important saudi pak relation

Pak-Saudi Relations (1999-2011) 1

PAK-SAUDI RELATIONS (1999-2011)

EDITOR DR NOOR UL HAQ

ASSISTANT EDITOR

MUHAMMAD NAWAZ KHAN

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CONTENTS Preface v

1. Joint Statement of Sultan Bin Abdul Aziz and Nawaz Sharif (May 1999) 1

2. A Write-up on Pak-Saudi Ties 3 3. A Write-up on Pak-Saudi Relations 4 4. Sixth Session of Pakistani – Saudi Joint Commission 6 5. Zafarullah Khan Jamali Visits Saudi Arabia (January 2003) 18 6. Pervez Musharraf Visits Saudi Arabia (June 2003) 19 7. An Important Saudi Visit 24 8. Press Conference by Islamabad-Based Saudi Ambassador 25 9. Zafarullah Khan Jamali Visits Saudi Arabia (May 2004) 28 10. Saudi Ambassador’s Talk on Moderation and Enlightenment

(June 2004) 32 11. Shujaat Hussain Visits Saudi Arabia (July 2004) 33 12. Pak- Saudi Arabia Trade Volume to Double in Two Years 35 13. Shaukat Aziz Addresses Jeddah Economic Forum (February 2005) 37 14. Interview of Shaukat Aziz with Arabic Newspaper Al Eqtisadiyah 45 15. Middle East Issue and OIC Reforms Discussed 47 16. Saudi King Holds Talks with Pakistan 49 17. Accord to Boost Pak-Saudi Cooperation 49 18. Saudi-Pakistani Joint Communiqué (February 2006) 51 19. Crown Prince of Saudi Arabia Visits Pakistan (April 2006) 54 20. Musharraf and Crown Prince Sultan Discuss Trade and Terrorism 55 21. Pakistan, Saudi Arabia Strong Allies against Global Terrorism 56 22. Pakistan, Saudi Arabia Approach OIC Over Israeli Aggression 59 23. Saudi Arabia, Pakistan to Sign New Defence Agreement 59 24. Pakistan, Saudi Arabia to Strengthen Defence, Strategic Ties 60 25. Responding to Terrorist Threat: Perspectives of Saudi Arabia and

Pakistan 62 26. Pervez Musharraf Addresses 19th Arab League Summit in Riyadh

(March 2007) 79 27. Pakistan – Saudi Arabia Bilateral Economic and Commercial

Relations 81 28. Pakistan, Saudi Arabia Enjoy Strong, Close Relations 85 29. Saudi Arabia: Friend, Benefactor, Rescuer 86 30. Saudi Arabia, Pakistan to Forge Closer Trade Ties 87 31. Pakistan-Saudi Arabia Relations 90 32. Saudi Relief for Flood Victims 91 33. Grief of Pakistan is our Grief: Saudi King 92


34. Wikileaks Report on Pak-Saudi Relations Misleading 93 35. Saudi-Pak Imports and Exports 94

IPRI Publication s 96

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PREFACE

Pakistan, ever since its establishment on August 14, 1947, has enjoyed the most cordial relations with the Kingdom of Saudi Arabia. Both countries have always been cooperating in political, economic, commercial, security and religious matters. Frequent visits by leaders of the two countries reflect the warmth, trust and depth of their bilateral relations. The people of Pakistan have a special love and respect for the Haramain Sharifain and their Custodian, King Abdullah Bin Abdul Aziz. Earlier, in 1974, in a demonstration of brotherly concern for Pakistan, King Faisal Shaheed supported the convening of the 2nd Islamic Summit Conference in Lahore, Pakistan.

Pakistan has always shown solidarity with Saudi Arabia and vice versa. There is complete identity of views on regional and international matters, such as Middle East, Iraq, Afghanistan and the problems faced by the Muslim Ummah as well as in matters relating to the Organization of Islamic Conference.

However, in the wake of 9/11 attacks, Pak-Saudi relations needed increased cooperation in combating terrorists who are the enemies of both Islam and humanity. Both countries are being targeted for playing an active role against terrorism. They condemn all acts of terrorism anywhere in the world in all forms and manifestations.

To fight the menace of terrorism globally, it is essential that all nations of the world build mutual trust and harmony. There should be love, reconciliation and concern for human co-existence among the people of the world irrespective of their religion and nationality. This is the real spirit of Islam and all other religions. In fact, Islam as per al-Qur’an ordains “that if one slew a person unless it be for murder or for spreading mischief in the land, it would be as if he slew the whole people. And if any one saved a life, it would be as if he saved the life of the whole people.”1

The IPRI Factfile contains documents, articles, editorials, and joint statements on Pak-Saudi relations which were published by Pakistan’s Ministry of Foreign Affairs, Saudi Embassy or appeared in the media during May 1999 and March 2011.

March 31, 2011 Dr Noor ul Haq

1 Al-Qur’an, 5:23.


JOINT STATEMENT ON THE OFFICIAL VISIT TO PAKISTAN OF HIS ROYAL HIGHNESS SULTAN BIN ABDUL AZIZ SECOND

DEPUTY PREMIER, MINISTER OF DEFENCE & AVIATION AND INSPECTOR GENERAL OF THE KINGDOM OF SAUDI ARABIA

FROM 5-9 MAY 1999 On the kind invitation by H.E. Muhammad Nawaz Sharif, the Prime Minister of the Islamic Republic, His Royal Highness Prince Sultan bin Abdul Aziz, Second Deputy Premier, Minister of Defence & Aviation and Inspector General of the Kingdom of Saudi Arabia paid an official visit to the Islamic Republic of Pakistan from 5-9 May 1999 (corresponding to 19-23 Muharram 1420 AH) with a view to strengthening the fraternal relations existing between Pakistan and the Kingdom of Saudi Arabia. He was accompanied by a high ranking delegation.

Pakistan accorded a very warm welcome to His Royal Highness Prince Sultan which reflected close friendly relations existing between the two counties. This signified the profound affection and high esteem in which the Government and people of Pakistan hold the Kingdom, under the leadership of Khadim AI-Harmain AI-Sharifain King Fahd bin Abdul Aziz, His Royal Highness Crown Prince Abdulah bin Abdul Aziz, His Royal Highness Prince Sultan, and the people of the Kingdom.

His Excellency Mohammad Rafique Tarar, the President received His Royal Highness Prince Sultan bin Abdul Aziz at the Aiwan-e-Sadr. His Royal Highness held talks with His Excellency Muhammad Nawaz Sharif, the Prime Minister in an atmosphere characterized with affection and understanding. The talks covered various fields concerning the bilateral relations, Islamic Ummah and regional and international situation which were attended by delegation accompanying His Royal Highness and from the Pakistan side, some Ministers and high officials.

In the context of bilateral relations, the two sides affirmed their desire to promote, consolidate and cement the relations in various fields, commensurate with the level of political relations. In order to realize this, the two sides resolved to give further push to Pak-Saudi Joint Commission for Economic, Trade and Technical Cooperation to implement the decisions reached during the visit of His Royal Highness Prince Abdullah bin Abdul Aziz, the Crown Prince and Deputy Prime Minister [in October 1998].

His Excellency the Prime Minister commended the achievements by Saudi Arabia and extended his felicitations on the completion of hundred years of the founding of the Kingdom of Saudi Arabia by late King Abdul Aziz. At the same time, His Royal Highness lauded the achievement made by Pakistan in the technological field that brings pride to the Islamic Ummah.

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The two sides affirmed the importance they attach to security and economic well being of each other. They also affirmed the importance of cooperation with other Islamic countries in order to serve and promote interests of the Islamic world in all fields.

As regards the regional and international situation the two sides reviewed matters concerning them and the Islamic Ummah and in this context, exchanged views on issues including Kashmir, the Middle East, Iraq and Kosovo.

With regard to the Kashmir issue, the Saudi side welcomed the resumption of talks between India and Pakistan and lauded the efforts being made by the Prime Minister of Pakistan to resolve all outstanding issues between India and Pakistan. The two sides agreed that realization of peace in the region rests upon the solution of Kashmir issue in accordance with the UN resolutions. As regards the Middle East issue, the two sides agreed that realization of peace in the region depends on the implementation of all relevant international resolutions and relevant agreements and withdrawal of Israel from all occupied Arab territories including the Golan and South Lebanon. They also affirmed their support and assistance for the right of Palestinians to establish their independent state with AI-Quds as its capital.

With regard to the Iraqi issue, the two sides affirmed their commitment to the territorial integrity of Iraq and the need for implementing the relevant Security Council Resolutions and respect for international legitimacy to alleviate the sufferings of the Iraqi people.

On Afghanistan, the two sides affirmed the necessity to preserve the independence, sovereignty and territorial integrity of Afghanistan and to support all efforts aimed at the restoration of a permanent peace in that country.

Concerning Kosovars, they expressed their grave concern at the situation in Kosovo and strongly called for an immediate cessation of the Serb aggression against the Kosovars, withdrawal of Serbian forces, deployment of international peace keeping forces, return of Kosovars to their homes and assistance to them.

His Royal Highness Prince Sultan bin Abdul Aziz thanked His Excellency Muhammad Nawaz Sharif for the warm reception and honour accorded to him and his delegation during the visit. He renewed, on behalf of the Khadim AI-Harmain AI-Sharifain, invitation to His Excellency the Prime Minister to visit the Kingdom which he accepted with thanks. The visit will take place at mutually convenient dates.

Foreign Affairs Pakistan, vol. XXVI, issue IV-VI (April-June 1999): 187-189.


A WRITE-UP ON PAK-SAUDI TIES Islamabad, 22 September 2000 In the contemporary world of today as it enters the new millennium, the brotherly ties between Pakistan and Saudi Arabia based on bedrock of Islamic solidarity provide a model for other nations to emulate. In past fifty three years of Pakistan’s role as an independent ideologically based Islamic state the one nation with which ties have remained brotherly, most cordial and above politics is Saudi Arabia. The founding fathers of the two nations let the basics for this relationship born out of sincerity, mutual admiration and respect dating back to the days of the Pakistan movement following close of the Second World War. Quaid-i-Azam Muhammad Ali Jinnah had begun campaigning for Pakistan after the adoption of the Lahore Resolution in 1940 while Saudi Arabia under the sagacious leadership of King Abdul Aziz Ibn Abdul Rehman Al-Saud was consolidating his rule under the Shariah law in Saudi Arabia.

In 1943 Bengal in British India suffered a famine and the Muslims of Bengal were threatened. The Quaid-i-Azam Muhammad Ali Jinnah launched an appeal for Muslims in Bengal and the first donation of Pounds Sterling 10000/- to reach him from a Muslim head of State was from King Abdual Aziz in 1943. It showed the confidence and trust the Saudi leader had in the honesty and integrity of the Quaid-i-Azam and in the Quaid’s ability to ensure that the relief amount is used judiciously to ameliorate the condition of suffering Muslims in Bengal province. This love and affection for Muslims in the Sub continent and the Pakistan movement was again manifest in 1946 at United Nation in New York. The Pakistan movement delegation sent by Quaid and headed by Mirza Abol Hasan Ispahani, including Begum Jahanara Shah Nawaz was mischievously kept out of the UN portals by the Hindu-dominated Indian delegation and efforts to meet various delegation heads were unsuccessful. Prince Faisal Ibn Abdul Aziz, who was leading the Saudi Arabian delegation to the United Nations came to know of the situation and invited the Pakistan Movement delegation to the official reception by the Saudi Arabian delegation in honour of all other UN delegations at the Waldorf Astoria Hotel. Not only that, Prince Faisal introduced personally to most of the heads of delegations from other countries to the UN meeting, the Pakistan Movement delegation which conveyed energetically the details of the Muslim demand for a homeland in British India and the decision to name it Pakistan. Thus Indian perfidy failed due to Saudi Arabian assistance in the UN.

Saudi Arabia was one of the first among the member nations of the United Nations and the Islamic community to recognize Pakistan when it attainted freedom on August 14, 1947. It was a historic day, in the Holy Harms because it was Jumatual Wida of the month of Ramzan of the Hijra

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year 1366 corresponding to 14th August, 1947 when Pakistan took shape as an independent Islamic state. The Saudis celebrated the occasion with the Pakistani Muslims who had come for the Umrah and who would be staying on in large numbers for Hajj in that year. Thus Pakistan's birth as an independent Islamic nation was twice blessed. It was in the month of Ramzan and on the auspicious day of Jumatual Wida. In Saudi Arabia the congregations at Makkah AI Mukarramah and Madina AI Manawwarah prayed for the solidarity, integrity and prosperity of Pakistan and these included the thousands of pilgrims from Pakistan. When, they left for their journey to the Holy Harams, they knew well that they would return to Pakistan and not British India. It was great feeling. It is also a known fact that Saudis in their individual capacity assisted the Muslim freedom movement in the sub-continent and gave considerable donations to the Muslim League fund because they had equal faith in the indomitable character and strength of conviction of Quaid-i-Azam Mohammed Ali Jinnah. In fact Pakistan and Jinnah were synonymous in the Arab world by the time Pakistan was born.

Over the past fifty-three years [now sixty three-years] ties between Pakistan and Saudi Arabia have progresses from strength to strength, undisturbed by the very frequent changes in governments in Pakistan. The commitment of the Saudi Arabian leadership to Pakistan as a friendly, brotherly Islamic state has been steadfast be it the Kashmir issue, the 1965 war when India aggressed against Pakistan, the 1971 war and Dhaka debacle, the Afghan Jihad of the 80s and the stand taken by Pakistan following its Nuclear tests, in response to the Indian nuclear threat in May 1998, this concern for Pakistan's economic well being and continued progress was especially underlined by the Saudi leadership during the visit to Saudi Arabia in the recent past by General Pervez Musharraf, the Chief Executive of Pakistan. He went to Saudi Arabia to convey to the Saudi leadership the reasons for the internal change in Pakistan and secure Saudi-Arabian support for Pakistan in its new efforts for economic recovery and he got that support from Khadim Al Harmain King Fahd, Crown Price HRH Abdullah and Defence Minister HRH Price Sultan.

Foreign Affairs Pakistan, vol. XXVII, issue IX-X (September-October 2000):200-202.

A WRITE-UP ON PAK-SAUDI RELATIONS Islamabad, 23 December 2000 Pakistan and Saudi Arabia are bound by unshakeable historical ties, having its seeds embedded in the strong Islamic and spiritual knot which bind these two important states of the Muslim Ummah.

Late king Abdul Aziz always kept himself abreast with the freedom struggle of the Muslims of the subcontinent under the dynamic leadership of


the Quaid and founder Muhammad Ali Jinnah. Very few people in the Subcontinent now recollect the visit of late King

Saud bin Abdul Aziz to Bombay and Karachi in April 1940 when he was crown prince.

He was warmly welcomed by the leaders of the Muslim League in Bombay at that time including Mr. M.A.H. Ispahani, M.A. Maniar and Mr. Karim Bhai Ibrahim and the Arab merchants settled there and doing business and by the large Muslim community. Most of these Arab merchants later opted to shift to Pakistan after partition.

The visit of Crown Prince Saud along with a large delegation and five of his brothers, Faisal, Saad, Fahd Mansoor and Abdullah was a landmark visit which was covered extensively in the Arabic weekly newsletter "AI-Arab" in its 1940 issues.

Upon his return to the Kingdom, King Saud had given a full resume to King Abdul Aziz about the Muslim struggle for a separate homeland and how the Muslims were fighting on two fronts i.e. against the British and the Hindus.

Saudi Arabia was one of the first and foremost countries to recognize Pakistan as soon as independence was declared.

Nearly all of the Saudi leaders have visited Pakistan and vice versa, as State guests since the inception of Pakistan, as also ministers, high officials, ministerial and military delegations, businessmen, traders etc. with a view to enhance cooperation with Pakistan. King Saud visited Pakistan in 1954 as State guest when Mr. Ghulam Muhammad was the Governor General. In fact Saudabad town in Karachi is named after late King Saud who laid the foundation stone of this Housing Scheme.

Shaheed King Faisal visited Pakistan in 1966 at the invitation of late Field Marshal Mohammad Ayub Khan, the then President of Pakistan. A tumultuous welcome was accorded to King Faisal in Karachi, Lahore, Rawalpindi, Islamabad and Peshawar.

The city of layallpur was named as Faislabad after the late King Faisal. The road from the airport to the city in Karachi is named Shahrah-e-Faisal whereas the PAF base at Shahrah-e-Faisal is named Faisal Base, which is a tribute to the late King an a manifestation of the high regard and extreme love the people of Pakistan behold for this scion of the Muslim Ummah.

In the year 1967-68, late King Khalid as Crown Prince visited Pakistan and enjoyed some hunting in Bahawalpur area of Pakistan; whereas Prince Sultan bin Abdul Aziz, the Minister of Defence and Aviation paid an official visit to Pakistan in 1968, during which a Defence cooperation Protocol was signed between the two countries. His young son Prince Bandar bin Sultan bin Abdul Aziz also accompanied his father.

Saudi Cooperation, goodwill and common sentiments reached its peak when King Faisal Shaheed chose to hold the 2nd Islamic Summit Conference

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in the historic city of Lahore in February 1974. A galaxy of leaders, kings, heads of state and presidents from the Islamic World gathered in Lahore and honoured Pakistan with their presence displaying solidity of Muslims Ummah. This in itself was a unique honour for Pakistan, its people and leadership.

King Faisal is known to have opened the doors of the Kingdom for the Pakistani manpower during the oil boom in the seventies, which witnessed a massive surge of Pakistani skilled and unskilled labour force in the thousands, reaching the Kingdom of Saudi Arabia.

They sincerely and actively participated in the huge development works in the Kingdom, particularly the extensive expansion works of the holy shrines in Makkah and Madina. Even today no less than half a million Pakistanis are working in the Kingdom and giving their due share in the Kingdom’s uplift project and thus transferring valuable foreign exchange back to Pakistan.

A glorious example of Saudi-Pakistani amity and affection is the Grand Faisal Mosque in Islamabad, which stands as a symbol of everlasting Pak-Saudi brotherhood. Late King Khalid had as a gesture of goodwill ordered building of this masterpiece and allocated 35 Million Dollars for this project that was later raised to US $ 55 Million. Other Saudis have also magnanimously participated in several welfare projects in Pakistan, which have added to the love, goodwill and affection which bind the two brotherly countries.

The Pak-Saudi Industrial and Investment Co. Ltd, with its headquarters in Islamabad is also another feature of the growing cooperation between the two countries in the economic field. It has a paid up capital of over 2 billion rupees, its prime object being to promote efficient flow of finance in the industrial sector in Pakistan.

Foreign Affairs Pakistan, vol. XXVIII, issue 1-2 (January- February 2001): 121-123.

SIXTH SESSION OF PAKISTANI–SAUDI JOINT COMMISSION Riyadh: 31 January 2001 Within the Framework of the Islamic brotherhood and friendly relations between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, and under Article (8) of the Agreement on Economic, Trade and Technical concluded between both countries, the Pakistani-Saudi Joint Commission held its Sixth Session at the ministerial level in Riyadh during the period 5-6 Dul Qa'dah 1421 H, corresponding to 30-31 January 2001. His Excellency Osama Bin Ja'far Faqeeh, the Minister of Commerce headed the Saudi delegation, while His Excellency Shaukat Aziz, Minister of Finance and Economic Affairs, headed the Pakistani delegation. The Session was also attended by members of both delegations and elite of businessmen representing the private sectors in both countries.

H.E. the Minister of Finance and Economic Affairs called on the


Custodian of the two Holy Mosques King Fahad Bin Abdulaziz and also called on HRH Crown Prince Abdullah Bin Abdulaziz Deputy Premier and Head of the National Guard. H.E. the Minister also met with a number of H.E. Ministers and senior Saudi officials.

In his opening speech, His Excellency Osama bin Ja'far Faqeeh, the Saudi Minister of Commerce, welcomed His Excellency Shaukat Aziz, Minister of Finance and Economic Affairs, the Head of the Pakistani side and the accompanying delegation. His Excellency underscored the historical, deeply-rooted ties bonding the two countries together, stressing the importance of the role of the joint commission in enhancing the mutual bilateral relations between them, developing of mechanisms of mutual cooperation, and prodding horizon in such a manner that will anchor the foundations of a true partnership, enhance mutual benefits of both countries in various areas, and contribute to maintaining their common interests.

In turn His Excellency Shaukat Aziz, head of the Pakistani side, expressed his gratitude for the hospitality and warm welcome he and his delegation was accorded. He commended the Kingdom's achievements under the aegis of the Custodian of the two Holy Mosques King Fahad bin Abdulaziz. His Excellency also stated that Pakistan was desirous to enhance its bilateral cooperation with the Kingdom of Saudi Arabia in all areas, particularly economic cooperation and trade exchanges, as well as setting up joint investment ventures which represent an important instrument in achieving mutual benefits for both countries. His Excellency also pointed out the importance of making use of the opportunities and potentials available to both countries, thus extending mutual cooperation to a new horizon that should be commensurate with the aspirations of both countries and their sagacious leaderships. He also underscored the important role entrusted to the private sector in both countries to translate such opportunities into fruitful realities that will serve the best interested of both countries.

The two sides agreed to form the following sub-committees:

1. on Trade, Economic and Investment Cooperation. 2. on Transport, Communication, Agriculture, and Standards

Cooperation. 3. on Scientific, Technical, Cultural, Youth and Sports Cooperation. 4. Businessmen Sub-Committee.

Following is a summary of the results of the deliberations of the above sub-committees:

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I. Sub-Committee on Trade, Economic and Investment Cooperation: A) Trade

1. Both sides reviewed the bilateral-trade volume since the 5th Session of the Saudi-Pakistani Joint Commission convened during the period 23-24 Shaban 1418 H corresponding to 23-24 December 1997. They stressed on the importance of enhancing and promoting their bilateral-trade, both in terms of quality and quantity, to make it commensurate with the large potentials available in both countries. They also agreed on exerting their best efforts to increase and expand the scope of trade cooperation between the private firms in both countries. The Pakistani side suggested, to enhance cooperation in number of fields, such as Information Technology, services, food products (rice, fishes, fruit and vegetables), jewelry, precious and semi precious stones, auto parts, textile, garments and marble.

2. The two sides also stressed the importance of invigorating the role of the Saudi-Pakistani Business Council, with a view to promote and strengthen their trade relations, and to contribute to the solving of any dispute cases that may arise among businessmen in both countries amicably.

3. The two side agreed to provide whatever facilities necessary to exchange visits by businessmen and industrialists through Chambers of Commerce and Export Promotion Centers in both countries. Pakistani side emphasized the need of facilitation in visa procedure. The Saudi side agreed to examine facilitation of registration in Saudi Arabia of Pakistan's made surgical instruments as per Saudi rules.

4. To pursue development of trade relations through all effective means possible, particularly through the exchange of visits by trade delegations from both countries, setting up fairs and exhibitions to introduce products of both countries in accordance with established laws and provision of all necessary facilities, to this end. The aim should be to have an effective level of frequency.

5. Both sides noted the coordination and cooperation that exist between the two countries concerning the Kingdom's pursuit to accede to the World Trade Organization and the Pakistani support that is manifested in signing of a bilateral market access agreement. They also expressed their conviction that the Kingdom's accession to WTO will be beneficial to both countries and in the best interest of all member countries as well. Both sides also confirmed their countries' resolve to continue working together within the framework of the working party and to pursue negotiations in Geneva towards an early accession of the Kingdom to the WTO with mutually beneficial package of rights and obligations.


6. The Saudi side called upon the Pakistani side to remove the customs duties and difficulties imposed on certain products, such as Saudi glass products. The Pakistani side explained that there were no customs preferential treatments adding that the tariff imposed on glass products was reduced to 35% and further reduction is planned.

7. Both side expressed the necessity and significance of having an agreement for investment protection and encouragement. In this regard, the Saudi side submitted draft agreement on investment promotion and encouragement to be reviewed and negotiated between both countries. The Pakistani side welcomed this step.

8. The Saudi side enquired as to what steps and measures have been taken to settle the dues of the Saudi-Pakistani Company for Industrial and Agricultural Investments and some Saudi investors which are payable by some Pakistani investors. The Pakistani side explained that they are presently modifying deficiencies in some of their laws which will speed up solution of such disputes.

9. The two sides stressed the important role that the banking sector plays in the development of trade, and agreed to urge the commercial banks in both countries to facilitate cooperative efforts among themselves in this connection, realizing that it was essential to adopt effective instruments to achieve this goal.

10. Both sides stressed the importance of acquainting the private sector in both countries with the activities of the Islamic Development Bank in order to maximize utilization of the different programs and mechanisms of trade finance and export guarantees provided to the member countries.

11. Both sides agreed on the importance of establishing direct contacts between the customs authorities in both countries to improve and facilitate import/export procedures.

12. Due to the importance of energy sector in the bilateral trade and economic relations, both sides called for the encouragement of concerned firms in the two countries to cooperate in this area.

13. Both sides stressed the importance of the expansion of their mutual cooperation in the water and electricity sectors, and agreed to exchange information and experience in load management, particularly during peak hours, power generation, and protection of environment from wastes resulting from power generation.

14. Both sides called upon each other to exchange information and statistics relating to economic development in both countries.

15. The two sides underscored the importance of mutual coordination in the activities in the international organizations in a manner that will serve their common interests.

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B) Industry and Investment

1. Recognizing the importance of the role of the industry in the development of the bilateral economic relations, both sides agreed to encourage manufacturers in both countries to set up cooperative ventures of common interest, especially in the following areas: cement, chemicals, fertilizers, Industrial fibers, paper products, chemicals and petrochemicals, electronics, food processing, sugar, agro-industries, rugs, textiles, shipbuilding, information technology, fish and fish products, jewelry, precious stones, petroleum and gas sectors.

2. The two sides agreed to encourage and urge firms and industrialists in both countries to enter into joint investment ventures and to explore the possibility of establishing joint ventures in both and third countries, wherever production factors are available at economical costs.

