Pakistan Studies

The Two Nations Theory and It’s Role in The Establishment of Pakistan
The two-nation theory is based on the hypothesis that Muslims differ from Hindus in terms of religious, cultural, social and daily
life and that they must establish an independent Muslim state in which they can live freely their identities. Syed Ahmad Khan was
the first to theorize the two-nation theory and to encouraged Muslims to support it. The two-nation theory was developed by
Muhammad Iqbal and Chaudhry Rahmat Ali, and morever, they offered suggestions on the borders and the name of the Muslim
state that should be established under the two-nation theory. Muhammad Ali Jinnah was the one who completed the missing
aspects of the two-nation theory and made it the basis for the establishment of Pakistan. In the light of the two-nation theory,
Pakistan was established as a new power in South Asia on 14th August 1947 as a result of these determined and faithful
theoretical and practical efforts.

What is Two Nation Theory? Two-Nation theory is the basis of creation of Pakistan. It states that Muslims
and Hindus are two separate nations from every definition; therefore, Muslims should have a separate homeland in the
Muslim majority areas of India, where they can spend their lives according to the glorious teachings of Islam. If Muslims
of the sub-continent comprise an Islamic nation then they have the right to have separate homeland as Muhammad Ali
Jinnah.
The Two Nations
Although the Hindus and Muslims had been living together for centuries in the Indian sub-continent, yet there had never
been either any signs of merger of the Hindu and Muslims societies, or any serious attempt to develop a working
relationship between the two major ethnic groups. The two have always remained as two distinct social systems, two
separate and distinct cultures and last but not the least, two different civilizations.

Culture and Society of Pakistan

Pakistan has a rich and unique culture that has preserved established traditions throughout history. Many cultural
practices, foods, monuments, and shrines were inherited from the rule of Muslim Mughal and Afghan emperors. The
national dress of shalwar qamiz is originally of Central Asian origin derived from Turko-Iranian nomadic invaders and
is today worn in all parts of Pakistan. Women wear brightly coloured shalwar qamiz, while men often wear solid-coloured
ones. In cities western dress is also popular among the youth and the business sector.
Pakistani society is largely multilingual and 96% Muslim, with high regard for traditional family values, although urban
families have grown into a nuclear family system due to the socio-economic constraints imposed by the traditional joint
family system. Recent decades have seen the emergence of a middle class in cities like Karachi, Lahore, Rawalpindi,
Hyderabad, Faisalabad, and Peshawar that wish to move in a more liberal direction, as opposed to the northwestern
regions bordering Afghanistan that remain highly conservative and dominated by centuries-old regional tribal customs.
Increasing globalization has increased the influence of "Western culture" with Pakistan ranking 46th on the A.T.
Kearney/FP Globalization Index. There are an approximated four million people of Pakistani descent living abroad, with
close to a half-million expatriates living in the United States, around a million living in Saudi Arabia and nearly one
million in the United Kingdom, all providing burgeoning cultural connections.

Music
The variety of Pakistani music ranges from diverse provincial folk music and traditional styles such as Qawwali and
Ghazal Gayaki to modern forms fusing traditional and western music, such as the synchronization of Qawwali and
western music by the world renowned Nusrat Fateh Ali Khan. In addition Pakistan is home to many famous folk singers
such as the late Alam Lohar, who is also well known in Indian Punjab. The arrival of Afghan refugees in the western
provinces has rekindled Pashto and Persian music and established Peshawar as a hub for Afghan musicians and a
distribution center for Afghan music abroad.

State-owned Pakistan Television Corporation (PTV) and Pakistan Broadcasting Corporation were the dominant media
outlets, but there are now numerous private television channels. Various American, European, and Asian television

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channels and films are available to the majority of the Pakistani population \r\nvia private Television Networks, cable,
and satellite television. There are also small indigenous

Film Industries
Film industries based in Lahore and Peshawar (often referred to as Lolly wood). Although Bollywood films have been
banned from being played in public cinemas since 1965, Indian film stars are still generally popular in Pakistan due to
the fact that Pakistanis are easily able to buy Bollywood films from local shops for private home viewing. But recently
Pakistan allowed selected Bollywood films to be shown in Pakistani cinemas.

