Ambassador Masood Khan and distinguished members of the Pakistan community Assalam-o-Alikum,

I am extremely happy to be here today and I sincerely thank you for coming.

The Pakistani community in China (including Hong Kong) is about thirty thousand strong with some eight to ten thousands living in mainland China. Around five thousand students are studying in different universities/educational institutions of China. I know that our businessmen although small in number are present all over China and working towards building trade and economic linkages between the peoples of the two countries.

I am visiting China at the invitation of my dear friend Chinese Foreign Minister Yang Jiechi. During the visit to Beijing I will be meeting Prime Minister Wen Jiabao; Chinese, corporate leaders and investors, policy makers; important think-tanks as well as members of the print and electronic media. In Shanghai, I would meet the local leadership and members of the intelligentsia and visit the site of the Pakistan Pavilion for Expo-2010.

Today is my first day in Beijing and it was my desire to begin my visit with a meeting with my fellow Pakistanis and to share the measures their government is taking to deal with the challenges we are facing in this crucial period of our history. The main purpose of my visit is to further deepen and reinforce our enduring and all-weather friendship with China.

Ladies and gentlemen you all are aware of the fact that Pakistan-China relationship is a friendship taller than the Himalayas and deeper than the ocean. It has been called a model relationship. The two countries have enjoyed all-round cooperation. President Hu Jintao has called Pakistan China’s good neighbour, close friend, dear brother and trusted friend. Our relationship, which has stood the test of time, has been described by President Asif Ali Zardari as “unique and durable”…“It is a friendship rooted in the hearts and the minds of the people of the two countries.”

The strength of our relationship lies in mutual respect and trust and strict adherence to the principles of non-interference in each others internal affairs. You can assess the importance the government of Pakistan Peoples Party attaches to its relations with China from the high frequency of visits to China by our leadership. Since assuming the office President Asif Ali Zardari has visited China four times and Prime Minister Syed Yusuf Raza Gillani three times. Last year witnessed an unprecedented number of visits from Pakistan that included visits by our Ministers, Parliamentarians, Military Leadership and Senior Officials. High frequency of exchange of visits between the two countries indicates the multidimensional nature of our relationship with China.

The foundations for this relationship were laid by Shaheed Zulfiqar Ali Bhutto, Chairman Mao Zedong and Premier Zhu Enlai. Shaheed Mohtarma Benazir Bhutto also played a key role in further strengthening these relations. Pakistan and China enhance each other’s security. Pakistan and China have worked for peace and stability in the region. Geographically, Pakistan is China’s strategic artery for communication with West Asia, South Asia, and the Gulf. For Pakistan, China has always been a strong ally and a bulwark in difficult times.

Both countries have consultative mechanisms on counter-terrorism, arms control and disarmament; and defence and security matters as well as a comprehensive strategic dialogue. We need to use them more effectively. Both countries have vowed to eliminate the common threats of terrorism, extremism and separatism. Although counterterrorism cooperation between the two countries has been effective there is a need for further stepping it up to dismantle once and for all the terrorism apparatus threatening our safety and security.

Our defence and security cooperation is the backbone of the strategic partnership. It is a relationship driven more than commercial or military needs, it provides us with opportunities to develop our sinews to face threats and challenges through joint exercises and training. In peacetime and in times of crises, we have always valued China’s defence assistance which was always come free of political conditionalities.

Pakistan and China have been working on the concept of energy and transportation corridors that would enable China to access energy rich regions in the Middle East and Central Asia and make Pakistan a regional economic hub. Gwadar Port and the Korakorum Highway, supported by other transportation arteries, would reduce China’s dependence on the Malacca Straits.

China has overtaken Japan to become the second largest economy in terms of GDP. The Pakistan-China strategic relationship therefore cannot be confined to a narrow framework. Apart from strategic and security related cooperation, growing economic linkages would constitute a solid basis for mutually beneficial enterprises. For instance, cooperation in area of port development; infrastructure; and telecommunications is creating new strategic leverages. Pakistan is poised to become a trading centre for the region. It also has the potential to become a regional energy hub as well as an important manufacturing base. China and Pakistan, as strong and reliable partners, have the wherewithal to realize this potential.

Trade and economic relations between Pakistan and China have seen impressive gains in the last few years. Bilateral trade which used to be less than $ 2 billion in 2002 is now around $ 7 billion. There are some 120 Chinese companies working in Pakistan. We have established a Five Year Programme for trade and economic cooperation for the period 2006 to 2011. Under this programme, 62 projects have been identified, out of which 27 have been launched; 26 are being examined; and 12 are being reviewed. A Pakistan-China Joint Investment Company (JIC) has been established. This Company will act as a conduit for investment. This momentum was generated after it was realized by both countries that the extent of our economic cooperation was not commensurate with the strong political solidarity that exists between Pakistan and China.

Chinese investments in Pakistan had been going into telecommunications, energy, infrastructure, heavy engineering, IT, mining sectors as well as defence production. In 2008, Chinese and Pakistani enterprises signed contracts worth $ 4 billion. However, such a narrow economic base does not represent the potential for cooperation between the two countries.

