ISLAMABAD, Oct 10: President Gen Pervez Musharraf said on Sunday that Pakistan had a principled stand on the expansion of the UN Security Council and did not support to the idea of increase in its permanent members as it was against the democratic basis of sovereign equality of nations.

"We feel that increasing the number of permanent members of the UN Security Council is against the democratic considerations of the sovereign equality of nations," he told newsmen after holding talks with German Chancellor Gerhard Schroeder.

He said the government and the people of Pakistan held Germany and Chancellor Schroeder in the highest esteem and stated that the German chancellor understood that Pakistan had a principled position on the issue of enlargement of the UN Security Council.

Earlier, the two leaders met for half an hour, agreeing to enhance bilateral political and economic relationship. They also exchanged views on a wide range of regional and international issues including peace with India and the situation in Afghanistan.

Later, the Pakistani and German leaders were joined by their aides in discussing ways and means to further deepen the bilateral ties. Chancellor Schroeder described the talks as excellent, lauding Pakistan's vital efforts in the international fight against terror and supported President Musharraf's strategy of addressing the causes of conflict through dialogue.

President Musharraf said there was total harmony and understanding of each others' standpoints during the talks. "We did utilize the opportunity of holding talks on enhancing economic and trade relations."

During the talks, President Musharraf briefed the German chancellor on Pakistan's relations with India in the context of confidence-building measures and the composite dialogue process for the resolution of all disputes, including Jammu and Kashmir.

The president spoke about Pakistan's optimistic feeling and its sincerity to pursue peace through resolution of all issues. President Musharraf informed the German leader that Pakistan was determined to address the menace of terrorism in both its immediate and strategic long-term perspectives.

Pakistan, he said, was for addressing the core disputes which led to terrorism in addition to taking actions against terrorists. In response to a question, the president said Osama bin Laden was alive and hiding somewhere. However, he added, nothing could be said in certain terms about his exact location.

The president said that Osama bin Laden was on the move so nobody could lay an exact timeframe for tracking him down. Chancellor Schroeder told newsmen that during the talks they assessed the situation in Afghanistan with reference to Saturday's presidential elections.

Mr Schroeder said that Pakistan had a clear stand against nuclear non-proliferation. "I am very satisfied with President Musharraf's clear stand." -Agencies