However, democracy in Pakistan had 'taken the challenge head on' and achieved 'considerable successes' over the past year.

'Democracy has united the nation against terrorists. This is a great example of democracy at work.'

The effort would not be allowed to fail, said Zardari, adding that his government was also 'determined not to allow anyone to use our territory against a third country'.

He urged the international community to reinforce its support for Pakistan's efforts to re-establish stability and advance economic growth.

'We have taken most difficult and politically unpopular decisions to stabilize the economy. We need trade, not aid,' said Zardari.

In order to 'create expanded economic opportunities for the teeming millions' it was important that Pakistan should be allowed market access to the countries of the European Union, he said.