Pakistan should increase investment in its public services to improve the country's economic situation, Clare Short said on Thursday.

Speaking in Islamabad at the start of a two-day visit, the international development secretary told the Pakistan Human Development Forum that such investment would improve voter confidence in government, which had been severely damaged following the collapse of four successive administrations between 1988 and 2000.

"By investing in its human capital, Pakistan too can make major progress in poverty reduction and development. And by creating hope for ordinary people, this will also support the government's objectives of building a more democratic society," she said.

Short also welcomed plans for the government to hold a general election in 2003, with one third of the seats reserved for women. However, she called for devolution as a second step for improving voter-government relations.

"For the first time in many years, people will be able to hold government directly accountable for the services they receive, through the mechanisms created by devolution and ultimately through the sanction of the ballot box. Government - whether at district, provincial or federal level - must value and nurture this accountability," she said.

People needed to be informed of government decisions, particularly with regards to spending, Short continued, and the poorer members of society had to be heard.

She said: "People should know in clear terms the minimum standards they can expect from their schools, from their health provider and from their water sanitation authorities. They should be informed about the money that has been provided and the way it is being spent. They should be empowered to demand their rights. Above all the voices of the poor need to be heard."