ISLAMABAD Dec 22: Foreign Minister Mian Khurshid Mehmud Kasuri on Thursday expressed the hope that the third round of Pakistan-India dialogue, starting from January 2006 in New Delhi, would take the process of normalisation forward and bring about a breakthrough on the core issue of Kashmir.

During an informal chat with newsmen at Senate lounge, Mr Kasuri said that political, economic and trade atmosphere between the two countries had changed over the last two years but they still had to go a long way to resolve the issues of Kashmir, Siachen and Sir Creek.

He admitted that progress in the dialogue had been dismal as far as Kashmir was concerned. However, he said, both countries seriously felt that they needed to go a bit faster.

Responding to a question, he said though India had given Most Favoured Nation status to Pakistan, the latter would wait for reciprocal action till the joint tariff committee took a positive decision with regard to the higher Indian tariffs to provide for a level-playing field to both countries.

About the opening of five points on the Line of Control, he said though the confidence-building measures were not according to the expectations of Pakistan, the plying of Muzaffarabad-Srinagar bus and other steps were positive development towards normalisation.

He said there was much scope for expansion of trade and investment between India and Pakistan as economy of the latter was fast growing and the atmosphere was tension free.

He, however, added that as long as Kashmir issue was there neither lasting peace nor normalisation of relations was possible and this situation could affect the morale of Kashmiris who were pinning great hopes on the process.

He said Pakistan had made it clear that the proposals floated by President Pervez Musharraf were in the direction of a just settlement without compromising Pakistan’s position on Kashmir.

Asked about the back-door channel diplomacy and a deadline for resolution of the Kashmir issue, Mr Kasuri said both back- and front-door channels would be used but giving a deadline was not possible.

He termed the visits of US secretary of state, vice-president and secretary defence as success of Pakistan’s foreign policy and said the world attached importance to Pakistan’s opinion on international issues and these visits proved this.