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									    Pakistan Foreign Relations 2003-04




YEAR BOOK

2003-2004




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                                     Pakistan Foreign Relations 2003-04




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.       Africa

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                                  Pakistan Foreign Relations 2003-04

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 Musharraf
                 th
        to the 10 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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                                   Pakistan Foreign Relations 2003-04

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
regional peace and international security. This has contributed to various

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                                   Pakistan Foreign Relations 2003-04
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recent successes of the foreign policy, including successful hosting of 12
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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                                    Pakistan Foreign Relations 2003-04


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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                                  Pakistan Foreign Relations 2003-04

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
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framework through the ratification by the European Parliament of the 3
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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                                    Pakistan Foreign Relations 2003-04

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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                               Pakistan Foreign Relations 2003-04


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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                                  Pakistan Foreign Relations 2003-04


FOREIGN POLICY SUCCESSES
DURING 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 Foreign Relations 2003-04

   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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                                   Pakistan Foreign Relations 2003-04


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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                                   Pakistan Foreign Relations 2003-04

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.

Visits


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                                   Pakistan Foreign Relations 2003-04

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
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Generation leadership of China, elected in March 2003 at the 10 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
Minister. During his visit, both countries also signed a Protocol on
cooperation between the two Foreign Ministries. The Foreign Secretary

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                                   Pakistan Foreign Relations 2003-04

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


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                                   Pakistan Foreign Relations 2003-04

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.
                           th
At a rally in Srinagar on 18 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
                                  th
capitals and convening of the 12 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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                                   Pakistan Foreign Relations 2003-04

        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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                                   Pakistan Foreign Relations 2003-04

        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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                                    Pakistan Foreign Relations 2003-04

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
                     th
participate in the 12 SAARC Summit. On the sidelines of the Summit, he


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                                    Pakistan Foreign Relations 2003-04

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
                                                                         th
for Srinagar-Muzzafarbad Bus Service were also scheduled to start from 8
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.


                                      20
                                   Pakistan Foreign Relations 2003-04

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.

                                     21
                                   Pakistan Foreign Relations 2003-04

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.


                                      22
                                     Pakistan Foreign Relations 2003-04

Projection on Multilateral Forums
         th
At the 59 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.
              th
At the 60 Session of the Commission on Human Rights held in Geneva
from (17 March to 22 April 2004), the Kashmiri and Pakistani delegations

                                       23
                                   Pakistan Foreign Relations 2003-04

once 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:


                                      24
                                   Pakistan Foreign Relations 2003-04

       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

    
                  th
        MoU of 14 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
                                                      th
economic cooperation was discussed in detail at the 14 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.



                                     25
                                   Pakistan Foreign Relations 2003-04

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
                                th
Khaleda Zia for attending the 12 SAARC Summit. Bangladesh attended the
   th
12 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
important meetings with other dignitaries to further strengthen defence

                                      26
                                    Pakistan Foreign Relations 2003-04

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
   th
12 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.




                                       27
                                   Pakistan Foreign Relations 2003-04

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.
                          th
Maldives attended the 12 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

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

                                      28
                                     Pakistan Foreign Relations 2003-04

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
                            th
Sri Lanka attended the 12 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

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

                                       29
                                  Pakistan Foreign Relations 2003-04

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.




                                    30
                                    Pakistan Foreign Relations 2003-04

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-
                                                   th
10 December 2003. His visit was preceded by the 5 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


                                       31
                                    Pakistan Foreign Relations 2003-04

       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.

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                                 Pakistan Foreign Relations 2003-04

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.




                                   33
                                    Pakistan Foreign Relations 2003-04


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                         1.361
 2003-2004                       3.405                         0.225




                                       34
                                   Pakistan Foreign Relations 2003-04

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.