C) Tourism Industry

Both sides stressed the importance of their cooperation in the tourism sector and agreed to call upon specialist firms and companies to familiarize themselves with the available investment opportunities. D) Petroleum

The Pakistani side offered investment opportunities in the field of Petroleum and Gas sector in the up-stream and down-stream side of the industry and invited the Saudi side to invest in these areas.

The Saudi side stated that investment in the up-stream phase in Pakistan can be discussed with the Saudi Private Sector, whereas investment in the down stream phase in Pakistan can be discussed directly with Saudi Aramco. The Saudi side agreed to convey this offer to the private sector to examine such a proposal. E) Privatisation

The Saudi side stated that the 7th Development plan of the Kingdom emphasized that privatization constitutes an important element of the long term strategy of the Kingdom of Saudi Arabia with a view to enhance opportunities available to the private sector. The Pakistani side responded that Pakistan has a long experience in the privatization, namely in such sectors as energy, communications and electricity. The Pakistani side offered Pakistan's experience for the Saudi side to make use of it. The Saudi side welcomed this offer. The Pakistani side mentioned that there were excellent investment opportunities in Pakistan's privatization program. Saudi side agreed to notify the private sector about these opportunities.


11. Sub-Committee on Transport, Communications, Agriculture, and Standards Cooperation: A) Transportation

1. The Saudi side requested information from the Pakistani side regarding the programs and plans for equipment maintenance and marine inspection systems followed in Pakistan. The Pakistani side apprised the Saudi side that the facilities for shipbuilding and repair exist in Karachi Shipyard. Specific information in this regard will be provided.

2. The Pakistani side welcomed the Saudi request for allocating certain number of seats for Saudi trainees in the railway transport area, and training Saudi engineers in the areas of upgrading telecommunication and signal systems, and technologies of manufacturing of spare parts for diesel-driven equipment, whether in Saudi Arabia or in Pakistan.

3. The Pakistani side offered four (4) scholarships annually for the personnel of the Saudi Railroad Organization provided that the Saudi side will bear the expenses incurred in relation to the travel, accommodation and training.

4. The Saudi side desired to benefit from Pakistani experience in railway network and suggested making use of the Pakistani experience in this field. The Pakistani side expressed the desire to participate in the projects to be set up by the Saudi Railroad Organization in the Kingdom as well as in the maintenance and overhauling of the railway coaches/wagons.

B) Telecommunications

1. Both sides agreed to establish direct contacts between authorities concerned in both countries to exchange information in the area of telecommunications, and to coordinate their stands in the international organizations.

2. The two sides agreed on the importance of increasing number of telephone circuits during the Hajj season with a view to lessen the utilization of circuits of indirect telephone calls by the addition of 300 international circuits.

3. The Pakistani side assured that, as before, necessary arrangements were in place to cater for any increased demand of telephone circuits for Hajj season.

4. Both sides called on the firms concerned in both countries to establish joint ventures in the telecommunications area in both countries and third Islamic countries as well.

5. Both sides agreed to promote the service of mobile telephone sets between the two countries. The newly established Pakistani mobile phone Company, U-Phone will contact Saudi Telecom for entering into a

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roaming agreement while PTCL will consider facilitating interconnectivity. 6. The Pakistani side offered 5-10 training scholarship annually in favor of

the personnel of Telecommunications, provided that the Saudi side will bear the expenses incurred in relation to travel, accommodation and training.

C) Postal

1. The two sides committed to send the international accounts and documentation thereof during the formal period as set by the International Post Agreement.

2. The two sides agreed on the importance of preparing complete international accounts for each individual period, in accordance with the provisions of the Agreement of the International Postal Union, regarding postal weights and claims.

3. Both sides also agreed on the importance of paying due amounts and responding to enquiries regarding lost registered materials, postal parcels and express mail, within the formal timeframe, without any delay.

4. The Pakistani side agreed to provide two (2) scholarships in each training course in the Pakistani Postal Academy, for eight (8) courses annually, provided the Saudi side bears the cost of air travel.

5. The Pakistani side expressed its desire in having the Saudi Post make use of the services of the Pakistani Security Press in printing postal stamps. The Pakistani side also offered to share its experience in the area of mail sorting and computerization.

6. The Saudi side expressed its desire that postal consignments be dispatched to the three main exchange offices (Riyadh-Jeddah-Dammam). The Pakistani side will consider the Saudi request.

7. Both sides confirmed the continued cooperation between the two departments, to solve outstanding issue.

8. The Pakistani side confirmed that Parcel Post Accounts for the first and second quarters for 2000 will be settled by the end of February 2001.

D) Agriculture

1. The Saudi side requested the Pakistani side to provide information on Pakistani programs on agricultural and veterinarian training centers, as well as information relevant to agricultural research in areas such as agricultural crops, vegetable and agricultural quarantines, and camels. The Pakistani side informed that above information were forwarded however, the copies of the same would be forwarded again.

2. Cooperation to overcome odours from poultry farms, to maximize the benefit from low-value feeders, and to lower costs of sheep breeding. The Pakistani side informed that a protocol of collaboration in this field could


be developed after results of trials of use of EM technology. 3. The Saudi side proposed cooperation in use of modern technologies in the

area of animal health. The Pakistani side desired that diseases for which diagnostic facilities are required may be indicated by Saudi authorities.

4. The Saudi side expressed its interest in availing two to six week short-term courses in veterinary and animal health. The Pakistani side will provide information about this request.

5. The two sides agreed to exchange visit of experts, to share their experience and research, in the field of desertification, desalination, brackish water and livestock management.

E) Cooperation in Security, Passport, and Drug Prevention Areas

The Saudi side expressed its desire to cooperate with the Pakistani side in the following fields: 1. To spread awareness among its citizens with a view to limit non-

compliance with the Saudi residence law on the part of Pakistani citizens. 2. To instruct their representations in the Kingdom not to issue any travel

documents to their citizens unless they present the necessary relevant documents that would testify to the fact that made the necessary formal calls on the Saudi authorities concerned, and they are abiding by the Saudi laws. Furthermore, no amendments in the Pakistani passports will be made prior to affixing the seal and the necessary authentication of the Embassy concerned.

3. To enhance cooperation to prevent drug trafficking and set plans and timetables to eradicate drug sources, and intensity orientation and awareness programs to introduce the Saudi punitive measures that await traffickers.

4. To cooperate and ensure the validity and authentication of travel documentation and visas issued to their citizens entering Saudi Arabia and that such documents are free from any imitation, forfeiture or forgery.

5. To continue the renewal of those passports issued to Barmawin [an Arab Tribe] by the Pakistani side, so that they will be able to obtain their further information thereon when necessary.

6. To exchange drivers licensing form duly applicable and authorized in both countries for ready reference and to obtain further information thereon when necessary. The Pakistani side took notes of these wishes and promised to convey it to the concerned authorities.

F) Standards and Measurements

Both sides agreed to cooperate in following areas: 1. To prepare standard specifications for goods exchanged between the two

countries, and to ensure that they are consistent with regional and

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international standards. 2. To cooperate in the area of certification of conformity with standards and

quality control systems. 3. To exchange information in the area of standards and lab-related activities. 4. To train Saudi personnel on the use of testing equipment. 5. The Pakistani side would consider and respond to earlier proposed

programme of technical cooperation between SASO and Pakistan Standard Institute.

III. Sub-Committee on Scientific, Technical, Cultural, Youth and Sports Cooperation: A) Scientific, Technical and Cultural Areas

The two sides expressed their satisfaction with the mutual cooperation in the Scientific, Technical, and existing Cultural areas, and agreed to increase cooperation through the following means, 1. The Pakistani side welcomed the Saudi decision to allocate ten (10)

scholarships for Pakistani students at King Saud University and Imam Mohammad Bin Saud Islamic University.

2. The Saudi side requested the Pakistani side to increase the number of seats allocated for Saudi medical students from (30) to (40), with a preparatory year during which they could study English besides other medicine-related preparatory scientific subjects. The Saudi side requested that such an arrangement should be within grants program, and that Saudi students be nominated and equally allocated among the following faculties of medicine: King Edward Medical College in Lahore, Allama Iqbal in Lahore, Rawalpindi Medical College in Rawalpindi, Andrew in Karachi, and Sindh Medical College in Karachi, and that the Saudi Embassy be accordingly notified in good time of their admissions, to enable the students to obtain the necessary visas to study in Pakistan and get ready to start their courses on time. The Pakistani side responded regarding the increase in the number of Saudi medicine students in the Pakistani Universities that they will seek to fulfill this desire within the currently applicable arrangements. As regards the preparatory year to study the English language at the faculties of medicine side by side with other relevant scientific subjects, the Pakistani side advised that such an arrangement requires allocation of funds. Therefore, they suggested that English language be studied through a course at the National University for Modem languages in Islamabad, or alternatively through organizing specialized course to be offered by Pakistani schools in the Kingdom.

3. With respect to the Saudi request to be granted a plot of land of about 5000 square meters in the DQ to construct the Saudi School in Islamabad,


The Pakistani responded that this request is receiving full attention and care and the Saudi side will be informed soon accordingly.

4. The two sides stressed the importance to exchange information on the equalization of academic certificates and University degrees for the purpose of mutual recognition in accordance with established rules and regulations in force in both countries.

5. The two sides stressed the importance of encouraging cooperation between universities in both countries in the area of scientific research, and exchange of knowledge, experiences and visits among officials and professors.

6. Both sides also agreed to cooperate in the area of teaching Arabic language to the extent allowed by available resources.

7. Both sides agreed to facilitate access to rare manuscripts by specialists in both countries.

8. Both sides agreed to exchange visits and scientific and technical information among specialists in such areas as science, technology and scientific research.

9. Facilitation of procedures on granting residence permits to Saudi students attending Pakistani Universities.

10. Organizing book exhibitions and academic cultural days, and exchanging books periodicals and university publications.

11. Both side agreed to cooperate in the field of information technology particularly in development of software, recruitment of information technology Pakistani professionals to work in the Kingdom and training of computer engineers in Pakistan.

12. The two sides agreed to exchange technical experts in information technology (hardware and software development).

13. The two sides stressed the importance of cooperation in the following areas:

• Petroleum and petrochemical research, i.e. conversion of LPG to useful hydrocarbons.

• Natural and environmental resources research. • Solar energy research. • Seismographic research. • Hormonology virology and contagious diseases. • Prevention from radiation and environmental radiation. • Development and improvement of material characteristics by

radiology and radiotherapy. • Exchange of experience in the management and research grants

programs.

16 IPRI Factfile

B) Health

1. The Saudi side stated that the Saudi Ministry of Health has employed a number of Pakistani health care specialists and would like to enhance cooperation in this sphere. The Pakistani side promised to finalize their departure procedures as soon as possible.

2. The Saudi side stressed interest in recruiting female specialists in certain trades (physiotherapists lab technicians and obstetricians) with good command of English language.

3. The Pakistani side expressed readiness to provide the necessary training to such cadres as x-ray technicians, dentist assistants and physicians. The Saudi side requested detailed information about such training programs.

C) Sports and Youth

Both sides stressed the importance of promoting cultural relation between the two countries, based on the historical and cultural ties that bind the two peoples together. They agreed to make efforts to increase the exchange of cooperative programs among sports and youth institutions and federations as well as the exchange of documents, audio-visuals, and to exchange experiences in this field. In this connection the Pakistani side expressed interest in discussing the possibility of signing either an agreement or memorandum of understanding in the area of sport. D) Information

To make efforts to strengthen information relations between the two countries both sides agreed on the following:-

1. To enhance cooperation between the news agencies in both countries in such areas as exchange of news and coverage of important events.

2. To encourage the exchange of visits among information officials and journalists in both countries, and to draw up appropriate programs that would help create close cooperation between the press and release of factual stories and truths to the two peoples.

3. To make use of such important events as national days, sports events and conferences convened in both countries and encourage participation of journalists and reporters in such activities, and to broadcast appropriate programs, especially during the Hajj period.

4. To facilitate the circulation of books and newspapers published in either country.

5. To encourage the exchange of and training in information and press areas in both countries.

6. To exchange T.V. programs and messages for the purpose of broadcasting.


E) Hajj & Umrah

1. The Saudi side stressed the importance of spreading awareness and orientation among Pakistani Hajjis and Umrah performers and keeping them informed as to the detailed rites of Hajj and Umrah via information audio-visuals.

2. The Saudi side requested that the Pakistani side to provide a list of Pakistani tourist and travel agencies authorized to organize Umrah visits and the Pakistani side will provide the Saudi side with the requested list. The Saudi side explained the new Umrah regulation.

F) Islamic Affairs

Both sides agreed to the following: 1. Cooperation in activities of Islamic Dawah and facilitate participation in

seminars and conferences held from time to time in both countries. 2. Cooperation between Islamic research centers and exchange of Islamic

materials between to two countries.

IV. Businessmen Sub-Committee

The two sides reviewed the minutes of the meeting held by businessmen concurrently with the preparatory meeting of the 6th Session of the Saudi-Pakistani Joint Commission. Both sides expressed their satisfaction with the recommendations contained therein, confirming their support to the enhancement of trade exchange, in terms of both quality and quantity, and to the setting up of joint investment ventures with a view to achieve mutual benefits and serve the best interests of both brotherly countries.

At the conclusion of the 6th Session of the Pakistani-Saudi Joint Commission, the two sides commended the brotherly spirit that prevailed in the meetings, which underscored the depth of the historical relations between the two countries and the role played by the Joint Commission in strengthening these relations.

Both sides also agreed to convene the 7th Session of the Pakistani-Saudi Joint Commission in Islamabad on a date to be agreed later in consultation between both sides.

Done in Riyadh on Wednesday, 6 Dul Qa'adj I, and 1421 H corresponding to 31 January 2001.

For the Saudi side For the Pakistani side Sd. Sd. Osama Bin Jaafar Faqeeh Shautkat Aziz Minister of Commerce Minister of Finance and Economic Affairs.

Foreign Affairs Pakistan, vol. XXVIII, issue 1-2 (January- February 2001): 136-154.

18 IPRI Factfile

A REPORT ON PRIME MINISTER JAMALI’S OFFICIAL VISIT TO SAUDI ARABIA; 3 JANUARY 2003

Prime Minister Mir Zafarullah Khan Jamali returned here Friday from Madinah, after a five-day official visit to Saudi Arabia. He was received at the airport among others by Federal Information and Media Development Minister Shaikh Rashid Ahmad, Foreign Minister Main Khurshid Mahmood Kasuri, Federal Minister for Labour and Manpower Abdul Sattar Laleka, Balochistan Chief Minister Jam Muhammad Yousuf, Advisor to the Prime Minister Fateh Ali Umrani, besides high officials.

My visit to Saudi Arabia was extremely useful and fruitful, and it would help contribute towards strengthening of the already close, cordial and strategic relations between the two brotherly relations, the Prime Minister said in an arrival statement.

During his visit, the Prime Minister said he held meetings with Khadim Al Sharifain King Fahd bin Abdul Aziz Al Saud to whom he conveyed good wishes on his behalf and on behalf of the countrymen, he said, he conveyed full solidarity of Pakistan with Saudi Arabia .and the Saudi monarch appreciated the sentiments of solidarity and responded that Saudi Arabia was proud of its ties with Pakistan.

He said there was complete identity of views in his meeting with Crown Prince Abdullah bin Abdul Aziz al-Saud. "I discussed with him the situation pertaining to Middle East, Iraq, Afghanistan and matters relating to OIC", he added.

The Prime Minister said he also briefed the Crown Prince on the current relations with India and pointed out the need for early resolution of the core issue of Kashmir. He appreciated the high level contact between Saudi Arabia and Pakistan that provides an extremely useful opportunity for exchange of views and coordinate action on important current issues.

The Prime Minister said that during the banquet hosted by the Crown Prince, he had the opportunity of also meeting a large number Royal family members and cabinet ministers.

He said, his Royal Highness Prince Khalid bin Sultan, Deputy Minister for Defence, Dr. Ibrahim Abdul Aziz Abdullah AI-Assaf, Minister for Finance and National Economy and Engineer Ali bin Ibrahim AI- Noaimi, Minister of Petroleum and Mineral Resources called on him separately.

During these meetings, he said, "we discussed specific subjects pertaining to their portfolios and their response was encouraging.” The Prime Minister said he addressed representatives, groups of Pakistani community members in Riyadh, Jeddah and Madinah AI-Munawwarah. "I informed them of the political change in government and assured them to provide all assistance to them within rules and regulations and the limitations of our


resources. I also requested them to work for the greater glory of Pakistan and eschew political polarization."

During his visit, the Prime Minister said, "I also had the great honour of performing Umrah and visit Madinah AI-Munawwarah for ziarat at the Masjid-e-Nabvi Sharif." The visit to Saudi Arabia, he said, was extremely useful and would positively contribute to our already close, cordial and strategic relationship.

Earlier, the Prime Minister was warmly seen off at the Madinah Muhawwara international airport among others by the Governor of Madinah Prince Maqran bin Abdul Aziz AI-Saud, Pakistan Ambassador in Riyadh Rear Admiral (Retd) Abdul Aziz Mirza, Consul General Tahir Iqbal Butt, High Saudi officials and elite of area, besides members of Pakistani community.

Earlier in the day, Prime Minister Mir Zafarullah Khan Jamali and members of his entourage offered Jumma prayers at Riyadul Jannah in Masjid-e-Nabavi.

The Prime Minister offered special prayers for the glory of Islam, unity of Ummah, progress and prosperity of Pakistan and for the well being of the people. In an earlier interview with "The Arab News" the Prime Minister described his visit "successful and rewarding", expressing the hope that the already cordial and special relationship between both the countries would strengthen further.

He referred to the close ties between Pakistan and Saudi Arabia and noted that both the countries had identical views on almost all international issues and the problems being faced by the Muslim world. The Prime Minister hoped that his visit to the Holy Land would further cement the already close brotherly relations between the two countries.

The brief entourage accompanying the Prime Minister included Petroleum and Natural Resources Minister Nauriz Shakoor Khan, Special Assistant to the PM Brig (Retd) Mansoor Hamid, Advisor to the Prime Minister on Finance Shaukat Aziz, Information Secretary Syed Anwar Mahmood and Foreign Secretary Riaz Khokhar.

Foreign Affairs Pakistan, vol. XXX, issue I (January-February 2003): 102-104.

VISIT OF PRESIDENT GENERAL PERVEZ MUSHARRAF TO

SAUDI ARABIA: 11-13 JUNE 2003 Meeting with Crown Prince Abdullah

Pakistan and Saudi Arabia on Wednesday agreed to closely work and cooperate in combating the menace of international terrorism. The consensus was reached here at a meeting between President Gen. Pervez Musharraf and Crown Prince Abdullah bin Abdul Aziz here at the Crown Prince Palace. The

20 IPRI Factfile

one-hour meeting between the two sides started soon after President Musharraf arrived on a daylong official visit to Saudi Arabia.

During the meeting President Musharraf and Crown Prince Abdullah agreed that the two brotherly countries must closely work and cooperate in combating terrorism which they termed a menace in the region. The Crown Prince and the President also exchanged views on bilateral relations between Pakistan and Saudi Arabia.

During the talks the Crown Prince and Abdullah bin Abdul Aziz described the relations between the two countries as "excellent, brotherly and solid." The relations were so good that we need not talk about it, the Crown Prince remarked. The president and the Crown Prince also discussed developments in the Middle East and the South Asia region.

President Musharraf briefed the Crown Prince about the latest developments in the Pakistan-India relations and the steps taken by it to defuse tension in the region.

The President underlined that Pakistan remained committed to dialogue and expressed the hope that India would positively reciprocate and engage in sincere and constructive talks with Pakistan.

President Musharraf also briefed the Crown Prince on the situation in Afghanistan and reiterated Pakistan's determination to combat international terrorism.

He conveyed goodwill gestures for the brotherly people and country of Saudi Arabia from the people of Pakistan. He expressed his heartfelt condolence over the tragic loss of life in the recent terrorist attack in Riyadh. Foreign Secretary Riaz A Khokhar assisted the Pakistani delegation during the talks. Interview to Daily 'OKAZ'

President Gen. Pervez Musharraf said Pakistan wants a peaceful and just resolution of the Kashmir dispute and hoped similar spirit will prevail in India to achieve lasting peace in South Asia.

In an interview to a Saudi daily 'Okaz', the President reaffirmed Pakistan's position on the long-running dispute which calls for a peaceful and just resolution to the Kashmir dispute, which is in accordance with the wishes of the people of Kashmir as mandated in the relevant UN Security Council resolutions.

"Pakistan has always emphasized the necessity of a meaningful and constructive dialogue to resolve the Kashmir dispute," said the President.

The President said Pakistan welcomed Indian Prime Minister Atal Bihari Vajpayee's recent offer of dialogue to settle all outstanding disputes including Jammu and Kashmir. "We are and will remain optimistic about achieving a negotiated settlement to the dispute," he said and hoped that "a similar spirit


will eventually prevail on the other side and we will make progress towards a lasting peace in South Asia."

Responding to a question, President Musharraf described the latest initiative for talks with India as a positive development which followed nearly 17 months of high tension between the two countries.

He recalled that the standoff also witnessed one of the biggest deployments of troops by New Delhi along the international border as well as the Line of Control (LoC).

The President said as a first step the two countries have already announced the appointment of their respective High Commissioners. Similarly, he said, the bus service is scheduled to start shortly which would soon be followed by the resumption of all severed air and rail links. "We are also looking forward to the restoration of full diplomatic contacts leading to a meaningful and result-oriented dialogue with India," the President added.

The President said although the two countries did not enjoy the best of relations "at least we have agreed to talk to each other and hopefully we will gradually move forward with time".

Regarding Pakistan's stand on Kashmir issue the President reiterated that Jammu and Kashmir was a disputed territory and recognized as such by the United Nations. India had placed the Kashmir dispute before the UN Security Council, he added. The principles for the settlement of the dispute embodied in the relevant UN Security Council resolutions expressly state that the final disposition of the State of Jammu and Kashmir will be in accordance with the will of the people expressed through the democratic method of a free and impartial plebiscite," said the President.

He said the Indian leadership had also solemnly declared that the people of the State would decide the final status of Jammu and Kashmir, however, India soon reneged on its commitment and has since then refused to implement the Security Council resolutions.

The President said in 1989, following decades of repression by India, Kashmiri people renewed their indigenous struggle for self determination, which India tried to put down with brutal use of force. "The Kashmiri people were, therefore, left with no option but to take up arms in their legitimate struggle for their right of self-determination," he added.

He said terming the just struggle of the Kashmiri people as "cross-border terrorism" is nothing but a dishonest portrayal of facts. "The Kashmiri struggle is indigenous. No freedom movement that has touched millions could be sustained by mere outside support," he added.

President General Pervez Musharraf while responding to a question said Pakistan and Saudi Arabia had always worked together to combat terrorism and the relevant agencies of both sides were in constant contact to render mutual assistance. "Pakistan condemns all acts of terrorism anywhere in the world in all its forms and manifestation. We fully support the Government of

22 IPRI Factfile

Saudi Arabia in its endeavor to root out terrorism from the country's soil," he added.

The President, to a question, stated that no Saudi national linked with al-Qaeda was presently being held by Pakistan government. "Both Pakistan and Saudi Arabia are confronted with the challenges of terrorism. Pakistan and Kingdom of Saudi Arabia have excellent co-operation in the field of counter-terrorism and both are resolved to combat this menace," he added.

He said Pakistan’s decision to support the international coalition against terrorism was taken in the country's own national interest. Pakistan, he said, itself had been a victim of terrorism and its efforts to rid the society of the menace predated the events of September 11.

The President referred to the acts of terrorism which targeted Pakistan for its role to fight out this menace.

"Pakistan has been targeted for playing an active role against terrorism," he said, adding, "however these cowardly acts have only strengthened our demonstrated resolve to combat terrorism in all its forms and manifestations".

He expressed the country's determination to confront this menace and stated that Pakistan's policy against terrorism would continue with vigour.

On the Middle East crisis, the President said, Pakistan has consistently supported the inalienable Palestinian rights to nationhood, with Al-Ouds AI-Sharif as its capital and for the full implementation of UNSC Resolution 242 and 338, which call for complete withdrawal of Israeli forces from occupied Arab territories.

"We have also consistently maintained that the only way to ensure lasting peace is through resumption of purposeful negotiations leading to a comprehensive, just and durable peaceful settlement," he added.

He said, Pakistan has supported all initiatives which envisage a Palestinian State with secure and recognized borders. President Musharraf said the recently announced Quartet's three-phased "road-map" for Palestinian statehood by 2005, therefore, present a window of opportunity for establishing lasting peace in the Middle East.

However, he said, the roadmap leaves the trickiest issues like Jerusalem, borders and the return of refugees to the end. To a question on Iraq, the President said the existing interim arrangements in Iraq had already been approved by the UN Security Council through its resolution 1483 adopted on 22nd May, 2003. "Unanimous approval by the Council of the future governance of Iraq provides the possibility of an elected government in Iraq," he added.

Pakistan, he said, looked forward to working with fully representative Iraqi government that reflects the diverse nature of the Iraqi society.

Asked if he was ready to step down as the chief of military staff and to be only the President of Pakistan, Musharraf said: "I am committed to leaving my military uniform as well as Presidency the moment I feel my uniform is


against the interests of the country and its people." General Musharraf said he knew the slots of the President and Army

Chief should not be with one person. "Let an appropriate time come and I will leave the Chief of Army Staff office in the best interest of the country. I will stay in uniform till the strengthening of democracy in keeping with the requirements of the country," the President said. Press Conference at Lahore on Return

President General Pervez Musharraf Thursday said Pakistan greatly appreciates Saudi Arabia for its consistent support to attain, peace in South Asia and the right of the Kashmiri people for self-determination.

We are gratified that Saudi Arabia has consistently supported Pakistan in its quest for peace and stability in South Asia and for its support to the Kashmiri people for the attainment of their inalienable right of self-determination," the President said in his arrival statement.

President Musharraf said the visit of Saudi Arabia was extremely useful and would positively contribute to our existing close relationship.

He greatly appreciated the regular high level contact, between Saudi Arabia and Pakistan which provided an extremely useful opportunity for exchanging views and coordinating action on important current issues. Pakistan he said, greatly, appreciates Kingdom’s considerable economic assistance provided to Pakistan over the years.