The northern parts of Pakistan have many old fortresses, towers and other architecture as well as the Hunza and Chitral
valleys, the latter being home to the small pre-Islamic Animist Kalasha community who claim descent from the army of
Alexander the Great.
Punjab is the site of Alexander''s battle on the Jhelum River and the historic city Lahore, Pakistan''s cultural capital with
many examples of Mughal architecture such as the Badshahi Masjid, Shalimar Gardens, Tomb of Jahangir and the
Lahore Fort.

Festivals in Pakistan
There are many festivals celebrated annually in Pakistan - which may or may not be observed as national public
holidays - e.g. Pakistan Day (23 March), Independence Day (14 August), Defence of Pakistan Day (6 September),
Pakistan Air Force Day (7 September), the anniversaries of the birth (25 December, a national holiday) and death (11
September) of Quaid-e-Azam, birth of Allama Iqbal (9 November) and the birth (30 July) and death (8 July) of Madare-
Millat. Labor Day, (also known as May Day), is also observed in Pakistan on 1 May and is a public holiday.

Several important religious festivals are celebrated by Pakistani Muslims during the year; the celeberation days depend
on the lunar Islamic calendar. Ramadan, the ninth month of the calendar, is characterised by daytime fasting for 29 or
30 days and is followed by the festival of Eid ul-Fitr. In a second festival, Eid ul-Adha, an animal is sacrificed in
remembrance of the actions of Prophet Abraham (Arabic: Ibrahim) and the meat is shared with friends, family, and the
less fortunate. Both Eid festivals are public holidays, serving as opportunities for people to visit family and friends, and
for children to receive new clothes, presents, and sweets. Muslims also celebrate Eid-e-Milad-un-Nabi - the birthday of
the prophet MOHAMMAD (S.A.W.) - in the third month of the calendar (Rabi'' al-Awwal) and mark the Day of Ashurah
on the 9th and 10th days of the first month (Muharram) to commemorate the martyrdom of Husayn bin Ali. Hindus,
Buddhists, Sikhs, and Christians in Pakistan also celebrate their own festivals and holidays. Sikhs come from across
the world to visit several holy sites in Punjab, including the shrine of Guru Nanak, the founder of Sikhism, at Hasan
Abdal in Attock District, and his birthplace, at Nankana Sahib.

Architecture
The architecture of the areas now constituting Pakistan can be designated to four distinct periods — pre-Islamic,
Islamic, colonial and post-colonial. With the beginning of the Indus civilization around the middle of the 3rd millennium
B.C., an advanced urban culture developed for the first time in the region, with large structural facilities, some of which
survive to this day. Mohenjo Daro, Harappa and Kot Diji belong to the pre-Islamic era settlements. The rise of Buddhism
and the Persian and Greek influence led to the development of the Greco-Buddhist style, starting from the 1st century
CE. The high point of this era was reached with the culmination of the Gandhara style. An example of Buddhist
architecture is the ruins of the Buddhist monastery Takht-i-Bahi in the northwest province.The arrival of Islam in today''s
Pakistan meant a sudden end of Buddhist architecture.However, a smooth transition to predominantly picture-less
Islamic architecture occurred. The most important of the few completely discovered buildings of Persian style is the
tomb of the Shah Rukn-i-Alam in Multan. During the Mughal era design elements of Islamic-Persian architecture were
fused with and often produced playful forms of the Hindustani art. Lahore, occasional residence of Mughal rulers,
exhibits a multiplicity of important buildings from the empire, among them the Badshahi mosque, the fortress of Lahore
with the famous Alamgiri Gate, the colourful, still strongly Persian seeming Wazir Khan Mosque as well as numerous
other mosques and mausoleums. Also the Shahjahan Mosque of Thatta in Sindh originates from the epoch of the
Mughals. In the British colonial period, predominantly functional buildings of the Indo-European representative style

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developed from a mixture of European and Indian-Islamic components. Post-colonial national identity is expressed in
modern structures like the Faisal Mosque, the Minar-e-Pakistan and the Mazar-e-Quaid.

Literature of Pakistan
The literature of Pakistan covers the literatures of languages spread throughout the country, namely Urdu, Sindhi,
Punjabi, Pushto, Baluchi as well as English in recent times and in the past often Persian as well. Prior to the 19th
century, the literature mainly consisted of lyric poetry and religious, mysticalpopular materials. During the colonial age
the native literary figures, under the influence of the western literature of realism, took up increasingly different topics
and telling forms. Today, short stories enjoy a special popularity.

