He was addressing a gathering of Pakistanis living in the Netherlands on the first day of his two-day official visit to the country.
Pakistan, he stated, is clear about its objectives and has clearly laid out policies to achieve sustainable socio-economic progress.
He informed cheering Pakistanis that having made remarkable economic strides, Pakistan will be the first country in the world to say farewell to the International Monetary Fund's Poverty Reduction Growth Facility shortly.
"We are standing up on our own feet, with strong defence and fast-expanding economy, we will scale new heights of development; we will be able to play a leading role for the Muslim world and an important role in world affairs.
I have no doubt about this, but we must strive to take our destiny in our hands."
The President said the 99 percent religious but moderate majority of Pakistanis should have a voice and must not stay silent and be hostage to the small minority, whose actions lead to misperceptions about our society.
Musharraf informed the expatriate Pakistanis that the government has effectively defused misperceptions about cross-border terrorism in Kashmir, happenings in Afghanistan and nuclear proliferation and now it is focused on combating extremism and terrorism.
"Our country faced so many problems that it looked like a ship in minefield, tackling sensitive issues was like a tight-rope walk. But we have been successful and not only corrected misperceptions but also earned with a right strategy, a rightful place for the country in the comity of nations," he said.
"We are using both political and military channels, he said referring to the Pakistan's campaign against foreign terror suspects in South Waziristan Agency.
Describing his meeting with Indian Prime Minister Manmohan Singh in New York as positive, the President said that efforts would be made to find an acceptable solution to the lingering Jammu and Kashmir dispute for durable peace in South Asia,
He expressed the hope that the meeting would lead to "a new era" and stressed that both the confidence-building measures and the dialogue process would move ahead in tandem.
"My meeting with Prime Minister Manmohan Singh was positive - he is a good human being - the joint statement is a good resolve and all issues including the Kashmir dispute will be addressed," he said.
He said as stated in the joint statement efforts would be made to find an acceptable solution to the over five-decade old dispute.
The President emphasised that the forces in South Waziristan Agency take action only against foreign terror suspects after confirmation through intelligence.
He recounted a range of positive economic indicators and said the country has been steered to economic stability and now efforts are underway to pass benefits of economic turnaround to common man. In this respect he referred to a number of mega projects and investor-friendly policies, saying these would generate employment opportunities for millions of people.
The President and his delegation also witnessed a cultural show, featuring folk dances and performing art of various countries.
Performed and organised by the HET International folk dance theatre, the show delighted the audience with the typical of various countries including Pakistan, Indonesia, Turkey, Hungry, Egypt, Northern Sumatra and Spain.
Earlier, the President arrived here on Sunday for talks with the Dutch leadership on bilateral ties and regional and global issues including war on terror, Pakistan-India relations and situation in Iraq and Afghanistan.
Talking to reporters at the airport after arrival from the United States, the President said he would discuss with the Dutch leadership ways and means to boost economic and trade ties, besides exchanging views on regional and global issues.
The President, during his stay in the Netherlands, will meet Queen Beatrix and hold official talks with the top Dutch leadership. He will also address a Roundtable at the Dutch Senate.
The President told newsmen while flying over Atlantic on his way to Amsterdam from New York that the positive outcome of his meeting with Indian Prime Minister Manmohan Singh for the resolution of long-standing disputes including Kashmir is a victory for peace, which augurs well.
"No one has lost, both countries have gained, peace has gained, it is the victory of peace, which augurs we11," he said.
In his first detailed comments on Friday's meeting with the Indian Prime Minister, Musharraf sounded hopeful about the future.
He said: "I have been urging that both countries should step back from their maximalist positions and the joint statement exactly reflects that."
"I found Manmohan Singh an extremely sincere man, and saw a desire in him to address the lingering issues sincerely. I am hopeful about future," he added.
During the meeting, the President said, he emphasised the importance of confidence-building measures (CBMs) and the composite dialogue process going in tandem and that Kashmir cannot be sidelined, adding that the Indian Prime Minister showed an understanding of this.
In reply to a question if the 'subject of his uniform' came under discussion during meeting with US President George Bush, the President said: "It was not at all mentioned during the meeting."
He dismissed the impression that during the meeting with the US leader Wana was particularly discussed.
"We did discuss war on terrorism in an overall perspective, but did not discuss Wana particularly. We discussed bilateral relations, Pakistan-India relations, and Afghanistan, with reference to security situation for October 9 election process.
Describing his six-day visit as successful, the President said his address to the UN, interaction with the media and bilateral meetings provided an opportunity to project effectively Pakistan's position on key issues.
"The wide coverage clearly underlines the importance the world attaches to Pakistan. We are an important state and have a role in world affairs far from any talk of pressure, the world leaders deeply appreciated our vital role in the fight against terror and thanked me for our efforts to bring lasting peace in the world."