                                      35
                                   Pakistan Foreign Relations 2003-04

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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                                      Pakistan Foreign Relations 2003-04

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 Indonesia
2002-2003               31.5                         111.5
2003-2004               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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                                       Pakistan Foreign Relations 2003-04

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,
                                                         nd
Commerce Minister of Lao on the sidelines of the 2 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
                                                               rd
Mrs. Lengsavad represented the Laotian First Lady at the 3 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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                                    Pakistan Foreign Relations 2003-04

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 Malaysia
2002-2003              78.457                        567.07
2003-2004              80.480                        602.52


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                                     Pakistan Foreign Relations 2003-04

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 Philippines
2002-2003           25.727                     8.01
2003-2004           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,
Deputy Secretary, International Cooperation visited Pakistan on 15-17
January 2003 as a Special Envoy of the Prime Minister of Singapore,

                                       40
                                   Pakistan Foreign Relations 2003-04

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              Imports from
                      Pakistan                  Singapore
2002-2003             86.72                     322.772
2003-2004             116.975                   491.530

Major imports include data processing machines, parts for machines,
spices, textile yarn thread, telecommunication equipment,
photographic supplies, refined petroleum products, hydro carbons,
television receivers, etc.


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                                   Pakistan Foreign Relations 2003-04

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



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                                    Pakistan Foreign Relations 2003-04

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
                                   nd
visited Thailand to attend the 2 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
                               nd
potential. Thailand ranks 22      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 Thailand
  2002-2003          60.8                          231.8
  2003-2004          63.217                        269.197

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.

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                                    Pakistan Foreign Relations 2003-04

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.




                                       44
                                      Pakistan Foreign Relations 2003-04


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).


                                         45
                                    Pakistan Foreign Relations 2003-04

            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
        rd
The 3 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.

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

                                     46
                                    Pakistan Foreign Relations 2003-04

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

                                      47
                                   Pakistan Foreign Relations 2003-04

     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

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

                                      48
                                    Pakistan Foreign Relations 2003-04

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

                                      49
                                   Pakistan Foreign Relations 2003-04

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.




                                     50
                                   Pakistan Foreign Relations 2003-04


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.

Trade

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                                    Pakistan Foreign Relations 2003-04

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.

Visits


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                                    Pakistan Foreign Relations 2003-04

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

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                                    Pakistan Foreign Relations 2003-04

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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                                     Pakistan Foreign Relations 2003-04

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 Jordan
2002-2003          26.899                             48.824
2003-2004          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
and National Assembly Affairs and addressed a community gathering
organized in the Pakistan Embassy.


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                                   Pakistan Foreign Relations 2003-04

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.

The fourth session of Pak-Oman Joint Ministerial Committee was held in
Islamabad on 10-11 March 2003. Various areas of cooperation in different

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                                     Pakistan Foreign Relations 2003-04

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


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                                     Pakistan Foreign Relations 2003-04

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


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                                     Pakistan Foreign Relations 2003-04

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.

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

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                                    Pakistan Foreign Relations 2003-04

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
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

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                                       Pakistan Foreign Relations 2003-04

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
        th
The 4 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 Taxation




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                                  Pakistan Foreign Relations 2003-04

       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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                                   Pakistan Foreign Relations 2003-04


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
2004); Tommy Thompson, US Secretary of Health and Human Services (6-7

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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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                                    Pakistan Foreign Relations 2003-04

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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                                   Pakistan Foreign Relations 2003-04

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
                              th
September 2003 to attend 5 Ministerial Conference;. Mr. Mohammad Mian
Soomro, Chairman, Senate visited Mexico from 13-15 November 2003 to
               th
attend the 10 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
                                                           th
visited Mexico City in April 2004 to participate in the 110 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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                                   Pakistan Foreign Relations 2003-04

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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                                   Pakistan Foreign Relations 2003-04


VI.      EUROPE AND RUSSIAN
         FEDERATION

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
Commissioner in charge of External Affairs, Mr.Javier Solana, EU High

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                                    Pakistan Foreign Relations 2003-04

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 Foreign Relations 2003-04

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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                                    Pakistan Foreign Relations 2003-04

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
                                              th
Kasuri (6-8 February 2004) to attend the 40 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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                                     Pakistan Foreign Relations 2003-04

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
                         th
Pakistan is Ireland’s 12 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
                                                                                rd
Italy is one of the ten leading trading partners of Pakistan. It is Pakistan’s 3
                                 th
largest buyer in Europe and 14 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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                                   Pakistan Foreign Relations 2003-04

