Pakistan Institute of International Affairs

Pakistan's Foreign Policy

Author(s): Khurshid Mehmood Kasuri
Source: Pakistan Horizon, Vol. 58, No. 3 (July 2005), pp. 45-54
Published by: Pakistan Institute of International Affairs
Stable URL: http://www.jstor.org/stable/41394101 .
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Pakistan's Foreign Policy

Khurshid Mehmood Kasuri

Chairman, Pakistan InstituteofInternationalAffairs,

Distinguished Guests, Excellencies,

Ladies and Gentlemen,

I consider it a special privilegeto share our government'spolicies in the

domain of foreign relations with scholars, researchers and political
scientistsat this prestigiousinstituteof internationalaffairsand I thank
you forthis opportunity.
Pakistan's foreignpolicy has been a continuingquest for secure and
peaceful environment, necessary for the pursuit of socio-economic
developmentat home and in our region. This objective accords with the
vision ofthe fatherofthe nation Quaid-e-Azam Mohammad Ali Jinnah to
build Pakistan into a progressive and modern welfare state consistent
with our Islamic values. Also, since its inception, Pakistan has firmly
believed in a global systembased on respect forinternationalnorms and
principles of the UN Charter. Such a system alone can ensure global
objectives of peace and development, especially just resolution of
internationaldisputes.

Challenges of today are not the same as we faced at the time of our
independence or during the long years of the Cold War. Today, the US
has emerged as the sole superpower in the world. Terrorism poses a
grave danger. New regional conflicts have emerged, while the old
disputes remain unresolved. There are ominous tendencies of
unilateralism and corresponding weakening of the UN system.
Technological and information revolutions have given rise to the
phenomenon of globalization with a mixed impact on societies. Also,
positive trends for regional economic development have gained in
strength.North Atlantic Free Trade Area (NAFTA), the European Union
(EU) and Association of South East Asian Nations (ASEAN) are
importantexamples. The EU has emerged as an economic powerhouse
with far-reachinginfluenceon global economy.

Fromthe speechof ForeignMinisterKhurshidMehmood Kasuripresentedat the

concluding oftheEU Documentary
ceremony FilmFestival
heldatthePakistan
Institute
of
International
Affairs, 31May2005.
Karachi;

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46 PAKISTAN
HORIZON

Traditional diplomatic functionsand practices face severe challenges

in the years ahead. The predominance of economics over politics, the
growing role of NGOs, social movements, and other transnational
collectivitieshighlightthe need for national governmentsto alter their
mode ofinteractionwith each otherand with relevantactors in the multi-
centric world. Foreign Officesare not headed for oblivion, and instead
will continue to functionwith the commitmentto not only enhancing
political ties but also economic relations with the objective of achieving
peace and prosperityin the world.
The foreignpolicyis reflectiveof the ethos of the people and domestic
environment.It has to respond to events occurringand circumstances
beyond geographical frontiers.As we move into 21st century,a host of
new issues, including globalization, human rights,democracy,terrorism
and the environment have made their way to the centre stage of
international attention. Economic diplomacy is assuming greater
importance in planning and execution of foreignpolicy. International
relations are being reconfiguredto underline the primacyof these issues
and new internationalnormsare being rapidlyevolved in these and other
areas.

It is in this context that I would like to speak about, first and

foremost,the foundations,principles and objectives of our foreignpolicy;
the recent developmentsin South Asia; and our relations with the US. I
would like to highlightour elations with the EU, which may be of special
interestto you.

Foundations and objectivesofPakistan's foreignpolicy

Quaid-i-Azam Mohammad Ali Jinnah, the founder of Pakistan and its

first Governor-General gave two special talks on radio to introduce
Pakistan to the people of the US and Australia. He expressed a strong
desire to develop friendlyties with other states on the eve of his meeting
with the special representativeof the King of Afghanistanin December
1947. Similar views were expressed when the first Ambassadors of
Burma .(January 1948), France (January 1948), the US (February 1948)
Turkey (March 1948) and Afghanistan (May 1948) presented their
credentials. Outliningthe goals offoreignpolicy,Jinnahdeclared:

Our foreignpolicyis one of friendliness and goodwilltowardsthe

nationsoftheworld.We do notcherishaggressivedesignsagainstany
countryornation.We believein theprincipleofhonestyand fairplay
in
national and internationaldealingsand are preparedto make our
utmostcontribution to the promotionof peace and prosperity
among
the nations of the world.Pakistan will never be foundlackingin
extendingits material and moral supportto the oppressedand

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PAKISTAN
FOREIGNPOLICY 47

suppressedpeoplesoftheworld,and in upholdingtheprinciplesofthe
UN Charter.

