The completion of Gwadar Port with Chinese assistance is an important milestone in the economic development of Pakistan as well as China-Pakistan relations. Gwadar Port is conceived of as a critical element in Pakistan's plans to harness its unique geographical location, lying at the confluence of West, Central and South Asia, to promote trans-regional trade and energy links. I cannot see how a project that is going to accrue economic benefit to the entire region could pose a threat to anyone.

Some Western media outlets tend to paint a grave picture of Pakistan's security situation. To what extent is terrorism affecting Pakistan and how will the government beef up the antiterrorism campaign? Can you comment on the current relations between Pakistan and Afghanistan?

First of all, the total population of Pakistan is 165 million. The trouble is in the federally administered tribal area on the border with Afghanistan. The population there is less than 1 percent of our population. There are seven agencies in the federally administered tribal areas. Out of those, there is trouble in two. This means the troubled area takes up about 0.25 to 0.3 percent of Pakistan's total population.

There is trouble on the border with Afghanistan. It has to be conceptualized against the backdrop of the Soviet Union's invasion of Afghanistan 30 years ago, the Soviet defeat and the following Western exit, leaving a vacuum, which resulted in a civil war. Then the Taliban came at the end of the civil war to bring peace. Nobody realized at that time how extreme their views were on women, education, culture and international relations. But very soon, their extreme views isolated them.

Pakistan's own interest lies in making sure that there is a strong government in Kabul. We support the government of President Hamid Karzai. We are not a rich country despite the fact that we have given a grant of $300 million to Afghanistan for economic development and reconstruction.

Most of the trouble is actually in Afghanistan. Some Pashtuns wish to cross the border to Pakistan. More importantly, refugees are trying to cross the border to Pakistan. The best thing will be for the refugees to be repatriated to Afghanistan. The Pakistani Government is taking all the necessary steps. We have nearly 80,000 troops on that border to prevent cross-border movement. The problem is many factors within Afghanistan, such as opium production, the axis between the drug lords and warlords and corruption. The aspiration of the people regarding a better life has not been fulfilled. Afghanistan needs a Marshall Plan. If a small amount could be invested in Afghanistan's reconstruction compared to what is being spent on military operations, Afghanistan will do well.

Our misfortune is that Afghanistan has remained in the world news for the last 30 years and it is our neighbor. So whenever you see Afghanistan on television, you see a picture of Pakistan, which is bad publicity. But there it is. To put things in context, not even 1 percent of Pakistan's population but 0.25 to 0.3 percent of our population is affected by terrorism.

Do you think the relationship between Pakistan and India is developing in the right direction?

Yes, it is developing in the right direction. Our population is growing very fast and therefore we must focus on economic development. You need peace, particularly peace with your neighbors, to achieve economic development. We had a troubled relationship with India. We have had focused discussions with India on our disputes during the last three years. There have been many improvements in the atmosphere. For 10 months in 2001 and 2002, we had 1 million troops on the border, elbow to elbow. The whole world was tempted to think it might lead to a war, or even a nuclear war. However, that was avoided. At the end of the 10 months, both countries realized that war was not an option and they needed to talk. We have been talking for the last four years. The fourth round of the talks started in Islamabad on March 13. There has also been a lot of discussion on Kashmir. We hope, given the political leadership, these issues can be resolved.