The President who returned this afternoon after holding wide ranging discussions on bilateral, regional and international issues including Kashmir and Palestine said the visit was part of regular consultations between the two countries.

During his stay in the Kingdom, the President had meetings with the Khadamal Harmain Al-Sharifain King Fahd bin Abdul Aziz Al Saud and Crown Prince Abdullah bin Abdul Aziz AI-Saud.

The President conveyed heartfelt condolences on the reprehensible incident of terrorism in Riyadh which led to tragic loss of life. He expressed full solidarity of the government and the people of Pakistan with Saudi Arabia.

The Saudi leader greatly appreciated the expression of solidarity and responded that Saudi Arabia valued its close ties with Pakistan and will always stand by it. In the detailed meeting with the crown Prince President discussed bilateral matters and latest developments in relations between Pakistan and India with special, reference to the Kashmir issue, the situation in the Middle East and the road-map for peace between the Palestinians and Israelis.

Afghanistan, Iraq, as well as matters related to the OIC and unity of the Muslim Ummah were also discussed.

The President took the opportunity to brief the Crown Prince on prospects of resumption of talks between India and Pakistan [and] underlined

24 IPRI Factfile

the need for early resolution of the issue of Kashmir through negotiations. The Crown Prince supported efforts for the resolution of all

outstanding issues between India and Pakistan including the standing issue through dialogue.

Foreign Affairs Pakistan, vol. XXX, issue IV (May-June 2003): 11-17.

AN IMPORTANT SAUDI VISIT

Pakistan has laid out the red carpet for Saudi Arabia’s Crown Prince Abdullah bin Abdul Aziz and it is the right thing to do. Regardless of what the press in the United States and the Islamists in Pakistan have to say, Prince Abdullah is a steady friend of Pakistan in the region and at the global level. Together with General Musharraf, he has committed Saudi Arabia to fighting terrorism in the Islamic polity, asserting that terrorists are the enemies of Islam. While calling to end the injustice and violence suffered by the Kashmiris and the Palestinians, both leaders were clear that Islamic extremism was against the teachings of Islam. Both pledged themselves to a strategic relationship in which economic development and scientific education would be a crucial pan-Islamic objective. Given the importance of Prince Abdullah in Saudi society, the statement is most heartening for Pakistan.

Prince Abdullah represents the traditional Saudi willingness to favour Pakistan as a large Muslim state in the region. He is aware of the great reverence that Pakistanis have for the memory of King Faisal who was sensitive to Pakistan’s special regard for ‘the guardians of the Kaaba’. Religious devotion has always been underpinned by hard-nosed bilateral friendship that no pragmatic Pakistani can ignore. Saudi Arabia has always been generous with funds for projects in Pakistan. And the King Faisal Mosque in Islamabad is not the only icon of this generosity. During the Afghan war, Pakistan’s role of a front-line state was made much easier by funds from Saudi Arabia. And no one can ignore in these days of crucial economic reform in Pakistan the ‘deferred payment’ facility given by Saudi Arabia for Pakistan’s import of oil that some sources place at millions of dollars annually. Of course, it must also be said here that Pakistan has matched this munificence with unflagging loyalty to Riyadh.

For those who criticise Saudi Arabia’s present rulers for not being ‘Islamic’ enough, some facts should be chastening. Nearly a million Pakistanis work in Saudi Arabia and send half a billion dollars annually as remittances, which used to be half of all the remittances from abroad in the mid-1900s. Saudi participation in important projects in Pakistan, in particular along the southern coastline, has become pivotal for Pakistan after the planned development of the Gwadar port facility. Defence cooperation has always been a feature of the Pak-Saudi relationship and will receive a fillip after the


visit of the crown prince as Saudi Arabia buys equipment and munitions produced indigenously by Pakistan. This will push up our exports in a period of global slump.

Saudi Arabia has recently been a target of terrorism on the part of Islamic extremists within the country. This is not very different from what has been happening in Pakistan. A kind of evil compact had developed between non-state actors in both states threatening their very existence. Instead of listening to the calls for ‘regime-change’ made by certain American groups and, paradoxically, the Islamists, Pakistanis should help the two states initiate internal reforms that purge the poison of Islamic extremism from their body politic. Prince Abdullah stands behind the latest opening up of the local government to representation in his country. His determination to grasp the nettle of terrorism is entirely credible. In the final analysis, we should be realistic in our approach to our foreign relations. Saudi Arabia is central to the Islamic world in its financial and political influence; it is Pakistan’s most unwavering supporter. That should count above all else.

Editorial, Daily Times (Lahore), October 30, 2003, http://www.dailytimes.com.pk/default.asp?page=story_20-10-2003_pg3_1

EXCERPTS FROM A PRESS CONFERENCE BY ISLAMABAD-BASED SAUDI AMBASSADOR RENOUNCING FATWAS ON

MILITANCY AS APPEARED IN THE PRESS ON 24 NOVEMBER 2003

Saudi Ambassador to Pakistan Ali Awadh Asseri said influential hard line Saudi Ulema have started renouncing their "fatwas" (edicts) about militancy. At an Iftar-dinner hosted for the journalists, the ambassador named two top Saudi clerics, Ali AI-Khodheir and AI-Fadh, who, he said, have voluntarily stated on Saudi television that their earlier edicts were wrong that they now surrender them.

Ambassador Asseri said that this sent a good message to a handful of misled clique to relinquish their activities and mend their present and future.

At the government level, the Ambassador said, there is no leniency for this element as according to the official policy the only way to talk to them is through rifle and sword. The government, he added, is absolutely determined to deal with them in order to eliminate them completely.

However, Ambassador Asseri said, it was the job of Ulema, scholars, universities, psychiatrists and civil society to divert the misled and brainwashed individuals to normal life and rescind their activities that do no service either to Islam or humanity.

So far, the Ambassador said, more than 600 terrorists have been arrested. The Saudi government is going to fight the criminals with

26 IPRI Factfile

determination and vigour, he said, "We are going to hunt them. We are going to make sure that they do not cause harm to the innocent. The government will not rest until all the terrorists have been eliminated," Ambassador Asseri said.

Saudi Arabia, the Ambassador said, has started rehabilitating those, who were not yet involved in unlawful activities. The effort, he added, is to galvanize them in the society. Ambassador Asseri said that terrorism is a phenomenon the Kingdom is tackling that has nothing to do with religion. "We have to see how the children, who are not well supervised, are affected by just one tape-recorded message."

Answering a question, the ambassador said that the recent terrorist attack on Riyadh was not aimed at the ruling royal family. "We cannot say the 9/11 attack was on the Bush family or the Istanbul strike was on the Turkish government," he added.

Ambassador Asseri said that Saudi Arabia embarked upon a process of massive reforms much before the 9/11 episode. "We want the democracy to come in our way," he said. The acts of terrorism in Saudi Arabia, he said, are not going to slow down the Kingdom's progress. The Saudi government has initiated a process of reforms and has no intention of slowing down. The reform process will continue.

The Ambassador was grateful to the government and people of Pakistan belonging to all walks of life for the immense support and sympathy expressed to Saudi Arabia in the wake of the Riyadh attack.

"Joined together by the eternal bond of a common religion and cultural values, I am overwhelmed that you all have deep rooted respect and love for the government and people of Saudi Arabia. We value these feelings of friendship and brotherhood and pray for the progress and prosperity of the people of Pakistan," Ambassador Asseri said.

The Ambassador said this was not the first time that Saudi Arabia has become a victim of terrorism. Like so many other countries, Saudi Arabia has been a victim of terrorism for a long time, he said, adding that there has been an upsurge of terrorist activity in the recent past.

The Saudi authorities, he said, have launched an uncompromising war against terrorism on its soil. The effort is bearing results, he said that is not all.

The Ambassador said the Saudi government is also extending unstinting support to combat terrorism at the international front. There could be no better evidence of it than the speech that Crown Prince Abdullah bin Abdul Aziz recently made at the OIC summit in Malaysia and later at Islamabad, he said.

On both occasions, the Crown Prince launched a scathing attack on terrorism in all its forms and manifestations and cautioned the Muslims all over the world to wage a war against the terrorists so that they could be eliminated, Ambassador Asseri pointed out.


The Ambassador said the way these attacks have been perpetrated and the tangible evidence obtained from the site leave no doubt about the fact that the attackers belonged to al-Qaeda organization. The al-Qaeda members arrested so far testify to this, he said. There is no mistaking their identity, or their objectives, Ambassador Asseri said and added that they are out to unsettle the resolute anti-terrorist commitments of the Saudi authorities.

However, the ambassador said the terrorists are not going to dilute the Saudi resolve to go after them with renewed determination and an intention to exterminate them. If at all, this is going to further consolidate the Saudi government commitment to eliminate these criminals without any loss of time, he said.

Ambassador Asseri said the Saudi authorities have captured enormous amount of explosives. A number of al-Qaeda cells have been busted and the government has been able to avoid harm coming to Saudi citizens and residents.

The Saudi government, the Ambassador said, has tightened the financial systems so that no one is able to take advantage of the generosity of Saudi people and use the funds for evil purposes. He said the charities have been regulated and the banking system tightened.

Charities have been stopped from sending money out of Saudi Arabia. The Saudi government has even stopped the collection of cash contributions at public places, he said.

Ambassador Asseri said that as part of this policy, the Saudi government is extending total support to friendly countries to counter the menace of terrorism. This is not a fight that can be won by just one country. All the countries of the world are together in this fight. That is the only way to eliminate these murderers, he added.

The Ambassador said there was no support for these terrorists in the Kingdom, and added that they are a group of deviants, misfits and criminals, who have no respect for the teachings of Islam or any other faith. "They have no respect for the principles of humanity. They are evil. Their objective is evil. It is to terrorize the innocent and to bring harm to them. We'll not let this pass," he added.

Ambassador Asseri said that the Saudi government is not alone in this battle. It has the total support of the Saudi people. They are angry, outraged and want their government to act, he said.

"We have seen a coming together of our society that has turned out citizens into allies. They are cooperating with the government agencies. They are providing tips and leads.

We are very united and determined as a country. We'll win this battle. It may be a long battle, but we are determined to win, and will win in the end,"

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the Ambassador said. Foreign Affairs Pakistan, vol. XXX, issue I2 (November-December 2003): 278-281.

VISIT OF PRIME MINISTER JAMALI TO SAUDI ARABIA FROM

23 TO 27 MAY 2004 The Prime Minister of Pakistan Mir Zafarullah Khan Jamali paid an official visit to Saudi Arabia from 23 to 27 May 2004. During his stay in the Kingdom, the Prime Minister called on Khadim AI-Harmain Al-Sharifain, King Fahd bin Abdul Aziz, and held substantive talks with the Saudi Crown Prince and First Deputy Premier, Prince Abdullah bin Abdul Aziz. Bilateral Talks

On 24 May, Prime Minister Mir Zafarullah Khan Jamali and Saudi Crown Prince Abdullah bin Abdul Aziz held talks signifying the depth and closeness of relations between the two brotherly countries. They discussed a whole range of issues with an emphasis on enhancing trade and economic relationship. The commonality of views between the two countries reaffirmed their understanding on a host of regional and international issues. The two leaders also held a one-on-one meeting, exchanged views on a host of bilateral, regional and international issues of common interest to both countries.

Reciprocating the views of the prime minister, the Saudi Crown Prince directed the senior officials belonging to economic and commercial ministries to work on ways and means to increase the bilateral cooperation. The situation in South Asia, the Middle East, Afghanistan, Iraq, restructuring of the OIC and Enlightened Moderation proposed by President Musharraf also came under discussion, Jamali said.

The Prime Minister of Pakistan informed the Saudi leader about the recent economic achievements of Pakistan and said the country offered attractive environment for foreign investment. The two leaders expressed the mutual desire to further expand the trade and economic ties through increased interaction in various fields. The situations in Middle East, Iraq and Afghanistan also came under review during the meeting

At the Prime Minister's suggestion, the Crown Prince instructed the Saudi Minister for Economy and Trade to visit Pakistan and identify areas where there were prospects for expansion in economy, trade and investment ties.

The Saudi-Pakistan joint commission will also be convened at an early date. Crown Prince and the Prime Minister also reviewed regional developments including India-Pakistan peace process, developments in Afghanistan, Iraq and the Middle East.

The Crown Prince expressed full support for the measures Pakistan had taken to pursue negotiated settlement of problems with India and expressed


the hope that the change of government in India will not affect the peace process. Performance of Umra

Prime Minister Jamali accompanied by his entourage performed Umrah Monday late night. He offered Nawafil at Khana-e-Ka’aba. The door of Holy Ka’aba was opened for the Prime Minister. He went inside the Bait-Ullah and again offered Nawafil. The Prime Minister and members prayed for the development, progress, prosperity, unity and integrity of the country and well being of the people of Pakistan. Address to Pakistani Expatriates

Letter on talking to a delegation of Pakistanis living in Saudi Arabia Prime Minister Jamali asked Pakistani expatriates to strive for projecting Pakistan as a country offering tremendous opportunities for foreign investment in a safe and secure environment. He said that the government is focused on steering Pakistan on the path of progress and pursues economic policies and reforms consistently.

"The policies and reforms pursued in the last few years have imparted economic stability to the country, where foreign investors have vast opportunities for business in a congenial and secure climate," he said. Referring to positive economic indicators, he said Pakistan is poised to grow in diverse fields as industrial sector has shown marked improvement and exports have also registered increase.

The Prime Minister informed the Pakistanis that the government is for bringing development to all parts of the country through number of schemes including mega communication projects, water canals and the multi-million Gwadar deep sea port.

He said the government values greatly the contribution being made by the expatriate community as they remit foreign exchange and with their hard work earn good reputation for their country. "The Pakistanis living abroad owe a major role in projecting Pakistan's vast economic potential. You should also invest back home and help the government in further increasing the momentum of development." Interview to Daily ‘Okaz’

Prime Minister Mir Zafarullah Khan Jamali has said that there would be no halt in the fight against terrorism. "Pakistan is as much a target of terrorism as any other country in the world. The terrorist attacks have only strengthened our resolve to root out terrorism in all its manifestations," Jamali said in an interview with a Saudi Arabian daily 'Okaz' published from Jeddah. He said,

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Pakistan is a front-line state in the war against terrorism and fully cooperating with the world coalition in this regard. "Our policies are in line with the aspirations of country's people and the sovereign interests of the country." He said President Musharraf has been targeted due to his bold steps in the fight against terrorism and the defence of the supreme interest of the country.

About operation in North Waziristan, Jamali said the operation in the tribal belt has not been stopped and the government is committed to establish rule of the law and uproot terrorism from the country. About Pakistan's concern on the US incursions in tribal areas, he said that the military personnel from both countries would meet soon to review and discuss these allegations. The Prime Minister said military representatives from Pakistan and Afghanistan are working closely in the global fight against terrorism. He said, the residents of the tribal area are keen to support government's efforts in the fight against terrorism.

Replying to a question about his relations with the president, the premier said, there is complete harmony of views between the president and myself and our leadership is working to protect and preserve the interests of the nation. Talking about Pakistan, India peace process, he said both countries have initiated the process of composite dialogue to resolve all outstanding issues between the two countries including the core issue of Kashmir.

Commenting on the remarks of Afghan Foreign Minister that Bin Laden and AI Zawahiri are in Pakistan, Jamali said this is absolutely false. "Pakistan has denied such reports many a times and these reports are unfounded, baseless and without any substance." He said, Pakistan is keen to see that peace and stability prevails in Afghanistan.

Replying to another question, he said, the whole nation has appreciated President Musharraf's farsightedness and wisdom that has salvaged the country in difficult times. About the performance of the government, the prime minister said, the government has introduced a number of policies for the well being of the common man and number of reforms have been introduced in various field of life. He said government is spending on improving infrastructural facilities in a big way to facilitate the role of private sector.

The premier said, "We are concentrating on generating of more economic activity to create more jobs for the people." He said special emphasis is being laid on agriculture, education, trade, economy and good governance as these are the corner stones of the government policy. He said President Musharraf has embarked on enlightened moderation programme that envisions a strong moderate Pakistan.

Jamali said Pakistan has achieved global respect due to its moderate and sound policies that are based on mutual self-respect. He said Pakistan and Saudi Arabia enjoy excellent brotherly relations and both the countries share understanding on a host of regional and international issues. He said my meetings with the Custodian of the two holy mosques, King Fahad bin Abdul


Aziz and the Crown Prince Abdullah Bin Abdul Aziz have been positive, cordial and fruitful, signifying closeness of relations between the two brotherly countries. Jamali said, "We have agreed to augment trade and commercial cooperation with a view to further expand and bolster the bilateral relations between the two brotherly countries."

The prime minister said our common religious background and historic ties are the binding forces behind the close ties that are growing stronger day by day. He said Pakistan offers attractive environment for foreign investment and keen to increase these trade and economic ties through mutual interaction in various fields. He said, "Our defence cooperation is exceptionally good and our political thoughts on thorny issues like Palestine, Kashmir, Iraq, India and Afghanistan are in consonance for the well being of the Ummah." Press Conference on Return to Islamabad

… The prime minister described his visit to Saudi Arabia as productive and successful. "There was proximity of views with the leadership of the brotherly country of Saudi Arabia," he said. He said the Saudi leadership assured its support to President Musharraf’s concept of Enlightened Moderation as a way forward to promote the interest of the Ummah.

Responding to a question, the prime minister said besides Kashmir and Iraq, the two sides also discussed situation in Afghanistan and the issue of terrorism. "We have also arrived at an understanding on restructuring of the OIC," he informed the newsmen. About defence cooperation with Riyadh, Jamali said the two countries already enjoyed very good relations in this sector. He was confident that as a result of his visit relations between the two countries would further improve.

He said Minister for Religious Affairs Ejazul Haq would be paying a two-day official visit to Saudi Arabia soon to work out modalities regarding quota of Hujjaj and other related matters. During his stay in the kingdom, the prime minister held meetings with King Fahd bin Abdul Aziz and Crown Prince Abdullah bin Abdul Aziz. He said that during the talks the leadership of the two countries reviewed concrete steps to strengthen bilateral ties, especially in the field of trade, economy and investment. To another question, he said the federal cabinet would meet on June 2 to discuss matters relating to the next year's budget.

Foreign Affairs Pakistan, vol. XXXI, issue VI (May-June 2004): 39-45.

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EXCERPTS FROM SAUDI AMBASSADOR’S TALK ON POLICY OF MODERATION AND ENLIGHTENMENT IN THE MUSLIM

WORLD [AT] THE ROTARY CLUB, ISLAMABAD, 23 JUNE 2004

If the Muslims of the world have to regain centre stage in the affairs of the world, they will have to actively pursue a policy of moderation and enlightenment. They will have to fight demons that have created the problems that the Muslim Ummah is confronted with, the Saudi Ambassador said while addressing a meeting of the Rotary Club Islamabad. Ambassador Asseri spoke on the fight against terrorism and the emerging trends for the Muslim Ummah. His discourse followed an animated question-answer session. The participants described his exposition as illuminating, forthright and frank and said they should have invited him much before to hear the candid discussion.

Rotary Club President Irshadullah Khan said Asseri's efforts to strengthen Pak-Saudi relations have been tremendous. He offered membership of the club to the ambassador. The house unanimously approved it and Asseri accepted it.

Pakistan, Asseri said has been promoting the concept of enlightened moderation. Since President General Pervez Musharraf projected it in his speech to the last OIC conference, the concept has been mooted elsewhere and, overall, it has been well received throughout the Muslim world, he added.

President Musharraf's enlightened moderation concept and other efforts, the ambassador said, are intended to bring about a change in the mindset of people so that they could become more responsive to the needs and demands of contemporary times. The process has already been initiated and is expected to start yielding positive results, he said.

Asseri said the need is that these efforts of the Islamic world are reciprocated, by the rest of the world so that the process of an all encompassing reconciliation could be expedited. "I wish and pray that this process is carried forward and the world is soon witness to the dawn of genuine peace and harmony among all people irrespective of cast, creed, or religion. I strongly believe that the world must contribute to making this dream come true," he said.

Asseri said there is a crying need to initiate comprehensive measures for bringing about an all encompassing reconciliation among all ranks and files of the world. "This will happen only when they develop feeling of mutual harmony as against mutual mistrust. This will happen only when they develop a sense of trust in the system that is managing their affairs around them. This is the only way to rid the world of possible flash points of another catastrophe," he said.

Asseri said there is a need for reconciliation among all people of the


world irrespective of the religion they follow. He said he did not know any religion that teaches to hate people belonging to another religion. On the contrary, all religions of the world promote love and harmony among all people belonging to all religions, he added.

The West and people belonging to other religions, the ambassador said, need to devote a lot more time to understand and assimilate the true teachings of Islam. They must make an effort to approach the subject without any prejudices so that they are able to understand the real spirit of Islam, he said.

Asseri said this would help immensely in bringing the people of the world together on a common platform where they can approach various dissenting issues with a spirit to reconcile them. All it needs is the initiation of genuine and sincere effort he said. ... “There are fanatics in every religion. Christianity has its share of the breed. The Hindus have their fanatics to deal with. The Jewish fanaticism is on blatant display in the Middle East. The Muslims, too, have their fanatics to cope with. But, we all must understand that we can’t afford these few extremists to take the world hostage. We all have to ensure that they are tackled without any loss of time.”

“For that to happen, the envoy said the people of the world, the sane people, can’t afford to be at war among themselves. On the contrary, they need to unite to be able to wage a war against the fanatics, against the extremists and the world can be hostage to the selfish and destructive agenda of these deviant criminals,” he said.

The ambassador said the world of Islam is undergoing a major change. The need is being actually felt to introduce a process of reform that will help influence the deviant and estranged minds into mainstream of society so that they can be engaged productively, he added. He said many governments of the Islamic world have already initiated the process of reform in their respective countries, he added.

Foreign Affairs Pakistan, vol. XXXI, issue VI-A (June 2004): 123-125.

OFFICIAL VISIT OF PRIME MINISTER CHAUDHRY SHUJAAT HUSSAIN TO SAUDI ARABIA FROM 22-25 JULY 2004

The Prime Minister of Pakistan, Chaudhry Shujaat Hussain, paid a visit to the Kingdom of Saudi Arabia on 22-25 July, 2004. This was the Prime Minister's first visit to Saudi Arabia since assuming his office last month. The Prime Minister met with the Khadim AI-Harmain Al-Sharifain, King Fahd bin Abdul Aziz, Crown Prince Abdullah bin Abdul Aziz, Deputy Prime Minister/Commander of National Guard, and other important Saudi leaders. The Prime Minister also performed Umrah during his visit.

Pakistan and Saudi Arabia have traditionally close and brotherly relations based on mutual trust and confidence, and high level consultations

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are part of this relationship which provides an opportunity to discuss matters of mutual interest.

During the visit, the Prime Minister discussed with the Saudi leadership, bilateral, regional and international issues of common concern. The Prime Minister also apprised the Saudi leadership of the latest position of Pak-India composite dialogue, besides the developments in and around the Middle East and Afghanistan.

The Government and the people of Pakistan attach great importance to the fraternal and friendly ties with Saudi Arabia. Both Pakistan and Saudi Arabia have identical views and common positions on regional and international issues which reaffirms the time-tested character of their relations and their abiding interest in each others security, stability and prosperity. Statement on Return from the Visit (26 July)

I have returned to Pakistan today after a four-day official visit to Saudi Arabia. The visit was successful from every angle. Apart from performing Umra and Ziarat, I was warmly received by Khadem AI- Harmain AI-Sharifain King Fahd Bin Abdul Aziz, His Royal Highness Crown Prince Abdullah bin Abdul Aziz and Interior Minister HRH Prince Naif bin Abdul Aziz. All these meetings depicted complete identity of views on regional and international issues.

The Saudi leaders were effusive in their praise for Pakistan's fight against terrorism under the leadership of President Pervez Musharraf. We reviewed bilateral cooperation, Pakistan-India dialogue, situation in our region with focus on Iraq and Afghanistan. The Saudi leaders depicted the fight against terrorism as a common cause for Muslim Ummah and its unity.

The two sides reviewed security cooperation and I apprised Saudi leaders about the improvements in our Hajj policy. I conveyed that both India and Pakistan needed to take bold steps for peace in the region. The Saudi leaders appreciated the peace efforts by President Musharraf for initiating dialogue with India.

All Saudi leaders expressed feelings of love and affection for Pakistan and its people. They vowed to continue their struggle against terrorism. They said Pakistan's security was their own security and Pakistan's strength their own strength.

I have come back fully satisfied. The Pak-Saudi dialogue to further strengthen our cooperation and regional peace must continue. On behalf of President Musharraf, I invited the Crown Prince and Prince Naif to visit Pakistan and they accepted the invitation. You will witness enhanced Pak-Saudi cooperation in days to come. Our relationship is truly fraternal, deep rooted and enduring. Both countries and their leaders are determined to promote true Islam which is harbinger of peace, moderation, understanding,


tolerance and does not brook extremism in any form. Pak-Saudi relations are solidly based on the eternal ties of Islam and will endure and prosper in days ahead. I thank the Saudi leaders for their warm hospitality and feelings towards Pakistan which we reciprocate.

Foreign Affairs Pakistan, vol. XXXI, issue VII (July 2004): 91-92.

PAK- SAUDI ARABIA TRADE VOLUME TO DOUBLE IN 2 YEARS

Pakistan and Saudi Arabia Wednesday agreed upon further promoting collaboration in telecommunication and construction sectors expressing the sanguinity of doubling the existing trade volume between the two brotherly Muslim countries in next two to three years.

This was stated in a meeting between Prime Minister Shaukat Aziz and 16 member Saudi delegation led by Saudi Arabian Minister for trade and Industries Hashim bin Mohammad here at PM House.

Federal Ministers Humayun Akhtar Khan, Dr Abdul Hafeez Sheikh, Chairman Privatisation Board and Chairman Export Promotion Bureau Tariq Ikram were also present on the occasion.

Besides discussing bilateral trade cooperation both sides discussed at length different international and regional issues.