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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                                   Pakistan Foreign Relations 2003-04

        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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                                    Pakistan Foreign Relations 2003-04

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
                                      th
counterpart on the sidelines of the 10 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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                                    Pakistan Foreign Relations 2003-04

           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
                                                 th
was in Pakistan in December 2003 for the 11 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
                                     rd
The United Kingdom is Pakistan’s 3 largest trading partner in terms of exports
     th
and 5 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.
  th
58 Session of the UN General Assembly
       th
The 58 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

                                                                            th
President General Pervez Musharraf led the Pakistan delegation to the 58
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
       th
The 58 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
  st
21 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.
  th
60 Session of the UN Commission on Human Rights
             th
During the 60 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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                                     Pakistan Foreign Relations 2003-04
               th
During the 60 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)
      th
The 8 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
                           th
UNEP's inputs for the 12 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.
  th
30 ICFM: Tehran, 28-31 May 2003
       th
The 30 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
                                                     th
26-30 September 2003, on the sidelines of the 58 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.
  th
11  General Assembly Session of COMSTECH:Islamabad, 25-27
December 2003
       th
The 11 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.
  th
10 OIC Summit Conference: Putrajaya, 16-17 October 2003
       th
The 10 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.
                                           th
Enlightened Moderation:           The 10 OIC Summit adopted Pakistan's
resolution on the President's vision of Enlightened Moderation, entitled "Islam
                                      st
and the Muslim world in the 21 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
                      st
of action for the 21 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.
  st
31 ICFM: Istanbul, 14-16 June 2004
       st
The 31 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.
  th
12 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
                                                           th
eminent success. The Summit was preceded by 24 Session of SAARC
                        th                                           th
Council of Ministers, 29 Session of Standing Committee and 24 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
                                 th
successful conclusion of the 12 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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                                   Pakistan Foreign Relations 2003-04

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
                                    th
Constitution, as amended by the 17 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
(SAARC) and Economic Cooperation Organization Trade Agreement

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(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
continued accumulation of foreign exchange reserves and stability in the


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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          riazsyed46@yahoo.com.




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                                    Pakistan Foreign Relations 2003-04


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.

Mr. President,

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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 will
destabilize 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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                                                                             th
iii)    Address by the President, General Pervez Musharraf to the 10
        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.

Excellencies, Dear Brothers,

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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.

Excellencies, Dear Brothers & Sisters,

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.

Excellencies, Dear Brothers & Sisters,


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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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                             Pakistan Foreign Relations 2003-04

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
                                                                         th
20-25 February 2003     President’s visit to Malaysia to attend the 13
                        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   President’s visit to Germany
2003
3-4 July 2003           President’s visit to France

14-19 July 2003         President’s visit to three Maghrib countries
                        (Tunisia, Algeria and Morocco)
                                                                         th
21-24 September 2003    President’s visit to New York to attend the 58
                        Session of the UNGA

25-26 September 2003    President’s visit to Canada
                                                                         th
15-19 October 2003      President’s visit to Malaysia to attend the 10
                        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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                             Pakistan Foreign Relations 2003-04

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
                                 th
                            the 4 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

                              125
                      Pakistan Foreign Relations 2003-04

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



                        126
                            Pakistan Foreign Relations 2003-04

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
                           th
25-27 December 2003      11 General Assembly of COMSTECH, held
                         in Islamabad


                                127
                         Pakistan Foreign Relations 2003-04
                        th
4-6 January 2004      12 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

                             128
                         Pakistan Foreign Relations 2003-04

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

                           129
                           Pakistan Foreign Relations 2003-04

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




                             130
                                 Pakistan Foreign Relations 2003-04

XII. AGREEMENTS/MEMORANDUMS OF
     UNDERSTANDING SIGNED DURING
     JAN 2003 - JUNE 2004


Algeria

MoU on Promotion of Foreign          Singed during the visit of President
Trade between Export Promotion       General Pervez Musharraf to Algeria
Bureau of Pakistan and Algerian      from 16-17 July 2003
Office for Foreign Trade Promotion
MoU on Consultations between the
Ministries of Foreign Affairs of                      -do-
Pakistan and Algeria

