NEW DELHI/HYDERABAD Jan 11: Prime Minister Atal Behari Vajpayee on Sunday expressed the confidence that the Islamabad agreement would be implemented in its true spirit , besides heralding a new chapter in ties between the two neighbours, promoting trade and ushering in a new era of peace.

At the same time Mr Vajpayee launched a scathing attack against his political rival, Sonia Gandhi, going into campaign mode ahead of national elections that could come as early as March.

Speaking at a public meeting at Hyderabad attended by thousands of supporters, marking the opening day of two-day meeting of the BJP's national executive committee, he said: "We want to resolve ... our disputes through negotiations and dialogue," he expressed adding, "We are absolutely ready to fulfil the needs of the neighbour and I am confident that the new year would bring peace and harmony."

India, Prime Minister Vajpayee said, wanted to walk together with Pakistan, besides hoping that the ceasefire, reached between the two sides along the Line of Control and in Siachen, would be observed.

Continuing that India wanted friendly ties with all its neighbours, Vajpayee said, "India wants peace on its borders and peace within the country." The Indian prime minister said he did not understand why countries in South Asia could not unite for their welfare on the lines of countries in different parts of the world.

"Whatever change is to happen should happen through peace and democracy, not through guns. I want to tell the youth to prepare for a glorious future."

Criticizing the leader of the Congress party: "Sonia Gandhi had once accused us of only seeing dreams. We don't just see dreams. We also know how to make them come true," The Indian prime minister said he has spent his tenure trying to make peace with Pakistan.

"But we didn't lose hope. After all, we are neighbours. We have to live together. This is why we have been taking steps. And in Srinagar last year, I again offered a hand of friendship. I am happy that even though late, the hand has been accepted," Vajpayee said. "We hope that the efforts with Pakistan will be the beginning of a new chapter," said Mr Vajpayee. -Agencies