The national poet of Pakistan, Muhammad Iqbal, wrote mainly in the Persian language, and additionally in Urdu. His
works are concerned mostly with Islamic philosophy. Iqbal''s most well-known work is the Persian poem volume Asrar-
i-Khudi ("the secrets of the even"). The most famous works of early Urdu literature originated in the 14th century. The
most well-known representative of the contemporary Urdu literature of Pakistan is Faiz Ahmed Faiz. Sufi Shah Abdul
Latif is considered one of the most outstanding mystical poets. Mirza Kalich Beg has been termed the father of modern
Sindhi prose. In Punjabi, naats and qawaalis are delivered. The Pushto literature tradition is a cultural link between
Pakistan and neighbouring Afghanistan. Extensive lyric poetry and epic poems have been published in Pushto. In
Baluchi language songs and ballads are popular.

Diverse Culture of Pakistan

Modern Pakistanis are a blend of their Harappan, Indo-Aryan, Indo-Iranian, Saka, Parthian, Kushan, White Hun,
Afghan, Arab, Turkic, and Mughal heritage. Waves of invaders and migrants settled down in Pakistan through out the
centuries, influencing the locals and being absorbed among them. Thus the region encompassed by modern-day
Pakistan is home to the oldest Asian civlization (and one of the oldest in the world after Mesopotamia and Egypt), Indus
Valley Civilization (2500 BC - 1500 BC).

The Indus Valley Civilisation collapsed in the middle of the second millennium BCE and was followed by the Vedic
Civilisation, which extended over much of northern India and Pakistan. Successive empires and kingdoms ruled the
region from the Achaemenid Persian empire around 543 BCE, to Alexander the Great in 326 BCE and the Mauryan
empire.
The Indo-Greek Kingdom founded by Demetrius of Bactria included Gandhara and Punjab from 184 BCE, and reached
its greatest extent under Menander, establishing the Greco-Buddhist period with advances in trade and culture. The
city of Taxila (Takshashila) became a major centre of learning in ancient times - the remains of the city, located to the
west of Islamabad, are one of the country''s major archaeological sites.

This stems from the fact that what is now Pakistan has in the past been invaded and occupied by many different
peoples, including White Huns, Persians, Arabs, Turks, Mongols and various Eurasian groups. There are differences
in culture among the different ethnic groups in matters such as dress, food, and religion, especially where indigenous
pre-Islamic customs differ from Islamic practices.

Lahore Resolution (1940)

With the introduction of political reforms in India by the British, the Muslims realized that they would become
a permanent minority in a democratic system and it would never be possible for them to protect their
fundamental rights. They only constituted one-fourth of the total Indian population and were much lesser in
number than the majority Hindu community. To protect their political, social, and religious rights they first
demanded separate electorates. However, due to the political developments that took place in the country,
they realized that even the right of separate electorates would not be enough and they had to search for
some other long-term solution.

Muhammad Iqbal, the poet-philosopher in his famous Allahabad address made it clear that Islam has its
own social and economic system, and to implement it a political entity was required. When Jinnah came

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back to India to reorganize Muslim League and to make it a political party of the Muslim masses, he got the
opportunity to interact with Iqbal. Iqbal through his letters tried to persuade Jinnah that the only solution
available was a separate state for the Indian Muslims where they could spend their lives according to the
teachings of the Holy Quran and Sunnah of the Prophet (SAW). Though Jinnah was convinced by the late
1930s, being a realist he was not ready to announce the new plan until he was confident that the vast
majority of the Muslims were behind him. The overwhelming support from the Muslim masses for his call to
celebrate Day of Deliverance on December 22, 1939, was a vote of confidence given by the Muslim
Community in the leadership of Jinnah, whom they by then had started considering as their Quaid-i-Azam.

