DOCUMENT No. 7 
 

Press Conference In DAVOS

President General Pervez Musharraf Friday ruled out deployment of any foreign troops on Pakistan's soil to carry out operations against al-Qaeda and Taliban remnants, saying country's army was fully capable to do the job. "No sir, there is no possibility at all," he said, when asked about Pakistan allowing foreign troops on its soil on the Pak- Afghan border to prevent infiltration of terrorist elements.  

President General Pervez Musharraf turned out to be the most sought after man at the World Economic Forum 2004, with an unending list of requests for engagements. Starting from a long line up of media organisations, businessmen and prominent leaders, the requests for a meeting continued to pile up with the President's staff. Even President's departure scheduled for Saturday is likely to be delayed owing to the requests for meetings. Prince Karim Aga Khan will also be meeting the President on Saturday. The President, described as the "Star of the WEF-2004", began his day much earlier and despite freezing cold had a jam packed breakfast meeting. With his hectic schedule a number of media requests could not be accommodated. President Musharraf also won widespread appreciation by the over 2000 business leaders and statesmen attending the World Economic Forum for his economic reforms, peace moves in South Asia and timely initiative to bridge the widening gap between the Muslim world and the West. During a preliminary session on promoting inter-civilization dialogue and his interaction with key business leaders, he was praised for bringing stability to the Pakistan's economy and taking courageous stand against the menace of terrorism and extremism.  

Addressing a crowded press conference here the president said Pakistan has a very large and experienced army that has seen operations. "There is no dearth of talent, bravery or enterprise in our army and there is no room for any army coming in and assisting us," he categorically stated. President Musharraf said on Pakistani side of the Pak-Afghan border there was an efficient intelligence network in place and a very strong Quick Reaction force to react whenever any al-Qaeda or Taliban suspects are spotted. "Everyone is very satisfied over what we have done," he said in an obvious reference to the arrest of over 600 al-Qaeda and Taliban suspects in Pakistan. He said Pakistani troops were operating on its side of the border while ISAF and US forces were operating on the Afghan side. He said there was total coordination between the two. Replying to a question about any change in Pakistan's policy viz a viz Israel in the wake of recent thaw in Pakistan India relations he replied that if the Middle East peace process progressed satisfactorily, allowing for the peaceful co-existence of both Palestine and Israel, Pakistan could consider reviewing its policy at that point of time. However the president ruled out the possibility of any change in Pakistan's stance at the moment. Asked in view of threat to his life and what would be the alternative for the continuation of his policies, the president said, no individual in the world was indispensable. He expressed satisfaction that his government had put in place democratic institutions that were fully capable to carry out country's economic and foreign policy objectives. The president said, there was an elected government in place and political restructuring was introduced aimed at having a sustainable democracy in the country. 

President Musharraf while responding to a question said that talks between Pakistan and India will be held next month. However, he said the foreign offices of the countries were in touch to decide about the level of talks and its venue. The President hoped the talks would be held as soon as possible but added what required was the continuation of the process with minimum gap so that the process could move forward as fast as possible. To a question, he said the talks could not start at the Summit level. "It has to start at the lower level and then end up at the summit level," he added. Responding to a question, the President clarified that no body from Pakistan has visited North Korea recently. However, he said, in the past Pakistan had interaction with North Korea on the purchase of surface to air missiles. But now, the President said Pakistan was manufacturing these tactical anti-aircraft missiles and there was no need of any contact with North Korea. Over the alleged involvement of some individuals in nuclear proliferation, the President said the UN nuclear watchdog -IAEA- had given some names which includes personalities from Pakistan, European countries and also from the East. He said in Pakistan, the investigations into the allegations was being carried out and was not completed yet. President Musharraf stated that there were personalities and European countries involved which need to be investigated. Responding to a question, he said any terrorist or underground organization like al-Qaeda has to have communication and human linkages. "There is a command and control through human interaction or communication interaction (and) I don't think that is there," he said and observed it was an ineffective organization and "in our areas, specially, they are on the run". To a question on the thaw in Pak-India ties, he said there was a very happy change of heart as the two sides have decided to hold dialogue to address all the outstanding issues, including the complex issue of Kashmir. However, he said it was a very good beginning but "we have to take off and move towards an end- towards resolution of all disputes, including Kashmir. "We have to wait for the initiation of the dialogue and we also have to wait for then, the sincerity on both sides," he said and added that the relationship would only progress when the two sides showed sincerity, resolve and also the boldness. President Musharraf said that there were people with extreme position on both sides and the leadership on both sides have to show courage to stand up to the opposition by a minority. "Vast majority in both countries want peace and resolution of disputes," he added. To a question about the country's western border with Afghanistan, he said Pakistan had taken a decision to join coalition against international terrorism and was for the Bonn process to be executed. "A vast majority of Pakistanis are totally on board on whatever is happening in Afghanistan and whatever I am doing against al-Qaeda and Taliban," he said while adding it was a minority who may have sympathies with them and who, perhaps are against what the government is doing. But, he said that" one should not be deterred by this minority extremists and one should not, in the West, think that it is this minority extremists who are reigning supreme. That is not the case," he added.

