Kashmir resolution linked to trade ties: Aziz

New Delhi, Jan 16: Pakistan Prime Minister Shaukat Aziz says the 'trust deficit' between India and Pakistan has reduced in the past three years, but more progress in economic and other ties is closely tied to progress in negotiations on Kashmir.

In an intereview to CNN-IBN TV channel, Mr Aziz said talks had made some headway, especially on proposals made by Pakistan President Pervez Musharraf recently.

''As we see progress on Kashmir, that will determine the progress on economic relations. We have to reach a point where India, Pakistan and the Kashmiri people are happy and that will take courage, magnanimity, flexibility and leadership,'' he said.

Mr Aziz said Pakistan would keep its commitment on implementing the South Asia Free Trade Agreement, an outstanding issue that External Affairs Minister Pranab Mukherjee brought up during his two day visit to Pakistan on January 13-14. But there was a caveat.

''As soon as the non-tarriff barriers are removed and Pakistan is convinced it has a level playing field, we will open up more economic relations.'' According to a statement issued here by the channel today, Mr Aziz rejected media reports that the reason President Musharraf was not coming to India for the SAARC summit in April was Islamabad's insistence that Prime Minister Manmohan Singh must visit first.

''President Musharraf did attend the summit when there was no Prime Minister in Pakistan and no elected government. PM Jamali chaired the SAARC summit in Islamabad, handed the chairmanship to me before Dhaka. PM Singh has the highest respect for the President and myself.'' Asked about the similarity between him and Dr Manmohan Singh, Mr Aziz conceded that he had a relationship with President Musharraf somewhat similiar to the percieved relationship between Dr Singh and Congress President Sonia Gandhi.

On the recent remark from US intelligence officials that Pakistan was a safe haven for Al-Qaeda and Taliban leadership, he rejected that any Al-qaeda leader lived in Pakistan but admitted that Taliban fighters may be freely moving back and forth across the porous border with Afghanistan.

''We are trying to regulate the border but with three million refugees living close to the border, the camps are safe haven for many Taliban fighters who are difficult to distinguish.'' Mr Aziz said he was satisfied with the progress in the dialogue process, and wanted closer ties for the two countries.

''More tourists should come back and forth. Pakistan has unilaterally increased visas and I am sure India will do the same.

We want more flights to go back and forth so our people can visit each other's cities.''

UNI