakistan and Brunei Darussalam

-do-

China132


MoU on Cooperation in Railways Sector

Signed during the visit of Prime Minister Jamali to China from 24-26 March 2004

MoU on designation of Pakistan as a tourist destination -do-

Protocol on Cooperation between the two Foreign Ministries

Signed during the visit of Foreign Minister Kasuri to China from 6-9 April 2004

Cambodia

Agreement on Promotion and Protection of Investments

Signed during the visit of Prime Minister Jamali to Cambodia from 27-28 April 2004

MoU on Cooperation and Consultation between the Foreign Ministries of Pakistan and Cambodia

-do-

MoU on Combating Terrorism and other Transitional Crimes

-do-

133


Iran

Preferential Trade Agreement Singed during the visit of First Voice President of Iran, Dr. Reza Aref to Pakistan from 4-6 March 2004

Programme of Cultural, Scientific and Technical Exchanges -do-

Customs Cooperation Agreement -do-

Exchange of Instruments of Ratification of the Agreement on Avoidance of Double Taxation

-do-

MoU between the Export Promotion Bureau of Pakistan and Export Promotion Centre of Iran

-do-

MoU to establish a Joint Investment Company

-do-

MoU of the 14th Session of Joint Economic Commission

-do-

Indonesia

MoU on establishment of Joint Commission for Bilateral Cooperation

Signed during the visit of President Megawati to Pakistan from 14-16 December 2003

MoU on Combating International Terrorism

-do-

KuwaitBilateral Air Service Agreement Signed in Kuwait in February 2004

Kazakhstan

Agreement on Reciprocal Promotion and Protection of Investments

Signed during the visit of President Nursultan Nazarbayev to Pakistan from 8-10 December 2003

Agreement on Cooperation between the State Bank of Pakistan and the National Bank of Kazakhstan

-do-

134


Agreement establishing Relationship between Akimat of Astana and Capital Development Authority, Islamabad

-do-

Agreement on Cooperation between the National University of Modern Languages Islamabad and Abli Khan University Almaty

-do-

Lao PDR

Agreement on Promotion and Protection of Investments

Signed during the visit of Prime Minister Jamali to Lao DPR from 21-23 April 2004

MoU on Cooperation and Consultation between the Foreign Ministries of Pakistan and Lao DPR

-do-

MoU on Combating Terrorism and other Crimes

-do-

MalaysiaMoU between the State Bank of Pakistan and Bank Negara of Malaysia

Signed in November 2003

MoU for Export of Manpower and Labour to Malaysia -do-

Morocco

Agreement for Cooperation in the field of Environment

Signed during the visit of President General Pervez Musharraf to Morocco from 17-19 July 2003

Agreement for Cooperation in the field of Science and Technology -do-Islamic Cooperation Agreement between the governments of Pakistan and Morocco

-do-

RussiaMoU on Cooperation between the Signed during the visit of President

135


Interior Ministries of Pakistan and Russia

General Pervez Musharraf to Moscow from 4-6 February 2003

Cultural Programme for 2003-2006-do-

MoU on Cooperation between the Diplomatic Academies of the two countries

-do-

MoU on Expansion of Pakistan Steel Mills, Karachi

-do-

MoU between the Accounts Chamber of the Russian Federation and Pakistan’s National Accountability Bureau (NAB)

Signed in December 2003

Singapore

MoU on Consultation and Cooperation between the Ministries of Foreign Affairs of Pakistan and Singapore

Signed during the visit of the Prime Minister of Singapore to Pakistan from 21-23 June 2004

Sri Lanka

Agreement between the Ministries of Interior of Pakistan and Sri Lanka for Cooperation in the Prevention and Suppression of Terrorism, Drug Trafficking, Smuggling, Forgery, and Illegal Human Transportation

Singed in Islamabad in September 2003

South Korea

Arrangements for Pakistan-Korea Joint Working Group on Energy and Mineral Resources Cooperation

Signed during the visit of President General Pervez Musharraf to South Korea in November 2003

Arrangements for Cooperation in IT and related Technologies -do-

Cooperation Agreement for EDCF loan, credit, export credit and re-landing facilities

-do-

MoU for Cooperation in Oil -do-

136


Exploration/Production in Pakistan

MoU on Mutual Cooperation between Private Sector Software Associations/Companies

-do-

Sudan

Executive Protocol for Cooperation in Science and Technology

Signed during the visit of Dr. Atta ur Rehman, Minister Incharge Science and Technology to Sudan from 19-23 July 2003

TajikistanAgreement for Abolition of visas for holder of Diplomatic Passports

Signed during the visit of President Emomali Rahmonov to Pakistan from 12-14 May 2004

Agreement for Cooperation in Combating Drug Trafficking

-do-

Agreement for Cooperation between the Tajik Information Agency and Associated Press of Pakistan (APP)

-do-

Agreement for Promotion and Protection of Investments

-do-

Agreement for Avoidance of Double Taxation

-do-

Agreement for Economic and Industrial Cooperation

-do-

Agreement for Cooperation between the Ministries of Education of the two countries

-do-

Agreement for Cooperation in Tourism

-do-

ThailandMoU on Scientific and Technological Cooperation

-do-

Protocol on Consultation and

137


Cooperation between the Ministries of Foreign Affairs of Pakistan and Thailand

-do-

Turkey

Agreement on Protection of Environment

Signed during the visit of Turkish Prime Minister to Pakistan from 15-17 June 2003

Agreement on Fight Against Illicit Trafficking in Narcotics Drugs and Psychotropic Substances

-do-

Bilateral Road Transportation Agreement

-do-


Signed during the visit of President General Pervez Musharraf to Turkey from 19-22 January 2004

Agreement on Fight Against International Terrorism and Organized Crime

-do-

Framework Agreement on Preferential Trade Arrangement -do-

Framework Agreement on Comprehensive Economic Partnership

-do-

MoU between the State Bank of Pakistan and Supervision Agency – Turkey

-do-

Vietnam

Agreement on Cooperation in the field of Science and Technology

Signed during the visit of the President of Vietnam to Pakistan from 24-27 March 2004

Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income

-do-

MoU on Consultation and

138


Cooperation between the Foreign Ministries of Pakistan and Vietnam

-do-

MoU between the State Banks of the two countries

-do-

Yemen

Agreement on Trade Signed during the 4th Session of Pak-Yemen JMC held in Sana’a from 1-2 March 2004


-do-

Agreement on Avoidance of Double Taxation

-do-

Protocol on Economic Cooperation between the Yemen Chamber of Commerce and Industry and the Federation of Pakistan Chambers of Commerce and Industry

-do-

MoU for Establishment of a Political Consultation Mechanism between Pakistan and Yemen

Signed during the visit of Yemeni Deputy Foreign Minister to Pakistan from 25-26 April 2004

The text of the book or its excerpts may be reproduced, stored in a retrieval system or

transmitted by any means without the permission of the

Ministry of Foreign Affairs.

************

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Documents

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foreign relations of

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foreign secretarypakistan

readmission of pakistan

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