Islamabad: Pakistan President Pervez Musharraf has claimed that the major part of the country was cleared of foreign terrorists and the militants were hiding only in "some pockets" in tribal areas.

The security forces were hunting down al-Qaida and Taleban militants holed up in the tribal areas, Musharraf said at a dinner hosted by the All Pakistan Textile Mills Association on September 24 night.

He said that the "terrorists were hiding only in small pockets with the assistance of some well-wishers in the tribal area. There was no question of any major foreign element within our territory, he was quoted as saying by the official APP news agency.

Later addressing the National Command Authority (NCA) in Rawalpindi, Musharraf said that Pakistan's strategic capability was for deterrence of aggression and defence of its sovereignty.

Claiming that Pakistan's nuclear policy was one of the restraint and responsibility, he said that Islamabad while avoiding arms race would pursue its minimum deterrence needs.

He said that law order in the country had improved following an effective crackdown on terrorists and asked businessmen to invest in the rising economy.

He hoped that foreign exchange reserves will cross $ 8 billion mark in one week from over seven billion at present as the country's economy has stabilised and on the rise.

PTI