Prime Minister Shaukat Aziz apprised the Saudi Minister about the steps taken by government of Pakistan in revamping national economy. He stressed the need of further expanding trade relations between the two countries.

Later on talking to newsmen, Tariq Ikram Chairman EPB said that the premier told Saudi Minister about the investment prospects in telecommunication, construction, engineering and many other sectors in Pakistan and lauded the bidding for KESC offered by a Saudi group.

Apprising further details of the meeting EPB chairman said, the premier told Mr Hashim bin Mohammad that Pakistan has an investor friendly environment where everybody is free to invest, as there is no hindrance in investing and withdrawing the investment amount from the country.

Tariq Ikram quoting Saudi Minister said that Saudi businessmen have moved a great deal after reviewing the economic progress made by Pakistan. Now Pakistan has become role model for Saudi Arabia and we are eager for prosperity of both brotherly Muslim states, Saudi Trade Minister added.

Saudi Minister further added that bureaucratic system in Saudi Arabia has been reformed and Pakistani investors are provided good opportunities from which they are benefiting a great deal.

Tariq Ikram said that Pakistan has an export volume of $400 millions, which has risen up to 75 percent in last four years, whereas exports from

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Saudi Arab are $11 millions. Meanwhile, talking to newsmen Saudi Minister said: "We are moved by

the transparent economic policy of Pakistan. We took at length various issues to further promote the existing trade relations between the two countries."

He went on to say that Pakistan's economic policies are a beacon for Saudi Arabia.

He said that in Saudi Arabia demand of Pakistani products is very high. Pak, Saudi Arabia Agree to Enhance Trade Relations

Pakistan and Saudi Arabia agreed to enhance cooperation in bilateral trade, investment cooperation and in human resource development.

This was announced in the closing session of the 7th session of Pak-Saudi Arab Joint Ministerial Commission here on Wednesday.

The closing session was attended by a number of ministers Ijazul Haq, Hina Rabbani Khar, Ambassador of GCC countries, Saudi JMC delegation and a large number of federal secretaries and number of Pakistani businessmen.

The finalized minutes and the Memorandum of Understanding (MoU) were signed by the heads of both the sides.

Both the countries identified the areas like telecom, information technology, power generation, hydel power projects, housing, livestock, food processing, floriculture, agriculture and dairy farming in Pakistan where Saudi companies could invest their capital and enter into joint ventures with Pakistani businessmen.

In joint encounter with media, Federal Minister for Commerce Humayun Akhtar Khan said that both brother countries agreed to enhance trade and investment ties.

He said: "We have a very productive interaction with our brother country Saudi Arabia."

The minister said that Saudi Arabia is very keen to expanding trade and investment ties between the two countries.

He said that we have identified the areas telecom, information technology, power generation, hydel power projects, housing, livestock, food processing, floriculture, agriculture and dairy farming in Pakistan where Saudi companies could invest their capital and enter into joint ventures with Pakistani businessmen.

He hoped that the visit of the Saudi Minister will turn up to be a milestone and help make significant progress in expanding trade and investment relations between the two friendly, and brotherly countries.

Mr. Khan said that Pakistan had totally liberalized its trade regime with the lowest tariff rates in the region and simplified duty structure in place.

Saudi Minister for Industries and Commerce Dr. Hashim Bin Abdullah


Yamani said that Saudi Arabia is very keen for investing in different sectors. He also expressed his desire for joint ventures with Pakistani businessmen in the above-identified areas.

He said vast opportunities exist for forging closer relations between Pakistan and Saudi Arabia.

He said the business ties would explore opportunities for enhancing trade and investment in Pakistan in different fields.

He said Saudi Arabia and Pakistan have very close relations and hoped that it would further strengthen. Replying to a query, the visiting minister said that Saudi Arabia is an open market and we had made all procedures for the protection of our people and investors.

Responding to another question, he said that strengthening and deepening of trade and economic relations with Pakistan is a major priority for the government of Kingdom of Saudi Arabia.

Pakistan Tribune, February 9, 2005, http://www.paktribune.com/news/index.shtml?93355

TEXT OF PRIME MINISTER’S ADDRESS TO THE JEDDAH ECONOMIC FORUM: JEDDAH, 19 FEBRUARY 2005

The Honourable President of Afghanistan Mr. Hamid Karzai, The Honourable, Dr. Ibrahim AI-Asad Minister of Finance and my old colleague, Excellencies, Mr. Muhammad Ali Raza,

Some body one has known done many investments and business deals together, Members of the Jeddah Chamber of Commerce and office bearers of the Jeddah Economic Forum, Excellencies, Ministers, brothers, ladies and gentlemen, Assalam-o-Elakum, [Assalam-o-Alakum]

For me it is a real privilege to be in your midst at the Jeddah Economic Forum today. Coming to Saudi Arabia for me is like coming home. I have spent several years in this beautiful country, a country which is known for its hospitality, its warmth and its open arms to friends from all over the world. My presence in Saudi Arabia was at a time when the financial sector was going through transformation and Saudi Arabia’s transformation where the financial sector is today, where it was then, speaks of the excellent management and reform agenda which your government has followed. Today, ladies and gentlemen, I will take you on a journey, a journey about what happened in Pakistan, where we were, where we are going and why investing and doing business with Pakistan is a very exciting opportunity for every body.

Ladies and Gentlemen, today we live in interesting times. The Global Economy is adjusting to a new environment, a new paradigm, an environment where oil prices have risen to an all time high on account of demand pressure as well as supply constraints. The dollar is weakening and the widening US

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current account deficit is before us, rising inflation, fuel by food and energy crisis and interest rates rising, reflecting a gradual need for tightening monetary policy. Notwithstanding, the not so benign environment, the global economic recovery has become increasingly well established with the global real GDP at an average rate of over four per cent in the year 2005, with strong growth in industrial countries and exceptionally rapid expansion in the emerging markets. This means that the world economy is doing a much better job of absorbing shocks caused by multi-dimensional forces including the unprecedented increase in energy prices. It also signals that the era of cheap energy is perhaps over that is the price flow has risen because of growing demand and economic growth, a reality that oil consumers will have to accept. The time has come for policy makers in the oil importing countries, countries like Pakistan to carefully review their energy policies, focusing on conservation, efficient use and developing alternate sources of energy.

Excellencies, Ladies and Gentlemen, where does Pakistan’s economy stand today, on the back of this new environment I am happy to state that Pakistan witnessing a massive upsurge in economic activity, not seen in our country for several decades. The confidence of domestic as well as foreign investors is gaining new heights on the back of a stable macro economic environment. Wide ranging reforms through macro economic policies, financial discipline and consistency and continuity of policies over the last five years have transformed Pakistan into an exciting and resurgent economy. Pakistan has lived through difficult times and in the not too distant past, we were facing many challenges. Our economy then, I am taking you back five years was fragile, the balance of payments were vulnerable to external shocks and the country’s debt situation had worsened. With all sorts of challenges facing us daily in the economic side, we had lost pretty much of our financial sovereignty and the international rating agencies were looking at us in a very negative way. By the end of the 90s Pakistan was facing three major challenges, rising debt, declining investments and declining growth. The three challenges were interconnected with each other. The rising debt burden, an outcome of large budget deficits was consuming almost two thirds of the total government revenues. Yes, ladies and gentlemen, two thirds, so the entire income of the government was going to pay debts. We had nothing left to do any thing else. That of course affected the investment environment and one thing led to the other and at the end of the day the growth rate suffered and was not moving in the right direction. Our analysis of the state of economy suggested that Pakistan required a prolonged period of macro economic stability, financial discipline and consistent and transparent policies along with courageous leadership willing to undertake difficult decisions. These along with improved governance and better quality infrastructure were needed to encourage private sector to play its due role in promoting investment and growth in the country. The government on its part needs to redefine its own role in the functioning of the economy. What did we do then to transform a fragile economic


situation to a growing resurgent economy in a short span of five ears, five years ladies and gentlemen is short in the life of any country and that is what I will describe to you very briefly today.

Ladies and Gentlemen, we followed a two prong strategy. On the one hand we took measures to improve the country’s macro economic environment and on the other equally importantly we introduced a wide ranging structural reform programme in almost every sector of the country to improve the supply side response by removing impediments for private sector growth and development removing irritants which caused decline in the investment climate and improving allocation of resources. The key to improving macro economic environment has been a reduction in the fiscal deficit, improvement in the current account deficit, leading to a reduction in our debt burden bringing the balance of payments to a viable position and building the foreign exchange reserves to gain financial sovereignty and limit risks were also considered vital for improving our macro economic situation.

Ladies and Gentlemen, we had full confidence in the people of Pakistan. The hundred and fifty million people of our country had enormous potential to excel in many areas. The intelligence the dynamism, the ability to learn was second to none, what they needed was an honest, sincere and dedicated leadership which President Pervez Musharraf provided at a critical juncture of our history. The economic team under him worked with sincerity, honest and dedication to make Pakistan an economically strong and politically stable country and above all the people of Pakistan fully supported our efforts to turn Pakistan into a stable and prosperous economy.

Ladies and Gentlemen after five years of very hard work the complexion of Pakistan’s economy has changed altogether. The economy is no longer fragile, indeed it is healthier today than every [ever] before. The economic policies are consistent, transparent and predictable. The private sector is buoyant, they have gone to the banking system, raised debt, imported lot of machinery, created lot of new factories and equipments and today the import of just machinery and raw materials is up almost forty per cent compared to previous years and every year it is growing at the same rate. And our economy, ladies and gentlemen, this year will grow at a rate of around seven per cent and our target in the next two to three years is to reach eight per cent. What is also happening ladies and gentlemen that economic growth is not only accelerating but is also becoming more sectorally broad based. Expatriated Pakistanis have gain confidence in the economy and they are remitting more money in with the result that our reserves are at an all time high. Our exchange rate is stable, budget deficit is now below three per cent of GDP and that is a big change from where we were, seven to eight per cent. We have pre-paid expensive debt, given it back and both SNP and Muddies have rated us better in the recent years. We have also gone to the international capital markets, ladies and gentlemen, we did a Euro bond last year, we expected to raise five hundred

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million dollars, and we got total subscriptions of two billion dollars. We returned the rest of course and lately we raised the SUCOP bond, where we were hoping to raise about three hundred million dollars and we got four times that amount, again a vote of confidence by every body in the investor community about Pakistan as a potential destination for investment. Going forward, we believe that we have laid the foundation of a stable and strong economy and the stage is now set to grow more vigorously. An eight per cent growth is what we are looking for. [An] eight per cent growth is doable because the base was low. What is also happening, ladies and gentlemen as a result of these high growths the middle class in Pakistan is expanding. The middle class is what creates purchasing power. Today if you want to buy a motor vehicle in Pakistan because we make Honda, Toyota, Suzuki and many Korean models in Pakistan, you have to wait six to twelve months. We are not happy with this. So we are liberalizing imports and we hope that this openness will reduce the waiting time but the middle class wants a better life and they are now going in for quality of life purchases which are providing growth in the economy, which is providing momentum in the economy.

Ladies and Gentlemen, I would like to now talk about an equally important area for any country including Pakistan which is the reform process. Structural reform is the essence of development today. Reform is a dynamic concept; a country must continue to adjust itself to the changing domestic and external environment. Over the last five years, we have introduced wide ranging reforms in various sectors of the country. These reforms have started yielding results and have resulted in the improvement in our economic situation. To achieve the high growth rates, I talked about earlier, we need to introduce what we call second generation reforms and that is the phase, Pakistan is in today. In life today, ladies and gentlemen, the only constant is change. Things are changing and those countries, who will adjust with the change, will benefit. Those who standstill, others will get ahead of them. Standing still is not the answer for any body. Standing still will not get us where we want to live. Notwithstanding the successes we have had in Pakistan, we face many challenges. The challenges are how do we translate these gains, in improving the living standards of the common man and how we reduce the social gap and that is how to improve services like health, like education, like population planning, like the role of women and these are some of the greater challenges, we are tackling today. There is much more to be done. But we are focusing on these in an organized way. We are aware that solving these issues or addressing these issues is very important and we through second generation reforms will address them holistically with the help of our development partners.

Excellencies, Ladies and Gentlemen, few polices have promoted development as powerfully as effective investment in human resources. I was so pleased that the Forum this year is focusing on the human development


aspect because we can have a lot of money in the bank but if we do not develop our human resources, we will never reach our full potential. The most important asset for any nation is its people. A literate nation and a healthy nation will progress. Illiterate nations cannot progress. As such developing the human capital and the skill base of the country is critical and we have to look at the quality of education we provide to our people, so that they become income producing when they finish their education. In Pakistan, the big challenge is from changing to generalist education to skills based education because when that young man or woman comes to the market for jobs, they must have skills. And if you have skills, you will never starve.

We have seen that we can teach our people skills from the very basic to the high end they will always find work somewhere. So that is the focus we are trying to. In devising these strategies the government has given particular attention to the following three factors. First we have developed policies through comprehensive bottoms up participated process which ensures that they are demand driven and locally owned. For example on skills training we are now involving industry to tell us where they feel the gaps are, where they feel the constraints are and once we identify these we provide the training accordingly as a public private partnership. This is different then what we use to do before, before we would sit in our offices, decide what we think is needed, implement it and then perhaps some times find out that it was really not needed. So this participative process is very key. Second, instead of going for additional ties the government’s human development priorities are focused on building on what is already on the ground and using that as a base to go forward. So not many bricks and mortar investments but actually substantive action oriented, results oriented investments. Third we are putting special emphasis on cultivating private-public partnerships as I mentioned for improving human capital in the country because the government alone cannot do everything to provide these skills to the people. We will jointly join with the private sector.

Given the importance of the human capital, the government is also changing the composition of its expenditure. We are allocating more resources towards human development. Many initiatives in the areas of health, education, water supply, population planning and gender programmes have been launched and this is critical to achieve the seven to eight percent growth rate which I mentioned earlier. So the investment in human capital is the best investment any country can make and certainly Pakistan is following that example. Now ladies and gentlemen as I have stated earlier improving the living standards of the common man is the principal objective of our government. The benefits of economic gains that we have made in recent years must be shared by every segment of society. It is however, not uncommon to find in developing countries that less income families lack access to institutional financial services. In other words they cannot use

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investment opportunities to improve their living standard because of this irregular and unpredictable income strain, the poor need to access affordable credit and savings for consumption, improvement and creating a better future for themselves and their children.

Here ladies and gentlemen let me say that Pakistan since five years ago entered the world of micro finance. We having been in the banking business for over thirty years I looked at it with some skepticism. I asked myself how loan of a five hundred dollar could change the life of a human being. Well let me tell you ladies and gentlemen that that process of five hundred dollar loan through micro finance has changed the shape of many families. We studied many successful examples in Bangladesh and Uruguay and other countries and we adopted them into Pakistan and today I am pleased to share with you that micro finance is providing a very attractive opportunity for people who are willing to work to get out of the poverty trap and on to the better quality of life. You will be pleased to know that in the major micro finance bank we have and we have now several, we are encouraging the private sector to come into it. The major borrowers are women and the repayment rates are over 98 percent collection rates, so what does this do. It increases the status of a woman in the family because she is now contributing and it allows the people to improve and expand the income of the family.

Now knowing our culture which is conservative, women can play a major role from their own home. They do not have to leave the home; they can produce some income in the house. And I have gone around to many villages, talked to lot of these women they say this five hundred dollar loan has changed their life because we do some business either by sewing machine or some thing create a product and now what we are doing in collaboration with micro finance we are launching very soon, a one village, one product programme where we will help them, design a product and then take it to the market. So micro finance would in any country; by the way no country is immune from the benefits of the microfinance. If we can launch it at the right level and do it professionally, it can have a major impact. The amounts may change, some countries may have five thousand dollars and others it could be five hundred. But empowerment of our society and our people, microfinance can play a major role. Similarly for small and medium enterprises we have initiated several programmes of credit and for skills enhancement.

Now as we all know ladies and gentlemen, small and medium enterprises form the core of any economy. The more developed the economy the more pronounced is the role of the SMEs. They just do not get the press coverage like the big companies do. But every big company has hundreds of SMEs feeding. If you take the auto business, there are two to three thousand suppliers of the major auto manufacturers. You take the computer business, lot of these parts are coming from SMEs. So SMEs are another sector we are trying to develop. In our venture of taking the economy on a higher growth


path, we believe that the private sector has a major role to play. What is our view of the private sector?

Ladies and Gentlemen, we believe that it is not the business of the governments to be in business. The role of governments in the new paradigm in Pakistan is policy and regulation and the regulators are independent regulators. Our role is to provide opportunity and open the door, open the door for the private sector to walk in and seize the movement. That is what to entrepreneur is all about. And opening the door, we opened the door to an environment, which is business friendly, where policies are clear, discretion is reduced and consistency and continuity is followed. We do not believe in U turns in policy. U turns in policy do not develop a nation. We have to have consistency and that is what we are doing.

So today in Pakistan, the opportunity is for the private sector, small, medium, large and we are determined as a government to provide that atmosphere which will allow the private sector to flourish. Here, let me also say that in Pakistan, we have totally opened our doors to foreign investment. No sector is taboo. You can bring money in, you can bring money out and you can make profits and remit them without any government approval any more. You have total freedom and almost no permissions are required. There are no equity guidelines too. We believe it is up to the private sector to decide whether they invest hundred percent, fifty per cent, twenty per cent. Government will never tell them, what their partnership aught to be. There is no need for a partnership too. Today major multi-nationals like Shell, Unilever, and Nestle are laughing all the way to the banks. We are happy because they are making thirty to fifty per cent returns every year. Because when you have a high growth mode in a country like Pakistan, the profit profile improves dramatically.

So what we are trying to do is offer a level playing field to all investors and foreign and local are equally treated. Let me also say that our privatization programme is moving very aggressively. Few years ago every thing we tried to privatize became a security risk for the country. As we all know the world is changing, now in the next couple of months we have the State Oil Company, we have the State Telecommunication Company and as was just mentioned by Mr. Ali Raza the Karachi Electric Company has just been sold to a group of Saudi investors. Our entire banking system, eighty five percent is now in private hands and many banks are now owned by foreign investors. So we are very comfortable with that so long as they operate within the guidelines which have been set. And I think this is not rocket science but it is a way to go and it is a way to shape a country’s future. Now with this background ladies and gentlemen let me invite you to take a fresh look at Pakistan. Today Pakistan is different from the yesterdays Pakistan.

The Pakistan of today and tomorrow is not the Pakistan of yesterday and as people come there and see for themselves, they see opportunities. We

44 IPRI Factfile

are a country of a hundred and fifty million people. We are geo-politically located at a very important cross road, the cross road between South Asia, West Asia and Central Asia and down South we have Africa. Our biggest asset is our human capital and we are providing now a hassle free atmosphere for business to come and flourish there. So keeping that in mind today Pakistan offers a market of a 150 million people. But more importantly access to this entire region and many companies I was just pleased to learn that the HONDA, we have couple of factories of HONDA motorcycles in Pakistan. They have just designated two models to be made exclusively in Pakistan for global export. And that is the trend as a regional manufacturing hub, we are trying to developing.

So let me also say that the overall micro economic environment we are trying to create, ladies and gentlemen there is the most business friendly Pakistan has ever had. That does not mean we do not have challenges, we have a lot of challenges, which we are working on, but today Pakistan is in the midst of growth and let me just very briefly tell you the opportunities which exist, real estate we are in a very exciting opportunity, investment opportunity, there is shortage of hotels you cannot find a hotel room in Pakistan today, shortage of residential accommodation and office base. So many investors from the GCC and now undertaking projects and the Far East, Singapore, Malaysia to be specific to build real estate investments in Pakistan. Secondly the IT area offers exciting opportunities, we are late starters but IT now is going to take off in Pakistan. Thirdly, the telecommunications area, every thing has been de-regulated. Cellular phones, wireless local loop, long distance and land lines, you can bid for a license, take it and then. Recently we auctioned two cellular phone license, both went to foreign investors and they paid just for the license, close to three hundred million dollars each, so that is the openness which we conduct in our affairs.

Let me also say, that in the Pakistan of today and tomorrow, transparency is very important. All deals are opened and we are proud of the fact that transparency and openness is the hallmark of our activities going forward. In addition, manufacturing in agro base industry offers very attractive opportunities and I can go on and on. But Pakistan has an investment destination. It is clearly some thing which deserves every body’s attention and I hope some of you have been there. Please come and see us and you will see for yourself what is happening in Pakistan. Let me just shift gears very briefly before I conclude to talk about another issue since we have such an august gathering here which is near and dear to my heart and I would like to very briefly to touch upon them. I think it may not be out of place for me to say that in the current geo-political environment in the world, we should present our religion in its true light the fact is that the gap between the faiths in my view is widening, it is growing, so the task upon us to explain our position, to project our position is growing more and more and I think all of us who are


here can play a role in this. And I think we need to get our heads together, thoughts together and try to project Islam in its true light because our religion upon which we are very proud of is a religion of compassion, brotherhood and peace and I think we need to extend this and explain this to people and particularly after 9/11.

Ladies and gentlemen this gap between the faiths in my view is widening, it is not closing, it is widening. So it is the onus upon us to really take the initiative and explain Islam to all the stakeholders in any forum we get the opportunity and use the media too. We need to aggressively use the media to project our faith in its true light and it should never be misunderstood by anybody and never be misrepresented by anybody. Ladies and gentlemen let me conclude by saying that it has been a real privilege for me to be in your midst today to share the new vision of Pakistan, a Pakistan which is exciting, a Pakistan which is rising and a Pakistan which offers opportunities. Please join us in this journey and participate in this growth process and being in Saudi Arabia I can say that Saudi Arabia has the privilege of having world class investors, Saudi Arabia has the privilege of investors who have invested from Latin America to North America, to Europe, to Far East and everywhere in the world, so they, can see for themselves where there is opportunity, that opportunity ladies and gentlemen I very humbly offer to all of you. Thank you once again for inviting me, it has been a privilege, I hope to see you more often.

Foreign Affairs Pakistan, vol. XXXII, issue II (February 2005): 22-32.

EXCERPTS FROM AN INTERVIEW OF PRIME MINISTER SHAUKAT AZIZ WITH ARABIC NEWSPAPER “AL

EQTISADIYAH”, AS APPEARED IN DAILY “THE NEWS” ON 23 FEBRUARY 2005

Prime Minister Shaukat Aziz said Pakistan and Saudi Arabia have close, friendly and brotherly relations and both countries enjoy common values and every Pakistani holds special feeling towards this country.

In an exclusive interview with leading Arabic newspapers ‘AI Eqtisadiyah’ the Prime Minister said Pakistan desires more trade and investment form Saudi Arabia.

The prime minister said every Pakistani knows that being the custodian of the two Holy Mosques, King Fahd bin Abdul Aziz has a special role, and Saudi Royal family has special role in the expansion of these mosques.

Shaukat Aziz said the relationship between the two countries is historic and goes way back to long historical periods and covers every area, including political, military, cultural and economic.

The Prime Minister said the economic ties between the two countries

46 IPRI Factfile

have changed, because the strategy of relationship between the two countries in the past was in the form of support and assistance made by the Saudi side.

He said the Saudi Arabia supported Pakistan whenever there was need for assistance and Kingdom's contributions cannot be forgotten.

Referring to his last [visit] to Saudi Arabia, the Prime Minister said during my last meeting with Crown Prince Abdullah bin Abdul Aziz in Jeddah, months ago, and discussed the issue of Saudi investment in Pakistan, and he asked his Commerce Minister to accompany him in his visit to Pakistan in a high level delegation of businessmen.

The Prime Minister said the Minister of Commerce, Dr. Hashim bin Abdullah Yamani stressed that his visit to Pakistan months ago was successful and that Pakistan is a focal point for trade and investment.

He said during his address to the Jeddah Economic Forum, he explained the salient features of Pakistan’s economic policies.

Shaukat Aziz said important aspects of the two countries, is the presence of larger number of Pakistani work force in various fields.

He said that every Pakistani working in the kingdom is also supporting his family in Pakistan and this great form of hospitality on the part of the Saudi when they allow number of Pakistani to work here.

Replying to a question, the Prime Minister said a number of Gulf and Asian companies are presently interested in investing in Pakistan.

He said that the policy of privatization giving fruits. Last months one of the Saudi investment groups in collaboration with the German Siemens company purchased the Karachi Electric Company; which is responsible for supplying power to 15 million residents.

Shaukat Aziz said the Saudi investors are presently moving towards the real estate sector in Pakistan.

He said a company from UAE has fetched license for operating mobile phone in Pakistan besides a Norwegian company.

He said Pakistan floated general public bids for issuance of two licenses for operating mobile phones and the price of deal for each of these separate license reached US $ 291 million.

He said at present Pakistan has four licensed mobile phone operators and it will soon reach six in near future.

The Prime Minister said all the sectors in Pakistan are not subject to any conditions for investors who enjoy complete freedom in ascertaining their shares in any of the aspiring economic and commercial project.

Foreign Affairs Pakistan, vol. XXXII, issue II (February 2005): 33-35.


MIDDLE EAST ISSUE, OIC REFORMS DISCUSSED: MUSHARRAF-ABDULLAH MEETING

President General Pervez Musharraf and Saudi Crown Prince Abdullah bin Abdul Aziz al-Saud held wide-ranging talks here on Saturday with a thrust on cementing the multifaceted relationship between the two countries.

The two leaders exchanged views on regional and international issues of common interest, including the Middle East situation, reform and restructuring of the Organization of Islamic Conference (OIC), Pakistan-India relations and counter-terror and security issues.

The president said that resolution of political disputes affecting the Muslim world with justice would be vitally helpful in the establishment of durable peace and stability.

He briefed the Crown Prince about Pakistan’s efforts for establishment of peace in South Asia through a just settlement of Jammu and Kashmir dispute with India.

Crown Prince Abdullah said Riyadh supported Pakistan’s efforts for a resolution of the Kashmir dispute.

The two leaders agreed on enhancing relations in the political, economic, commercial, investment and counter-terror and security areas.

Gen Musharraf called for greater trade between the OIC countries as a means to reduce poverty which he has repeatedly described as one of the major causes of extremism.

