Date: 25/07/2008

FOREIGN MINISTER'S INTRODUCTORY REMARKS AT THE MEETING WITH BRITISH-PAKISTANI LEADERS IN BIRMINGHAM ON 25 JULY 2008

Foreign Secretary David Miliband,

Ladies and Gentlemen,

Allow me at the outset to express my deep gratitude to David Miliband for arranging this meeting with such distinguished British-Pakistanis. I am also grateful to you all for being here.

We are proud of our compatriots in Britain . Not only are you serving this great country with distinction and enhancing its society and economy but you also act as a human bridge between Pakistan and Britain . This bridge is of utmost importance in helping our two countries develop closer ties with each other.

With the return of democracy to Pakistan , our relations with Britain have acquired further momentum and strength. I am on my first official visit to Britain at the invitation of the Foreign Secretary. I have had extremely useful discussions with David Miliband today.

We have covered the whole range of issues of bilateral and regional importance. There is a strong mutual desire to further augment these ties and work closely in addressing issues such as Afghanistan and Kashmir .

As you may know, Britain has doubled its Development Assistance Programme to £480 million to be spent during 2008-2011. Most of this assistance will be utilised in the areas of health and education. We are also concentrating on ways and means to expand our economic and commercial relations. Britain is now Pakistan 's third largest trading partner (about $2.3 billion) and an important source of foreign direct investment. There are over 100 British companies working in Pakistan .

There is, however, much more to be done. Pakistan needs market access for its goods. Tariff and non-tariff barriers are hurting our exports and increasing the imbalance of trade, which in turn is undercutting our efforts to address the issue of growing unemployment.

We need to create more jobs for our young population, which is not only essential for Pakistan 's sustainable economic growth but also to prevent our youth from falling prey to misguided extremist ideologies. We would, therefore, deeply appreciate Britain 's support within the EU for a free trade agreement and the grant of GSP + status.

Our two countries are also cooperating closely in the ongoing fight against terrorism and extremism. Just last week, we agreed on a 12-point plan of action to enhance cooperation on a Counter Extremism Strategy. The plan, among other things, envisages cooperation in community engagement, immigration, terrorist financing, and crisis management.

Ladies and Gentlemen,

The new democratic government in Pakistan is gradually getting to grips with the massive problems inherited by it. Our main focus is to provide immediate relief to our people in view of the global spike in food and oil prices.

We also inherited other problems such as electricity shortages. Not a single megawatt of electricity was added to the national electricity grid in the last eight years. The growing gap between the demand and supply of energy is obviously adversely affecting our economic growth. We are, therefore, investing heavily in energy generating projects. This is another area where we want Britain to help us.

Ladies and Gentlemen,

Terrorism & extremism in Pakistan has principally been a legacy of the long Afghan war. But it must be underlined that a vast majority of Pakistanis are moderate as has been borne out by the results of the February 18 elections. Our government has evolved a comprehensive strategy to deal with terrorism and extremism. In addition to the use of force, where necessary, we are also engaged in political dialogue with tribal elders (not with militants), and accelerating the socio-economic development of our tribal areas. This three-pronged strategy would, we are confident, go a long way in confronting terrorism and extremism.

Ladies and Gentlemen,

Pakistan 's political history, as you know, is riddled with military interventions.

Mohtarma Benazir Bhutto Shaheed gave her life in the cause of democracy and rule of law. The people of Pakistan will always be indebted to her for her vision, leadership and courage. She never compromised on principles. At the same time she never shunned the possibility of genuine political reconciliation.

In line with her legacy, our government is in the process of finalising a constitutional package, which, if passed by our parliament, will restore the original spirit of the 1973 constitution and ensure the continuation of the democratic process without any disruption. We attach immense importance to the proposed constitutional reform, which, we believe, is absolutely necessary to strengthen our democracy and civilian institutions.

Ladies and Gentlemen,

Let me conclude by saying that the 18 February elections have put Pakistan on the road to stability and prosperity. There are no doubts we are faced with huge problems to be tackled. But our democratic government is confident of gradually overcoming all the difficulties with the support of the people of Pakistan .

In this regard, we also count on the support of our diaspora and friendly countries, especially Britain with which we have historical relations.

Thank you very much and I look forward to our interaction.