Organization

With the clarity of mind and backing of the Muslim community behind him, Quaid-i-Azam called for the 27th annual
session of the All India Muslim League to be held from March 22 to 24, 1940 at Lahore. Sir Shah Nawaz Khan of
Mamdot was made the head of the reception committee and Mian Bashir Ahmad was nominated as secretary of the
session. Prominent leaders including Chaudhry Khaliquzzam, Nawab Muhammad Ismail Khan, Nawab Bahadur Yar
Jang, A.K. Fazlul Haq, Sardar Abdur Rab Nishtar, Abdullah Haroon, Qazi Muhammad Isa, I.I. Chundrigar, Sardar
Aurangzeb Khan, Khawaja Nazimuddin, Abdul Hashim and Malik Barkat Ali, etc. attended the session.

Khaksar Tragedy

Due to the Khaksar Tragedy that took place on March 19, Sir Sikandar Hayat and others tried to persuade Jinnah to
postpone the session but the Quaid was not ready to delay it. To participate in the session, he reached Lahore by train
on March 21. He went straight to Mayo Hospital to see the wounded Khaksars. By doing so he managed to handle well
the issue of Khaksar disturbances. On his arrival, Jinnah told the print media that the All India Muslim League will make
a historic decision in the upcoming session.

Quaid-i-Azam’s Address

The venue of the session was Minto Park near Badshahi Masjid and Lahore Fort. The inaugural session was planned
at around three in the afternoon on March 22. People started coming in the morning and by the afternoon the park was
jam-packed. According to a rough estimate, around 100,000 attended the public meeting. At the beginning of the
session, the welcome address was presented by the Nawab of Mamdot. This was followed by the historical speech of
Quaid-i-Azam Muhammad Ali Jinnah.

The Quaid in his two hours presidential address in English narrated the events that took place in the past few months
and concluded, “Hindus and the Muslims belong to two different religious philosophies, social customs and literature.
They neither inter-marry nor inter-dine together, and, indeed, they belong to two different civilizations that are based
mainly on conflicting ideas and conceptions. Their concepts on life and of life are different. It is quite clear that Hindus
and Muslims derive their inspiration from different sources of history. They have different epics, different heroes and
different episodes. Very often the hero of one is a foe of the other, and likewise, their victories and defeats overlap. To
yoke together two such nations under a single state, one as a numerical minority and the other as a majority, must lead
to growing discontent and final destruction of any fabric that may be so built up for the government of such a state.” He
further claimed, “Mussalmans are a nation according to any definition of a nationhood. We wish our people to develop
to the fullest spiritual, cultural, economic, social and political life in a way that we think best and in consonance with our
own ideals and according to the genius of our people”.

During his speech, the Quaid quoted the letter written by Lala Lajpat Rai in 1924 to C.R. Das in which he mentioned
that the Hindus and the Muslims were two separate and distinct nations that could never be merged into a single nation.
When Malik Barkat Ali claimed that Lala Lajpat Rai was a “Nationalist Hindu leader”, Quaid responded, “No Hindu can
be a nationalist. Every Hindu is a Hindu first and last.”

The Resolution

On March 23, A.K. Fazul Haq, the Chief Minister of Bengal, moved the historical Lahore Resolution. The Resolution
consisted of five paragraphs and each paragraph was only one sentence long. Although clumsily worded, it delivered
a clear message. The resolution declared:

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While approving and endorsing the action taken by the Council and the Working Committee of the All-India Muslim
League, as indicated in their resolutions dated the 27th of August, 17th and 18th of September and 22nd of October,
1939, and 3rd of February 1940, on the constitutional issue, this session of the All-India Muslim League emphatically
reiterates that the scheme of Federation embodied in the Government of India Act, 1935 is totally unsuited to, and
unworkable in the peculiar conditions of this country and is altogether unacceptable to Muslim India.

It further records its emphatic view that while the declaration dated the 18th of October, 1939, made by the Viceroy on
behalf of His Majesty’s Government is reassuring in so far as it declares that the policy and plan on which the
Government of India Act, 1935 is based will be reconsidered in consultation with the various parties, interests and
communities in India, Muslim India will not be satisfied unless the whole constitutional plan is reconsidered de novo
and that no revised plan would be acceptable to the Muslims unless it is framed with their approval and consent.

Resolved that it is the considered view of this session of the All-India Muslim League that no constitutional plan would
be workable in this country or acceptable to Muslims unless it is designed on the following basic principle, namely, that
geographically contiguous units are demarcated into regions which should be so constituted, with such territorial
readjustments as may be necessary, that the areas in which the Muslims are numerically in a majority, as in the North-
Western and Eastern Zones of India, should be grouped to constitute ‘Independent States’ in which the constituent
units shall be autonomous and sovereign.

