US, Pak pledge to fight terror but no nuke deal in sight

The US and Pakistan ended their upgraded strategic dialogue with no signs of a civilian nuclear deal materialising for Islamabad even as it was assured of help to overcome its crippling energy deficit.

The joint statement that was issued at the end of two-day first-ever Cabinet-level strategic dialogue also made no reference to United States' mediation in Kashmir as was being pushed by the Pakistani officials.

The dialogue saw the two countries reaffirming the importance of advancing peace and stability in Afghanistan and the region. The Pakistani delegation also included Army Chief General Ashfaq Pervez Kayani.

"The US recognised the importance of assisting Pakistan to overcome its energy deficit and committed to further intensify and expand comprehensive cooperation in the energy sector, including through the Signature Energy Programme," the statement said.

It made no mention of Pakistan's much sought-after civilian nuclear deal, which was one of the demands listed in a 56-page document handed over to US officials before the talks.

Notwithstanding the suspicion in a major section of the administration over ISI's continued ties with Taliban and Lashkar-e-Taiba (LeT), the US pledged to work with Pakistan against terrorism in the region.

"Both sides acknowledged the common threat that terrorism and extremism posed to global, regional and local security," said the statement issued by secretary of state Hillary Clinton and Pakistan foreign minister Shah Mehmood Qureshi at the conclusion of the talks.

Pakistan appreciated the US security assistance and both governments "committed to redouble their efforts to deal effectively with terrorism and to protect the common ideals and shared values of democracy, tolerance, openness and
respect for fundamental freedoms and human rights".

Among major assistance commitments offered by the Obama administration to Pakistan included grants for establishing cold storage facilities and roads.

Islamabad received a grant of nearly $4,00,000 from the US to establish of a network of cold storage facilities at strategic locations in five key urban areas in Pakistan.

The two countries also signed a $40 million letter of intent regarding cooperation in construction of priority roads in Pakistan's NWFP to aid in Malakand Reconstruction.

The US and Pakistan discussed to create an investment fund to support increased foreign direct investment and development in Pakistan.Such a fund could provide much-needed additional support for Pakistan's energy sector and other high priority
areas, the joint statement said.

Further, it said the US was committed to work towards enhanced market access for Pakistani products as well as towards the early finalisation of Reconstruction Opportunity Zones legislation, which would benefit Afghanistan too.

"The two governments decided to discuss issues related to the Bilateral Investment Treaty in order to stimulate investment in Pakistan," it said.

Clinton and Qureshi agreed to hold the next round of Strategic Dialogue in Islamabad in the next six months.

It said a Policy Steering Group was established to intensify and expand the sectoral dialogue process in the fields of: economy and trade, energy, defence, security, strategic stability and non-proliferation; law enforcement and counter-terrorism; science and technology; education, agriculture, water, health and communications and public diplomacy.

Sectoral meetings will be held in Islamabad soon. Both sides exchanged views on the status of bilateral cooperation and decided to continually provide strategic guidance for strengthening the partnership in the 21st century for realising the aspirations of their people.

The two leaders pointed out that the core foundations of this partnership are shared democratic values, mutual trust and mutual respect.

A stable, enduring and broad-based cooperative partnership is in the fundamental interest of both the countries, it added.

Both the US and Pakistan are determined to foster goodwill and friendship between their people and engage in mutually beneficial cooperation, the joint statement said.