The guiding principles of Pakistan's foreignpolicy are based on the

internationallyrecognized principles and norms of interstate relations,
in
which include the sovereignequality of all countries;non-interference
the intërnal affairs of other states; respect for the sovereignty and
territorial integrity of all states; non-aggression and the peaceful
settlementofdisputes.

The foreignpolicyofPakistan reflectsthe hopes and aspirations ofthe

people of Pakistan. It is primarilydirected to the pursuit of improving
political stability,economic growth,povertyalleviation, human resource
development and projection of Pakistan as a strong, dynamic and
moderate Islamic country.As a matter of policy, Pakistan has always
tried to develop friendlyand cordial relations with all the countriesofthe
world. Based on these principles,our foreignpolicy strives to safeguard
the country'sindependence,sovereigntyand territorialintegrity.The key
objectivesofour foreignpolicyare to:
• safeguard our geostrategicinterestsenabling Pakistan to play its
rightfulrole in the regional and internationalarena;
• promotethe image of Pakistan as a strong,dynamic,progressive,
moderate/modernand democraticIslamic country;

• enhance our commercialand economicinterests;

• develop friendship and cooperation with all the counties in

general and with the Muslim worldin particular;
• resolve the core issue ofJammu and Kashmir in accordance with
the resolutions of the UN Security Council and wishes of the
Kashmiri people;

• assist in establishingdurable peace and stabilityin Afghanistan;

• facilitate the landlocked Central Asian states by providingthem

access throughGwadar port;

• ensure the non-proliferation of weapons of mass destruction,in

particular nuclear weapons; and,
• our energy security through diversificationof national energy
resources with reduction of dependence on foreign energy
resources.

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48 PAKISTAN
HORIZON

The foreignpolicyof the presentgovernmenthas enhanced Pakistan's

prestigeand role. As a result ofjoining the internationalcoalitionagainst
terrorism,our relations with the US, Europe and Japan have improved
significantly.Our traditionallystrong relations with the Islamic world,
China and Southeast Asian nations have also been furtherstrengthened.

Pakistan-India relations

Pakistan all along has emphasized the necessity of a meaningful,

constructive and result oriented dialogue with India to resolve all
outstandingissues includingthe Jammu and Kashmir dispute.
The current Pakistan-India composite dialogue process started with
the visit of the formerIndian Prime Minister,Atal Behari Vajpayee to
Islamabad in January 2004, to attend the TwelfthSAARC Summit. The
prime purpose of the composite dialogue is to offeran opportunityto
achieve a peaceful settlement of all issues between the two countries,
including the Jammu and Kashmir issue. It should be axiomatic that if
the composite dialogue is to result in durable peace, the solution must
reflectthe aspirations of the people of Kashmir. Pakistan believes that
the Kashmiri people as the principal party to the dispute must be
associated with the Pakistan-India dialogue process for seeking a final
peaceful settlement.We have impressed upon India the need to work out
mutually acceptable modalities to associate the Kashmiri people with the
compositedialogue process.
There have been some positive developmentsin the recent past. The
decision to commence the Srinagar-Muzaffarabadbus service is a win-
win situation for all concerned.The people of Kashmir who have borne
untold sufferingsforso long will feel some comfort.The two governments
have shown a great sense of responsibilityand flexibilityto achieve this
humanitarian CBM.

It would be pertinentto mentionthat while we need to remain focused

on the core issue, we need to be prudent and recognizethat progress on
other issues, such as Baglihar dam and Siachen, is equally important.
These and other equally important issues, if not resolved, have the
capabilityto cast a shadow on our ongoingdialogue process.
The President of Pakistan visited India on the invitation of Indian
Prime Minister Manmohan Singh from16-18 April 2005. The President
also called on the Indian President. In addition,the President also held
meeting with the All Parties Hurriyat Conference (APHC) leaders.
President Congress (I) Sonia Gandhi and leader of the Opposition Lai
Krishan Advani also called on the President.

