He was speaking at the inauguration of 620 feet high state-of-the-art port fountain (water jet) built by the Karachi Port Trust at a cost of Rs 225 million near Clifton beach.
First lady Begum Sehba Musharraf, Sindh governor, chief minister, ports and shipping minister, corps commander and Chief of the Naval Staff were also present on the occasion.
He said the government could have ignored problems and brushed them under the carpet like other governments did in the past but that would not have resolved them.
"We want to address all causes which had been brushed under the carpet in the past, (because) I don't believe in brushing issues under the carpet," he noted.
"We have to face them. We have to catch the bull by the horn. We will solve them. If we have a resolve, if we have the courage and if we have the brain we will be able to do it." But if we keep doing what we have been doing in the past we will not be able to resolve issues, he added.
Referring to the situation in Balochistan, the President said the government will resolve the issue and bring peace there.
"If we have a problem in Balochistan ... push it under the carpet. I can very well do it and feel comfortable. No sir, we will not do like this. We will bring peace in Balochistan," he resolved.
Referring to water issue, he said people will die if the government did not go for dams. He said the country will go dry by 2015 to 2020 and the people will see the impact in their lifetime of how the nation starts going down. He said people see it as a technical issue, but it is an economic issue.
"One dam means about 1.5 to 2 percent of GDP because of facilitation of agriculture and electricity. So, we have to face these issues boldly and execute it because it is in the interest and the people of Pakistan, specially the poor, who had been unfortunately misled," the President added.
But we are not those, who will not address these issues and ultimately we will come out victorious.
The President said the government was making all efforts to improve life in Karachi through mega projects like road infrastructure, water and recreational facilities.
He said the centre was financing mega projects like Lyari expressway, Northern Bypass, 100mgd water project, mass transit scheme, development of parks and recreational facilities in the metropolis.
The President observed road infrastructure improvement projects will ease traffic congestion and take away all heavy traffic from Karachi.
He said K-III project will bring in 100mgd water to Karachi by March this year. "I will come to inaugurate this project which was initiated in 2002."
Similarly, a desalination plant in DHA will provide water to citizens, besides generating electricity.
Referring to the demand of Senator Babar Ghauri of providing Rs 6 billion for Karachi development projects from Rs 12 billion being provided to KESC in the past, he said the federal government will fund development projects if they are appealing.
Appreciating efforts of Sindh governor for improving the beach and development of beach park, President Musharraf said this will add to the beauty of coastal area and the city.
The President said the governor, chief minister and city nazim are doing a lot for cleanliness in Karachi and advised to do more in this regard. If they maintain and improve cleanliness, it will be a great contribution to this city, he added.
He lauded efforts of city nazim Syed Mustafa Kamal and said he was working very energetically and in a short time he is doing a lot for the cleanliness of Karachi.
Referring to privatisation of KESC, the President said new management will invest millions of dollars to improve electric supply to Karachiites.
Appreciating efforts of KPT Chairman Vice Admiral Ahmed Hayat, he said under his dynamic leadership KPT was undertaking development projects.
He said the port fountain was one of the tallest in the world and provides scenic view to the people. It will beautify the port, he added.
The President said the coastline of Pakistan has to be developed. It gives a good feeling, he noted.
Ports and shipping minister Senator Babar Ghauri said the government was completing all projects. He said mega development projects were forthcoming by KPT.
The KPT chairman said the port fountain was built on a platform measuring 135 square meters erected on 16 piles. He said British firm Invest Water Treatment has built the fountain.
Later, the President unveiled the plaque and pressed the button to start the fountain. This was followed by a spectacular display of fireworks, which lasted for quite some time.