That adequate, effective and mandatory safeguards should be specifically provided in the constitution for minorities in
these units and in these regions for the protection of their religious, cultural, economic, political, administrative and
other rights and interests in consultation with them; and in other parts of India where Mussalmans are in a minority,
adequate, effective and mandatory safeguard shall be specially provided in the constitution for them and other
minorities for the protection of their religious, cultural, economic, political, administrative and other rights and interests
in consultation with them.

This session further authorizes the Working Committee to frame a scheme of constitution in accordance with these
basic principles, providing for the assumption finally by the respective regions of all powers such as defence, external
affairs, communications, customs and such other matters as may be necessary.

Besides many others, the Resolution was seconded by Chaudhary Khaliquzzam from UP, Maulana Zafar Ali Khan from
Punjab, Sardar Aurangzeb from the N. W. F. P, Sir Abdullah Haroon from Sindh, and Qazi Muhammad Esa from
Baluchistan. Those who seconded the resolution, in their speeches declared the occasion as a historic one. The
Resolution was eventually passed on the last day of the moot, i.e. March 24.

Controversies

The name Pakistan was not used in the resolution and the official name of the resolution was Lahore Resolution. It was
the Hindu newspapers including Partap, Bande Matram, Milap, Tribune, etc., who ironically coined the name Pakistan
Resolution. However, the idea was appreciated by the Muslim masses and the Resolution is more known as Pakistan
Resolution. Secondly, the Government and the people of Pakistan wrongly celebrate March 23 as a national day in
Pakistan. The actual day when the resolution was passed was March 24. It was only presented on March 23. Lastly,
the word “states” and not “state” was mentioned in the Resolution. It means that the authors of the Resolution were
foreseeing two separate states in the north-western and eastern zones of India. But if one has a good look at the
developments that followed, he or she would conclude that either the word “states” was included as a mistake or the
League leadership soon had a second thought to their idea. A Resolution passed at the 1941 Madras session of the
League stated, “Everyone should clearly understand that we are striving for one independent and sovereign Muslim
State.” In all the speeches that Quaid delivered, he also used the word “an independent homeland” or “an independent
Muslim state”.

Hindu Reaction

The Hindu reaction was, of course, quick, bitter, and malicious. They called the “Pakistan” demand “anti-national.” They
characterized it as “vivisection; above all, they denounced it as imperialist – inspired to obstruct India’s march to
freedom.” In denouncing the demand outright, they, however, missed the central fact of the Indian political situation;
the astonishingly tremendous response of the Pakistan demand had elicited from the Muslim masses. They also failed
to take cognizance of the fact that a hundred million Muslims were now supremely conscious of their distinct nationhood

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and were prepared to stake everything to actualize their self-perceived destiny – the creation of an independent Muslim
state in the sub-continent.

British Reaction

The British were equally hostile to the Muslim demand for at least two important reasons. First, they had long considered
themselves as the architects of the unity of India and an Indian nation. Second, they had long regarded the super-
imposed unity under tax Britannica as their greatest achievement and lasting contribution in history. And the Pakistan
demand threatened to undo these presumed achievements on which the British had long prided. However, despite the
Hindu denunciation and the British alarm, the course of Muslim, indeed Indian, politics was from now on firmly set
towards Pakistan.

Conclusion

The All India Muslim League Resolution of March 1940, commonly known as the Pakistan Resolution, is undoubtedly
the most important event that changed the course of Indian history and left deep marks on world history. With the
passage of this Resolution, the Muslims of the sub-continent changed their demand from “Separate Electorates” to a
“Separate State.” This Resolution rejected the idea of a United India and the creation of an independent Muslim state
was set as their ultimate goal. It gave new energy and courage to the Muslims of the region who gathered around
Quaid-i-Azam from the platform of the Muslim League to struggle for their freedom. The dynamic leadership of the
Quaid and the commitment and devotion of the followers made it possible for them to achieve an independent state
within seven years of their struggle, and that too when the odds were against them.

