ISLAMABAD, Jan 4: President Gen Pervez Musharraf on Sunday underlined the need to establish peace through the resolution of political disputes for the economic uplift of South Asia.

Speaking at the banquet he hosted for the Saarc leaders at the Aiwan-i-Sadr, the president also referred to the need for expanding the charter of Saarc to discuss bilateral issues at the regional level.

"We must put behind the tarnished legacy of mistrust, bitterness and tension. We feel there is a need to expand our charter to constitute a mechanism to discuss even bilateral issues at the regional level," he said.

The president emphasized that South Asia must realize its destiny by "confronting its problems and not shying away from them and refusing to acknowledge their existence."

The Saarc leaders including Prime Minister Khaleda Zia (Bangladesh), Prime Minister Jigmi Thinley (Bhutan), Premier Atal Behari Vajpayee (India), President Maummon Abdul Gayoom (the Maldives), Prime Minister Surya Bahadur Thapa (Nepal) and President Chandrika Bandranike (Sri Lanka) attended the reception.

Prime Minister Mir Zafarullah Khan Jamali was also president on the occasion. President Musharraf said there could be no development in the absence of peace. "There can be no peace so long as political issues and disputes continue to fester".

He said: "The bitter truth is that Saarc will never achieve its full potential unless the disputes are resolved peacefully on the basis of justice and equity."

The president assured the leaders of South Asian countries that Pakistan would endeavour to foster a better understanding and cooperation with all the countries of the region.

"We wish to address all problems and disputes boldly with the objective of seeking honourable solutions based on mutual respect and a spirit of accommodation."

Pakistan, he said, sought a similar commitment and sincerity of purpose from all. The leaders of Saarc countries owed this to their people, he added.

"Let us make a solemn pledge not to disappoint them. All of us have a vital stake in the success of this endeavour. "If we fail, cynicism will set in, and our organization will lose credibility and momentum," he cautioned.

The president said our ultimate aim must be to make our association a model of regional cooperation in its true manifestation.

The member states, he said, should respect the principles of sovereign equality, national independence and non-interference in each other's internal affairs.

He said the government and the people of Pakistan remained fully committed to the objectives enshrined in the Saarc charter. "We are determined to contribute in every way possible to the strengthening of Saarc for the progress and welfare of the peoples of South Asia."

Mr Musharraf said South Asia was blessed with immense resources, economic complementarities, historic ties, geographical affinities and rich cultural heritage. However, the president observed that the peoples of the region had not realized the full potential and vision of Saarc.

He said that although some progress had been made and despite 18 years of its existence, "Saarc linkages and affinity still remain fragile".