Pakistan and Saudi Arabia are coordinating efforts aimed at making the OIC a vibrant voice of the Muslim world, capable of steering its socio-economic development. Islamic countries’ foreign ministers are due to meet in Sana to finalize recommendations for restructuring of the OIC.

The president briefed the Saudi leaders about Pakistan’s recent economic success and said the country offered vast investment opportunities for Saudi investors.

The Crown Prince said that Saudi Arabia viewed Pakistan’s economic achievements with admiration.

The president is paying an official visit to Saudi Arabia at the invitation of the Saudi leadership. He will also perform Umrah and pay his respects at Roza-i-Rasool (Peace Be Upon Him).

Earlier, President Musharraf was seen off at Islamabad by Prime Minister Shaukat Aziz, Senate Chairman Mohammedmian Soomro, Chairman Joint Chiefs of Staff Committee, General Ehsanul Haq and Vice Chief of Army Staff General Ahsan Saleem Hayat.

Talking to reporters on the occasion, he noted progress in the Pakistan-India peace process, saying: “It is proceeding well”. He said there was an understanding and harmony between the leadership of the two countries and

48 IPRI Factfile

“good intentions on both sides to resolve the (Kashmir) dispute peacefully”. “We are moving forward. Flexibility is being shown by both sides which

is a good omen,” he said and added: “We see light at the end of the tunnel”. On the whereabouts of Osama bin Laden, the president rejected

speculation that the al-Qaeda chief was in Pakistan. “There are lot of people who say that Osama bin Laden is here in

Pakistan. All that I would like to tell them, please come and show us where he is or tell us where he is. That is not the case,” he said, adding that people were just conjecturing on his whereabouts. He (Osama) could be anywhere, the president said.

Answering a question about Pakistan-Afghanistan ties, he said the two countries were well-coordinated in struggle against terrorism in Pakistan’s western border and Afghanistan.

“Operations are going well and intelligence coordination is there,” he pointed out.

Referring to his recent telephonic conversation with Afghan President Hamid Karzai, he described it as good, saying “small differences of opinion” were discussed and resolved amicably.

“There is total and complete understanding between us. We have resolved that whenever there is any point of view, we need to talk to each other and resolve them very amicably, which we have done,” he said.

Ruling Pakistan Muslim League chief Chaudhry Shujaat Hussain and Defence Minister Rao Sikandar Iqbal are accompanying the president.—APP

Our Correspondent adds: The Saudi Crown Prince hosted lunch in honour of the Pakistani delegation.

President Musharraf initially had a one-to-one meeting with Crown Prince Abdullah. Later, their aides joined the talks.

Sources said that President Musharraf inquired after Khadim-al-Harmain Sharifain Fahd bin Abdul Aziz, who is currently recovering from a lung ailment in a Riyadh hospital. The president wished the Saudi monarch early recovery.

The Iraq issue and the situation in Afghanistan also came under discussion at the meeting between Gen Musharraf and Crown Prince Abdullah.

Ways to improve coordination between the two countries on issues of counter-terrorism and on checking drug trafficking were also discussed at the meeting.

Dawn (Islamabad), June 26, 2005, http://archives.dawn.com/2005/06/26/top1.htm


SAUDI KING HOLDS PAKISTAN TALKS

Saudi King Abdullah has held talks in Islamabad with Pakistan premier Shaukat Aziz on the last day of his visit. Issues discussed included Iran's nuclear programme, Iraq, Afghanistan and India-Pakistan relations. An accord on economic co-operation was signed. King Abdullah met President Musharraf on Wednesday and received Pakistan's highest award, the Nishan-e-Pakistan. The king's visit, the first by a Saudi head of state since 1976, comes after a key trip to Pakistan's rival, India. India Ties

The BBC's Aamer Ahmed Khan in Karachi says the king's India trip caused some anxiety in Pakistan, a long time ally of Saudi Arabia.

He says King Abdullah's visit may help allay Pakistan's fears that the Saudis are aligning themselves more closely with India, whose booming economy is increasingly reliant on Saudi oil imports.

Our correspondent says Saudi leaders may have been dissuaded from visiting Pakistan during the 1980s and 1990s because of the volatile political situation.

Pakistani leaders have traditionally travelled to the Saudi holy city of Mecca on an Umra, or minor pilgrimage.

Saudi Arabia is Pakistan's largest oil supplier and has given huge amounts of aid following the October earthquake.

King Abdullah visited Pakistan as crown prince in 2003.

BBC News, February 2, 2006, http://news.bbc.co.uk/2/hi/south_asia/4669904.stm

ACCORD TO BOOST PAKISTAN-SAUDI COOPERATION:

ABDULLAH STRESSES PEACE IN SOUTH ASIA

Saudi King Abdullah bin Abdul Aziz and President Gen Pervez Musharraf on Wednesday agreed to reinforce ties between the two countries through increased cooperation.

At a meeting with the king here at the Aiwan-i-Sadr, the president saw a vast scope for improvement in a host of mutually beneficial areas. The king responded by saying that Saudi entrepreneurs would be encouraged to explore opportunities for enhancing trade and economic ties.

Earlier, speaking at a state banquet, King Abdullah expressed the hope that Pakistan and India would be able to resolve their disputes for establishment of peace and stability in the region.

50 IPRI Factfile

“We appreciate recent peace initiatives and hope that Pakistan-India talks will achieve the desired results and lead to just settlement of disputes,” he said.

The king lauded President Musharraf’s ‘wisdom and sagacity’ and added that “we have great hopes of regional peace from your qualities.”

He praised Islamabad’s longstanding position on the Palestinian issue and said “Pakistan’s honourable position is a source of pride for every Muslim”.

Saudi Arabia and Pakistan, he said, had a strong relationship and both were working to “establish a true economic partnership for development and prosperity of our people — apart from common faith, our bonds of relationship are based on economic and investment ties.”

Relations between Pakistan and Saudi Arabia were genuine and constant and the visit would impart strength and depth to this relationship, he said.

The king appreciated Pakistan’s achievements in the fields of science and technology.

President Musharraf said that both countries had a firm commitment to fight terrorism which posed a danger to all faiths and societies.

“Nothing can justify disruption of stability, progress and development in a society and killing of innocent people,” the president said while regretting acts of misguided individuals who had maligned Islam that stands for peace, tolerance and compassion.

He underlined the need for rooting out the bane of extremism from societies through education and reforms. He called for addressing the long-standing political disputes that mainly involved the Muslim world.

“There is an urgent need to heal the festering wounds of Palestine and Kashmir that have caused so much pain and sufferings among the Muslims.

“The durable peace and tranquility in the Middle East demands a just and honourable solution of the Palestine issue,” he said and praised the Saudi leader’s peace initiative in Beirut three years ago.

“Nothing should be allowed to derail efforts for vacation of occupied territories and establishment of an independent homeland for the Palestinian people,” he stressed.

He said that the evolving political situation in the Middle East should be turned into an opportunity “to realize the objective of the two states of Palestine and Israel living side by side within secure borders”.

The president said that Pakistan was working for an environment of peace in South Asia and was engaged in sincere efforts to resolve the lingering Kashmir dispute that had been at the heart of conflict and tension with India.

He called for using the improved relations to find a just solution to the dispute, acceptable to all the parties — Pakistan, India and the Kashmiri people.


He lauded the king for his strong commitment towards the resolution of outstanding disputes between Pakistan and India and hoped that his recent visit to India would encourage the peace process.

On Afghanistan, the president said that Pakistan supported the government of President Hamid Karzai and was contributing to efforts for rehabilitation and reconstruction in that country.

He said that the Pakistan-Saudi Arabia friendship was constant and transcended the changing international environment and expediency of international politics.

“We maintain and consolidate our cooperation with Saudi Arabia as a cherished value of our foreign relations and international outlook. We believe that your strength is our strength,” the president said, adding he was confident that the feelings were mutual.

He expressed the hope that the Saudi king’s visit would provide new impetus to the multi-faceted cooperation between the two countries.

Dawn (Islamabad), February 2, 2006, http://archives.dawn.com/2006/02/02/top1.htm

SAUDI-PAKISTANI JOINT COMMUNIQUÉ

Following the state visit of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz to Pakistan, the two sides issued the following joint statement:

The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud of the Kingdom of Saudi Arabia held historic meetings with the President of Islamic Republic of Pakistan General, Pervez Musharraf, and Prime Minister Shaukat Aziz, during his state visit to Pakistan on 1-2 February 2006 corresponding to 2-3 Muharram 1427H.

The great warmth and cordiality accorded to the Custodian of the Two Holy Mosques and his accompanying delegation reflects the brotherly relations between the two countries and the deepest respect and esteem in which the government and people of Pakistan hold towards the Kingdom of Saudi Arabia.

The two sides exchanged views and had in-depth comprehensive discussions that covered a wide-range of bilateral regional and international issues of mutual interest. The talks were held in an atmosphere of warmth and cordiality and were marked by commonality of views and fraternal understanding which have been the hallmark of Pakistan-Saudi Arabia relations.

President Pervez Musharraf reiterated his deep gratitude for the prompt and continuous relief assistance that the government of the Kingdom of Saudi Arabia had provided for the earthquake victims through emergency relief

52 IPRI Factfile

assistance ordered by the Custodian of the Two Holy Mosques. Furthermore, President Pervez Musharraf expressed his gratitude for the Saudi pledge to assist in rebuilding the earthquake- stricken areas through the Saudi Development Fund to finance housing, road, education and health projects.

Based on the common historic relations, friendship and mutual understanding rooted in the unity of Islamic faith which binds the government and people of the two countries, conferring upon these relations continuity, durability and positive impact on regional peace and stability which must not be underestimated; Realizing the inter linkage between the security and stability of the Arab region and South Asia, and their keen interest to preserve such security and stability; Committed to explore future prospects of the strategic relations between the two countries, to ensure their continuous solidarity in the service of their respective peoples and the entire Muslim Ummah; Affirming the commitment of the two parties to undertake this historic responsibility, the two leaders decided on the following:

At the level of bilateral relations, the two leaders expressed satisfaction over the growing cooperation between the two countries and renewed their commitment to reinforce bilateral cooperation in trade and investments.

In this regard, the two leaders welcomed the signing of five bilateral agreements between the two countries including the Memorandum of Understanding on Political Consultations; Agreement on Avoidance of Double Taxation; Agreement on Cooperation in Science and Technology, and Cooperation Program in the field of Technical Education and Vocational Training. The two sides expressed their confidence that these agreements would further cement bilateral relations in the respected areas.

The two sides agreed to exchange frequent visits at all levels to enhance mutual understanding and friendship, and deepened development of steady cooperation in the fields of economy, trade, education and investment. They agreed to expand and facilitate investment and joint ventures especially in energy and infrastructure. Both sides look forward to the upcoming joint investment conference which will be organized by the Saudi-Pakistani Investment Company during the first half of this year to explore new areas of joint investments.

Both sides underlined the importance of encouraging the private sector in their countries to explore the opportunities that each other’s potentials provide for mutual benefits and interests.

The two sides agreed to convene frequent and regular meetings of the Bilateral Joint Commission, which will be responsible for the following-up of the implementation of what has been agreed upon during this visit.

The two leaders emphasized that terrorism represents a palpable threat to all humanity, and that there is a need to intensify and coordinate bilateral, regional and international cooperation to combat terrorism and to eradicate its root causes. Moreover, they agreed to intensify cooperation to fight the


menace of terrorism and other international crimes such as money laundering, drugs trafficking and arm smuggling in a sustained and comprehensive manner. The two countries shall make continuous efforts for an early realization of the proposals to conclude a Comprehensive Convention on International Terrorism which is before the UN General Assembly, and the setting up of an International Counter Terrorism held in Riyadh in February 2005 as proposed by the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al-Saud.

In the field of political cooperation, both sides exchanged views on regional and international developments and affirmed their adherence to the principles of international legality and the importance of maintaining international peace and stability. The two sides agreed to work together towards resolving outstanding conflicts in their region, in accordance with the relevant principles.

President Musharraf briefed the Custodian of the Two Holy Mosques on the on-going dialogue between Pakistan and India. The two leaders agreed on the necessity to reach early resolution of all outstanding issues between Pakistan and India, especially the issue of Kashmir, through negotiations.

On the issue of Palestine, both parties recognize the importance of the last Palestinian elections which came in response to the demands of important segments of the international community. Both sides urged the acceptance of the result of these elections, as they reflect the free will of the Palestinian people, and called for a wise and objective dealing with these results and avoid premature judgments and hasty conclusions. The two sides expressed their hope that Hamas will form a government which preserves the legitimate rights of the Palestinians, safeguard their interests and work for progress in the peace process.

Both sides agreed that durable peace in the Middle East depends on an early resolution of the Israeli-Palestinian conflict. They emphasized the importance of the Beirut Peace Initiative and the Road Map. The complementarily between the two plans is seen by both sides as the best way to reinvigorate the peace process and pave the way for the establishment of an independent and viable Palestinian State living in peace, security and prosperity within secure borders side by side with Israel.

With regard to the situation in Iraq, both sides expressed their hope that the evolving political process, would result in the establishment of a government capable of assuring Iraq’s unity, territorial integrity and prosperity without foreign interventions.

The two leaders expressed satisfaction at the outcome of the Makkah Islamic Summit and reaffirmed their commitment to reform the OIC in order for it to become an effective forum to advance the collective interest of the Muslim world, and to cooperate in the implementation of the ten year plan

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Foreign Affairs Pakistan, vol. XXXIII, issue IV (April 2006): 105-106.

STRONGER TRADE TIES PLEDGED: MUSHARRAF,

SULTAN DISCUSS TERRORISM President General Pervez Musharraf and Saudi Crown Prince Sultan bin Abdul Aziz Al Saud on Saturday held talks on regional and international issues, including the dispute over Iran’s nuclear programme.

Prince Sultan exchanged views with President Musharraf on counter-terrorism and conflicts in Afghanistan, Iraq and the Palestinian territories.

Gen Musharraf noted that Pakistan and Saudi Arabia were “bound in indelible bonds of friendship rooted in religion, culture and history.”

He said these relations would continue to grow and expressed the hope that the business communities of the two countries would be able to explore new avenues or joint ventures to cement the excellent broad-based ties.

Identifying energy, refinery, infrastructure and food processing as some of the most potential areas for Saudi investment in Pakistan, the president said Pakistan would facilitate entrepreneurs from the kingdom and offer a level-playing field to them.

Later, speaking at a banquet hosted by the president in honour of the crown prince, the two leaders expressed resolve to invigorate bilateral ties through increased trade and economic cooperation.

Gen Musharraf said Pakistan wanted to expand its economic and political ties with Saudi Arabia by taking the trade and commerce cooperation to new heights.

He looked forward to forging greater cooperation in defence production and training between the armed forces of the two countries.

The president expressed gratitude to Saudi Arabia for extending prompt and generous financial support in the aftermath of the earthquake.

Pakistan, Gen Musharraf said, stood with Saudi Arabia and supported King Abdullah bin Abdul Aziz’s efforts towards bringing peace and harmony to the region.

He also discussed with Prince Sultan Pakistan-India relations and efforts for early resolution of the Kashmir dispute. The crown prince appreciated Pakistan’s efforts in this respect and hoped for a successful outcome of these initiatives.

The two also discussed reform of the Organisation of Islamic Conference with a view to enabling it to lead the Muslim world towards durable socio-economic progress. The president underlined the importance of enhancing intra-OIC trade and cooperation in science and technology.

56 IPRI Factfile

The crown prince, in his speech, said his country wished continued development of Pakistan and added that King Abdullah greatly appreciated the Pakistani leadership and people for their recent economic strides.

He said the Saudi leadership was determined to promote ties with Pakistan in all spheres, including cultural, economic, commercial and political.

“The deep-rooted Saudi-Pakistan relations and brotherhood have been excellent since the independence of Pakistan and Saudi Arabia has always supported Pakistan.

“Saudi Arabia has opened its doors for the brotherly people of Pakistan and we embrace them with love and sincerity,” he emphasised.

He said Saudi Arabia looked forward to imparting further depth to its relations with Pakistan.

Prime Minister Shaukat Aziz, services chiefs and foreign diplomats attended the banquet.

ARRIVAL: Earlier, President Musharraf and Prime Minister Aziz received the crown prince at the Islamabad airport.

Prince Sultan was accorded a warm welcome. A red carpet was rolled out at the Islamabad airport. The special aircraft of the crown prince was escorted into the Pakistani airspace by two F-16 fighters and a 21-gun salute boomed as he alighted.

Foreign ministry spokesperson Tasnim Aslam said the discussions between the crown prince and the Pakistani leaders would focus on defence cooperation and other areas of close bilateral relations.

Official sources said Saudi Arabia was interested in buying Pakistan-made Al Khalid tanks and this would be part of the crown prince’s discussions.

Dawn (Islamabad), April 16, 2006, http://archives.dawn.com/2006/04/16/top1.htm

PAK-SAUDI ARABIA STRONG ALLIES AGAINST GLOBAL

TERRORISM: PM

Pakistan and Saudi Arabia are two countries share similar views on a broad range of regional and international issues and are allies against the specter of global terrorism which is a threat to all faiths and societies.

"We condemned terrorism and extremism in all its forms," Prime Minister Shaukat Aziz stated this on the occasion of lunch hosted in honour of Prince Sultan Bin Abdul Aziz Al-Saud, Crown Prince of Saudi Arabia here Sunday.

"We have been playing a key role in the fight against terrorism and have achieved major successes. At the same time, we believe that a lasting solution of the problem requires addressing its root causes. We reject the false linkage


being drawn between terrorism and Islam, a faith of peace, compassion and tolerance. We also condemn the unjustified vilification of Muslims as has been demonstrated through the printing of the blasphemous sketches in some western counties", he said.

Prime Minister Shaukat Aziz said that in our region, Pakistan remains committed to the composite dialogue process with India. A durable peace in the region requires a just settlement of the Kashmir dispute - which lies at the heart of Pakistan-India relations. We hope India will respond positively to the initiatives taken by Pakistan in this regard.

"On our western boarders a strong and stable Afghanistan is of strategic importance to us. We have extended our full cooperation to President Karzai and remain committed to supporting our Afghan brothers", Prime Minister held.

He further said that the controversy surrounding the Iranian nuclear programme must be resolved through dialogue and compromise. We are opposed to the use of force as this would exacerbate an already complex regional situation. While we oppose nuclear weapons proliferation, we recognize Iran’s right to use nuclear technology for peaceful purposes under appropriate international safeguards.

Prime Minister said that the need of the hour is to bridge the perilous divide between Islam and the West. The importance of promoting inter-faith harmony and inter-civilizational understanding in these times can not be over -emphasized. President General Pervez Musharraf has put forward the concept of "Enlightened Moderation" which calls for Muslim societies to reform and for the West to help resolve conflicts that provoke anger and frustration in the Muslim world, Prime Minister said.

He further declared that Pakistan attaches great importance to a secure and stable Middle East. This cannot be achieved without a just solution of the Palestinian issue. A basis for such a settlement was proposed by His Majesty King Abdullah at the Beirut Arab League Summit in 2002. We argue the international community to facilitate an early resolution of this festering conflict, he added.

Citing on Iraq issues he said that the deteriorating security situation in Iraq is a source of great concern to Pakistan. We support the sovereignty and territorial integrity of Iraq and believe that the Iraqi people should be enabled to resolve the challenges before them.

Prime Minister Shaukat Aziz also thanked the Saudi Leadership for the generous assistance provided by the Kingdom of Saudi Arabia in the wake of the catastrophic earthquake in Pakistan. "This solidarity with the people affected by the earthquake has touched us deeply. I am confident that we shall be able to build a brighter future for our people in the affected areas with the support of friends and brothers such as Saudi Arabia, he added.

He said that Pakistan consistently enjoyed exemplary relations with

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Saudi Arabia. We share a friendship rooted in our common faith and characterized by cooperation in diverse areas. We have stood by each other in difficult times and have an abiding interest in each other’s progress and security. We also deeply appreciate Saudi Arabia’s assistance for Pakistan’s economic development.

Pakistan has a keen interest in further expanding our relations and raising them to a higher plane for the mutual benefit of our two countries. Given Pakistan’s strategic location and current rapid growth, there exists tremendous potential for greater cooperation in a broad spectrum of areas, specially trade, investment, culture, education and defence.

Your brother in kingdom of Saudi Arabia does hold for this country and nation the noblest of feelings. They are overwhelmed by happiness as we see your brotherly country marching forward on the path of progress and flourishment. We wish you [progress] and prosperity.

Later on, he said, Terrorism is a grave threat to the whole world. And known as our two countries have been in the forefront of states who have fought and are still fighting terrorism, rejecting extremism. This is so because it stems from the essence of the teachings of our Islamic religion. Islam condemns terrorism and nourishes deeply the values of justice, moderation, tolerance, equity and embracing the others.

At the end, he said, I would like to take note of the path of dialogue, which Pakistan has pursued in her relations with her neighbour India. This is the best way in solving problems and conflicts peacefully. It is time to teach a just peaceful solution to the issue of Kashmir. I hope that both countries have the correct vision and ability to continue on the path of peace and establish good neighbor relations. This, surely, will enhance peace and security in the region.

He wished the people of Pakistan progress and prosperity and for the relation between our two brotherly countries more development and advancement.

The acceleration of events and developments and the greatness of issues facing our Ummah demand from us more consultation and cooperation so that we can together achieve what our nations aspire for living in dignity, security, stability and prosperity.

The injustice and suffering lived by the Palestinian people demand from us to collect the regional and international efforts to end the occupation and fulfill the Palestinian people hopes in establishing their independent state with its capital Jerusalem. We are also hopeful that security and stability be established in Iraq so that it can regain its status in the Arab and Islamic Ummah.

Pakistan Tribune, April 17, 2006, http://www.paktribune.com/news/index.shtml?140846


PAKISTAN, SAUDI ARABIA KNOCK OIC OVER ISRAELI AGGRESSION

Pakistan and Saudi Arabia on Sunday have expressed deep concern over the Middle East situation and urged the Organisation of the Islamic Conference (OIC) to take immediate notice of Israeli aggression on Lebanon. The concern was shared when President General Pervez Musharraf telephoned Saudi King Abdullah here. The two leaders discussed the crises resulting from the flagrant Israeli aggression against Lebanon.

They urged the OIC to take initiative for effective international action for immediate cease-fire in Lebanon and to end Israeli aggression into Lebanese territories.

Earlier, President Mahmouud Ahmadinejad of Iran spoke to President Musharraf and discussed the grave situation in Lebanon. The two leaders exchanged views on the role, the OIC could play to help people of Lebanon.

Prime Minister Shaukat Aziz had also telephonic conversation with Prime Minister of Lebanon Fouad Siniora who informed him about the deteriorating humanitarian situation in his country.

He assured his Lebanese counterpart that Pakistan would be dispatching relief supplies as soon as the corridor for relief assistance is opened.

Meanwhile, the Foreign Office spokeswoman Tasneem Aslam said, "In our continuing contacts with the leadership of the Muslim world, the Prime Minister Shaukat Aziz also spoke to Secretary General of OIC Ekmeleddin Ihsanoglu."

She said, yesterday, the prime minister had telephonic conversations with his Malaysian and Turkish counterparts on the Lebanon crisis.

Pakistan Defence Journal, July 23, 2006, http://www.defence.pk/forums/world-affairs/1569-pakistan-saudi-arabia-

knock-oic-over-israeli-aggression.html

SAUDI ARABIA, PAKISTAN TO SIGN NEW DEFENCE-MILITARY AGREEMENT

Pakistan and Saudi Arabia are rewriting a 24-year-old defence deal in the backdrop of the fast changing scenario in the Gulf region and now both countries will hold joint war exercises and Islamabad will transfer war technology to Riyadh.

The new military deal is being signed on the request of Saudi Arabia. The Pakistan Army has been sending its armed personnel on deputation on the request of Saudi Arabia since 1982, now Saudi Arabia wants a new defence treaty to get maximum benefits from the Pakistan Army.

The draft agreement has been submitted to President General Pervez

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Musharraf for final approval. The federal cabinet meeting Wednesday with Prime Minister Shaukat Aziz in the chair gave a go ahead to the Ministry of Defence to revise the old military cooperation pact signed in 1982 when General Ziaul Haq was ruling Pakistan and Shah Khalid was the monarch of Saudi Arabia.

Earlier, the Ministry of Defence sent a draft agreement to Saudi Arabia for approval, but Saudi Arabia raised some objections. After developing consensus on the agreement, the Defence Ministry got it approved from the cabinet. According to the Defence Ministry, in terms of the rules of business of 1973, the prime minister had to approve the signing of the military cooperation agreement with Saudi Arabia.

The agreement is meant to strengthen existing bilateral relations and enhance military and defence cooperation in various fields between the armed forces of both countries. A Defence Ministry summary said that the Ministry of Foreign Affairs, the Ministry of Defence Production and Joint Staff Headquarters had also cleared and supported the agreement. The Ministry of Law and Justice had also vetted the agreement.

The earlier agreement on the deputation of Pakistan’s armed forces and personnel and military training was signed between Pakistan and Saudi Arabia on December 14, 1982. The new agreement will cover areas related to cooperation in the field of training, deputation, transfer of technology, exchange of experience, purchase of weapons systems, equipments, spare parts and military medical services.

Indian Defence, August 14, 2006, http://www.india-defence.com/reports-1755

PAKISTAN, SAUDI [ARABIA] TO STRENGTHEN DEFENCE, STRATEGIC TIES

Pakistan and Saudi Arabia on Wednesday vowed to deepen their multifaceted and strategic relations to new heights by enhancing cooperation in the war against terrorism, increased collaboration in defence, security, trade and investment.

The wide ranging talks between King Abdullah Bin Abdul Aziz, the Custodian of the two Holy Mosques, and Prime Minister Aziz at the Janadariya Farm House stretched well beyond the scheduled time of one hour to over three hours. The two leaders also had one-on-one meeting.

The King, in a rare gesture, invited the Prime Minister at his farm house, where they took into account matters covering the whole gamut of relations besides regional and international issues of mutual interest. The two leaders also reiterated their countries’ stance of standing by each other.