Pakistan and Challenges Ahead

External Challenges

Externally, Pakistan faced challenges mainly on two counts; the conflict in Afghanistan and the unresolved
Kashmir dispute. In the past two decades we have been victims of terrorism that today poses a major threat
worldwide. Domestically, six years ago we inherited an economy in shambles compounded by corruption and
misrule. Many in the media had dismissed Pakistan as a failing state. We have turned the corner on all counts.

Afghanistan

Afghanistan became the last front of the Cold War following the Soviet military intervention in 1979. However, with the exit
of the Soviet troops in 1989, the world attention shifted to Eastern Europe and the disintegrated Soviet Union. Afghanistan
suffered international neglect; the internecine conflict continued with the situation deteriorating from bad to worse.
Pakistan also suffered the consequences. Firstly, we were burdened with nearly four million Afghan refugees without
international support. Secondly, Afghanistan became a base for extremist forces in particular Al-Qaeda that had coalesced
around the alienated Arab youths brought into Afghanistan a decade ago.

In the transformed post- 9/11 circumstances, the international community has recommitted itself to assist Afghanistan. We
support the Bonn process and the government of President Karzai and efforts to help restore normalcy and stability in
Afghanistan. An Afghanistan at peace with itself is important for Pakistan and vital for the stability and economic progress
of the entire region. This objective will be expedited with enhanced assistance by the international community for
rehabilitation and reconstruction of the country. Despite our limited resources, as a responsible neighbour, we are
contributing to this process and have accorded unrestricted transit access to land-locked Afghanistan.

South Asia

In South Asia, we are working with India through peaceful dialogue to resolve all issues including Kashmir to ensure durable
peace in the region. The journey that I started with former Prime Minister Vajpayee and is continuing with Prime Minister
Manmohan Singh has yielded important results in the shape of progress on confidence building measures.

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Today people to people contacts and other links have been restored. Srinagar-Muzaffarabad bus service has commenced to
facilitate interaction among the Kashmiris on both sides of the Line of Control. These contacts have revived after a gap of
over fifty years.

I must emphasize, however, that the Kashmir dispute needs to be addressed, it relates to fundamental rights of the
Kashmiris; it cannot be wished away. The improved relations between Pakistan and India provide a unique opportunity
that must be seized to resolve this dispute in a manner acceptable to all the three stakeholders namely Pakistan, India and
most importantly the Kashmiris. My discussions with Prime Minister Manmohan Singh and with Kashmiri leaders who
visited Islamabad last week, give me confidence that this objective is achievable. Sincerity, courage and flexibility is required
from both Pakistan and India to resolve issues and build for our peoples a better future. The international community,
intellectuals and media can help the process by encouraging all parties to stay the course and accelerate progress towards
the desired destination.

Terrorism

While the danger of global confrontation has receded with the end of the Cold War, the world remains an insecure place
with the persistence of old disputes such as Palestine and Kashmir, new conflicts such as Afghanistan and Iraq and the new
threat of terrorism. In neighbouring Afghanistan the emergence of al-Qaeda and extremist forces, owed in a large part to
international indifference and neglect that the country suffered following the exit of the Soviet troops. Much could have
been salvaged had the international community paid attention and taken timely steps to rebuild Afghanistan. In the
globalized and interconnected world, security is indivisible and conflict situations cannot be insulated in today’s
international environment.

9/11 shook the world that woke up to the new reality of terrorism. Pakistan became a frontline state to fight against this
danger. We believe that terrorism must be rejected and countered forcefully as it threatened to disrupt modern societies.
We also believe that along with action to eliminate and dismantle terrorist cells, there is need to address the root causes
that lie in political disputes and deprivation and poverty that breed extremism.

Enlightened Moderation

A parallel danger is implicit in the false notion of clash of civilizations, specifically the West and Islam and tendency to
malign the Islamic faith. This dangerous thesis and prejudices must be rejected. Islam is a faith of peace, tolerance and
compassion. Islamic societies have been traditionally moderate. They have coexisted with other societies peacefully and
have accommodated amidst them peoples of different faiths.

To promote understanding and inter-civilizational harmony, I was motivated to propose the idea of Enlightened
Moderation. It envisages a two pronged approach that exhorts Muslim societies to reform and reject extremism while at
the same time calls upon the West to facilitate solutions of problems that have caused deep suffering and anger among
Muslims for many decades.