MoU between the Federation of
Pakistan Chambers of Commerce
and Industry and the Algerian                         -do-
Chamber of Commerce and
Industry

Bahrain

MoU to enhance cooperation in the    Signed by the Deputy Governor of
financial services sector            Bahrain Monitory Agency and his
                                     counterpart from the State Bank of
                                     Pakistan on 7 December 2003

Air Services Agreement between       Signed in Islamabad in April 2004
Pakistan and Bahrain

Brunei Darusslam

MoU on Counter Terrorism and         Signed during the visit of the Sultan of
other Transitional Crimes            Brunei to Pakistan from 18-20 May
                                     2004
MoU on Defence Cooperation                            -do-

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


China

                                     131
                                Pakistan Foreign Relations 2003-04

MoU on Cooperation in Railways      Signed during the visit of Prime
Sector                              Minister Jamali to China from 24-26
                                    March 2004

MoU on designation of Pakistan as
a tourist destination                                -do-

Protocol on Cooperation between     Signed during the visit of Foreign
the two Foreign Ministries          Minister Kasuri to China from 6-9 April
                                    2004

Cambodia

Agreement on Promotion       and    Signed during the visit of Prime
Protection of Investments           Minister Jamali to Cambodia from 27-
                                    28 April 2004
MoU      on     Cooperation and
Consultation between the Foreign                     -do-
Ministries   of    Pakistan and
Cambodia

MoU on Combating Terrorism and                       -do-
other Transitional Crimes




                                    132
                                   Pakistan Foreign Relations 2003-04

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                        -do-
Avoidance of Double Taxation

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

MoU    to   establish    a     Joint                    -do-
Investment Company
               th
MoU of the 14 Session of Joint                          -do-
Economic Commission

Indonesia

MoU on establishment of Joint          Signed during the visit of President
Commission     for   Bilateral         Megawati to Pakistan from 14-16
Cooperation                            December 2003

MoU on Combating International                          -do-
Terrorism

Kuwait
Bilateral Air Service Agreement        Signed in Kuwait in February 2004

Kazakhstan

Agreement    on   Reciprocal           Signed during the visit of President
Promotion and Protection of            Nursultan Nazarbayev to Pakistan
Investments                            from 8-10 December 2003

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



                                       133
                                 Pakistan Foreign Relations 2003-04

Agreement            establishing
Relationship between Akimat of                       -do-
Astana and Capital Development
Authority, Islamabad

Agreement      on      Cooperation
between the National University of                   -do-
Modern Languages Islamabad and
Abli Khan University Almaty

Lao PDR

Agreement on Promotion        and    Signed during the visit of Prime
Protection of Investments            Minister Jamali to Lao DPR from 21-
                                     23 April 2004

MoU      on   Cooperation   and
Consultation between the Foreign                     -do-
Ministries of Pakistan and Lao
DPR

MoU on Combating Terrorism and                       -do-
other Crimes


Malaysia
MoU between the State Bank of        Signed in November 2003
Pakistan and Bank Negara of
Malaysia

MoU for Export of Manpower and
Labour to Malaysia                                   -do-

Morocco

Agreement for Cooperation in the     Signed during the visit of President
field of Environment                 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                           -do-
Pakistan and Morocco

Russia
MoU on Cooperation between the       Signed during the visit of President

                                     134
                                   Pakistan Foreign Relations 2003-04

Interior Ministries of Pakistan and   General Pervez Musharraf to Moscow
Russia                                from 4-6 February 2003

Cultural Programme for 2003-2006
                                                      -do-
MoU on Cooperation between the
Diplomatic Academies of the two                       -do-
countries
MoU on Expansion of Pakistan                          -do-
Steel Mills, Karachi
MoU between the Accounts
Chamber       of     the  Russian     Signed in December 2003
Federation and Pakistan’s National
Accountability Bureau (NAB)

Singapore

MoU      on   Consultation   and      Signed during the visit of the Prime
Cooperation      between      the     Minister of Singapore to Pakistan
Ministries of Foreign Affairs of      from 21-23 June 2004
Pakistan and Singapore