Prime Minister Aziz said, Saudi Arabia has always stood by Pakistan and


it was proud of its ties with the Kingdom. Prime Minister Shaukat Aziz’s visit, part of regular high level consultations between the two countries, also took into account their close relations including political, diplomatic and economic ties.

The Saudi King also hosted a banquet in honour of Prime Minister Aziz that was also attended by Senior Advisor, Sharif-ud-Din Pirzada, Minister for Defence Production, Maj. (R) Habibullah Warraich, Interior Minister, Aftab Ahmad Khan Sherpao, Minister for Population Welfare, Chaudhry Shahbaz Hussain and State Minister for Foreign Affairs, Khusro Bakhtyar.

Prime Minister Aziz recalled the visits of King Abdullah and the Saudi Crown Prince to Pakistan and said these were reflective of the close ties between the leadership of two countries.

The Prime Minister also apprised King Abdullah of Pakistan’s position in the region, its role as a frontline state in the war against terrorism and its efforts for bringing about lasting peace in the region. The two leaders vowed to continue to play their active role in ensuring peace in the region through increased cooperation.

The King and Prime Minister Aziz called for removing the misperceptions that create any linkages between Islam and terrorism.

Prime Minister Aziz told the Saudi King about the ongoing Composite Dialogue between Pakistan and India to seek a peaceful and negotiated settlement of the core issue of Kashmir according to the aspirations and wishes of the Kashmiri people.

The two leaders also took into account the situation in the Middle East and called for an early resolution of the Palestine issue, to bring peace not only in the region but for the world at large.

They also called for resolution of the Palestine issue in accordance with the UN resolutions and wishes of the people of Palestine.

On Lebanon, Prime Minister Aziz said all efforts should be made to avoid civil war. He appreciated the efforts of Saudi Arabia in this regard. The two leaders said keeping in view the challenges faced by Muslim Ummah, there was a need for reviving and revitalizing the Organization of Islamic Conference (OIC).

Prime Minister Aziz appreciated the role of King Abdullah and the government of Saudi Arabia in unifying the Muslim Ummah. The two leaders also expressed concern at the deteriorating security situation in Iraq and the sufferings of the Iraqi people. Both leaders emphasized the importance of Iraq’s territorial integrity and sovereignty.

Prime Minister Aziz and the Saudi King also discussed greater cooperation between the private sectors of the two countries and expressed the resolve to give it a new dimension. The two leaders directed their private sectors to play a pivotal role in strengthening the Pak-Saudi ties.

Meanwhile, Prince Alwaleed Bin Talal, a billionaire and an

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internationally renowned businessman and investor, hosted a reception in honour of Prime Minister Shaukat Aziz and members of his entourage at his resort in a traditional Arabian style on Tuesday.

Prince Alwaleed, Chairman of Kingdom Holding Company, appreciated the investment opportunities in Pakistan and said his company was in final stages of talks to work on two hotel projects in Lahore and Karachi.

“It is for all of us to follow up and invest in Pakistan,” he remarked. Prince Alwaleed, who already has his business in Pakistan through the citybank said it values the South Asian region a lot and added that the talks were in final stages to develop his two hotel projects.

Prime Minister Aziz discussed with Prince Alwaleed the investment opportunities available in Pakistan and informed that the inflows of Foreign Direct Investment (FDI) in Pakistan have crossed $ 3 billion and steadily increasing due to continuity of investors-friendly economic policies of the government.

Prime Minister Shaukat Aziz on Wednesday urged Saudi investors to focus on Pakistan as an “investment destination” as it was pursuing an open door policy, offering lucrative returns and a secure environment.

“We encourage you to visit Pakistan and see for yourself the vast opportunities and wide areas available for foreign investors,” he told a gathering of leading Saudi investors, ministers and senior government officials, at an Investment Forum.

Pakistan Times (Islamabad), December 14, 2006, http://www.pakistantimes.net/2006/12/14/top3.htm

RESPONDING TO TERRORIST THREAT: PERSPECTIVES OF SAUDI ARABIA AND PAKISTAN

Introduction

While terrorism-driven security concerns continued to dominate the strategic landscape in the increasingly intertwined regions of South Asia and the Gulf in the first half of 2006, the combined impact of the American strategic failure in Iraq and the manifest inability of the NATO-led ISAF forces in Afghanistan to stabilize the war-ravaged country, spawned new fears of regional instability, forcing neighboring countries in the region to contend with a highly convulsive security environment fraught with unpredictable consequences. This article focuses on security challenges faced by Pakistan and Saudi Arabia in the wake of the launching of the “global war on terror” (GWOT) by United States in October 2001. The article begins by noting the limitations of GWOT as a strategic precept and highlights the emerging consensus among countries in the Southwest Asian region that without addressing its structural roots, the problem of terrorism and its violent manifestation cannot be effectively


tackled. It then focuses on the Pakistani and Saudi responses to the intensifying challenge of al-Qaeda led terrorist activity in the year 2006.

Limitations of GWOT

As the “global war on terror,” launched in October 2001, entered its sixth year, there were many visible signs that the US-led campaign had run into a strategic cul-de-sac. First, despite its forcible ejection from Afghanistan under “Operation Enduring Freedom” and the killing and arrest of some of its key figures, Al- Qaeda continues to survive both as an “idea” and as an “evolving and adaptive entity” with a potential to mount lethal terrorist attacks. Second, instead of shrinking the pool of potential recruits for Al- Qaeda, American anti-terror policies seem to be producing the opposite effect. This is starkly evidenced by the rising wave of suicide attacks launched by al-Qaeda sympathizers in Iraq and Afghanistan. In Iraq, a country under US military occupation for over three years, al-Qaeda seems to have established a firm popular base which has allowed it to mount “suicide attack, large truck bombs and attacks on significant religious or political targets.” As Richard Clarke argued, Bush “launched an unnecessary and costly war in Iraq that strengthened the fundamentalist, radical Islamic terrorist movement world wide.” Third, despite massive deployment of financial, intelligence and military resources worldwide, feelings of insecurity and vulnerability to terrorist attacks remain pervasive. The GWOT has failed to secure the world against the scourge of terrorist violence. This is graphically illustrated by the multiple bombing on the London Transport network on July 7, 2005 that killed 52 people and injured 700, and the July 11, 2006 attacks on Mumbai railways in which 200 people were killed and over 800 injured. Why has the GWOT been such an egregious failure? Part of the answer has to do with the uni-focal manner in which the United States has tried to wage this war but a large part has to do with an American fixation with the identity and motivations of the terrorists without taking into account the contextual and enabling factors, including the impact of American imperial policies, that have allowed them to engage in asymmetric warfare. By declaring “war” on terror, the US has not only by definition excluded the use of non-military means to defeat terrorists but has also sought their physical elimination as the only benchmark for the success of its anti-terror campaign. Speaking in October 2005, US President George Bush outlined some of the successes of GWOT:

Together, we’ve killed or captured nearly all of those directly responsible for the September the 11th attacks; as well as some of bin Laden’s most senior deputies; al-Qaeda managers and operatives in more than 24 countries; the mastermind of the USS Cole bombing, who was chief of al-Qaeda operations in the Persian Gulf; the mastermind of the Jakarta and the first Bali bombings; a senior Zarqawi terrorist planner, who was planning attacks in Turkey; and

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many of al-Qaeda’s senior leaders in Saudi Arabia. The main problem with this “extremist” approach towards counter-

terrorism is not only the fact that “terrorism is notoriously difficult to eliminate” but also the policy conundrum that “if elimination is the proclaimed goal, then every subsequent terrorist incident represents a victory for the terrorists.” This approach is also flawed because by demonizing the other it leaves no space for communication. As astutely observed by Gary Younge “unencumbered by context, causality, proof or persuasion,” the Bush doctrine does not require one to understand anything “about your enemy but the fact that it must be eliminated. So long as you are convinced of its guilt, you do not need to prove it to any one else. There should be no negotiation or mediation, no distinction between those who commit acts of political violence and those who support them.” Additionally, it also promotes obfuscation of terrorism as a complex and multi-faceted phenomenon. As pointed out by the House of Commons Foreign Affairs Committee Report, the phrase “war against terrorism” is inappropriate as “it does not adequately describe what has become a multi-faceted and complex international effort to thwart terrorist attacks across the globe simultaneously with attempts to address the background to international terrorism.”

An unfortunate consequence of this exclusive American focus on the identity of the terrorists rather than on their actions and local contexts, in which those actions are embedded, has been the conflation of terrorism with militant Islam. This conflation has not only forced the Muslim countries and their citizenry into a “defensive and survivalist mode” but also has deflected critiques of the US’s role in underwriting injustice and sustaining oppression on a global scale. As argued by Asma Barlas: “by shifting the burden of “defeating and eradicating militant Islam” onto “moderate Islam,” the US is absolved of the responsibility to rethink its own injurious policies.” Instead of self-critically evaluating the role played by its own policies in aggravating the Muslim sense of injury on issues such as Palestine, the patently false conflation of Islam with terrorism results in a distorted understanding of both. As Ziauddin Sardar and Merryl Wyn Davies write: “America has the power and resources to refuse self-reflection. More pointedly, it is a nation that has developed a tradition of being oblivious to self- reflection.” The rise of the so-called “Muslim terrorism” has nothing to do with Islam as a religion, which, like all other religions, espouses the cause of peace, harmony, non-violence, and human co-existence. As pointed out by the Final Report of the High Level Group for Alliance of Civilizations: It is imperative to note that none of the world religions condones or approves of the killing of innocents…Recently, a considerable number of acts of violence and terrorism have been committed by radical groups on the fringes of Muslim societies. Because of these actions, Islam is being perceived by


some as inherently violent religion. Assertions to this effect are at best manifestly incorrect and at worst maliciously motivated. They deepen divides and reinforce the dangerous mutual animosity among societies. (Emphasis added).

Far from being mysterious or irrational, the Arab/Muslim anger towards the United States is a consequence of some specific factors and policies which are well-described by Ali Mazrui:

…there are global causes of Islamic radicalism and global reasons why “Muslim terrorism” has gone international. One factor is the “Latin Americanization” of the Middle East by American policymakers and strategists…American imperialism in Latin America had been an empire of control rather than one of occupation. The same is true of American imperialism in the Middle East…The second major trigger of global Islamic radicalization consists of the state of Israel; its brutal occupation of the Palestinian people; the annexation of Jerusalem; and the United States’ enormous material, diplomatic and uncritical support of the Jewish state…The United States provides Israel with an umbrella of impunity. The resulting international frustration has aroused widespread rage throughout the Muslim world. The third international trigger of Islamic radicalism and major cause of Muslim terrorism is the multiple humiliations of Muslims in so many different countries…there are also domestic causes of Muslim radicalization…but even those domestic radicalizing forces might not have risen to the levels of terrorism if they were not reinforced by a resentment of American support for most Muslim dictators for decades – especially oil rich dictators, but along with oil-poor Pakistan and Egypt. Terrorist Threat and Saudi Response

The National Intelligence Council’s 2020 Project report, Mapping the Global Future, predicts that “terrorist violence” in the Middle East “is likely to be aimed more directly and conspicuously at the area’s regimes than it is now.” It went on to note that the “responses by regimes will be variable, ranging from increased repression to varieties of co-optation.” In 2006, Saudi Arabia continued to face the threat of al-Qaeda sponsored terrorist activity, which was compounded by the spill over effects of the violent chaos in neighboring Iraq. The two countries have a long and porous border and around “900 people are believed to be operationally active in Iraq and ready to conduct operations in Saudi Arabia.” Riyadh’s biggest fear is that “disorder will spill over its own borders in the form of experienced, battle trained fighters who can easily infiltrate into the kingdom, bringing with them newly honed skills in bomb-making and other aspects of insurgent warfare and joining with al-Qaeda elements already active in Saudi Arabia.” Interior Minister Prince Nayif bin Abdul Aziz acknowledged in July 2005 that “we expect the worst from those who went to Iraq,” predicting that they would be even more dangerous

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than those who had fought in Afghanistan, “Iraq now constitutes the main base of terrorists… The condition in Iraq is changing day by day, posing multiple dangers for the region. We are living this situation and doing everything possible,” Prince Nayif told reporters in Riyadh on November 12, 2006. He said some agencies were taking young Saudis to Iraq and using them “to carry out explosions… These youths go to Jordan and Syria ... and then sneak into Iraq. They will never be able to do that through our borders,” he said. Not much is known about the organizational structure or membership of the al-Qaeda organization within Saudi Arabia. For example, it is not known if it is a coherent organization as opposed to a network of autonomous cells. There is also no reliable estimate of the number of individuals operating in Saudi Arabia; some analysts speculate that there are no more than 1,000–2,000, while others suggest much higher or lower figures. What follows is a brief chronology of the major terrorism-related incidents in Saudi Arabia in 2006. It should be noted that Saudi Arabia’s experience with terrorism is not new and it pre-dates the 9/11 terrorist attack on the United States. For example, in November 1979 Saudi Arabia violently put down the Grand Mosque uprising with French military help. The uprising was staged by Juhayman al-Utaybi, a charismatic preacher, and his group of followers, who called for the abolition of radio, television, professional soccer, and employment of women outside the home and urged the overthrow of the royal family for its alleged “corruption and close relationship with infidel powers.” In November 1995, terrorists struck a joint US-Saudi facility in Riyadh that killed five Americans. A few months after the Riyadh bombing, a truck bomb exploded outside Khobar Towers, an apartment complex housing 2,000 members of the US armed forces. The explosion killed 19 US servicemen and wounded another 372. However, the terrorist violence reached a new level in the wake of the 9/11 attacks. On May 12, 2003, attacks on Western housing compounds in Riyadh killed 35 people; and on November 8, 2003, 17 people, most of them expatriate workers from Arab countries, were killed in a suicide attack on a residential compound in Riyadh. The following months saw a series of deadly bombings and shootouts as militants attacked expatriate workers and the Saudi police. In June 2004, three gun attacks in Riyadh left two Americans and a BBC cameraman dead, and BBC Security Correspondent Frank Gardner seriously wounded. The same week, a US engineer was abducted and beheaded.

Chronology of Terrorist Activities in Saudi Arabia

• On January 17, 2006, the Ministry of Interior reported that five men suspected of planning terrorist attacks in Saudi Arabia were arrested.

• On February 24, 2006, the Saudi authorities announced that they had foiled a suicide attack on a major oil processing plant at Abqaiq


– the first direct assault on Saudi oil production. • Following up on the Abqaiq attack, security forces raided an Al-

Qaeda safe house in Riyadh on February 27 and seized a ton and a half of explosives, three cars with forged license plates, 24 guns of various types with ammunition, and numerous videotapes. Five militants were killed in the raid, three of whom were on the list of most wanted militants.

• On April 18, 2006, the Ministry of Interior stated that Saudi security forces arrested five militants in connection with the failed Abqaiq oil facility attack.

• On May 12, 2006, the Ministry of Interior reported that a car fired on the US consulate in Jeddah. Security forces apprehended the armed individual later identified as Muhammad bin Abdel Raziq Saad Faidi Al-Ghamidi.

• On June 23, 2006, the Ministry of Interior confirmed that Saudi security forces killed six al-Qaeda militants and arrested one militant in a raid in the Al-Nakheel neighborhood of Riyadh. Information obtained during the raid also resulted in the arrests of two additional suspected militants with direct links to the group.

• On June 24, 2006, the Ministry of Interior announced that from May 9 through May 23 Saudi security forces arrested 27 suspected al-Qaeda terrorists in raids throughout the Kingdom.

• On August 22, 2006, four suspected militants surrendered to Saudi security forces in Jeddah after police laid siege to a building in which they were hiding.

• According to an official statement released on August 22, 2006, “at least 90 civilians, 55 security personnel and 136 militants have died since the unrest began in May 2003 and hundreds more have been wounded.”

• Between September and October 2006, Saudi authorities arrested 136 terrorist suspects who, according to official sources, had “exploited the Umrah traffic to smuggle in people who were trained abroad.”

• On December 7, 2006 four armed gunmen in Jeddah killed two Saudi police officers when they tried to foil an attempt to assist in a prison breakout. A cursory look at the terrorist activity in Saudi Arabia in 2006 reveals that al-Qaeda-backed terrorist violence remains the most significant security challenge for the Saudi authorities.

The aborted al-Qaeda attack on the Abqaiq facility marked the beginning of the so-called “economic jihad” by al-Qaeda against Saudi Arabia.

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Two days after the Abqaiq attack, an al-Qaeda-affiliated cleric named Sheikh Abd-al-Aziz bin Rashid al-Anzi published a treatise which provided a religious justification for Osama bin Laden’s late 2004 call for the Mujahideen to “strike supply routes and oil lines, and to place twice as many mines [at oil targets] that leave behind no wounded, and to assassinate company owners in Riyadh, Kuwait, Jordan and other places.” Entitled “The Religious Rule on Targeting Oil Interests,” and posted on a British internet website, the treatise claimed that “targeting oil interests,” is “lawful economic jihad in this era” and mentioned “pipelines,” “oil refineries and related facilities,” and “individuals prominent in oil industry” as three sets of oil-related targets against which operations are permissible.

Apart from dealing with religiously motivated terrorist activity within the country in which some elements of its own citizenry are implicated, Saudi authorities now have to contend with the spillover effects of the sectarian war between the Sunnis and Shiites in neighboring Iraq. As many as two million Shiites live in Saudi Arabia, where they comprise 10-15 percent of the population. Most Saudi Shiites reside in the Eastern Province, which is also home to the world's largest concentration of oil assets and about 90 percent of Saudi Arabia’s oil production. Although there is little evidence of Shiite militancy inside the Saudi kingdom, the ongoing violence between Shiites and Sunnis in Iraq could ignite the flames of “confessional violence” as “Saudi Salafi-Jihadists do in fact return home and inject new blood, energy and more sophisticated techniques into homegrown Saudi terrorist movements” and begin to “clash with the quiescent Shiites living inside the oil-rich Kingdom.”

The Saudi authorities are deeply concerned about bleed-back and would like to see better intelligence in Iraq as well as improved border control. The Saudi decision to build a double-track barbed fence fitted with remote sensors and thermal cameras along its border with Iraq reflects this concern. According to Prince Nayef bin Abdul Aziz, the interior minister, the proposed fence “will have 135 gates, all monitored with ultraviolet technology to prevent the infiltration of terrorists…and also to halt the smuggling of arms, drugs and persons into the Kingdom.” According to the US Army, Saudis comprise 12 percent of the estimated 3,000 foreign combatants fighting on the side of the insurgency in Iraq. With Iraq becoming a crucial training ground for international terrorists, Saudi Arabia has to be concerned with the long-term “blow-back effects” of its citizens’ involvement in that country. As pointed out by Peter Taylor:

By far the more important capability for carrying out local attacks is the availability of expertise, especially in bomb making, operational planning and tactics…. Foreign terrorists who have been involved with the al-Qaeda Jihad in Mesopotamia ….are now able to return to their countries of origin…battle hardened and with skills acquired and honed in Iraq.

The threat of terrorism confronting Saudi Arabia while magnified by the


deteriorating security situation in neighboring Iraq also has its domestic roots. According to a House of Commons Report “Insufficient job creation, an ill-adapted education system and anachronistic economic structures, particularly when coupled with the sight of thousands of Princes enjoying lavish lifestyles, risk popular discontent.” To stem popular discontent translating into tacit support for forces of religious extremism, Riyadh has made special efforts to utilize Saudi Arabia’s “windfall” oil earnings to boost the pace of industrialization to create job opportunities for unemployed Saudi youth. To supplement its security driven counter-terrorism strategy, Saudi Arabia has also tried to evolve a longer-term approach targeting the causes of terrorism and the recruitment of terrorists. Religious education in Muslim countries has come under intense scrutiny after the tragic events of 9/11. Western analysts often portray religious seminaries as incubators for terrorist violence as “they instill hatred in the minds of young people who later become the recruits of terrorist organizations.” Positing a causal linkage between terrorist activity and pedagogy of violence taught in these religious schools, George Tenet, former CIA Director, told the Senate Armed Services Committee on March 19, 2002:

…Primary and secondary education in parts of the Muslim world is often dominated by an interpretation of Islam that teaches intolerance and hatred. The graduates of these schools – “Madrasas” – provide the foot soldiers for many of the Islamic militant groups that operate throughout the Muslim World.

Saudi Arabia has taken some basic steps to limit the influence of the religious conservatives who control state education where the bulk of the students are educated. These steps range from editing the curriculum to remove passages glorifying death and promoting hatred, to opening some 4,000 private primary and secondary schools which will have more flexibility in terms of curriculum and teaching styles, to convening educational conferences highlighting the need for moderation and tolerance, and using the modern media, especially TV, to discredit those espousing violence in the name of Islam. The Saudi government has sought to use religious authorities to tackle the ideology behind terrorism. Ulemas have been urged to refute militants’ arguments, preaching against the religious rhetoric and explaining in mosques and on television that their acts are breaches of Islam. Religious scholars, some of them known for their conservative views, have issued strongly-worded statements, bolstered by references to the Quran and Sunnah, categorically condemning al-Qaeda’s actions and its attacks on Muslims and non-Muslims. Repentant militants have also appeared on television and Islamist mediators have been brought in. In October 2006, Saudi media took the bold step of airing a comedy program which ridiculed Islamic extremism with its depiction of “terrorism academy” named after the popular global TV franchise Star Academy.

In January 2006, Saudi Arabia hosted a meeting of the Organization of

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the Islamic Conference (OIC) in the holy city of Mecca. During the conference King Abdullah criticized al-Qaeda using “Islamically loaded terminology.” The conference’s final communiqué stated: “Islam is a religion of moderation which rejects bigotry, extremism and fanaticism.” As part of its counter-terrorism strategy, Saudi Arabia has also taken steps to deny the channeling of terrorist funding through the country. According to Professor Neil Patrick, “the monitoring of significant bank deposits and/or transfers is now far more comprehensive, while charitable giving, formerly a key means for transferring monies to armed groups, is much more closely circumscribed, with one notable organization eventually being prevented from operating…” SAMA (the Saudi Arabian Monetary Agency) is more efficient in following financial trails and in limiting the potential for monies to be transferred out of the country for nefarious purposes than a number of other GCC countries’ central banks. Despite these measures to stem the flow of Saudi money for terrorist activities, media reports indicate that “private Saudi citizens are giving millions of dollars to Sunni insurgents in Iraq and much of the money is used to buy weapons, including shoulder fired anti-aircraft missiles.” Saudi officials have vehemently denied that Saudi money is being used to fund the armed Sunni insurgency in Iraq. Responding to domestic calls for democratic reform, the Saudi government has taken a number of steps for political opening including setting up of a National Dialogue and the holding of municipal elections. In early 2005, municipal elections were held in Saudi Arabia for the first time as an initial step in the democratization process. In a statement before the Consultative Council in April 2006, King Abdullah laid out his priorities and the pace at which they should be addressed: “We cannot remain rigid while the surrounding world is changing,” he said. “Thereby we will continue, God willing, in the development process, strengthening national dialogue, liberalizing the economy, fighting corruption, uprooting monotonous habits, increasing efficiency of government institutions. We will enlist the efforts of all sincere workers, both men and women. All that will be done incrementally and moderately.” The crux of the problem is that if King Abdullah moves too quickly, he risks backlash; too slowly, and the changes might not survive his tenure. Notwithstanding this dilemma, King Abdullah has begun to move decisively to introduce his own version of incremental glasnost in the political arena. On October 21, 2006, King Abdullah issued a new succession law, which created an Allegiance Commission to ensure the smooth transfer of power and remove the uncertainty caused by the inability of a king or crown prince to run the affairs of the state as a result of poor health. Under the law, the commission will have a say in the appointment of a crown prince proposed by the king. If the commission rejects the nominated crown prince, it would vote to choose between the king’s candidate and its own for the title.


Pakistan: Frontline State Fighting Terrorism

In the aftermath of September 11, Pakistan became a pivotal coalition partner of the US-led global war on terror. Faced with the coercive American pressure either to “be with America or with the terrorists” and in case the latter “be prepared to be bombed backed to the stone age,” Islamabad not only jettisoned the Taliban regime in neighboring Afghanistan but also agreed to provide vital logistical support for Operation Enduring Freedom. The events of September 11 offered Pakistan a great window of opportunity to reverse its disastrous pro-Taliban Afghanistan policy and pull the country out of imminent economic bankruptcy and international isolation. In its role as a frontline state against terrorism, Pakistan undertook an extensive set of efforts to counter the looming threat of religious militancy and overcome al-Qaeda’s terrorist threat. These measures have included the following:

• Sharing of intelligence on terrorist activity with the United States and its allies;

• Ban on Jihadi organizations such as LET, JEM, TNFJM, SSP, TNSM;

• Strengthening of the anti-terrorist law and setting up of anti-terrorist courts with the military’s participation;

• Condemnation at the highest level of acts of international terrorism performed by groups with societal links and roots in Pakistan;

• Ban on display and carrying of weapons; • Freezing of the financial assets of the banned Jihadi groups; • Freezing of bank accounts of more than 50 organizations suspected

of links with sectarianism or international terrorism; • The decision to incorporate the anti-terrorism recommendations of

the inter governmental Financial Action Task Force on Money Laundering in Pakistani banking laws;

• Arrest and trial of those involved in terrorist activity; • Hunting down and arrest of remnants of al-Qaeda network in

Pakistan; • Ban on “hate speech” during Friday prayers; • Setting up of a special anti-terrorist task force.

The efforts made by the Pakistan government to control al-Qaeda’s terrorist threat have yielded some concrete results. Since September 2001, Islamabad has “captured 689 al-Qaeda operatives” and handed over 369 to United States. Those captured by Pakistani authorities have included many prominent al-Qaeda figures such as Abu Zubayda (March 2002 in Faisalabad), Khalid Sheikh Mohammad (March 2003 in Rawalpindi) and Abu Faraj al-Libbi (May 2005 in Mardan). In addition, the Pakistan government has managed to

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avert many terrorist attacks in Pakistan. Table 1 below lists some of the attempted terrorist attacks that were thwarted by the government authorities.

