Richard A Boucher, Assistant Secretary for South and Central Asian Affairs underscored that Pakistan remains a steadfast ally in the fight against terrorism and testified at a Congressional hearing that the South Asian country is making efforts to address the problem of extremism through a comprehensive approach including economic development in the regions bordering Afghanistan.

He described the proposed ROZs as critical part of the strategy, designed to connect isolated regions to the global economy and create vital employment opportunities for local people.

"The zones will encourage investment and economic development by granting duty-free entry to the United States for certain goods produced in the zones, and create employment alternatives for the working-age population," he said.

The State Department official said the Pakistani government has planned to put $100 million a year for 10 years into the development of these areas, and added the US has committed to come up with $150 million a year for the next five years to support the economic development of the tribal areas.

"We hope that there will be a legislative opportunity for that in the coming months, and we hope that members will support that legislation," he stated.

President George Bush had announced the ROZs initiative during his visit to Islamabad last year when he held wide-ranging talks with President Pervez Musharraf on further consolidating relations between the two countries.

In response to observations made by American lawmakers, Boucher defended the key ally's counter-terrorism efforts in the border region, saying Pakistan "has captured more al-Qaeda than any country in the world and has lost more people doing that." He also cited success against the Taliban in recent months.

His remarks came a day after intelligence officials renewed concerns about al-Qaeda becoming stronger along Pakistan-Afghanistan border region. But the White House and senior administration officials refuted media accounts that the group may be as strong as it was prior to September the 11th, 2001, although they said it remains a threat.

At the hearing of the House Oversight and Government Reform Committee, National Security and Foreign Affairs Subcommittee entitled "Pakistan at the Crossroads; Afghanistan in the Balance," Boucher said the Pakistani government has made clear to the tribes that foreign militants are a danger to Pakistan and need to be expelled.

The top US official for South Asia underlined Pakistan's critical importance to US-led counter-terrorism efforts in Afghanistan.

"I think if Pakistan was not fighting terrorism, there'd be no way we could succeed in Afghanistan or in terms of the security of our homeland," he noted. Boucher recounted Pakistan's steps to check cross-border movement including moving 85,000 troops to the region and setting up check posts and added the United States supports these efforts.

He reiterated US support for President Pervez Musharraf efforts to lead Pakistan on a progressive and moderate course and believed that the fundamental direction in which Pakistani leader has been leading his country is the one that is compatible with the goals of majority of the Pakistani people.

Commenting on views expressed by US congressmen, Boucher said the majority of Pakistani people are headed in a moderate direction. He said efforts in the fields of education and economic development, upcoming elections and steps to deal with extremism will help Pakistani people achieve better lives and a more moderate and modern society.

"If they succeed, Pakistan can not only be a stable anchor for the region, a prosperous nation for its people but it can also be a model to others in the developing world, particularly the Muslim countries." "So it is important to help Pakistan succeed," he stated on Capitol Hill.

The American lawmakers felt the need for tougher actions against foreign elements in the region and sought answers to their concerns regarding various aspects of the fight against extremism and terrorism. Boucher said this year is important in terms of Pakistan progress towards a prosperous and stable democracy, and added the US intends to assist President Musharraf to fulfil his commitment to this goal. He reiterated the US support for free and fair elections in the country.

The Assistant Secretary counted a series of achievements the country has made in recent years including economic development.

He particularly referred to the emergence of an independent electronic media, informing the committee that the number of TV channels has increased to more than 40 in a space of a few years in Pakistan.