Sri Lanka

Agreement between the Ministries      Singed in Islamabad in September
of Interior of Pakistan and Sri       2003
Lanka for Cooperation in the
Prevention and Suppression of
Terrorism,    Drug    Trafficking,
Smuggling, Forgery, and Illegal
Human Transportation

South Korea

Arrangements for Pakistan-Korea       Signed during the visit of President
Joint Working Group on Energy         General Pervez Musharraf to South
and      Mineral     Resources        Korea in November 2003
Cooperation

Arrangements for Cooperation in
IT and related Technologies                           -do-

Cooperation Agreement for EDCF                        -do-
loan, credit, export credit and re-
landing facilities

MoU    for   Cooperation   in   Oil                   -do-


                                      135
                                        Pakistan Foreign Relations 2003-04

Exploration/Production in Pakistan

MoU on Mutual Cooperation
between Private Sector Software                              -do-
Associations/Companies

Sudan

Executive Protocol for Cooperation          Signed during the visit of Dr. Atta ur
in Science and Technology                   Rehman, Minister Incharge Science
                                            and Technology to Sudan from 19-23
                                            July 2003


Tajikistan
Agreement for Abolition of visas for        Signed during the visit of President
holder of Diplomatic Passports              Emomali Rahmonov to Pakistan from
                                            12-14 May 2004
Agreement for Cooperation              in                  -do-
Combating Drug Trafficking

Agreement      for Cooperation
between the Tajik Information                                -do-
Agency and Associated Press of
Pakistan (APP)

                                                             -do-
Agreement for Promotion               and
Protection of Investments

Agreement for            Avoidance     of                    -do-
Double Taxation

Agreement for Economic and                                   -do-
Industrial Cooperation
Agreement       for    Cooperation
between      the    Ministries   of                          -do-
Education of the two countries

Agreement       for     Cooperation    in                    -do-
Tourism

Thailand
MoU      on     Scientific            and                    -do-
Technological Cooperation

Protocol   on         Consultation    and

                                            136
                                  Pakistan Foreign Relations 2003-04

Cooperation      between     the                      -do-
Ministries of Foreign Affairs of
Pakistan and Thailand

Turkey

Agreement on       Protection    of   Signed during the visit of Turkish
Environment                           Prime Minister to Pakistan from 15-17
                                      June 2003

Agreement on Fight Against Illicit
Trafficking in Narcotics Drugs and                    -do-
Psychotropic Substances

Bilateral Road     Transportation                     -do-
Agreement

Agreement on Cooperation in the       Signed during the visit of President
field of Health                       General Pervez Musharraf to Turkey
                                      from 19-22 January 2004

Agreement on Fight Against                            -do-
International  Terrorism and
Organized Crime

Framework        Agreement     on
Preferential Trade Arrangement                        -do-

Framework     Agreement    on
Comprehensive        Economic                         -do-
Partnership

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

Vietnam

Agreement on Cooperation in the       Signed during the visit of the
field of Science and Technology       President of Vietnam to Pakistan from
                                      24-27 March 2004
Agreement on Avoidance of
Double Taxation and Prevention of                     -do-
Fiscal Evasion with respect to
Taxes on Income

MoU      on   Consultation      and


                                      137
                                  Pakistan Foreign Relations 2003-04

Cooperation between the Foreign                     -do-
Ministries of Pakistan and Vietnam

MoU between the State Banks of                      -do-
the two countries

Yemen
                                                       th
Agreement on Trade                   Signed during the 4 Session of Pak-
                                     Yemen JMC held in Sana’a from 1-2
                                     March 2004

Agreement on Cooperation in the                     -do-
field of Health

Agreement on       Avoidance    of                  -do-
Double Taxation

Protocol on Economic Cooperation
between the Yemen Chamber of
Commerce and Industry and the                       -do-
Federation of Pakistan Chambers
of Commerce and Industry

MoU for Establishment of a           Signed during the visit of Yemeni
Political Consultation Mechanism     Deputy Foreign Minister to Pakistan
between Pakistan and Yemen           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.

                               ************


                                     138
Pakistan Foreign Relations 2003-04




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