Table 1: Averted Terrorist Attacks in Pakistan

Date Target

April 2002 President of Pakistan September 2002 President of Pakistan October 2002 Unknown targets December 2002 US diplomat July 2003 Awam express train March 2004 US Consulate, Karachi April 2004 Military General Headquarters and Parliament November 2004 Shah Faisal Mosque November 2006 Presidency and Parliament

Source: Adapted and updated from Aarish Ullah Khan (2005), p. 32

The focus of Pakistan’s anti-terrorist campaign in 2006 remained Federally Administered Tribal Areas (FATA) which, because of its geographical proximity with neighboring Afghanistan, tribal codes offering protection to honored guests, reputation as a “lawless frontier,” and difficult terrain emerged as the main sanctuary for al-Qaeda and Taliban elements. In an attempt to open up these fabled “No Go Areas” especially the North and South Waziristan, to “prevent outflow of terrorists/miscreants and unwanted elements from entering into Pakistan,” Pakistan military launched its first operation in the tribal area on June 27, 2002 and since then it has conducted “44 operations” in which “302 terrorists have been killed and 663 captured.” Over 700 Pakistani soldiers have been reportedly killed in these military operations. On January 13, 2006, in an attempt to kill Al- Qaeda’s number two, Ayman-al-Zawahri, who had reportedly visited the village of Damadola in the Bajaur tribal district of Pakistan on the Afghan frontier, American forces bombed several housing compounds. The attack killed at least five top al-Qaeda figures and left scores of innocent civilians including children and women dead and many injured. Pakistan’s Islamist political parties called for severing all ties with the United States for this attack on the country’s sovereignty. While the Pakistani forces have been successful in catching some foreign terrorists as a result of these operations, they have, by and large, failed to prevent the use of tribal belt as a sanctuary by the Taliban and al-Qaeda remnants. Partly in reaction to the substantial loss of its fighting men but largely as part of its broader strategy to marginalize the Taliban and al-Qaeda influence in FATA through economic development, Islamabad changed its tactics by substituting use of force with a more conciliatory approach.

Notwithstanding a string of broken agreements that it had signed with local tribal leaders to stabilize the volatile situation in South Waziristan,


Islamabad concluded a high-profile peace deal with the tribal elders of Utmanzai tribe and local militias on September 5, 2006. Under the terms of the agreement, the militants undertook to implement the following six decisions of the Loya Jirga (grand tribal council):

1) No attacks would be launched against law-enforcement agencies, armed forces and government installations. Also, there would be no target killings.

2) No parallel administration would be set up in North Waziristan and the writ of the government of Pakistan would be accepted. The political administration would be approached for solution of local problems and all issues would be solved under the Riwaj (customs and traditions) and Frontier Crimes Regulations (FCR) with the cooperation of the Utmanzai tribes and their elders.

3) Nobody would be allowed to cross the border to take part in military operations in neighboring Afghanistan. However, there would be no ban on traveling to Afghanistan in line with existing laws and traditions for trade purposes or meeting relatives.

4) No interference would be carried out in settled districts adjoining North Waziristan and no effort would be made to establish parallel administration there.

5) All non-Pakistanis would leave North Waziristan. Those unable to do so would have to live peacefully in the area and respect the existing laws as well as all the terms of the peace agreement.

6) All government assets including vehicles, weapons, wireless sets, etc captured by the militants during fighting would be returned. The government on its part agreed to implement the following eight jirga decisions:

1) All those persons arrested during the military operations would be freed and would not be rearrested in these cases.

2) All privileges and benefits allowed to the tribes in the past would be restored.

3) Checkpoints newly erected on the roads would be dismantled while only Khassadars (tribal armed force) and Levies would man the old check posts as was the practice earlier.

4) All confiscated vehicles, weapons and other assets would be returned to the tribesmen.

5) Once the agreement is signed, the government would halt all ground and aerial military operations and in future resolve all issues under the terms of tribal customs and traditions.

6) All the innocent victims of military operations would be compensated for human and material losses. Owners of private properties that were damaged would also be paid compensation.

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7) There would be no ban on carrying arms in keeping with existing tribal traditions and practices. However, the ban on heavy weapons would continue.

8) Implementation of the peace agreement would begin with redeployment of Pakistan Army troops from road checkpoints to their camps and bases.

The two sides also agreed to form a 10-member committee comprising officers of the political administration in North Waziristan and tribal elders and religious scholars to monitor and ensure implementation of the agreement and serve as a bridge for contacts between the government and the Utmanzai tribes. It was also agreed to initiate action against any person or group, whether local or foreigner, who violates the agreement or tries to destroy peace in North Waziristan. Critics of the North Waziristan accord have excoriated it as a thinly veiled attempt by the Pakistan army to cut its losses by capitulating to the forces of religious extremism running rampant in the area. As the latest Asia Crisis Group Report put it: “This accommodation facilitates the growth of militancy and attacks in Afghanistan by giving pro-Taliban elements a free hand to recruit, train and arm.” The prospects for lasting peace opened by the North Waziristan accord were overshadowed by angry tribal reaction to the October 30, 2006 missile attack on a Madrassa in Bajaur in which 85 people including children were killed. President Musharraf defended the attack by claiming that those killed “were all militants. They were doing military training there. We were working on them for last six, seven days and we know who they were and what they were doing.” Pakistani security officials further claimed that the destroyed religious seminary “was being used as a terror training facility where suicide bombers were being trained to launch attacks in Pakistan and Afghanistan.” The Madrassa attack provoked angry protests in the tribal belt where “thousands of heavily armed protesters took to the streets” in the biggest anti-government demonstration ever. They chanted “Death to Musharraf! Death to Bush.” The Leader of opposition in the National Assembly, Maulana Fazlur Rehman, termed the attack “an unpardonable act” and a former head of the ISI with pro-Taliban leanings, General (Retd) Hameed Gul visualized that “Like Saddam Hussein, Musharraf might be tried by a future regime for killing his own people.” A week later, on November 8, 2006 a suicide bomber blew himself up at an army-training centre at Dargai in the North West Frontier Province, killing 40 soldiers and injuring 39 recruits of the Punjab Regiment Centre and their instructor. Linking the Dargai suicide blast with al-Qaeda, Interior Minister Aftab Sherpao told a press conference in Islamabad on November 28, 2006 that the government had found evidence of “positive leads” of al-Qaeda involvement in the incident in which 40 military personnel were killed. As the above brief narrative suggests, the most serious security challenge facing Pakistan is the


threat from religious Islamic militancy running rampant in its tribal areas. The level of determination of the jihadi terrorists is evident from their targeting of Pakistan’s political structure right up to its top. The highest target of these terrorists was and remains the president of the country. There were two successive attacks on the life of President Pervez Musharraf in December 2003, which he narrowly escaped. Other targets later included the military Corps Commander at Karachi in June 2004 (who is currently the Vice Chief of the Army) and the current Prime Minister, Shaukat Aziz (who was PM designate and Finance Minister at the time), in July 2004.” The spillover effects of intensifying Taliban insurgency in neighboring Afghanistan have compounded this threat of homegrown militancy. In Afghanistan, more than 1,600 people were killed in 2005, and the violence is on the rise. In May 2006, Afghanistan saw some of the fiercest fighting since the overthrow of the Taliban in 2001. On November 26, 2006, a suicide bomber blew himself up in a crowded restaurant in the southeastern province of Paktia, killing 15 people and wounding 24 others. This suicide strike was the 102 in Afghanistan in 2006. Two hundred and forty one people have been killed in these suicide attacks. There have already been more suicide attacks in 2006 than in the whole of 2005 (17) and 2004 (five). There are also fears that the violence is spreading to previously safe provinces. Cultivation of opium poppy has increased dramatically following the overthrow of the Taliban in 2001. Today, Afghanistan is the world’s largest supplier of opium (87 percent). In 2006, Afghanistan is expected to produce 92 per cent of the world opium, 60 percent of which will be produced in the South of the country. The emergence of a ‘narco-economy’ has warped the fabric of the state at every level.

In its recent report Asia Crisis Group, identified the following factors behind the intensifying Afghan insurgency: “political disenfranchisement, resource quarrels, corruption, lack of opportunities and development, abuse by local and international security forces.” American policy makers have voiced concern over the adverse regional implications of Taliban’s reemergence in Afghanistan. Former US deputy secretary of state Richard Armitage told a seminar in Singapore on November 27: “If Afghanistan is not a success, President Pervez Musharraf in Pakistan will not be successful in moving to enlightened moderation.” NATO’s leaders reaffirmed at their November 2006 Riga summit that “peace and stability in Afghanistan is NATO’s key priority,” calling upon “all of Afghanistan’s neighbors to act resolutely in support of the Afghan government’s efforts to build a stable and democratic country within secure borders” and particularly encouraging “close cooperation between Afghanistan, Pakistan and NATO, including through the Tri-Partite Commission.” For its part, the Pakistani leadership has been stressing the need to rebuild and stabilize Afghanistan. In his Gauhar Memorial Lecture on “Key Developments on the Pakistan-Afghanistan Border” organized by Altaf Gauhar Foundation in Islamabad on November 27, 2006, Prime Minister

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Shaukat Aziz proposed a “Marshall plan type programme to rebuild Afghanistan.” He said: “Afghanistan’s success is our success because we share commonalities. The drugs and terrorism are the real threats to the world peace and we will have to fight the menace…We, Pakistan, are loser if there is instability in Afghanistan.” He went on to say that Islamabad wants that “all Afghan refugees return to their homeland and it is possible only when they have resources to earn their livelihood.” With insurgency inside Afghanistan reaching alarming proportions, Kabul began to publicly accuse Islamabad of actively supporting the resurgent Taliban fighters.

President Karzai has repeatedly called upon Islamabad to act against Taliban leaders and operatives, dismantle their training camps, deny sanctuary and shut down the jihadi madrasas that provide recruits from Pakistan. “I don’t think the Taliban have a headquarters, but the Taliban have sanctuaries” and these “sanctuaries are definitely in Pakistan.” The Afghan President also alleged that Islamabad’s September 5, 2006 agreement with pro-Taliban militants is fuelling further cross-border attacks. Holding Pakistan directly responsible for the Taliban-led insurgency, President Karzai warned Pakistan that: “[I]t is like trying to train a snake against somebody else. You don’t train a snake. You cannot train a snake. It will come and bite you.” While agreeing that there are “Al- Qaeda and Taliban both in Afghanistan and in Pakistan….They are certainly crossing from the Pakistani side and causing bomb blasts and terrorist activities.” President Musharraf insists that the problem and its solution lie in Afghanistan since the Taliban have “roots in the [Pashtun] people,” who could be provoked into “national war” if Kabul fails to address their grievances. “The war,” Musharraf says, “has to be won on the Afghan side. In Pakistan we are certainly taking action against the elements supporting the Taliban in Afghanistan.” Reacting sharply to Afghan allegations that Islamabad was abetting the Taliban-led insurgency in Afghanistan, and especially media reports that Afghan officials had presented him a list of Taliban leaders allegedly living in Pakistan, President Musharraf told CNN in March 2006: “I feel there is a very, very deliberate attempt to malign Pakistan by some agents, and President Karzai is totally oblivious of what is happening in his own country.” During his September 2006 state visit to Kabul, President Musharraf vehemently denied allegations that Taliban had been receiving official help: “Let me say neither the government of Pakistan nor ISI [Pakistani intelligence] is involved in any kind of interference inside Afghanistan.” During his October 2006 visit to Washington, the Pakistan President stressed that the violence in Afghanistan is a domestic Pashtun phenomenon and gaining popular support: “He [Karzai] is not oblivious. He knows everything but he is openly denying – turning a blind eye like an ostrich.” On December 12, 2006, addressing Afghan students at a local school in Kandahar, President Karzai accused Islamabad of using Taliban insurgency to “scare him off” and to enslave his people. He told the gathering of students


that: “Pakistan hopes to make slaves out of us, but we will not surrender.” Venting his frustration over continuing suicide bomb attacks and a surge in violence, the Afghan leader said: “I told (Pakistan’s President) Musharraf we are angry and the nation is angry. I told him I am the one preventing them otherwise they will come after you.” Sending a message to the Taliban's fugitive leader Mullah Omar and other commanders, President Karzai said, “if it is you operating out of a basement of Pakistan’s ISI (Inter-Services Intelligence agency) God may break your backbone.” Reacting to President Karzai’s emotional outburst against Islamabad, Pakistan’s Foreign Minister Khurshid Kasuri said that Mr Karzai was misinformed and was merely looking for a scapegoat. “To those who say this, I would like to say that it is a common human reaction when you have difficulties, you find somebody else to blame....People who are well informed ... they know better. They know what Pakistan is doing; they know the price that Pakistan is paying.” To address mounting international complaints from Afghanistan, the US and NATO that Islamabad was not doing enough to help stabilize the situation in the border area and the growing concern about tribal areas turning into safe haven for the Taliban and militants, Foreign Secretary Riaz Mohammed Khan announced on December 26, 2006 that “Pakistan Army had been tasked to work out modalities for selectively fencing and mining the Pakistan-Afghanistan border” in keeping with “our policy to prevent any militant activity from Pakistan inside Afghanistan.” Describing the measure as a “last resort” to stop cross-border movement of terrorists, Interior Minister Aftab Ahmed Khan claimed that “by taking such steps we want to show our intention to those who have been blaming Pakistan for not controlling the infiltration of the Taliban into Afghanistan.” Reacting sharply to the Pakistani decision to mine and fence the border with Afghanistan, Kabul described the measure as “neither helpful nor practical.” Demanding that Islamabad should “fight terrorists in a real manner,” a presidential spokesman said: “We are against it. The border is not where the problem lies.” As a consequence of the resurgence of Taliban in neighboring Afghanistan, Pakistan’s tribal areas have been transformed into, to use Steve Metz’s terminology, a “Category II sanctuary” for terrorist activity. Category II states, according to Metz, tolerate terrorist activity not as a deliberate policy but “because of fear, weakness, or sympathy.” It is worth mentioning here that nearly half of today’s Afghan population has visited Pakistan at some point, making it a country that Afghans are most familiar with outside their homeland. About 60,000 Pakistanis currently work in Afghanistan and 10,000 of them cross the border daily. Pakistan’s bilateral trade with Afghanistan now surpasses $2 billion a year (with Pakistani exports to Afghanistan totaling $1.2 billion, and Afghanistan’s exports to Pakistan totaling $700 million). During his March 2006 visit to Pakistan, US President George W Bush supported the Reconstruction Opportunity Zones in tribal areas of Pakistan, particularly between Pakistan and Afghanistan as a means to

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alleviate grinding poverty prevalent in the area. FATA is one of the poorest regions in Pakistan. Per capita income is half that of the very low national per capita income of $500. Of its 3.1 million inhabitants, over 60 per cent live below the national poverty line. Per capita public development expenditure is one third of the national average. The overall literacy rate is 17.42 per cent compared to 56 per cent nationally. Male literacy is 29 per cent and female literacy is only 3 per cent as compared to the national 32.6 per cent for females. President Musharraf has announced that his government will spend $16.5 million (Rs 10 billion) on development, as well as $150 million in a five-year economic initiative to integrate FATA into the national economy by “breaking [the] vicious cycle of poverty, poor social services, lack of economic opportunities, and vulnerability to the easy solutions offered by extremism.” The main objective is to expand the resource base, generating economic activity and jobs and improving social indicators to meet Millennium Development Goals. The government estimates it needs to create 100,000 jobs. Addressing a high-level meeting in Islamabad on November 30, 2006 Prime Minister Shaukat Aziz said the Reconstruction Opportunity Zones (ROZ’s) would greatly “transform” the “tribal areas” by “strengthening the infrastructure, generating economic activities and creating more jobs and better facilities of life for the people of these areas. The implementation of these important development schemes including ROZ cannot take place in the climate of violent conflict gripping the area. It is imperative to establish peace and this goal cannot be achieved without sustained cooperation between Afghanistan and Pakistan. Mutual recriminations are easy and politically expedient but counterproductive. Pakistan and Afghanistan must realize that they have a common enemy in al-Qaeda and its associates and both would lose if the threat posed by these forces is not contained. Conclusion

As this narrative of the security challenges faced by Saudi Arabia and Pakistan, two of the most important frontline states in the global war on terror, suggests deteriorating security situation in their respective neighboring countries – Iraq and Afghanistan – has enormously complicated their efforts to bring the terrorist threat under control. While making an extensive contribution to the ongoing GWOT, both countries have tried to evolve counter-terrorism strategies that best suit their respective national environments. Stabilizing Iraq and Afghanistan would be absolutely critical for the successful implementation of these strategies. It is worth mentioning here that Pakistan and Saudi Arabia have been silent but effective partners of each other in combating the shared threat of terrorism. In February 2004, at the personal request of President Bush, Saudi Arabia paid $235 million for 24 Bell helicopters for the Pakistan army to help Islamabad augment its capability for tracking terrorists and


potential assassins. Both Saudi Arabia and Pakistan have suffered a lot from the seeds of religious radicalism that were planted nearly three decades ago when following the Soviet invasion of Afghanistan in December 1979, United States launched a global jihad to defeat the “evil empire.” In the drastically altered geopolitical context marked by the rise of asymmetric warfare, United States and its allies must carry their share of burden by helping Saudi Arabia and Pakistan overcome the pernicious legacy of that jihad.

Dr. Syed Rifaat Hussain, South Asia and Middle East Studies, vol. XXX, no. 3, Spring 2007, http://www.cosspak.org/data/Hussain_S._R.Version_II-Print_Format.pdf

ADDRESS BY PRESIDENT GENERAL PERVEZ MUSHARRAF TO

THE 19T H ARAB LEAGUE SUMMIT HELD IN RIYADH ON 28-29 MARCH 2007

Your Majesty Khadim Herman-Al-Sharifan King Abdullah bin Abdul Aziz Al-Saud, Excellencies,

Dear Brothers: I am indeed honoured to be invited on this important Arab League Summit in Riyadh. It is a special privilege to be able to share my views with this very distinguished assembly of my brothers and leaders of the Arab world. I am grateful to Khadim-Al-Herman-Al-Sharifan His Majesty King Abdullah, the government and people of brotherly Saudi Arabia for their very warm and gracious hospitality. I wish our brothers at this Summit every success in taking important decisions to address the common challenges and difficulties that confront the Middle East. Your challenges are our challenges. Your success in addressing them is our success. Peace and security in the Middle East is indeed fundamental to interests and aspirations of the entire Muslim Ummah. The tragedies of Palestine and Iraq cause the same anguish and anger in our homes as they do in your home. Despite the vast diversity of culture and historical experience, collectively as the Muslim Ummah, all of us Arab and Non- Arab Muslims feel each other's pain and face similar challenges.

The great transformation of the last century also changed the Muslim society. Large parts of the Muslim Ummah that came under colonial subjugation, gained freedom through their own struggle. But several legacies and disputes from that dark era continue to inflict sufferings and have aggravated with time. They have formed new conflict and new dangers. My dear brothers, in the Middle East peace has remained disturbed for over six decades mainly because of the suffering of the Palestinian and denial of their fundamental right to live in freedom. The aggressive Israeli actions are increasing the volatility of the environment and impeding progress towards the just settlement. The crisis in Iraq has implications far beyond the Iraqi borders.

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Tensions in the Gulf region are shaping and communal confrontation that could have incalculable consequences globally, regionally and within the Muslim Ummah.

We cannot remain helpless spectators, mired in these and other conflicts and crises afflicting the Islamic World. We need to join hands work for solutions on the basis of fairness, Justice and realism. On the larger canvas, apart from the disputes and conflicts, Muslim countries are facing new dangers in the rise of extremist and obscurantist thinking and tendencies. Sectarian and ethnic divisions are tearing the fabric of many of our societies and draining our energies needed to ensure progress and development within our countries. Also we must not allow a handful of fringe elements to malign our culture of moderation and our noble religion of peace, tolerance and compassion through their acts of senseless terrorism.

In the West we are witnessing campaigns to defame Islam. There are attempts to destabilize our society through provocation. There are forces scheming to push Islam and the West towards a clash. These dangerous trends must be discouraged and countered to prevent a global disaster. In these grave circumstances we need harmony and peace, understanding reform and reorientation to move instep with modern time and revive our glorious traditions and role for the good and advancement of human stabilization at large.

Dear brothers, Majesties, Excellencies, these thoughts and concerns had prompted me to visit several Muslim Capitals some weeks ago I was encouraged by the discussions I had with my brothers that led to the possibility of seven Muslim countries working jointly to help peace efforts in the Middle East, facilitate solutions to problems, seek reduction of tension and work for harmony in the Entire Islamic World. This initiative is supportive of other endeavors. The seven countries representing a powerful voice from within the Islamic Ummah could develop a mechanism to promote objectives that are important for all of us. We believe that the issues of Arab World deeply impact on the entire Muslim Ummah and our collective effort will prove to be more effective in addressing them. We are happy to see that since my visit the situation in Palestinian Territory has improved with conciliation between Fatah and Hamas through wise and sincere mediation by Khadim Herman-Al-Sharifan. Since then Palestine has a national unity government. We hope that this Summit will help forward towards the goal that you had together stated in the Beirut declaration five years ago. The tragedy of Palestine cannot be allowed to pester indefinitely.

We must set the timeline and work with the International Community for the establishment of an independent Palestinian State with AI-Quads as its capital living side by side with Israel in peace and security. Towards this end United States and Europe have a historic responsibility more than any other issue the failure to find a just solution of Palestine has damaged principles and


moral content in contemporary politics. In South Asia we are working to promote an environment of peaceful

and stable Afghanistan in the vital interest of Pakistan and the entire region. We are also addressing the long standing Kashmir dispute for a just settlement which is imperative for a brighter future of our region.

Majesties, my dear brothers, Excellencies, we are happy at the Summit meeting between Saudi-Arabia and Iran that has had a salutary influence over the gulf region. It is vital that countries of region work together to prevent a new conflict that would have very serious consequences for the region, the Islamic countries, the developing countries and beyond on the wider International scene.

Together we can avert this disaster with effective diplomacy. We owe this to our people and their future and to history. The challenges that Islamic Ummah faces are multiple and require a concerted and united response. We are happy to be a part of the Summit as it represents a unique initiative by your Majesty to reach out to other brotherly Muslim countries who share your concerns and your aspirations.

May Allah Almighty help all of us and guide us to meet the hopes and expectations of our people. I thank you all ladies and gentlemen.

Foreign Affairs Pakistan, vol. XXXIV, issue III (March 2007): 50-52.

PAKISTAN–SAUDI ARABIA BILATERAL ECONOMIC AND COMMERCIAL RELATIONS

Pakistan and Saudi Arabia enjoy excellent bilateral relations. Close geographical proximity, historic trade ties, religious affinity and the complimentary nature of economic needs have created a strong bondage of trust between Pakistan and Saudi Arabia. In addition, there is a convergence of views and interests of the two countries on most of the regional and international issues.

High-level visits from Pakistan and Saudi Arabia reflect the great warmth and depth of bilateral relations. During the last few years, President and Prime Ministers of Pakistan have visited Saudi Arabia on a number of occasions.

Successive Saudi leadership has visited Pakistan from time to time. King Saud visited Pakistan in 1954, King Faisal in 1966 and 1974 and King Khalid in 1976. Similarly, King Fahd as Crown Prince visited Pakistan in 1980 and King Abdullah went to Pakistan as Crown Prince in 1984, 1997, 1998 and 2003.

During his first tour to Asia, the Custodian of two Holy Mosques, King Abdullah included Pakistan as his final destination. During the visit five agreements/MoU encompassing political, economic, educational and scientific

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–cum - technical cooperation were inked by Pakistan and Saudi officials in the presence of heads of state of two countries. These agreements are bound to enhance bilateral ties in related fields. The two sides also issued a joint statement outlining points of convergence in their political views besides pinpointing activities they want to jointly undertake in future.

Similarly, a number of Saudi dignitaries including Ministers and Governors have visited Pakistan during the last few years. There was exchange of academics also. A delegation of 17 vice chancellors from different universities of Pakistan visited Saudi Arabia and both the countries agreed to foster collaboration in the field of education and research.

On the Kashmir issue, Saudi Arabia has been more supportive of Pakistan than any other country in the world. The Saudi news media, Ulema, NGOs like Rabita and WAMY and the public in general have also been supporting on this issue. Similar support was extended in the OIC Ministerial and Summit meetings as well. During the recent visit of King Abdullah to Pakistan, the two sides stressed on the need for an early peaceful settlement of outstanding issues in South Asia including the Kashmir dispute.

In commercial and trade sector, Pakistan and Saudi Arabia maintain good relations and this is increasing with the passage of time. Kingdom is amongst the top 20 major export destination of Pakistan. Pak-Saudi annual bilateral trade is above US$ 3.3 billion. Major items of exports form Pakistan to Saudi Arabia include, raw cotton, cotton yarn, cotton cloth, readymade garments, knitwear (hosiery), made-ups, bed linen, towels, tents & canvas, art silk & synthetic textiles, leather garments, furniture, carpets & rugs, , footwear, sports goods and surgical goods, rice, fish, fruits, vegetables, spices, biscuits, jams, juices, etc.

Pakistan imports major requirements of petroleum from Saudi Arabia. The other items of import from Saudi Arabia, though minor in volume, includes petrochemicals, organic chemical products, plastic and plastic products, fertilizers, steel products, electrical equipment and materials, raw skins, tanned leather, boilers and heavy equipment, copper and copper products, aluminum & aluminum products, chemicals (in-organic), components, precious metals, steel castings, tractors & other floor coverings of man-made fibers, various chemical products, rubber & rubber products, paper, hardboard, etc.

