US Secretary of State Hillary Clinton answered critical questions on US policy in Pakistan while unveiling cash for universities and calling for peace with India.

Hillary Clinton earlier visited a mosque in Lahore on the second day of a visit focused on public diplomacy and strengthening moves towards democracy.

Clinton’s visit to the second largest city in Pakistan, which has been hit by a series of gun, suicide and grenade attacks this year, has been accompanied by draconian security measures a day after a car bomb killed 104 in Peshawar.

Clinton said:

Horrific bombing’ in the northwestern city left no doubt that ‘Pakistan is in the midst of a battle against extremists. This is not your fight alone… You’re standing on the frontlines of this battle but we are standing with you.

As a way of repudiating past U.S. policies toward Pakistan, Clinton told the students at the Government College of Lahore “there is a huge difference” between the Obama administration’s approach and that of former President George W. Bush. “I spent my entire eight years in the Senate opposing him,” she said to a burst of applause from the audience of several hundred students. “So, to me, it’s like daylight and dark.”

Following previous announcements of cash for poverty, border security and energy development, she pledged a 45-million-dollar investment for higher education in Pakistan and was to meet business leaders later Thursday.

While talking to the hand-picked audience from around the country, Clinton said:

If there were peace between Pakistan and India, and the outstanding issues were resolved, Pakistan would take off like a rocket in terms of economic development.

Pakistan has such an opportunity to be a power house. You are so strategically located.

She further said referring to the possibility of trade opening up to the north, east and west and with the Arabian Sea.

There is no doubt that Pakistan is located at a very strategical position on the map of the world. It has all the ingredients of becoming a major hub of economical and trade activities in the region acting as a bridge between other parts of the world with the Arabian Sea as well as by air. Could it be the major motive for the enemies of Pakistan to support and fund the terrorists activities in the country so that it can never benefit from its position?