Honourable President,
Distinguished Scholars,
Ladies and Gentlemen!

I am greatly honoured to have this opportunity to speak at the China Institute of International Studies which is one of China’s most prestigious foreign policy think tanks. This Institute plays an important role in providing the intellectual depth and philosophic underpinning for the successful Chinese diplomacy. Your long tradition of scholarship and the breadth of your research agenda afford you a unique vantage point to observe and assess the rapidly changing global situation.

It is rightly stated that the friendship between our two great countries is higher than the highest mountains and deeper than the deepest seas; it is an all-weather, time-tested friendship that is sweeter than honey. I may add that with the mainsprings of our friendship rooted in our geographies and trajectories of our relations rooted in friendship, the bonds that bind the peoples of China and Pakistan, towards mutuality, affinity and accord, are unequivocal and absolutely carved in the slates of the lofty Karakorams.

The relations between the Indus valley and Chinese civilization stretch back to antiquity. Upon this happy heritage, Pakistan and China have built, in the contemporary period, a magnificent edifice of confidence and trust, friendship and cooperation. Successive generations of leaders in Pakistan and China nurtured Pak-China relationship with common vision, care and utmost sincerity.

Friendship with China is the cornerstone of Pakistan’s foreign policy. We deeply appreciate China’s support and understanding to Pakistan on various regional and international issues. We support “One China” policy and condemn any attempt to undermine China’s sovereignty and territorial integrity. The story of Pakistan-China friendship holds important lessons in developing harmony, trust and friendship among peoples and nations. Pakistan-China partnership that now spans over five decades is marked by harmony, vibrancy and vitality.

It is a living example of the Confucian philosophy of "Harmony without uniformity". We have different political systems, different cultures and different traditions. Yet together we have created a beautiful mosaic vibrant with colour and warmth. It is not a mere hyperbole when we say that the friendly ties between Pakistan and China are a model for other countries, with diverse systems, to emulate. It is a reality.

Ladies and Gentlemen,
The people of Pakistan draw strength and rejoice over the great accomplishments of the Chinese nation. These accomplishments attest to the genius, wisdom, skills and talent of the Chinese people and their sagacious leadership.

We are witnessing today a splendid renaissance, in all domains, of the ancient Chinese civilization. The Chinese economic miracle is not new. It is merely restoring what historically over millennia had been China's share of the global production.

China’s moral voice, its economic dynamism, its entrepreneurial talent, its innovative genius and its commitment to shaping a peaceful and prosperous world remain indispensable for ushering in a harmonious world order.

Ladies and Gentlemen,
The profile of our strategic economic engagement now encompasses several grand projects that would further leverage our natural economic complementarities, conferred by geography, history, shared values as well as a distinct sense of common destiny.

We desire to further our economic relations and make them commensurate with our political relations. The two countries have pledged to take the bilateral trade to US$ 15 billion in the coming years. More then 120 Chinese companies and over ten thousand Chinese workers are working in Pakistan on projects ranging from mining and energy-exploration to infrastructure development and manufacturing.

The pattern of China’s economic interaction with the developing world follows the example it has set with Pakistan. Chinese economic assistance has focused on tangible development that strengthens economic fundamentals as opposed to handouts or conditional aid that reinforce the vicious cycle of dependency. Thus, over the years, China and Pakistan have together built their friendship on the rock solid foundation of mutual trust and common good.

Ladies and Gentlemen, As our bilateral relationship goes from strength to strength, the need to understand and reflect on the global strategic and political landscape becomes all the more important.

We are confronted with the horrible spectre of the world sliding into a medieval mindset. The rising tides of extremism, terrorism, sectarian and denominational conflicts and violence pose a grave threat to human civilization.

While the tragic events of 9/11 seven years ago brought this problem into sharper focus, it is important to remember that our struggle against terrorism predates 9/11. We decided to respond to this challenge firmly and strike militancy at its roots. Our counter-terrorism strategy is based on three Ds Development, Dialogue and Deterrence.

Our counterterrorist operations in the region have been persistent but paced. Following successful military operations, Swat and the adjoining areas of the Malakand Division had been secured by June 2009 and the writ of the Government has been restored. A full scale operation in South Waziristan launched in October 2009 has also been successful.

In the operations more than 7,000 terrorists have been killed and about 9,000 miscreants apprehended. More than 2,200 of our military personnel have embraced martyrdom and 6, 251 have been injured. This number is greater than the combined casualties of all the NATO countries. In addition to this, thousands of innocent civilians including women and children in Pakistan have fallen victim to terror in the past eight years.

According to conservative estimates, in the past 8 years, we have lost more than $ 50 billion in the prosecution of the war against terrorism. Our economy has incurred tens of billions of dollars in lost opportunities. The intangible costs have been astronomical. The war on terror has denied our youth their full potential to grow and educate themselves. Yet we have persevered.

We have finessed our counter-terrorism doctrine as we fought on. 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. They have also assisted civil administration in the management of the internally displaced persons (IDPs).

I think international terrorism by its very definition involves many nations. So in order to succeed we must all succeed and ideally more or less at the same time. There would be no partial, selective victories. This reality has to sink in before a leap is made towards the end game. It is also important that we get the order right. The problem originates from Afghanistan. If it is fixed there, we will be able to deal with its other geographical and regional ramifications. If Al Qaeda is defeated in Afghanistan, it will not be able to strike roots elsewhere.

