January 12, General pervez Musharraf outlined the contours of the most significant U-turn in Pakistan's policy since 1977, a move that has the potential to be positive for Pakistan and its people. In 1977, after General Zia-ul-Haq's military coup, an attempt was made to reshape Pakistan in an ideological image tailored to that military regime's policy goals. General Zia cashed in on the Islamist opposition to Zulfikar Ali Bhutto and initiated a "joint jehad" with the Americans in Afghanistan to combat the Soviet "Evil Empire".

Ironically, 25 years later, the edifice erected by one military regime is being brought down, policy-by-policy, by its successor military regime. And Quaid-e-Azam Mohammed Ali Jinnah's vision of a progressive, pluralistic Pakistan has finally been reinstated.

IN RED LETTERS: Musharraf has managed to avert threat of war

Musharraf said no to India's list of "most wanted", denounced India's "state terrorism" and preserved Pakistan's Kashmir policy.

Prior to the speech, India had moved deftly and swiftly, almost boxing Pakistan into a corner. Musharraf had a difficult act to perform, taking into account the sensitivities of different constituencies. He had to assuage India without capitulation. He had to address international concerns, particularly those voiced by Washington. And he had to placate Pakistanis, who were fearful of appeasement and felt that he had to draw a line on Kashmir in accordance with national dignity and national interest.

Musharraf, in his 62-minute address, managed to do all three. He said no to the list of India's "most wanted", denounced India's "state terrorism and human rights violations", preserved Pakistan's long-standing Kashmir policy and the emotive resonance of his "Kashmir runs in our blood" rallying-cry was felt around the nation.

Significantly, the speech ended with a domestic focus, with India mentioned almost in passing. India was caught on the back-foot. Instead of the immediate and expected Gromyko-style "nyet", India was forced to wait 18 hours before giving it a "cautious welcome". By that time, India's friends in the West had given a thumbs-up. Rather than any capitulation, it was Musharraf's "courage" that was being lauded in western capitals.

The speech was a plus for Pakistan since it:

Averted the threat of war by putting the onus on India to de-escalate.

Drew international attention to Kashmir as the root cause of subcontinental tension which could spin out of control.

Enabled the military regime to use a conducive international environment to offload domestic "political baggage" that was a burden in Pakistan's quest for a 21st century role in the world.

His is not the first effort at reform. Field Marshal Ayub Khan had launched a reconstruction of the country in the 1960s with a reformer's zeal. In the 1970s, Bhutto sought a revamping by tinkering with a new balance of political power in the state. Bhutto's successor, General Zia remained wedded to the status quo, linking his survival to a cosmetic "Islamisation". But these attempts failed, primarily because of an absence of a democratic political base that allowed space for genuine political pluralism.

Can Musharraf deliver where others failed? It would depend on progress in three areas.

First, he needs to give the country a healing touch of reconciliation by reaching out to the political forces. The Herculean task that he has set out to achieve requires a large heart and a big vision.

Second, the failure to develop "rules of the game" has consigned Pakistan to chronic instability. The country has swung in a pendulum of a "one step forward, two steps back", with a mutual blame-game between the mufti and the khaki as they alternate roles in this musical-chair power game.

Finally, having addressed international concerns, Pakistan now has the opportunity to pursue a proactive Kashmir policy that combines deft and imaginative diplomacy with an upfront approach.

As the Powell visit underlined, the United States is now more receptive to Pakistan's plea that an inextricable linkage exists between a Kashmir settlement woven around altering the status quo by meeting Kashmiri aspirations and the quest for a durable peace between South Asia's two nuclear-armed adversarial neighbours.

(Mushahid Hussain is a former information minister of Pakistan)