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CE rules out quick return to democracy

SINGAPORE: General Pervez Musharraf on Thursday ruled out a quick return to civilian rule and defended the slow pace of his government's economic and political reform.

Musharraf also said he would not engage in an arms race with arch-rival India.

"I want a return to civil government as soon as possible, but I don't want to bring a system that is going to do away with whatever good we have done," he told a gathering of the Pakistani community on the second day of a two-day visit to Singapore.

His comment brought loud applause from the crowd, mostly businessmen.

He said his government was involved in a structural overhaul of the economy and society which would take a long time, and until then, plans for national elections would have to be put on hold. "There is no lack of resolve and commitment (to reform) but we have a lack of resources to do it," he said.

Musharraf said the army would be conscripted to help track down commercial criminals and to help audit the economy to strengthen the tax net.

He said his March 23 announcement of local elections was a first step.

"...then we will go to the provinces and national. Then we'll bring back civil government. But no dates will be given," he said.

Citing growing press freedom Musharraf said there was more democracy in Pakistan now than during civilian rule.

The revival of the moribund economy was a priority and efforts were being made on numerous fronts, including correcting trade and budget deficits, he said.

The government was keeping up its privatisation programmes and would use 90 percent of proceeds to retire its crippling $38 billion national debt.

Steps were also taken to turn bulky state enterprises and government bodies into efficient entities, he said.

Musharraf said although spending 19 percent of the budget on defence was high it was necessary because Pakistan faces "very serious" security concerns.

But he said Pakistan would not enter an arms race with India.

"We are not entering an arms race. India has raised its defence budget but we've not. A minimum level of deterrence has to be maintained," he said.

Turning to Kashmir, Musharraf said it was an internationally recognised dispute.

"A nation has its dignity and pride to protect, to stand by. I'm not one of those who will compromise on national dignity just like I won't compromise on my own personal dignity...our dignity shall never be dented," he said.-Reuters