Notwithstanding the visible growth in exports from Pakistan to Saudi Arabia, there exists wider bilateral trade imbalance. The major cause of overwhelming imbalance in trade transaction is due to bulk import of petroleum in Pakistan from Saudi Arabia. Pak-Saudi balance of trade during recent seven years is as follows:


Value: US $ in million

Year

Exports from Pakistan

Saudi Importsin Pakistan

Balance of Trade

1999-2000 215 923 (-) 708 2000-2001 273 1,253 (-) 980 2001-2002 330 1202 (-) 872 2002-2003 477 1303 (-) 826 2003-2004 349 1779 (-) 1430 2004-2005 353 2478 (-) 2125 2005-2006 330 2994 (-) 2664

Bilateral Investment Pak- Saudi business communities have made substantial joint investment in industrial sectors. There are more than 300 Pakistani investors in the Kingdom who have obtained license form Saudi Foreign Investment Authority (SAGIA) and have established companies in various fields of construction and services.

Foreign Direct Investment (FDI) From Saudi Arabia to Pakistan (2000-2006)

(US$ in Million)

Years FDI from Saudi Arabia 2000-01 0.58 2001-02 1.30 2002-03 43.5 2003-04 7.2 2004-05 18.4 2005-06 272

Pak-Saudi Joint Ministerial Commission (JMC)

There exists an institutional arrangement between Pakistan and Saudi Arabia in the shape of Joint Ministerial Commission (JMC). The 8th Session of Pak-Saudi Joint Ministerial Commission (JMC) was held in Riyadh from 20 – 21h February, 2007.

Pak-Saudi Joint Business Council (JBC)

Saudi Arabia and Pakistan has felt the pressing need that more interaction was required at the level of the business communities to bring qualitative and quantitative improvement in balanced trade. First session of the business council was held in Riyadh during the year 2003 and the second session was held at Islamabad in February, 2005. The next session was expected during

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next year.

Participation in International Trade Fair

Two International Trade Fairs i.e. Saudi Arabia World Trade Fair in March 2007 and Saudi Healthcare and Hospital Fair in May 2007 were held in Riyadh and Jeddah. Pakistan through Trade Development Authority of Pakistan officially participated in both these fairs and was represented by the leading Pakistani companies. A separate Booth of Catalogue Show was arranged for propagation and dissemination of products of different companies of Pakistan. Signing of the Free Trade Agreement (FTA) with the GCC

The Government of Pakistan had decided to sign Free Trade Agreement (FTA) with the GCC as a trading block. The agreement would provide an opportunity to Pakistani exporters to tap the demand for goods in the GCC countries under the reduced tariff in the first phase and without tariff in the long term. This trade mission is trying its best to facilitate the finalization of the negotiations for signing of the FTA between Pakistan and the GCC countries by an early date.

Pakistan Specific Week and Catalogue Show

The Pakistan Trade Office, Jeddah in collaboration with the Jeddah Chamber of Commerce & Industry planned to organize a “Pakistan Specific Week and Catalogue Show”. The first show was held in the first week of October, 2005. The schedule of the show included Catalogue Show in the whole week as well Trade Forum, Investment Forum and Service Forum including representative of Health, Tourism, Education, NADRA, etc. This year show is expected to be held in September / October 2007 and with the purpose of propagating Pakistan potentials and to generate the business and investment opportunities for Pakistan.

Expo Pakistan 2007 at Karachi from 29th March to 1st April 2007

Trade Development Authority of Pakistan (Formerly Export Promotion Bureau of Pakistan) will arrange the Annual exhibition of Pakistani Product and Services entitled Expo-2007 at Karachi Expo Centre from 29th March to 1st April, 2007. A large number of Saudi businessmen attended the Expo and were greatly impressed by the products on display. For the first time an Eleven member Saudi Women entrepreneurs delegation participated in this show.

Pakistan Consulate Jeddah, http://www.pakconsulatejeddah.com/sitedata/comercialsection/the-histor-of-close-

commercial-ties-between-saudi-and-pak.pdf


PAKISTAN, SAUDI ARABIA ENJOY STRONG, CLOSE RELATIONS: PM

Prime Minister Shaukat Aziz said Pakistan and Saudi Arabia have strong and close relations which are based on mutual respect, harmony, shared values and a common faith.

The Prime Minister was talking to Mr. Ali S. Awadh Asseri, Ambassador of Saudi Arabia in Pakistan who called on him at the PM's House here today.

The Saudi Ambassador called on the Prime Minister of Pakistan and presented a cheque for 1 million Saudi Riyal on behalf of Prince Fahd bin Sultan bin Abdul Aziz, Governor of Tabuk for relief arrangements for the people affected in the recent floods in Balochistan.

The Prime Minister also recalled that earlier during the earthquake, the Saudi Government and people had extended whole hearted and generous support for relief, rehabilitation and reconstruction including medical facilities in Dalbandin by Prince Fahd bin Sultan bin Abdul Aziz and the construction of a hospital in Mansehra by the Saudi Government.

While appreciating the gesture, the Prime Minister also recalled that Pakistan and Saudi Arabia enjoyed strategic and eternal relations which are multi-faceted and broad based including defence, security, energy, religious, cultural, economic & trade and investment.

People of Pakistan have a special love, respect and affection for the custodian of the two Holy Mosques, King Abdullah Bin Abdul Aziz. Over a million Pakistanis are residing and working in the Kingdom of Saudi Arabia while over 600,000 Pakistanis visit Saudi Arabia for performance of Hajj and Umrah every year.

Pakistan and Saudi Arabia support each other on many international and regional issues and are both members of the Organization of Islamic Countries (OIC) and are working for strengthening the cause of Muslim Ummah.

The Prime Minister appreciated the role of the Custodian of the two Holy Mosques as being a source of strength not only for Pakistan-Saudi relations but also for the entire Ummah.

The Saudi Ambassador thanked the Prime Minister for his sentiments and stated that the Pakistanis living and working in the Kingdom of Saudi Arabia are playing an important role in the Saudi economy.

He also informed that a number of Saudis investors are now keen to invest in various projects in the light of the Pakistan’s economic performance over the last few years.

The Saudi Ambassador stated that Pakistan and Saudi Arabia will continue to strive for harmony and peace through resolution of disputes and shall oppose militancy and terrorism.

He expressed the hope that the historical, unique and fraternal relations

86 IPRI Factfile

between Pakistan and Saudi Arabia will continue to grow and strengthen.

Pakistan Time, September 14, 2007, http://pakistantimes.net/2007/09/14/top7.htm

“SAUDI ARABIA: FRIEND, BENEFACTOR, RESCUER”, A COMMENT BY FORMER FOREIGN MINISTER ABDUL

SATTAR, AS APPEARED IN DAILY ‘PAKISTAN OBSERVER’ ON 17 SEPTEMBER 2007

… Hafiz Shirazi said seven centuries ago, 'Kind consideration towards friends is the key to salvation in both the worlds.' William Shakespeare also eloquently verified the same advice: 'Those friends thou hast, and their adoption tried/grapple them to thy soul with hoops of steel. Faithful friends are hard to find. Cultivating and developing friendships takes time and effort, but these can be undone instantly by bitter words.

One fundamental fact should guide thought: the decision to deport Mr. Nawaz Sharif was made by Islamabad. Comments on its legality or political propriety are entirely legitimate. The same can be said about the decision in 2000 leading to Mr. Nawaz Sharif's exile. It was the consequence of the initiative taken by him to approach the Kingdom for intercession to rescue him from incarceration and prosecution by the Government of General Pervez Musharraf. The Kingdom used its good offices only and solely to promote a compromise between the former Prime Minister and the new Chief Executive, which saved Pakistan from another lasting ignominy before our state can live down the folly of hanging another prime minister. The Kingdom sought to grind no axe of its own.

The Kingdom had earlier provided asylum to President Idi Amin of Uganda. When Mr. Nawaz Sharif decided to go to Saudi Arabia in 2000 the Kingdom was generous to him and his family who were given a palace for their residence and luxurious facilities for comfort. When he applied for permission to go abroad for medical treatment, Riyadh believed and allowed him to leave. It did not make a public issue of the fact that he breached the promise by taking asylum in UK instead. Similarly the Kingdom eschewed comment on his decision to reenter politics. But when Mr. Nawaz Sharif decided to return to Pakistan Islamabad invoked the Saudi guarantee of performance. With a culture that expects both parties to honour their word the Kingdom reminded Mr. Nawaz Sharif of his pledge and then to enforce the conditions of asylum. International law requires a beneficiary of asylum to refrain from abuse of hospitality for activities that compromise its foreign relations.

Cradle of Islam and custodian of Harmain Sharifain the Kingdom has been dedicated to promotion of welfare of Muslim people worldwide and


rendered generous and selfless help and assistance to Muslim states. Endowed by Almighty Allah with generous resources for its development and the progress of its people, it seldom seeks reciprocity or even gratitude by countries it generously helps.

Pakistan, founded in the name of Islam, has been fortunate to enjoy a unique friendship with Saudi Arabia. The Kingdom has extended strong support to Pakistan on international disputes. Over a million Pakistani workers receive preferential opportunities for gainful employment in the Kingdom. Whenever in trouble, Pakistan has knocked at Saudi doors and never returned disappointed. After almost all other countries cut off aid to Pakistan in 1998, the Kingdom bailed out Pakistan by supply of petroleum worth two and a half billion dollars over five years. The debt was later converted into grant.

As citizens we have a right to criticize our rulers for ruling to advance their own interests instead of those of the people. Corruption, maladministration and poor governance have too often caused us irreversible damage. Half of our country was lost in 1971. We should not compound our misfortunes by improvident actions in field of foreign policy. Friendship of the Kingdom of Saudi Arabia is a precious and indispensable asset. We should not allow it to be damaged.

Foreign Affairs Pakistan, vol. XXXIV, issue IX (September 2007): 280-281.

SAUDI ARABIA, PAKISTAN TO FORGE CLOSER ECONOMIC, TRADE TIES

President Asif Ali Zardari and King Abdullah bin Abdul Aziz Tuesday vowed to upgrade the trade and economic ties, stating that stability, security and prosperity of Pakistan and Saudi Arabia were interlinked.

The two leaders met here at the Royal Palace exclusively to review the ties between the two brotherly countries and held in-depth discussions covering a wide-range of bilateral regional and international issues of mutual interest.

President Zardari and King Abdullah bin Abdul Aziz were of the view that the two countries have stood by each other in difficult times and would continue to do so. They were later joined by their aides in the talks that continued over the dinner hosted by King Abdullah in honour of the President and his delegation. The talks covered all areas of cooperation.

The two leaders expressed satisfaction over the existing state of cooperation between the two countries in all facets and renewed their commitment to reinforce bilateral cooperation, particularly in trade and investment.

Advisor to the PM on Interior Rehman Malik after the meeting described the talks as very positive and successful. He said King Abdullah

88 IPRI Factfile

accorded a very warm reception to President Asif Ali Zardari and his entourage on arrival at the Royal Palace.

King Abdullah and other members of the Royal family warmly greeted the President at the main entrance of the Palace.

Rehman Malik said the unprecedented welcome reflects the deep brotherly feelings Saudi Arabia and its leadership have for Pakistan.

After the initial meeting, King Abdullah escorted the President and his delegation to dinner table. The two sides continued to discuss bilateral issues over the dinner.

King Abdullah and President Zardari later had an unscheduled exclusive meeting.

King Abdullah and President Zardari agreed to expand and facilitate investment and joint ventures especially in energy, agriculture, food and infrastructure projects with the participation of their private sectors.

The regional and global threat of extremism and terrorism figured prominently in the talks between the two leaders who termed it a threat to all humanity. They stressed the need to intensify and coordinate bilateral, regional and international cooperation to combat terrorism and to eradicate its root causes.

The President also exchanged views with the Saudi leadership on the challenges faced by the Ummah and the need to effectively tackle the menace of terrorism and extremism.

Both the leaders pointed at the need of cooperating in the areas of security and combating terrorism. In this regard they also agreed to complete work on an agreement for more cooperation against crimes at the earliest.

The President said Pakistan was committed to combating terrorism and extremism in its own national interest. He said it was a long-term struggle, with complex challenges, requiring a multi-pronged approach combining political, military and development tracks.

He also informed King Abdullah about the special joint meeting of the parliament, convened recently, that adopted unanimously a 14-point resolution on the issue. He said the nation was united on this issue and stands together to fight this menace.

President Zardari also welcomed King Abdullah's initiative to convene international conferences on interfaith dialogue in the wake of challenges confronted by the Ummah.

He said Pakistan supports the declaration issued by the conference that calls for upholding respect for the diversity of religions, and condemning acts of desecration, insults to their symbols, religious discrimination, the exploitation of religions, and combating the menace originating from these vices.

He said the initiative will go a long way in removing the misunderstandings between various religions and will promote a culture of


tolerance. He said Pakistan will participate in the follow-up conference,

scheduled to take place during a high-level session of the UN General Assembly on Nov. 12 and 13.

President Zardari also sought Saudi Arabia's assistance for the recently formed 'Friends of Pakistan group' that includes the United States of America, the United Kingdom, China, France, UAE and Germany.

The group, set up last month on the sidelines of the UN General Assembly in New York, is scheduled to meet in Abu Dhabi on November 17 to discuss matters dealing with stability, development, border areas, energy and institution building.

President Zardari particularly thanked King Abdullah for assistance of US 100 million dollars for the relief and rehabilitation of Balochistan earthquake.

Saudi Arabia was also at the forefront in its help to Pakistan in the wake of Oct 8, 2005 devastating earthquake that killed around 86,000 and rendered over 3.5 million homeless.

The President acknowledged the long-standing and intimate relationship with Pakistan, agreed the need for the two countries to upgrade the relations between the two countries in all fields and stressed on the need for exploring more avenues of cooperation.

President also discussed with the Saudi leaders the Kingdom's new labour regulations. He said over a million Pakistani community was living in Saudi Arabia and contributing towards the progress and development of the Kingdom.

President Zardari also sought Saudi support for the early finalization of a Pakistan-GCC Free Trade Agreement. Saudi Arabia assured Pakistan to play its role in concluding the Free Trade Agreement (FTA) at the earliest. The agreement would provide an opportunity to Pakistani exporters to tap the demand for goods in the GCC countries under the reduced tariff in the first phase and without tariff in the long term.

Minister for Foreign Affairs Shah Mahmood Qureshi, Minister for Labour and Manpower Khurshid Shah, Adviser on Interior Rehman Malik, Advisor on Finance Shaukat Tarin, Special Adviser Dr Asim, Pakistan s ambassador to Saudi Arabia Admiral retd Shahid Karimullah accompanied the President during the talks.

The Saudi side was represented by Crown Prince Sultan bin Abdul Aziz, Prince Mashaal bin Abdul Aziz, Prince Abdul Rehman bin Abdul Aziz, Deputy Defence Minister, Prince Naif bin Abdul Aziz, Prince Salman bin Abdul Aziz, Governor Riyadh, Abdul Ilah bin Abdul Aziz, Deputy Governor Riyadh and Prince Muqrin bin Abdul Aziz.

Tehran Times (Tehran), November 6, 2008, http://www.tehrantimes.com/index_View.asp?code=181767

90 IPRI Factfile

PAKISTAN-SAUDI ARABIA RELATIONS The bilateral relations between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan are close and friendly.

As two of the world's leading Islamic countries, Saudi Arabia and Pakistan have sought to develop extensive commercial, cultural, religious and strategic relations.

A Muslim-majority state, Pakistan has sought to develop close bilateral ties with Saudi Arabia, the largest country on the Arabian peninsula and home to the two holiest cities of Islam, Mecca and Medina and the destination of Muslim pilgrims from across the world. Development of Bilateral Relations

Saudi Arabia and Pakistan are leading members of the Organization of the Islamic Conference (OIC).

Saudi Arabia was one of the strongest supporters of Pakistan during Pakistan's wars with India, especially opposing the creation of Bangladesh from Pakistan's eastern wing in 1971.

While it had supported Pakistan's stance on the Kashmir conflict, it has since endorsed the Indo-Pakistani peace process.

With Pakistan, it provided extensive financial and political support to

the Afghan mujahedeen fighting the Soviet invasion of Afghanistan in the 1980s.

During the 1990-1991 Persian Gulf War, Pakistan sent troops to protect the Islamic holy sites in Saudi Arabia, Along with the United Arab Emirates, Saudi Arabia and Pakistan were the only states to recognize Taliban rule in Afghanistan.

In May 1998, before Pakistan's Chagai-I nuclear tests, Saudi Arabia promised to supply 50,000 barrels per day of free oil to help Pakistan cope with likely economic sanctions in the aftermath.

Military Cooperation

Pakistan maintains close military ties with Saudi Arabia, providing extensive support, arms and training for the Military of Saudi Arabia.

Pilots of the Pakistan Air Force flew aircraft of the Royal Saudi Air Force to repel an incursion from South Yemen in 1969.

In the 1970s and 1980s, approximately 15,000 Pakistani soldiers were stationed in the kingdom.

Saudi Arabia has negotiated the purchase of Pakistani ballistic missiles capable of carrying nuclear warheads. …

Both nations have received high-level delegations of scientists,


government and military experts seeking to study the development of a nuclear program.

Cultural and Commercial Ties

Saudi Arabia has also provided extensive religious and educational aid to Pakistan, being a major contributor to the construction of mosques and Madrassas (religious schools) across Pakistan.

The Faisal Mosque (dedicated to King Faisal of Saudi Arabia) in Islamabad, the capital of Pakistan.

The major Pakistani city of Lyallpur was also renamed Faisalabad in honour of King Faisal in 1977.

Saudi Arabia remains a major destination for immigration amongst Pakistanis, the number of whom living in Saudi Arabia stands between 900,000 and 1 million.

Saudi Arabia was a major supporter of the "Islamisation" program of the military ruler Gen. Zia-ul-Haq in the 1970s.

In 2006, King Abdullah of Saudi Arabia was awarded the Nishan-e-Pakistan, the highest civilian decoration of Pakistan.

Saudi Arabia is the largest source of petroleum for Pakistan. It also supplies extensive financial aid to Pakistan and remittance from

Pakistani migrants to Saudi Arabia is also a major source of foreign currency. In recent years, both countries have exchanged high-level delegations

and developed plans to expand bilateral cooperation in trade, education, real estate, tourism, information technology, communications and agriculture.

Saudi Arabia is aiding the development of trade relations with Pakistan through the Gulf Cooperation Council, with which Pakistan is negotiating a free trade agreement; the volume of trade between Pakistan and GCC member states in 2006 stood at USD 11 Billion.

Pakistan Defence, July 26 2010, http://www.defence.pk/forums/world-affairs/67113-pakistan-saudi-arabia-

relations.html

SAUDI RELIEF FOR FLOOD VICTIMS A delegation of Saudi Development Fund is arriving Islamabad on 6th August to supervise the distribution of relief goods in the shape of tents and food packets, stated a press release of the Embassy of Saudi Arabia. In another press release the embassy expressed its condolences with the victims of the flood and solidarity with the people of Pakistan. In a third press release, all members of Saudi Embassy, both diplomats and Pakistanis, decided to contribute one day salary to displaced people due to the recent flood. The donation was a personal initiative of the Saudi Ambassador Mr. Abdul Aziz Ibrahim Al-Ghadeer.

92 IPRI Factfile

According to Arabic daily Al-Watan, Saudi Arabia has already started a huge “Air Bridge” of humanitarian relief goods to the people displaced by floods. The initiative started by personal instruction of the Custodian of Haramain Sharifian His Majesty King Abdullah bin Abdul Aziz Al-Saud. The paper said that the Saudi monarch ordered the Royal Saudi Air force to deliver the relief goods to the government of Pakistan through representatives of the Ministry of Finance in coordination with the Saudi Embassy in Islamabad.

Acting on the instruction of King Abdullah, the Saudi Ministry of Finance has procured huge materials including tents, blankets, food items and medical supplies.

The Saudi monarch also instructed the authorities concerned to expedite releasing an urgent Saudi humanitarian donation of $ 100 million dollars to the displaced people as a result of natural calamities. The donation would be spent through specialized UN agencies in Islamabad.

Dr Jassim Taqui, Pakistan Observer (Islamabad), August 5, 2010, http://pakobserver.net/detailnews.asp?id=45245

GRIEF OF PAKISTAN IS OUR GRIEF: SAUDI KING

Chief of Army Staff General Ashfaq Parvez Kayani returned home Monday after concluding his two-day visit to Saudi Arabia. Military sources told that Gen Kayani held a special meeting with Khadim i Haramian Sharifain King Abdullah bin Abdul Aziz and thanked government and people of Saudi Arabia for extending timely assistance for their flood-stricken brethren in Pakistan. Sources disclosed that on the occasion King Abdullah said he was much grieved over the devastation caused by worst floods, adding, “he expresses his condolence with the bereaved families on the loss of lives of their dear ones in the floods.”

“Grief of Pakistan is grief of Saudi Arabia,” he said, adding, “we can not leave our Pakistani brethren alone in this hour of trial at any cost.” Saudi Arab would dispatch the relief goods whatever is required by Pakistan by activating all its resources, he assured.

According to sources, the Army Chief met his Saudi counterpart and key members of the Royal Family and exchanged views on defence and military ties between Pakistan and Saudi Arabia, regional security situation, ways and means for bolstering bilateral ties and other matters of mutual interests.

Nation (Islamabad), August 31, 2010, http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/31-Aug-2010/Grief-of-Pak-is-our-grief-Saudi-King


WIKILEAKS REPORT ON PAK-SAUDI RELATIONS ‘MISLEADING’: FO

Pakistan has termed extremely negative reports carried on Pakistan-Saudi relations attributed to Wikileaks as ‘misleading’ and ‘contrary to facts’. Foreign office spokesman Abdul Basit responding to excerpts from documents brought to public light by Wikileaks said these documents reportedly pertain to official communications within the US government system. US had alerted us to the unauthorized leaks. Since these leaks are in the public domain, we would obviously look at these closely with a view to ensuring that Pakistan’s national interest are not compromised in any manner. However, we are not in the position to comment on the veracity of US internal documents. “We consider the extremely negative reports carried on Pakistan-Saudi relations attributed to Wikileaks as misleading and contrary to facts. Pakistan enjoys a very special and unique relationship with the Kingdom of Saudi Arabia. Pakistani leadership, government and the people of Pakistan hold the leadership and the people of Saudi Arabia not only in very high esteem but as true friends and brothers. Saudi Arabia, His Majesty King Abdullah Bin Abdul Aziz, the Royal family and the people of Saudi Arabia have always stood by Pakistan. It is quite evident that these mischievous reports reveal the utter inadequacy of the author to grasp the essence of the Pakistan-Saudi relationship”, he said. Spokesman said Pakistan is an advanced nuclear technology state. No one can touch Pakistan’s nuclear facilities and assets. Reports concerning Pakistan’s experimental nuclear reactor acknowledge that Pakistan did not allow any transfer of the fuel from the experimental reactor. This experimental reactor was installed in the mid-60s with the support of the US which also initially provided the fuel for this facility. The US suggestion to have the fuel transferred was plainly refused by Pakistan. The suggestion that the reactor is producing HEU is completely incorrect.

Nation (Islamabad), November 29, 2010, http://www.nation.com.pk/pakistan-news-newspaper-daily-english-

online/Politics/29-Nov-2010/WiliLeaks-report-irresponsible-we-know-how-to-protect-our-nuclear-installations-Abdul-Basit

94 IPRI Factfile

KINGDOM OF SAUDI ARABIA …

Major Trading Partners of Saudi Arabia

Saudi Arabia’s principal export Saudi Arabia’s principal import destinations 2007: sources 2007:

1-Japan 17.7% 1-United States 12.3%

2-US 15.8% 2-German y 8.6%

3-South Korea 9% 3-Japan 7.3%

4-China 7.2% 4-UK 4.9%

5-Taiwan 4.6% 5-Italy 4.8%

Pakistan 1.52% Pakistan 0.30%

Saudi Arabia’s Main items of Export: petroleum and petroleum products 90% Saudi Arabia’s Main items of Import: machinery and equipment, foodstuffs, chemicals,

motor vehicles, textiles

Trade between Pakistan & Saudi Arabia

[in US $]

Year Export Import Balance

of Trade TotalExports of Pakistan

% ShareIn TotalExp.

Total Imports of Pakistan

% ShareIn TotalImports

2001-02 332.015 1201.485 (869.47) 9202.218 3.61 10342.865 11.6

2002-03 476.820 1303.371 (826.551) 11160.246 4.27 12220.253 10.7

2003-04 348.520 1778.938 (1430.418) 12313.000 2.83 15592.000 11.4

2004-05 325.796 2478.46 (2125.664) 14,391.081 2.26 20,598.114 12.0

2005-06 329.262 2994.627 (2665.365) 16,452.398 2.00 28,586.007 10.47

2006-07 289.118 3492.166 (3203.048) 16,976.243 1.70 30,539.709 11.43

2007-08 380.080 3,609.677 (3229.597) 19,222.857 1.98 39,968.496 9.03


Major items of export from Pakistan to Saudi Arabia

(US $ Million)

Major Items of Import from Saudi Arabia to Pakistan

(US $ Million)

Source: WTO Trade data base, World Development Indicators, Federal Bureau of Statistics.

Federation of Pakistan Chambers of Commerce Industry, http://www.fpcci.com.pk/trade-with-countries/SAUDI%20ARABIA.pdf

(accessed March 24, 2011).

Share of Pakistan’s exports in Total Imports of Saudi Arabia (2007)= 0.30%

Share of Pakistan’s Imports in Total Exports of Saudi Arabia (2007)= 1.52%

Commodity Description 03-04 04-05 05-06 06-07 07-08

Articles of apparel/cloth access. 134.314 63.744 74.172 49.046 42.789

Made up textile article, rags etc. 156.93 92.932 57.697 46.403 40.76

Rice 33.789 31.321 44.798 42.406 37.00

Cotton yarn & woven fabrics 24.958 28.640 41.667 39.493 34.69

Foot wear 9.194 11.736 22.046 24.081 21.145

Commodity Description 03-04 04-05 05-06 06-07 07-08

Petroleum products & oil 1080.1 1455.158 1982.096 2481.922 2891.51

Organic Chemicals 94.391 159.444 215.806 165.116 192.55

Plastic & articles there of 79.817 83.742 143.362 172.937 201.50

Fertilizers --- 7.268 23.08 19.325 22.53

Leather & leather

Manufactures

3.624 6.71 18.355 16.42 19.148

important saudi pak relation

Documents