SWABI, Jan 2: Pakistan and India can enter an era of peace and stability and find solution to the Kashmir issue if their leadership shows flexibility, speakers at a seminar said on Friday.

Speaking at the seminar on "Saarc summit: an opportunity for India and Pakistan," organized by a non-government organization, they said the two countries must take steps to resolve the outstanding issues.

They said the two neighbours having nuclear capability should have warm relations as any mistake by either side could lead to a holocaust in South Asian.

They said the rivalry between India and Pakistan had made the whole region hostage an the South Asian Association for Regional Cooperation had not become an effective body like the Association of South East Asian Nations and other international bodies.

They said the two countries had spent 80 per cent of their resources on acquiring weapons. If France and Germany could resolve their dispute, why India and Pakistan could not do so, they asked.

They said the present era was one of strengthening of economies and the two countries should divert their resources to the economic sector and social development. They said South Asia had immense human and natural resources, which could be tapped if peace and security prevailed in the region.