NEW YORK, Nov 10: Prime Minister Shaukat Aziz has said that a historic opportunity exists to resolve the Kashmir dispute in a manner acceptable to all the parties involved and emphasised the need for courage, magnanimity and flexibility to achieve the objective.

Addressing academics and students at the Princeton University on Thursday, he said a stable, conflict-free cooperative relationship between Pakistan and India held the key to durable peace and prosperity in South Asia.

Mr Aziz said there had been an improved atmosphere and increased people-to-people contacts since the launch of the Pakistan-India peace process in 2004, "but we must now move towards dispute resolution”.

In a speech covering various aspects of Pakistan’s foreign policy, he said: “We recognise Iran’s right to use nuclear energy for peaceful purposes under appropriate IAEA safeguards but Iran must also abide by its obligations under the NPT consistent with its public statements disavowing any intention to develop nuclear weapons. In our view, this issue must be resolved through dialogue and compromise.”

He said Pakistan was not responsible for nuclear proliferation in South Asia. “We were obliged to respond in order to ensure our security by establishing a credible nuclear deterrent.”

Pakistan, he said, supported nuclear restraint and is opposed to arms race in the region.

“However, we cannot accept discrimination, especially with regard to access to civilian technology for nuclear power generation under international safeguards.”

The premier said that Pakistan-US relations were pivotal – both regionally and globally – and these ties were improving.

He underscored that “cooperation between Pakistan and the US is essential for peace and development in the world as well as in the South Asian region.

“We are involved in a joint struggle against extremism and terrorism, we are committed to forging a better understanding between Islam and the West.”

He, however, warned that there were “several challenges before us that threaten to destabilise the international system, undermine peace and retard development. Pakistan and the US must work together with other likeminded states to address these interrelated challenges.”