Islamabad: South Asia could become strong economically if a solution to the Kashmir problem is found through dialogue between India and Pakistan, President Pervez Musharraf has said.

"If India solves the Kashmir issue with mutual dialogue then this region can become strong economically," Musharraf said in an interview to a Kuwait-based Arabic newspaper.

He said Pakistan stood for promotion of peace and wanted resumption of dialogue with India in order to have regional stability.

He said Pakistan was aware of its Defence requirements.

Musharraf maintained that international terrorist mastermind Osama bin Laden was not alive, but Taleban leader Mullah Omar was still in Afghanistan.

PTI