MANILA, Philippines ? (UPDATE) President Gloria Macapagal-Arroyo has named boxing hero Manny Pacquiao "ambassador for peace and understanding," as she rolled out a grand welcome for the champion at the Palace on Monday.

Wearing a red, white, and blue "Team Pacquiao" sports jacket over a red pant suit, Arroyo told Pacquiao: "Congratulations mula sa isang nagpapasalamat na bansang Pilipinas [Congratulations from a grateful Filipino nation]."

Arroyo said she was naming Pacquiao "sugo ng kapayapaan at pagkakaunawaan [ambassador for peace and understanding]."

Press Secretary Cerge Remonde said that with Pacquiao's appointment, he would help promote peace in the coming 2010 elections.

Red, white, and blue confetti rained on the Palace lawn as Pacquiao arrived, saluted by the Presidential Security Group.

Pacquiao was led to the State Dining Room where Arroyo presented him with a fondant cake in the shape of a championship belt.

He proceeded to the Rizal Hall where Arroyo hosted a luncheon for him.

Executive Secretary Eduardo Ermita read a proclamation declaring Monday as a national day of celebration.

Palace chefs prepared a spread of Filipino fare ? tinolang manok, grilled fish over kare-kare vegetables, tiger prawns with garlic and shrimp roe, chicken adobo, pancit malabon, green mangoes with bagoong, and a choice between steamed rice and bagoong rice. Buko salad with lychees and pandan jelly was served for dessert.

A trio of classical singers belted Pacquiao's songs "Para sa 'Yo" and "Lahing Pinoy."

In a brief chat, Arroyo asked Pacquiao about his May 2 fight against Hatton ? whether he was hurt and how he felt when Hatton was knocked out in the second round.

Pacquiao said he pitied Hatton as he laid on the canvass.
Pacquiao said the British fighter "underestimated the punches of the Filipino people," eliciting applause from the audience,

"Naawa din ako kay Hatton [I also pitied Hatton]," Pacquiao said.

The President also asked about Pacquiao's mother Dionesia, who has turned into a celebrity in her own right.

Pacquiao said his mother was in their hometown of General Santos, with wife, Jinkee.