"First and foremost, democracy calls for well-being of the people and our government has gained economic sovereignty of the nation through consistently pursued policies," he declared to a cheering crowd.
PML President Chaudhry Shujaat Hussain, Information Minister Sheikh Rashid Ahmed, governor Punjab, chief ministers of Punjab, Sindh and Balochistan and leaders of the ruling coalition were present at the public gathering as thousands of people expressed their support for the president's policies and decisions.
President Musharraf, in his address, urged the opposition parties to accept the rule of the majority and wait for 2007 general elections.
"Instead of coming on roads, the opposition parties should take part in the forthcoming local bodies elections," he said.
"The opposition should do politics within the ambit of law as demanded by democracy," he stated.
Pakistan, the president said, has earned a respectable status in the comity of nations as a result of policies taken in the last five years.
"Far from the abysmal situation of pre-1999 period, the country today enjoys genuine democracy with freedom of expression, economic stability and is firmly poised to move forward," the president pointed out.
President Musharraf said his holding the two offices is imperative for continuity in internal and external policies of Pakistan, as these have put the country on sound economic footings and raised its prestige internationally.
Musharraf thanked the people of Pakistan for their wholehearted support for him and appreciated their disproving the politics of agitation.
"The people of Pakistan know our policies are aimed at taking the country forward on the path of sustainable socio-economic development. We want to steer Pakistan forward as a progressive and moderate nation," he emphasised.
He said the country must stamp out the menace of extremism.
"We have to curb extremism, hatred and violence, we want to take Pakistan forward as a progressive, enlightened and moderate Islamic country," he underscored.
Musharraf informed the gathering about steps taken for agricultural development, saying that a landmark 'farmers' package' announced last year, will be vitally helpful in meeting higher agro growth targets.
In this context, he referred to the marked increase in the extension of agriculture loans on soft-terms and at low interest rates.
Previously, he said the Zarai Tarraqiati Bank Limited (ZTBL) extended loans of Rs 30 billion, and now all commercial banks are also providing credit to the farmers, adding the total credit now stands at Rs 80 billion.
In a few years, the credit will touch Rs 150 billion figure, he told the gathering in the heart of agriculturally rich Punjab.
The President also recounted other steps, including revolving credit facility for small farmers, massive Rs 66 billion project for brick-lining of water courses, and construction of canals and dams, saying these initiatives will impart a veritable boost to the agriculture sector.
The nation, he said, will soon hear a good news about the construction of a large dam.
The government, he asserted, is focused on providing jobs to people in the urban centres by attracting investment in the industrial sector.
The President also inaugurated Shahbazpur Bridge on the Chenab River, which will ease flow of traffic between Gujrat and Sialkot.
In the meantime, addressing a public meeting President Musharraf praised the development strategy and welfare-oriented projects of Punjab.
He said the Punjab province was fast achieving the goal of progress and prosperity under the leadership of Chaudhry Pervaiz Elahi.
He said the Punjab chief minister had carried out several development works in big cities and other areas of the province and his future plans were also praiseworthy.
He said the Punjab government's development projects, including new Murree, provision of water, education and health were highly important and creditable.
He appreciated that the Punjab chief minister was especially focusing on health and education sectors. He exhorted the people of Punjab to extend their support to the chief minister so that greater number of people could benefit from those development projects.
The president said he was thankful to Ch Shujaat Hussain and Ch Pervaiz Elahi for holding a public meeting in Gujrat, which enabled him to have direct interaction with the people.