Ever since the new democratically elected government assumed office in Pakistan, analysts have drawn up exhaustive priority lists of tasks before it. These range from restoring civilian pre-eminence over the military, countering terrorism, building democratic institutions, freedom of the media, and restoration of the judiciary. The new government, however, will do well to also order a review of the use of covert action as an instrument of state policy, which has been a major factor for the ills that afflict Pakistan and undermines its credibility in the international community.

The new ANP-led provincial government in NWFP signed a peace deal with the Islamic militants of Tehrik-e-Nifaz-e-Shariat-e-Mohammadi (TNSM) led by Maulana Fazlullah, on May 21, 2008. The deal is the most significant initiative taken by the provincial government to end endemic violence that has engulfed the scenic Swat valley since last year and follows another peace deal with Maulana Sufi Mohammad, the father in law of Fazlullah and the founder of TNSM on April 20. Sufi Mohammad had founded TNSM after leaving Jamaat-e-Islami in 1992.

Pakistan President Pervez Musharraf’s recent visit to China from April 10-16 revealed the depth and confidence that highlight Pakistan-China relations. The much repeated refrain of an “all-weather friendship” between the two countries is now transforming itself from the erstwhile “purely defensive and strategic” in nature to one of deep economic engagement.

One of the biggest achievements of Musharraf’s rule, according to him, was that he turned around a tottering economy. Rescuing it from the verge of default, he brought it to a state where it was declared a success story by the International Financial Institutions. GDP was growing at a healthy rate of 6.5 to 7.5 per cent and even touched nine per cent in 2005. ADB projected a 6.5 per cent GDP growth for 2008 in its report released in December 2007.

Yousuf Raza Gilani was nominated by Asif Ali Zardari as the PPP candidate for prime ministership on March 22, 2008. On that occasion, Zardari called upon Gilani “to accept the heavy responsibility and lead the coalition government and the nation to greater heights and a glorious future.” Pakistan’s National Assembly elected Gilani as Prime Minister (264 votes to 42 over Pervez Elahi of PML-Q) two days later.

In a statement on February 28, 2008, the Financial Action Task Force (FATF) voiced concern about the existing deficiencies in Pakistan’s counter terrorist financing and anti-money laundering system. While acknowledging some progress, the FATF noted that the shortcomings in Pakistan’s national legal framework constituted a money laundering/terrorist financing vulnerability in the international financial system.