ISLAMABAD, July 22: The countries in South Asia are blessed with human capital and natural resources and have the potential to become centres of economic activity.

This was stated by Finance Minister Shaukat Aziz while talking to Indian External Affairs Minister K. Natwar Singh who called on him here on Thursday.

Mr Aziz said the peace process initiated between India and Pakistan had improved the atmosphere in Saarc deliberations. He hoped that the meeting of the Saarc Council of Ministers and the decisions taken would lead to more meaningful programmes and enhanced regional cooperation.

The finance minister said that Pakistan was committed to pursuing peace with India and resolving all differences and disputes, including the issue of Jammu and Kashmir.

He said work on the Iran-Pakistan-India gas pipeline project needed to be expedited after mitigating all risks.

Mr Singh said Congress as a party had always supported the process of dialogue and added that the momentum for peace initiated at the 12th Saarc Summit would be expedited.

The prevailing congenial atmosphere had generated a hope for peace and prosperity in the two countries, he observed.

The external affairs minister said he was returning home with him a message of peace, friendship and goodwill.

Mr Aziz thanked Mr Singh for his visit and asked him to convey his good wishes to Prime Minister Manmohan Singh.-APP