Last year, China’s economic assistance to Pakistan, in terms of soft and preferential loans was over US$ 5 billion. Pakistan and China are determined to not only increase their trade to US$ 15 billion in the next two years but also redress the trade imbalance. Last year the two sides signed an FTA on Trade in Services. We need to exploit full potential of this instrument. I assure you that your government is fully cognizant of the fact that without achieving major breakthroughs in the economic field, stable development and prosperity would remain a dream.

You are aware that our country has been facing major challenges internally. Elimination of terrorism and extremism, and revival of economy are the top priorities of our government.

Our government has been pursuing a policy of reconciliation and consultation with all political forces to evolve a consensus on addressing issues of national importance. We fully understand that confrontation in the political arena will only harm the larger public interests. Therefore, we are determined to take both our coalition partners as well as the opposition on board while taking decision on important national issues.

Counterterrorist operations in the Northern Areas and tribal areas are continuing as planned but Swat and adjoining areas of Malakand Division have been secured and the writ of the Government has been restored. The operation in South Waziristan which was launched in October 2009 has also been successful. The challenges in North and South Waziristan are great because of three reasons: a) militants are deeply entrenched in the area and have made inroads into the local population; b) the terrain is harsh and rugged; c) the communication infrastructure is poor. Despite these limitations the armed forces have made progress. This is because the military operations have the support of the local people as well as the people of Pakistan, and because the government has been able to forge a consensus between all major political partners on the issue.

We have deployed 142,000 troops with 821 posts along the Pak-Afghan border. In Afghanistan, the combined forces of NATO and ISAF are way below that level; and the number of the posts by the Afghan army, NATO and ISAF is only 120. The 2,423 km long Pak-Afghan border is the most porous in the world. It is not possible to monitor it 24/7 physically or electronically. Yet a larger number of posts on the Afghan side would help checking cross-border movements. Tribal areas can no more be called “unpoliced” as these areas are under control of troops and paramilitary forces now.

Through the military operations, we have killed more than 7,000 terrorists and apprehended about 9,000 miscreants, which include 901 Al Qaeda operatives.

More than 2,200 soldiers and officers have embraced martyrdom and 6,251 have been injured. Our cagualities have been greater than those of NATO countries combined. Thousands of civilians in Pakistan have fallen victim to terror in the past eight years.

In conducting military operations, our armed forces have taken extensive precautions to avoid collateral damage. Their objective has been to eliminate terrorists’ leadership, hit their command and control nucleus, and destroy their logistics base. Our military commanders have tried to accomplish their missions in the shortest possible time. They have also assisted civil administration in the management of the internally displaced persons (IDPs).

Moving on to larger domestic issues, government has adopted a comprehensive strategy for the socioeconomic uplift of the poor and to enable them to join national mainstream. All our resources are being spent on the elimination of poverty and illiteracy and provision of basic amenities to the common man. Through the Benazir Income Support Programme, millions of people have been provided with financial support. The government has stepped up investment in infrastructure and started several mega projects across the country. Electricity generation is being accorded high priority to overcome load shedding all over the country. Measures are also being taken to develop agriculture sector and increase yield to produce sufficient grain and other crops.

On the international front Pakistan has remained actively engaged in promoting regional stability, peace and prosperity. Our relationship with the United States has entered a new era. President Barack Obama in his policy statement on Afghanistan on 1 December articulated a new paradign for Pak-US relations. This paradign is anchored in mutual respect, mutual interest and mutual benefit. This provides a positive and solid framework to further strengthen our bilateral relations and lay strong foundation for a strategic partnership.

Pakistan’s relations with Afghanistan have also witnessed a qualitative transformation. Stability and peace in Afghanistan is in Pakistan’s strategic interest. We are therefore engaged with the US in ensuring the success of the new US-Afghanistan policy delivers. Now that the new government has been constituted in Afghanistan, Pakistan is in the forefront to help Afghanistan achieve peace and stability.

(May like to brief on London conference on Afghanistan).
Our government has conveyed its commitment to enter into a meaningful and result oriented composite dialogue process with India in the interest of peace, development and stability in South Asia and to resolve all outstanding issues between Pakistan and India.

(May also like to brief the community on recent state of India Pakistan relations).
Before I conclude my speech, I would like to emphasize that it is our individual responsibility as Pakistanis to further safeguard Pakistan’s interests. To this end bringing Pakistan and China even closer is imperative.

Our real challenge is to promote closer ties between the youth of the two countries because it is after all they who have to inherit the legacy and narrative of Pakistan-China relations, sustain it and transmit it to future generations. With this objective in mind every year visits of a hundred-member youth delegation from each country are arranged. Last year a Pakistani youth delegation visited China. A Chinese youth delegation will be visiting Pakistan in near future.

We need to do more. Pakistan and Chinese students should have more opportunities to meet and interact. Media persons from both sides should meet more often. And we should produce joint films and documentaries.

Finally I thank you for sparing your valuable time today. I must say that the nation is proud of your achievements and successes, and your contributions towards strengthening Pakistan-China friendship.

I thank you.