ISLAMABAD, July 22: Germany is ready to expand economic and trade ties with Pakistan, the visiting German foreign minister Joschka Fischer said here Thursday , indicating that visit of the German Chancellor to the region in October would accelerate bilateral cooperation.

Addressing a joint news conference with his Pakistani counterpart Khurshid Kasuri at the Foreign Office here, Mr Fischer said Germany considered Pakistan an important country and was willing to cooperate closely in finance and trade.

Mr. Fischer who earlier called on President Gen. Pervez Musharraf and Prime Minister Shujaat Hussain said he had "very friendly and open talks" with the two leaders. He described his discussions with the president as 'impressive' and talks with the prime minister and finance minister as "very good."

He clearly indicated that he had raised the issue of human rights and improving democratic institutions in Pakistan, saying: "We talked about our bilateral relations, the development of Pakistan, of improving democratic parliament, and human rights." Referring specifically to his discussions with the president, he observed: "It was impressive, his explanations and it was very frank and friendly."

Terming Germany's relations with Pakistan as 'excellent' he said his talks here had been "very interesting and fruitful" in the real sense.

He said the talks covered a whole ambit of regional issues, particularly the situation in Afghanistan, the border regions and war against terrorism.

"We also talked about the situation with the president and decided to move forward with solving the problems that must be solved especially now with the coming elections in Afghanistan," he stated.

Welcoming the resumption of composite dialogue between Pakistan and India, Mr Fischer said Germany would do all it could to support the peace process, adding that he had also conveyed that to the president.

"We highly appreciated that the 'Lahore process' would continue with the new government in India and hope that it would not only lead to friendly and constructive talks but also to more results in the future so that pending issues could be settled," he said without naming Kashmir. He underlined that this would not only be in the interest of India and Pakistan but of the region.

Mr Kasuri intervened at this point to say that he had explained to his German counterpart the 'Lahore process' and the Jan 6 joint statement between the two governments and "the desire of India to continue with the January 6th statement".

Asked if Germany, which is actively lobbying for a permanent seat in the UN Security Council, thought the UN resolutions were sacrosanct, particularly the UN resolution on Kashmir, Mr Fischer said: "We understand the sensitivity and importance of a long- term conflict. We are friends with both sides and, of course, we have an interest in the settlement of the dispute based on an agreement on both sides."

He was visibly embarrassed when a questioner pointed to Germany's open support for India's bid for a permanent seat in the UNSC (despite its failure to implement the UN resolution on Kashmir) and asked if the German chancellor had ever appointed a "notorious dacoit or a smuggler" as the chief security officer of his country.

His response focused more on Germany's commitment to reforming the UN system. "It must be reformed if we are interested in an efficient multilateral system. It is crucial and therefore we also have to re-think about the composition of the Security Council," he asserted.

Acknowledging that there were conflicting interests in the region and elsewhere, he clarified: "We are trying to support the reform in the UN and cooperate but it is not directed against a third party. We are friends with both sides and hope there would be progress in settling this long-term issue."

When asked whether during his visit to India, he had raised the issue of human rights violations in Kashmir and if he was able to seek any assurances from his hosts on this matter, Mr Fischer said: "It is not the first time, we raise everywhere the issue of human rights violations. We are not blind in one eye and see only in the other. We are raising these issues everywhere, the minority protection, religious and ethnic tolerance."

Noting that he had the impression that there was sensitivity to the issue (in India), he added: "I don't have to deliver any messages over the borders. I know how sensitive these issues are and I hope you will understand."

Earlier in his opening statement, Foreign Minister Kasuri said Pakistan would continue to work for a robust relationship with Germany. Referring to his talks with the German foreign minister, he said Mr Fischer appreciated Pakistan's role in the war against terrorism and reconstruction of Afghanistan.

To a question on the conflict in Sudan, Mr Kasuri said: "Pakistan is very conscious of human rights violations everywhere and we've always spoken wherever there have been human rights violations."