Islamabad: Amid fresh peace overtures by India and Pakistan, President Pervez Musharraf has said his country could work for a no-war pact with India followed by mutual reduction of troops and de- nuclearisation of South Asia if Kashmir issue was resolved.

If the Kashmir issue was resolved and there was peace and security in the region, South Asia could be de-nuclearised mutually by India and Pakistan, Musharraf said in an interview to a Pakistani TV channel, ARY Gold.

"Our concern is our security. We have been saying that if there is no problem to our security, Pakistan and India can move to mutual reduction of forces and have no-war pact – this has been our stand," he said.

He was quoted as saying that Pakistan Army could cut its size if the Kashmir issue was resolved.

Musharraf also dismissed reports that India and Pakistan agreed for a dialogue process due to pressure from international community. "No one can put pressure from outside but there can be some suggestion for this purpose."

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Musharraf said the new peace move was initiated due to the prevailing impression in India and Pakistan that issues could be resolved through a dialogue.

"I think that there can be realisation in the minds of the Pakistanis and Indians that the talks should be restarted and all the disputes should be resolved in the mutual interest of the two countries and the region. I think that may be this realisation is developing in their minds."

Musharraf also declined to directly answer questions whether hardliners in BJP (Bharatiya Janata Party) scuttled a settlement in Agra.

PTI