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PAKISTAN
FOREIGNPOLICY 49

The President held substantive talks with the Indian Prime Minister
on all the issues, includingthe Jammu and Kashmir dispute, confidence-
building measures across LoC, Sir Creek, Siachen, Khokhrapar-Monabao
railway link project, opening of Consulates General in Karachi and
Mumbai, oil and gas pipelines and bilateral economic and commercial
cooperation,including the Joint Economic Commission. The two leaders
reaffirmedthe commitmentsmade in the JointDeclaration of 6 January
2004, and the joint statement of 24 September 2004, and assessed
positively the progress made in Pakistan-India relations through
confidence building, people-to-peoplecontacts and enhancing areas of
interactionand expressed the determinationto build on the momentum
already achieved.
A comprehensivejoint statementwas issued on 18 April 2005, which
envisages furthermeasures to enhance interaction,cooperationand trade
across the LoC and appreciates the successful operationalization of
Srinagar-Muzaffarabadbus service. The statement calls for increase in
the frequencyof the bus service,allow the route to be utilized to promote
trade and to operationalize additional routes, including that between
Poonch and Rawalakot. In order to enhance economic and commercial
cooperation, the two leaders agreed to activate the Joint Economic
Commission and called for an early meeting of the Joint Business
Council. It was also agreed that the Ministers of Petroleum and Natural
Gas will hold a bilateral meeting in June 2005 to explore cooperationin
the sector,includingthe issue of pipelines. The two leaders endorsed the
schedule of meetings of the second round of the composite dialogue
agenda items to be held in the comingmonths.

Recentlytechnical and expert level talks were held between Pakistan

and India on:

• Plant, 7-11 May 2005;

Kishanganga Hydroelectric-cum-Storage
• Lahore-AmritsarBus Service, 10-11 May 2005, and;

• Communication Link between the Pakistan Maritime Security

Agency (PMSA) and the Indian Coast Guard (ICG), 10-11 May
2005.

We are hopeful that the composite dialogue process will lead to a

peaceful settlement of the bilateral issues, including the core issue of
Jammu and Kashmir. We believe that the constructive process of
engagement would promote progress towards the common objective of
peace, securityand economicdevelopmentforthe people ofSouth Asia.

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50 PAKISTAN
HORIZON

Pakistan-US relations

Pakistan-US relations continue to gain in momentum.In the last few

years, a number ofimportantdevelopmentshave taken place which have
further deepened and expanded the bilateral relationship between
Pakistan and the US. Several high-levelvisits have taken place between
the two countries.President Musharraftwice visited the US in 2004, first
in September and again in December. He held detailed discussions with
the US leadership.

In his second term,President George Walker Bush has reiteratedthe

US commitmentto a broader and sustainable long-termrelationshipwith
Pakistan. This is evident fromthe fact that the new Secretary of State,
Condoleezza Rice and the Secretaryof Defence, Donald Rumsfeldvisited
Pakistan early in the second term of Bush Administrationin March and
April 2005 respectively. The Secretary of State underscored the
importancethe US attaches to its relations with Pakistan. She said that
cooperationwith Pakistan had developed into a strategicrelationshipand
that the US was desirous of broadening bilateral cooperation over the
long term.She describedPakistan-US relationshipas a key alliance.
In its report,the US National Commissionon TerroristAttacks on the
US (9/11 Commission), welcomed President Musharrafs vision of
'enlightened moderation'. It recommended to the US government to
maintain the currentlevel ofaid and also to strengthenlong-termUS and
internationalcommitmentsto Pakistan. More significantly, the Congress
passed a bill named 'Intelligence Reformand TerrorismPreventionAct
2004' which asks the US Administrationto evolve a policygeared towards
a long-termengagement with Pakistan. This clearly underscores that
there is bipartisan support in the US for building a sustainable
relationshipwith Pakistan.
Pakistan Caucus has been established in the US Congress which was
inaugurated by President Musharraf during his visit to the US in
September 2004. It has currently66 Congressmen as members. The
Caucus would help promotegreater understandingof our vital national
interestsin the US. We have a large and dynamicexpatriate community
in the US which is also playingan importantrole in projectingthe image
ofthe country.

