Terrorism is an unfortunate by-product of political and geo-strategic developments in the region over the past 30 years. To deal with this chronic scourge, we are waging a comprehensive law enforcement action, "Zarb-e-Azb", against all terrorist groups, without any distinction. This operation is complemented by an all-inclusive National Action Plan. It encompasses police and security actions, political and legal measures and social and economic policy packages, aimed at countering violent extremism.
Our well thought out and vigorously implemented strategy has started to deliver positive results. Terrorists' sanctuaries, command and control centres and infrastructure, have been destroyed. Thousands have been killed or captured. Simultaneously, through well-coordinated, intelligence-based law enforcement operations across the country, my government has launched a focused campaign against terrorist sleeper cells, their supporters, sympathisers and financiers. As the operation goes into its final phase, our valiant forces are clearing the remaining hideouts.
The significant improvement in the security situation would not have been possible without the resolve of the people, national consensus and the dedication and sacrifice of our security forces, all of whom stepped forward to confront this menace. The blood that has been shed has only strengthened our national resolve to fight until the last terrorist is eliminated.
My government has placed strong emphasis on bold economic reforms to achieve significant improvement in all sectors of the economy. As a result of these policies, Pakistan's GDP growth has increased from an average of around three per cent over the past seven years to 4.6 per cent, and is expected to be at over five per cent this year. Inflation was at 4.6 per cent in the same year and in the first quarter of the last fiscal year, it is at a historic low of less than two per cent. The per capita income has risen by 12.91 per cent in the first two years of my government's tenure, while the budget deficit has been brought down from 8.2 per cent to 5.3 per cent.
My government also inherited an acute energy crisis, which hampered our economic growth and progress. I, therefore, attached top priority to addressing this severe problem. Since 2013, we have evolved a comprehensive strategy, geared towards overcoming the energy problem, on a sustainable basis. Our goal is to overcome energy shortages by the end of 2017. Our focus is not just on ending load-shedding in Pakistan, but at laying the foundation of a robust energy sector that will meet the country's needs for the next two decades.
One of the key pillars of my government's policy is to encourage regional integration and connectivity. This is where Pakistan and its neighbours have the biggest opportunity to reap the dividends of peace. The most promising element of this policy is the recently launched China-Pakistan Economic Corridor. It embraces a package of multiple infrastructure and development projects estimated at US $46 billion. The corridor is expected to be operational within three years and will be a strategic game-changer in the region, which would go a long way in transforming Pakistan into a regional economic hub. The project also envisages major upgrades and overhauls to Pakistan's transportation infrastructure.
Pakistan is also promoting other regional energy and infrastructure projects, including the Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline project, Central Asia-South Asia-1000 electricity project; the Kunar Power Project and the Torkham-Jalalabad Road Project.
Mr Chairman, our people need peace to prosper. This can be achieved only through a process of sustained dialogue, not disengagement. When I assumed office of the prime minister of Pakistan in June 2013, one of my first priorities was to normalise relations with India. I reached out to the Indian leadership to emphasise that our common enemy was poverty and under-development. Cooperation, not confrontation, should define our relationship. Pakistan neither wants to, nor is engaged in, an arms race in South Asia. We cannot, however, remain oblivious to the evolving security dynamics and arms build-up in our region, which obliges us to take essential steps to maintain our security.
It was a spirit of goodwill that I accepted Prime Minister Narendra Modi's invitation to his swearing-in ceremony in May 2014. Though it was a cordial meeting, it did not lead to the resumption of the dialogue process. Nevertheless, I remained committed to my objective of promoting peace and stability in South Asia.
To this end, I presented a new peace initiative in my speech to the United Nations General Assembly in September 2015, when I proposed four specific and feasible steps that could serve as the basis for progress towards normalisation. My brief meeting with the Indian prime minister in Paris on the sidelines of the climate change summit, led to the meeting of the two national security advisors in Bangkok on December 6, 2015. Later, the Indian external affairs minister, Sushma Swaraj, came to Pakistan on December 9 for the Heart of Asia Conference and this has resulted in an understanding to revive the dormant comprehensive dialogue process between our two countries.
Moreover, I was also deeply touched by Modi's decision to fly into Lahore on December 25 to convey his good wishes on my birthday. Our friendly exchanges in Lahore were marked by warmth and cordiality that has characterised the South Asian ethos. Within the next few days, the foreign secretaries would be meeting in Islamabad, to determine the modalities of the renewed dialogue process.
I am convinced that a normal and stable relationship between Pakistan and India can be built by adherence to the principles of the UN Charter, especially the principle of sovereign equality, non-interference in internal affairs and the right of peoples to self-determination. There is no alternative for the two countries but to resume a comprehensive dialogue to resolve all outstanding issues, including the core issue of Jammu and Kashmir.
Edited excerpts from a speech by Pakistan Prime Minister Nawaz Sharif at the Lakshman Kadirgamar Institute for International Relations and Strategic Studies, Colombo, January 6