NEW DELHI: India and Pakistan must resolve their disputes and focus on strengthening economic ties, former Pakistani President Pervez Musharraf said at a meeting organized by the Associated Chambers of Commerce and Industry (Assocham) yesterday.

“This century is the century of geo-economics. It is the economy which will drive nations toward development and people toward their well-being.” Suggesting that it was important for India and Pakistan to expand their ties and work hand in hand, Musharraf said: “This century is going to be an Asian century. Are we South Asians (India and Pakistan) ready to be part of this Asian century?” he asked.

Comparing the economies of South Asia with those of China and Southeast Asia, Musharraf said: “We are out of the loop (economic progress) because of the conflict between India and Pakistan.” Drawing attention to his country’s geo-strategic location, Musharraf pointed out that Pakistan has “potential to become a trade and energy corridor for the region.” As economic progress would benefit both the countries, at this time of global meltdown it is important for India and Pakistan to resolve their disputes, Musharraf said. “It has always been my hope for Pakistan to act as a trade and energy corridor. This will be realized if we resolve our disputes and start an era of harmony, peace and friendship,” he said. “We can have permanent peace through the resolution of disputes. Peace and harmony are preconditions to improving business ties,” Musharraf said.

The preceding evening, while speaking at the India Today conclave, Musharraf compared the controversial Line-of-Control (LoC) with the Berlin wall. The 700-km-long LoC divides the region into India-administered and Pakistan-administered Kashmir. “This (LoC) is another Berlin Wall. It needs to be torn down,” he said.

“The 19th century was the European century, the 20th century was the American century and the 21st century is the Asian century,” he said. The three most serious challenges facing India and Pakistan are terrorism and extremism, poverty and hostility between the two countries, he said. “Kashmir remains the key dispute,” where a peaceful struggle had turned violent, Musharraf emphasized.

“The situation demands bold and affirmative action. We must overcome the burden of history to move forward and work for the future and cooperate to rise together — for the sake of the toiling masses of the two countries,” Musharraf said.

Adding a personal touch to his visit, described by official sources as “strictly private,” Musharraf sent a speedy recovery message and flowers to former Prime Minister Atal Behari Vajpayee, who was recently discharged from hospital.