The US has provided 701 million dollars assistance for the current
fiscal year 2005 and similar allocations have been proposed by President
Bush in his budget request to the Congress forthe fiscal year 2006. The
600 million dollars out of these 701 millions dollars are part of the three
billion dollars five-yeareconomic and security assistance package for

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PAKISTAN
FOREIGNPOLICY 51

fiscal years 2005-2009 agreed during President Musharrafs visit to the

US in June 2003. Remaining 101 million dollars are ancillary to the
package. 51.15 million dollars of this amount are earmarked for social
sectorprogrammes.

The US is Pakistan's major trading partner. In the year 2003-2004,

our exportsto the US amounted to 2943.3 milliondollars and the imports
were 1326.9 million dollars. Bulk of our exports is in the textile sector.
The US is also Pakistan's largest foreigninvestor.The US share in the
total foreigndirectinvestment(FDI) in Pakistan forthe period 1990-2004
is 37.8 per cent and amounts to 2938.2 million dollars. The US Exim
Bank and the Overseas Private Investment Corporation (OPIC) have
resumed business with Pakistan.

In June 2003, Pakistan and the US signed the Trade and Investment
FrameworkAgreement(TIFA). It aims at strengtheningand diversifying
commercialrelations. The TIFA created a JointCouncil that will consider
a wide range ofcommercialissues and set out basic principlesunderlying
the Pakistan-US trade and investment relationship. The Council will
establish a permanent dialogue with expectation of expanding our
commercialand trade relations.

Various projects under the agreement on cooperation in the field of

science and technologyare already underway.

Announcingthe decision to sell F-16 aircraftto Pakistan on 25 March

2005, US officialsstated that the relationshipwith Pakistan was based
on wide-rangingcooperation.Besides this, the US has decided to sell to
Pakistan arms worth 1.3 billion dollars which include P-3C Orion
surveillance aircraft. Pakistan-US Defence Consultative Group (DCG)
held its last meeting in Islamabad in February 2005 in which the US
reaffirmed its willingness to meet Pakistan's legitimate defence
requirements.
The two countries have a Joint Working Group (JGW) on Counter-
Terrorismand Law Enforcementwhich regularlymeets to coordinatethe
strategy of the two countries in this regard. Pakistan has similar
cooperation for mutual benefitwith more than 50 countries in the war
against terrorism.
Pakistan believes that there is need fora comprehensivedefinitionof
terrorismthat should take into account all formsof terrorism,including
state terrorism. Pakistan draws a clear distinction between terrorist
activities and the legitimate struggles of peoples fortheir rights of self-
determination.It is vital to address the root causes of terrorismsuch as

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52 PAKISTAN
HORIZON

injustice, desperation, sense of humiliation and helplessness, and

economic and political deprivation in order to eradicate this evil
completely,as povertybreeds extremism.
We regard continuousUS engagementin the region as helpfulto the
promotionof peace and stability in the region. We also encourage our
other friendsof South Asia to joint hands with us in our effortsto bring
about durable peace in the region. This new trajectoryin the Pakistan-
US relationship is reflectiveof increasing recognition in the US of
Pakistan's unique geostrategiclocation linkingWest, Central and South
Asia. Pakistan is regarded as a major actor and a stabilizingfactorin the
region.This is also evidenced by Washington'sdesignationof the country
as a Major Non-NATO Ally (MNNA).

Pakistan and the European Union (EU)

Pakistan has traditionallyenjoyedfriendlyand cooperativerelationswith

Europe. Our interestsin Europe, whichinclude politicalsupporton issues
of importance, including the Kashmir dispute, market access, defence
equipment, transfer of technology, and protecting our community's
interests. These interests have to be pursued both at the bilateral level
and in the context of the EU. The EU includes four countries that are
members of the prestigiousG8 Club and two are permanentmembers of
the UN SecurityCouncil.

The European Union is also Pakistan's largest trading partner. Our

trade with Europe amounts to 5.9 billion dollars with a 1.3 billion dollars
surplus in Pakistan's favour.28 per cent of Pakistan's global exportsand
17 per cent of its importsare fromthe EU countries.The EU is also the
largest source of FDI and development assistance to Pakistan. The
European Commission's projectsare directedmainly at the social sector,
development and environmentalsustainability.A number of European
countries, particularly the UK, France and Italy have been providing
militaryhardware and weapon systems to Pakistan. Ten EU countries
are membersofthe Pakistan DevelopmentForum.