Let me also share with you some further details to give you a synoptic view of the enormity of efforts undertaken by Pakistan in this regard. Pakistan deploys 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 run by Afghan army, NATO and ISAF is 120. The tribal areas in Pakistan can no longer be called “unpoliced” as there is heavy concentration of troops and paramilitary forces there.

Afghanistan is our important neighbour in the north-west. Geography is not the only factor that binds our two countries together. Our relations are rooted in culture, history, values and traditions. Afghanistan is strategically important for Pakistan.

No country has suffered more than Pakistan on account of the situation in Afghanistan. No country therefore has a greater stake in peace in that country. For the restoration of peace and stability, Pakistan is engaged with Afghanistan on political, military and economic tracks, at bilateral, regional and multilateral levels. Pakistan has all along advocated that military action alone cannot be a solution to the Afghan problem. It has to be complemented by development efforts on a fast track. We believe that any solution to Afghanistan’s problems has to be Afghan-owned and Afghan-led. In this context Afghanistan’s contiguous neighbours have a lead role to play. No solution manufactured outside and imposed on Afghanistan, can work.

The International Conference on Afghanistan, held in London, last month, vindicated Pakistan’s position. At the London Conference, the international community renewed its partnership with Afghanistan and decided to establish the Afghan Reintegration Fund. As a neighbouring country, Pakistan can play a role, in the reconciliation process, in Afghanistan, if called upon to do so.

We are confident that with the help of our friends like China, Pakistan will prevail against terrorism and all that it represents. The people of Pakistan have paid a terrible price for fighting this threat but our resolve is unshaken because we understand better than anyone else that defeat is not an option. This show of determination and commitment by the entire nation is based on five fundamentals i.e. public opinion, media support, Army’s capability and resolve, a comprehensive strategy based on four different phases namely clear, hold, build and transfer.

Ladies and Gentlemen,
Pakistan’s resolve to fight terrorism is strengthened by the fact that the People’s Party government in Pakistan represents the will of the Pakistani nation. When the democratic government took over power in March 2008, Pakistan was confronted with a number of challenges. Foremost priority was to strengthen the nascent democracy and make it sustainable and indeed irreversible. Undeterred by terrorist violence and extremism, we have ensured smooth and peaceful transfer of power. We adopted a policy of harmony and reconciliation. We reached out to our political adversaries and encouraged them to play their due role in the Parliament. We infused a true democratic spirit and a culture of tolerance in our political system.

Today the whole nation is behind the government on major national issues. There is a functioning Parliament, an independent judiciary, a vibrant civil society and a free media all working freely in their respective spheres. The government accommodates and protects legitimate interests of all segments of society.

Ladies and Gentlemen,
Revival of our economy was another demanding task. We had to take some politically unpopular decisions. We developed a home grown economic reform and stabilization program, focusing on domestic resource mobilization, reduction in government expenditures and adoption of growth oriented policies in an innovative manner.

Through these difficult adjustments, we have brought our economy back on track. It is now moving towards sustainability. The government is however not complacent and continues to take concrete measures. To address the power shortage in the country, several dams both small and mega are being constructed. Our Government is planning to invest 30 billion dollars in the power sector upto 2016. Mega project such as Thar Coal Project, Diamer-Basha Dam, Dasu Dam and Bunji Dam projects are going to be launched soon. We are inviting private sector from China to take advantage of these investment opportunities in Pakistan and be a partner in our development.

Ladies and Gentlemen,
The foreign policy objectives of Pakistan are to promote regional and global peace and security. Towards this end, we continue to constructively engage with the US, European Union and other global powers.

We have fraternal relations with Iran. Pakistan favours a peaceful, negotiated and amicable solution of Iran’s nuclear standoff with the West. We are opposed to the use of force, which would further destabilize the already volatile region.

Pakistan Government is seriously working to improve relations with India. We seek peaceful settlement of all outstanding disputes, including the core issue of Jammu and Kashmir. The Prime Minister of Pakistan met Prime Minister Manmohan Singh on the sidelines of the NAM Summit at Sharm-ul-Sheikh in July 2009. They agreed that dialogue is the only way forward. Two countries will be holding a meeting between the two Foreign Secretaries in Delhi on 22 February. We hope that the Composite Dialogue process would resume in the near future.

Ladies and Gentlemen,
The 21st century is the century of Asia. We can observe a seismic shift, in influence, from the Atlantic towards the Pacific or from the US and Europe, to Asia. It is mainly caused by a quantum-leap in China’s national-power. That is accompanied by the economic-power of Japan; the advancements made by East Asian economies as well as the enormous natural resources of Central and South West Asian countries. In view of its geo-strategic location and importance, Pakistan has been correctly described as the ‘fulcrum of Asia’ and would like to place itself, appropriately, in the evolving Asian architecture.

Pakistan attaches a very high level of importance to the ‘Shanghai Cooperation Organization’. This can be judged from the fact that, even as an Observer, we have always attended the SCO meetings at the highest level. Pakistan is keen to upgrade its relations with SCO and play a role commensurate with its geo-strategic status.

Ladies and Gentlemen,
It has been a special pleasure to share my thoughts with the important academics and researchers. Let me conclude by saying that the people of Pakistan will always stand with their Chinese friends as you have always stood with us. We shall together contribute to promoting a harmonious world in the twenty first century.

Long live Pakistan-China friendship!

thak you very much!