"Expanded economic and cultural relations are already important components, and I intend to see these grow further".
He expressed his confidence that "this excellent relationship" between "our two great nations will mature and grow in the months and years ahead."
President Bush said that he has made "a commitment" with President Musharraf that "the United States and Pakistan should not find ourselves on opposite sides of anything as important and as threatening to civilisation as the war on terrorism."
He said the independent and hi-partisan Commission that investigated the events leading up to 9/11 has supported "my assertion of our long-term commitment to Pakistan."
"That is a commitment I intend to keep, starting the five-year, three billion dollar aid package which starts with this year's budget."
President Bush said Pakistan "is a stalwart ally" in the war on terrorism.
He said, after September 11, 2001, President Musharraf agreed to help the United States and end scourge of terrorism emanating from Afghanistan's Taleban regime. "He did so immediately, and bravely."
Since then, he added, "we have stood shoulder to shoulder" with the government of Pakistan in the struggle against extremism.
He said Pakistan has not done this without sacrifice - "sacrifice that we acknowledge and appreciate."
"The steadfastness and unwavering support shown by the government and people of Pakistan have laid the groundwork for the steadily deepening and dramatic improvement in our bilateral relationship over the past three years."
President Bush said that he looked forward to supporting the Pakistani government's efforts to re-build and strengthen its democratic institutions.
"A fully democratic Pakistan will be a stronger Pakistan, better able to withstand the attacks on its system of government and the threats to its people posed by terrorists."
A fully democratic Pakistan, he said, will ensure that the rights of its people are upheld and supported through institution such as the judiciary, the media, and civil society.
He said: "the United States will help where we can, but the future of Pakistan belongs to the Pakistani people."
The US President hoped that improvement in Pakistan-US relations "will foreshadow an improvement in Pakistan's relations with its neighbours."
"Decisions and actions taken by President Musharraf have already contributed to calming the situation in Afghanistan after the fall of the Taleban."
Now, he said, Afghanistan has had its first free election in many decades. "This would not have been possible without Pakistan's steadfast support."
He said on Pakistan's eastern border, "we are also witnessing productive on-going talks with neighbouring India."
President Bush said he "applauds" the leaders of both countries for "the courage they have shown" in advancing their bilateral dialogue over the past year and a half.
"Round two of this 'Composite Dialogue' promises to further the work of tearing down the wall of suspicion between Pakistan and India."
He said, the United States "welcomes these talks in the earnest hope that they will bear fruit; and long-standing tensions will continue to ease."
"The United States wishes you godspeed in your journey on the road to peace in the subcontinent, and stands reedy to support this process."
President Bush said that he was pleased to accept Jehangir Karamat's Letter of Credence from President Pervez Musharraf, "which establishes you as Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Pakistan and I acknowledge the Letter of Recall of your distinguished predecessor, Ashraf Jehangir Qazi."
He thanked the newly-appointed Ambassador for his greetings on behalf of the government and people of Pakistan, which he said, gave him great pleasure to welcome Jehangir Karamat "into the Diplomatic Corps of Washington."
While welcoming Ambassador Jehengir Karamat to Washington, President Push said "We are honoured to have someone so trusted by President Musharraf as yourself. I extend to you my best wishes for a long and successful tour as Ambassador of the Islamic Republic of Pakistan to the United States of America."
In his address, Jehangir Karamat said that Pakistan was strongly committed to peace, security and stability at the regional and international levels.
Referring to the pivotal role Pakistan is playing in the war on terror, he said, "Pakistan, its people, its armed forces, and its leadership cannot be cowed down by the terrorists."
Karamat touched subjects of the ongoing war on terrorism, Pakistan-India dialogue process, Afghanistan, nuclear non-proliferation, efforts at hand to turn Pakistan into a moderate, dynamic and forward looking democratic Islamic state, besides prospects to go beyond the long-term broad-based US-Pakistan relationship.
He said Pakistan was deeply appreciative of the positive role that the US had played under the able leadership of President Bush, in encouraging the two countries towards revival of the composite dialogue process.
He said, "The opportunities offered by the present congenial atmosphere must be availed of to address the real issues, especially the Kashmir dispute, to make a real headway in the improvement of relations between Pakistan and India".
He said, "Pakistan is for breaking the deadlock," adding, "We want a real movement on all issues, including the Jammu and Kashmir dispute."
Karamat said Pakistan remained committed to the Bonn Process, adding, "A welcome transformation was underway in neighbouring Afghanistan."
Pakistan, he said, took its responsibilities in nuclear and other strategic technology areas "seriously".
He said: "To safeguard against nuclear and biological weapons proliferation, the Parliament had recently passed a comprehensive legislation on export controls. An effective Nuclear Command and Control Authority has been set up to ensure control over strategic assets."