In Pakistan, a key element of our strategy to counter extremism is education. We have introduced Madrassa reforms to
ensure that these religious schools have broad curricula and impart teaching that promotes tolerance and prepares
students for vocational careers.

Domestic Challenges

The greatest challenge that we face is on the domestic front relating to socio-economic development, reform and
strengthening of political institutions in the country. Economic sovereignty, stable political process, good governance and
security are fundamental to successful domestic policy.

Six years ago we had inherited an economy in free fall. With financial discipline and a consistent policy based on
liberalization, privatization and deregulation of economy with increasing emphasis on the growth of private sector, we
achieved economic recovery and sustainable growth. Last year, our GDP expanded at 8.4 percent with industrial sector
growing at over 15 percent. Pakistan is among top Asian countries in terms of economic growth.

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Our balance of payments situation has turned around reflecting strong export growth and with reserves exceeding US$13
billion and stable exchange rate. We successfully graduated from IMF programme and are now accessing international
capital markets to finance our development.

Our political reform agenda included building grass root democratic structures, accountability and transparency to
eradicate corruption and promotion of good governance. Democratic reforms included empowerment at the grass root
levels and of vulnerable sections of population especially guaranteed representation for women and minorities. Today our
parliament and other democratic institutions are functioning smoothly. Our print and electronic media is free, dynamic and
assertive.

The government attaches high priority to social sector reforms. We ensured unprecedented inputs and resources for
eduction, health and poverty alleviation. Pakistan’s poverty reduction strategy is implemented with active involvement of
the government, the civil society and the private sector on many fronts that include accelerated economic growth, rural and
urban development projects, micro-credit schemes and targeted intervention to help the poorest sections of the population.

Vision for Pakistan

We are conscious of the fact that socio-economic development is essential for future Pakistan. We are determined to build
on the sustained economic growth, political stability and peaceful environment that we have been able to achieve. Pakistan
needs to keep in step with global trends that are being shaped largely by economic forces.

We want to build Pakistan into a dynamic economy of our region with modernized agriculture, industry, sound education
base and advancement in science and technology.

We are reorientating our policies, cognizant of globalization, and taking advantage of our strategic location at the crossroads
of South Asia, Central Asia and West Asia. Geography has endowed us with unique potential to become the hub of economic
activity in our region.

We would like to see the regional groupings of SAARC and the ECO, to which we belong, become effective. At the last SAARC
summit in Islamabad, we took the initiative to conclude an agreement for a free trade arrangement in South Asia. We have
offered energy corridor to India. Gas pipelines from Iran, Qatar and Turkmenistan to Pakistan on to India are under active
consideration. We are developing roads and infrastructure linkages to provide Central Asia the shortest access to the sea.
The construction of Gwadar Port is an important landmark in that direction. The ECO states signed in Islamabad in 2003 a
trade agreement for reduction in tariffs for intra-regional trade.

We favour economic integration of the various sub-regions of Asia. This was the theme of the Asia Cooperation Dialogue
Ministerial Meeting held in Islamabad last April. We look forward

Pakistan pursues peace and development in the region and friendship and cooperation in its foreign relations. With the
United States we have forged a stable durable cooperative relationship. We are allies in the war on terrorism and
Washington recently declared Pakistan a major Non-NATO Ally. China has been a close reliable friend of long standing with
whom we have signed an important Treaty of Friendship, Cooperation and Good Neighbor Relations that exemplifies strong
bilateral relations. Our strategic partnership with China has been an important factor of peace and stability in the region.
Pakistan’s relations with countries of the European Union, Russia and Japan are cordial and steadily expanding. We have
security dialogues with most of these countries. Our close fraternal cooperation with the Islamic world is deeply rooted in
bonds of common culture and faith. Pakistan is recognized especially by the GCC countries as a factor of stability and
security in the region.

Our policy of Vision East Asia is aimed at strengthening our relations with Southeast Asia and others Asia-Pacific nations.
My visit to Australia and later to New Zealand is an extension of that policy. I am sure that the visit will help to reinvigorate
bilateral cooperation especially in the economic field and engage the interest of Australian businesses and entrepreneurs
in Pakistan. Today’s Pakistan is a country of opportunity and promise.

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