As the new political dispensation in Pakistan negotiates new deals with militants in the country’s Pakhtoon belt, it is causing consternation among its neighbours. The deals have been signed in Swat Valley, Mardan, Mohmand and Bajour Agency, and in all probability with Baitullah Mehsud the leader of ‘Tehrik-e-Taliban Pakistan’ in Waziristan. However, the Pakistan government would like to retain deniability vis-à-vis the last of these deals, so as not to ruffle too many feathers in the United States or Afghanistan.

On June 2, terrorists exploded a car-bomb outside the Embassy of Denmark in the high-security diplomatic area of Islamabad. The explosion instantaneously killed eight people, injured more than twenty five and damaged properties in the vicinity. People killed in the attack were mainly Pakistanis, including the local staff at the embassy and a Danish citizen of Pakistani origin. It is not clear how an explosive-laden car was able to enter such a highly-guarded area without detection.

The review of the composite bilateral dialogue process by the Foreign Ministers of India and Pakistan on May 22 at Islamabad was significant in many ways. This was the first ever review, that too during the course of the first ever high level visit by an Indian minister after the new government took power in Pakistan. Both countries have accepted a gradual process of resolving the outstanding issues between them. Pakistan has said that it is important to raise awareness among the people about their stake in the peace process.

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.