9/11 and Pakistan's swiftresponse to join the internationalcoalition

against terrorismgave a boost to Pakistan's relations with the European
countries. EU was promptin offeringtrade concessions and increase in
assistance. The EU also extended a preferentialtrade package, and
duties on textiles and clothingwere reduced which translated into a 20
per cent increase in exports.
In addition to the positiveoutlookofthe EU Council and the European
Commission towards Pakistan, the European Parliament adopted a

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 FOREIGNPOLICY
PAKISTAN 53

resolution in October 2002 asking the Council and the Commission to

offertheir services as honest brokers to resolve the Kashmir dispute.
During our interaction with the EU, a host of issues come under
discussion, including bilateral relations, the situation in Afghanistan,
relations between Pakistan and India, non-proliferation,terrorism,
democratizationand human rights.

The European Parliament, on 22 April 2004, finallyratifiedthe Third

Generation Agreement to the Council. The agreement would
institutionalize high-level cooperation with the EU on a number of
important subjects, of political, economic, technological and
developmentalsignificance,at a time when the EU is increasingits global
role in all these fields. This has been a long overdue and welcome
development.
The EU High RepresentativeforCommonForeign and SecurityPolicy,
Javier Solana conveyed his satisfaction and support at the
commencementof the composite dialogue between Pakistan and India.
He hoped that both sides would make all the necessary effortsto forward
the process,includingthe consolidationofthe ceasefireand the reopening
ofcommunicationlinks on all levels.

The most recent Ministerial Troika was held on 27 April in

Luxemburg. I led the delegation from our side. During the talks the
whole gamut of bilateral relations was reviewed. International issues of
mutual interestwere also touched upon. It was agreed that the process of
implementationofthe Third GenerationAgreementwould be expedited.
The EU's problem of integrationshould not be underestimated.The
enlargement has been rapid, while the levels of economic development
are disparate, forcinginternal transferof resources.The latest expansion
implies a 13 per cent fall in the per capita income of the EU. It also
widens regional disparities on a scale, which is withoutprecedentin any
previous enlargement. Since 60 per cent of the more backward regions
are located in the new and futuremember states, the focus of economic
and social policywould shiftto the east ofthe EU. The recent*N0'vote by
France on the EU Constitutionhas shocked the world and mightlead to
an inward looking'thoughtmode' in the future.

It would have to deal with the problems of industrial restructuring,

rural urban imbalances, and areas suffering from geographic or
demographic handicaps, there are common problems, which have not
been fullyaddressed. Unemploymentat the level of7.7 per cent continues
to be higher than in the US, Japan and East Asia. There are serious

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54 PAKISTAN
HORIZON

problems in the field of energy, because of dependence on imported

sources located in politicallyunstable regions. EU considers Asia as an
importantassociate in the WTO. It wishes to enhance cooperationwith
the regional organizationslike ASEAN. Asia is accepted as an important
economicpower,because it has 56 per cent ofthe worldpopulationand 25
per cent of world's Gross Domestic Product (GDP). Asia has 21 per cent
shares in imports fromthe EU. With China's entryinto the WTO, the
economic relationship would be furtherenriched,though EU like other
economicpowers,views this developmentwith a degree ofcaution.

In the longertermperspective,EU should be viewed as a powerfuland

productiveregion in the economicsphere. We should endeavour to build
up a stable institutionalrelationshipwiththe European Commission,and
keep ourselves abreast ofthe evolutionofits economicstrategy.
We should exploreways and means to furtherstrengthenour relations
with the EU. The main focus of our relationship should be economic.
While the European Commission would be a key player in this
relationship, the bilateral channels should be used to strengthenand
stabilize trade and investmentflow.

In the current international environment, I sincerely feel that

Pakistan can successfullypursue and achieve all its objectives,provided
we get our prioritiesright. However, there are no short cuts to nation
building. This also requires a consensus withinour societyso that we do
not work at cross purpose and single mindedly devote ourselves for a
better and prosperous futureincreasinglybeing driven by economic and
trade interests. A country that wants to change the status quo in
relations withits neighbourshas to keep these factorsin mind.

Thank you.

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