President Musharraf at Economic Forum DAVOS

President General Pervez Musharraf won widespread appreciation by business leaders and statesmen attending the World Economic Forum for his economic reforms, peace moves in South Asia and timely initiative to bridge the widening gap between the Muslim world and the West. During a preliminary session on Promoting inter-civilization dialogue and his interaction with key business leaders, he was praised for bringing stability to the Pakistan's economy and taking courageous stand against the menace of terrorism and extremism. The 5-day annual meeting of the Forum that began on January 21 has drawn an unrivalled international presence and combination of state, business and civil society leaders from 94 countries. Speaking on inter-civilization dialogue, President Musharraf presented Islam in its true perspective that preaches moderation not extremism and which fully respects human rights and those of the minorities. President Musharraf also took questions from the political and religious leaders attending the session. A priest from the United States, while praising the presentation by the President said that the Pakistani leader has very effectively removed the negative notions about Islam. A lady from a non-governmental organization (NGO) appreciated the increased representation of women in the country's democratic institutions and said Pakistan should be a role-model for the Western world. Some US congressmen who had come across the President in the lobby praised him for his measures to fight out terrorism and described him as a courageous man. At the working dinner, hosted by the World Economic Forum, where the President made a forceful speech to woo foreign investors, leading world business leaders whole-heartedly acknowledged his policies to bring peace to South Asia and place Pakistan's economy on a strong footing. "We support the privatization process, development of business environment in Pakistan, we support your effort for peace in South Asia," said Gon, the Chief Executive of Nissan Company. President Musharraf was also the most sought after leader by the world media as reporters from the print and electronic media flocked the venue of his bilateral meetings at the Forum. Among the heads of state and public figures participating in the meeting include King Abdullah of Jordon, Polish President Aleksander Kwansinewski, President of Argentina Nestor Kirchner, Nigerian President Olulsegun Obasnajo, Prime Minister of Turkey Recep Tayyip Erdogan, UN Secretary General Kofi Anan, Secretary General of NATO Jaap de Hoop Scheffer, President of the European Parliament Pat Cox and many other world leaders. 

President General Pervez Musharraf has asked investors attending the World Economic Forum here to benefit from Pakistan's investment friendly climate which includes, robust economic growth, aggressive privatization policy, improved governance and strong commitment to stamp out extremism from the society. Speaking at a Working Dinner, hosted by the World Economic Forum Thursday night, the President said that the four years of robust economic reforms have pulled Pakistan's economy out of turmoil and placed it on the path of robust growth. The President recalled the state of the economy he inherited in 1999 and the shocks it suffered in the shape of global recession, drought, 9/11 events and the 10-month military stand- off with India. Foreign exchange were merely 300 million dollars, inflation was high, exports were dwindling and debt-servicing liabilities were eating 64% of the total annual budget. The country was on the verge of being declared a default state. But, he said, the economy was now stable and at a take-off stage with all macro-economic indicators showing upward trend. He said there was no risk of default any more, forex reserves were enough to foot 12-month of import bill. The GDP growth was 5.1% last year and likely to grow by 5.5% during the current fiscal year, he added. The President said inflation remained low at 3.3% and the country's exports and revenue grew by 70% during the last three years. As a result of debt-restructuring, the debt-servicing liabilities came down to 31%, he said and hoped it would be further brought down to 22%. Fiscal deficit, that was 8% of the GDP, has been reduced to 4.6% and efforts were on to scale it down to under 4% of the GDP next year, said the President. Musharraf told the gathering about the unrivalled incentives offered to the foreign investors. Foreign investors are now allowed to hold 100% equity and there were no restrictions on remittance of profits, dividends and repatriation of capital, he added. He outlined efforts to reduce red-tapism and remove bureaucratic delays by way of giving complete autonomy to the various regulatory authorities and restructuring of the Central Board of Revenue to reduce its contact with the people and curtail the discretionary powers of the organization. President Musharraf said that the trend of positive developments in the economy was continuing with rising exports and revenues. The exchange rate has remained stable and credit rating gone far high from the rock bottom. He said strong actions are being taken to eliminate extremism from the society and further improve the law and order in the country. The President said that now there was a need to take these gains down to people through poverty alleviation, human resource development and through creating more job opportunities. President Musharraf pointed out that the investors in the past shied away from Pakistan due to its weak economy and for wrong economic decisions. But he asked investors to come to Pakistan and see for themselves the gains made during the last four years. He also listed efforts to reduce the cost of business in Pakistan by way of curtailing interest rates on borrowing. The President said that there was liquidity in the banks and local credit was also available to the foreign investors. President Musharraf also referred to Pakistan's strategic location saying the country was fast emerging as the "economic crossroads" of Gulf, South Asia and Central Asia. With its positive economic indicators, he added, Pakistan was now poised to benefit from its strategic location and become an attractive and secure destination for foreign investors. The President also underlined the country's aggressive privatization policy and identified IT, telecommunication, infrastructure, tourism and building and construction as main areas of focus. He further hoped that with the peace returning to South Asia, there will be more avenues for commercial activities in the region.

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