ISLAMABAD, March 2: Prime Minister Shaukat Aziz discussed the ongoing composite dialogue with the visiting Indian delegation on Wednesday and said that Baglihar and Kishanganga dams "could cause ripples in bilateral relations if not resolved amicably".

He was talking to Communist leaders Harkishan Sing Surjeet and and A.B. Bardhan. Ruling Pakistan Muslim League president Chaudhry Shujaat Hussain was present on the occasion.

Briefing journalists later, Mr Aziz said: "I and Chaudhry Shujaat Hussain told our distinguished guests that Pakistan is keen to resolve all issues with India through composite dialogue.

"We want to settle all issues peacefully, specially the core issue of Kashmir which needs to be resolved in a spirit of understanding and in an atmosphere of mutual flexibility."

The prime minister said they had also discussed the issues of Baglihar and Kishanganga dams which "could cause ripples in bilateral relations if not resolved amicably".

He expressed the hope that talks with the Indian leaders and a visit by Chaudhry Shujaat to India later this month would help create an atmosphere of mutual understanding leading to honourable solutions of all issues.

Mr Singh stressed the need for mutual understanding. He said they would return home with good memories and would share what they had discussed here with other parties and leaders. He said the governments of India and Pakistan had come closer to a position from where they could resolve disputes by addressing the most complicated issues first.

VISIT TO AZAD KASHMIR: Meanwhile, during a visit to the Neelam Valley of Azad Kashmir, the prime minister reiterated Pakistan's resolve to settle all issues with India, including the core issue of Kashmir, through peaceful means.

Addressing a gathering, he said Pakistan was committed to a solution based on the will of the Kashmiri people. "You have offered supreme sacrifices in your just struggle for the right to self-determination... these sacrifices will not go waste nor Pakistan will leave you alone," he assured a large number of people who had come from the remote district of Sharda.

The rights of the people of Kashmir, he said, would be protected and no solution would be accepted till the people of Kashmir endorsed it. Mr Aziz, accompanied by Azad Kashmir Prime Minister Sardar Sikandar Hayat Khan and President Sardar Muhammad Anwar Khan, also visited the areas heavily covered with snow. The valley has received up to 20 feet of snowfall this season playing havoc with normal life.

The prime minister announced Rs10 million to provide immediate relief to the people and for repair of roads and other infrastructure in Azad Kashmir, adds APP. He flew along the Line of Control and had a view of the road that would be used for the proposed bus service between Muzaffarabad and Srinagar.