Every year, the people of Pakistan celebrate the Resolution of Pakistan, which was adopted on 23rd March 1940. It was on this historic day that the Muslims of Sub-Continent assembled at Lahore under the leadership of Quaid-e-Azam Muhammad Ali Jinnah and passed a resolution to establish a separate homeland for themselves.

It is truly a tribute to their dedicated struggle, and the peerless leadership of Quaid-e-Azam Mohammad Ali Jinnah that in a short span of seven years, this resolve was carved out into a reality and the independent sovereign state of Pakistan emerged on the map of the world on 14th August, 1947.

On this day, the people of Pakistan renew their pledge to make Pakistan a dynamic, progressive, tolerant and democratic Islamic Welfare State, in the light of Quaid-e-Azam’s guiding principles of Unity, Faith and Discipline. Towards this end, the government of Pakistan has taken far-reaching measures. It has empowered the people by devolving decision-making to the peoples’ representative at grassroots and have taken steps for the political, social and economic empowerment and rights of women.

The economic sector has witnessed impressive gains with around 7% GDP growth rate over the last three years continuously. Pakistan is fast becoming an attractive destination for trade and investment in the region, as a result of the sound economic policies of the government.

The strong economic recovery since 2002-03 has underpinned the prudent macroeconomic policies, wide-ranging structural reforms, fiscal discipline and consistency and continuity in policies. The recovery has been supported by a robust performance in industry, agriculture and services. Pakistan also re-entered international capital market with major successes. Its own principal capital market, the Karachi Stock Exchange has remained one of the fastest performing markets around the world.

This has reflected investors’ confidence in Pakistan’s pro-growth microeconomic policies and existence of a stable economic environment in the country. Foreign direct investment in Pakistan continues to rise consistently. During July-December 2006 total private foreign investment jumped to US$ 3.1 billion showing an increase of over 100% over the same period in 2005.

The people of Pakistan take pride in the fact that Iran was the first country to extend recognition to the newborn state in 1947. The relations between the two neighbouring countries have developed in leaps and bounds since then. This is but natural given the many commonalities that the peoples of the two countries enjoy.

They have a shared history, a common culture, and many customs and traditions in common. Hafiz, Saadi, Shirazi, Maulana Rumi and Omar Khayyam are household names in Pakistan as is Iqbal in Iran. Above all we are linked together by the indissoluble bond of our common faith; Islam. The importance of all these factors was eloquently highlighted by leadership of Iran at all levels. It is the desire of the two peoples to add greater substance to our mutual cooperation in all fields.

These relations have been marked by frequent high-level consultations between the leadership of the two countries. President Mahmoud Ahmadinejad and President General Pervez Musharraf have frequently interacted at various forums to coordinate the positions of our two countries on various regional and global issues. President General Pervez Musharraf visited Iran on February 5, 2007 and discussed a wide range of issues including bilateral matters as well as the problems faced by the Muslim Ummah, with the Supreme Leader Seyed Ali Khamenei and His Excellency President Ahmadinejad.

These exchanges have been invaluable in expanding and also providing focus and direction to the bilateral relationship. The leadership of both countries is totally committed and dedicated to carry forward the strong bonds of friendship and to utilize the institutional framework already in place for promoting economic and commercial relations for the benefit of peoples of both countries.

Pakistan and Iran share common perception on international and regional issues and closely cooperate in various fora. They understand and appreciate each other’s position on various issues. Both countries are among the founding members of the Economic Cooperation Organization (ECO), and working closely to promote cooperation among the ECO member states.

In the regional context, the peace process initiated by Pakistan with India holds a great promise for the future of the South Asian region. The international community including the Islamic Republic of Iran has welcomed the dialogue between Pakistan and India to resolve the outstanding issues between the two countries including the core issue of Jammu and Kashmir. It is our sincere hope and endeavour that the process will culminate in establishing lasting peace and prosperity in South Asia.

Pakistan and Iran are equally determined to fight the scourge of terrorism. We are both victims of it and are opposed to it in all its forms and manifestations. Despite its limited resources Pakistan has relentlessly waged the war against terrorism. It has also acted resolutely against the menace of narcotics which pose a serious threat to the social ad economic fabric of our societies.

The commercial and economic relations between countries constitute an important aspect of their relations. It is a matter of satisfaction that these relations are growing between Pakistan and Iran with the passage of time. The volume of bilateral trade between Pakistan and Iran in the year 2006 was to the tune of US$ 638 million which includes US$ 300 million non-oil exports to Pakistan. However, a vast potential exists in this field and the two countries are determined to achieve the target of US$ 1 billion in the near future.

Pakistan and Iran also implemented Preferential Trade Agreement (PTA) w.e.f. September 2006, wherein both countries have given concession in custom duties ranging from 10-30%. In January 2007, Pakistan and Iran established Joint Investment Co. with the initial capital of US$ 25 million, which will be increased to US$ 68 million by the end of the year 2007. The said company will sponsor projects in both countries. Pakistan-Iran Joint Economic Commission (JEC) meets once a year to review the progress in trade, economic and investment ties. The next JEC meeting will be held in Tehran in May-June this year.

The IPI gas pipeline represents the most important milestone on the road to enhance our economic relationship. In January 2007, Pakistan & Iran also agreed on the pricing formula for the Pipeline Project and committed to complete all related agreements by 30th June, 2007. The Project worth more than US$ 7 billion will be completed in 2010. It will promote economic collaboration and bring economic progress and prosperity in both the countries. As such, it is destined to become the pipeline of peace as termed by the leadership of Pakistan and Iran.

It is a matter of great satisfaction that Pakistan and Iran are working closely to promote their mutual interest, strengthen regional cooperation and safeguard the interests of the Muslim Ummah. Both have made remarkable contribution towards global peace and harmony. The bonds of brotherhood between Pakistan and Iran would continue to grow in the times to come to the mutual advantage of the two peoples as well as regional peace and security.