ISLAMABAD, Sept 15: The Indian High Commissioner in Islamabad, Shiv Shankar Menon, has said that the composite dialogue is progressing 'very well' and Kashmir is one of the important issues to be resolved between the two countries.

He was talking to newsmen after a meeting with the leader of opposition in the National Assembly, Maulana Fazlur Rehman, at the latter's residence. Maulana Fazl endorsed Mr Menon's views, saying bilateral talks were moving ahead satisfactorily.

The high commissioner said they had discussed ways of taking the dialogue process forward and seek solution of all problems, including the Kashmir issue. During the meeting, he said, they both had stressed the need for involving religious leadership of the two countries in the process. Both sides were eager to find a settlement of all issues, particularly the Kashmir dispute, he added.

Mr Menon said hopes were pinned on the upcoming meeting between President Pervez Musharraf and Indian Prime Minister Manmohan Singh in New York later this month after which talks on confidence-building measures were likely to move ahead.

He said that confidence between the two countries was strengthening with these talks, a fact also proved by the growing number of visas being issued to Pakistani visitors to India.

He said some 6,000 visas were issued to Pakistanis over the past two months which were more than the total number of visas issued in the last 10 years. Maulana Fazl said the composite dialogue was being held to restore mutual confidence. The talks, he added, were still continuing and progressing satisfactorily.

He said people of both countries had a lot of expectations from these talks and added that negotiations on Kashmir should be concluded in accordance with the UN charter. He said both sides should go ahead in the spirit of mutual understanding to make the ongoing dialogue conclusive. He emphasized that both sides should concentrate more on settlement of the Kashmir dispute and shun trading charges against each other.

The leader of opposition recalled his meeting with the president of the ruling Indian Congress party, Sonia Gandhi, during his visit to New Delhi when she had supported the dialogue process. Referring to the Indian allegation of cross-border infiltration, he said both countries were levelling charges against each other.