Pakistan's new Prime Minister Yousuf Raza Gillani on Saturday offered a dialogue to militants who lay down their arms, saying ending terrorism is his first priority. He also pledged to reinstate the judges sacked by President Pervez Musharraf [Images] during emergency last year.

Unveiling a slew of populist measures in his first policy statement after securing an unprecedented unanimous vote of confidence, Gillani told the National Assembly that terrorism and extremism are Pakistan's greatest problems that have put the country in danger and declared "the war on terrorism is our own war".

"Restoring peace and ending terrorism is our first priority. The war on terrorism is our own war because many of our people, including countless innocent children and youth, have been martyred in the country," Gillani said, apparently alluding to United States' fears that the new government may review cooperation in the fight against Al Qaeda [Images] and the Taliban.

The premier said: "Unfortunately, some people have adopted violence as the way of expressing their opinion. As a new era of democracy has begun in the country, I urge all those people to give up the path of violence and join us in the journey of democracy."

"We are ready to talk to all those people who give up their weapons and adopt the path of peace," Gillani, a close aide of slain former premier Benazir Bhutto, said while outlining the Pakistan People's Party-led coalition government's plans for the first 100 days, amid frequent thumping of desks by Members of Parliament.

Pakistan has been rocked by an unprecedented wave of bombings, including suicide attacks, since last year, which are blamed on the local Taliban while President Pervez Musharraf had deployed the military to check raging militancy in the tribal areas bordering Afghanistan.

Gillani acknowledged that Pakistan was passing through a difficult juncture and the country was facing numerous challenges. "But we will not fear these challenges and will tackle them under any circumstances," he said.

He said the government is committed to reinstating the judges deposed during last year's emergency, a move that might set the stage for a showdown with Musharraf, but did not give details about the steps to be taken in this regard.

"The government will continue its efforts for reinstatement of judges and the independence of judiciary," he said.

He said his government would set up a Truth and Reconciliation Commission and review cases of all political prisoners so that they could be released with dignity.

He called for all the army officers to be withdrawn from civil departments within two weeks while lauding army chief General Ashfaq Parvez Kayani's decision to recall all army officers from civil departments, saying this had raised the standing of the force in the public's eyes.

He also announced that the Frontier Crimes Regulation of 1901, a controversial law in force in the restive northwestern tribal areas, will be scrapped and the National Accountability Bureau, now under the executive, will be made part of the judiciary to prevent the victimisation of people on graft charges.

The tribal regions, Gillani said, have been backward for a long time and comprehensive social, economic and political reforms are needed as poverty and illiteracy have fomented terrorism in these areas.

"We will give a special package to the tribal areas to deal with these problems that will be an important part of our anti-terrorism policy," he said.

A new Madrassa Welfare Authority will be responsible for the registration of foreign students and audit of funds of seminaries, some of which have been accused of harbouring terrorists in the past.

Gillani also announced the scrapping of the British-era Frontier Crimes Regulation, under which decisions in tribal areas were made by local authorities and could not be challenged in any court. He also lifted a ban on trade unions and student unions.

As part of austerity measures for the government, the budget of the Prime Minster's House will be cut by 40 per cent. Cabinet members will be allowed to use cars of only 1600 cc and can fly only in economy class during domestic travel, he said.

Gillani also outlined steps to be taken by his government to tackle the power, water and flour crises and rising prices but said these problems could not be resolved in a short duration.