ISLAMABAD, Feb 16: President General Pervez Musharraf and Prime Minister Shaukat Aziz on Wednesday welcomed the decision taken by India and Pakistan on the commencement of a bus service between Muzaffarabad and Srinagar.

During a call on by Indian External Affairs Minister Natwar Singh, the president appreciated the flexibility and statesmanship showed by the two sides and said that in the same spirit the two countries could resolve all the issues, including the Jammu and Kashmir dispute.

President Musharraf emphasized that the Saarc process should be strengthened and every effort should be made to make it a useful forum for regional development. He said there was a need to raise the comfort level of the Kashmiris by improving the human rights situation in occupied Kashmir.

The president raised the Baglihar dam issue with the Indian minister and expressed concern over the non-resolution of the issue in consonance with the Indus Water Treaty provisions.

He said Pakistan was constrained to approach the World Bank for the appointment of a neutral expert as outlined in the Indus Water Treaty. He expressed the hope that the two countries would resolve the issue bilaterally.

The president said that to continue the composite dialogue process there was a need to maintain contacts between the two countries at the highest political level. He hoped that Indian Prime Minister Dr Manmohan Singh would visit Pakistan at his earliest convenience.

Premier Aziz noted the improvement in atmospherics between the two countries when Mr Singh called on him at the Prime Minister's House. He underscored the importance of a speedy resolution of the Baglihar dam issue.

The prime minister conveyed Pakistan's concern over India's plans to construct the Kishanganga hydro-electric project on the Neelum River, which was in violation of the Indus Water Treaty. He emphasized the need for resolving the issue quickly.

Other matters relating to bilateral relations were also discussed. Mr Aziz appreciated the Indian government's decision to treat the gas pipeline as a stand alone project. He renewed invitation to the Indian premier to visit Pakistan. -APP