New Delhi: Prime Minister Atal Behari Vajpayee on September 28 night admitted his peace initiative with Pakistan had suffered a setback owing to statements of Pakistani President Pervez Musharraf, but felt a fresh impetus was needed to bring about amity between the two countries.

"Yes, the peace process has suffered a setback," he told reporters shortly after arriving from Zurich at the end of his 13-day tour, during which he visited Turkey and addressed the United Nations General Assembly in New York.

Replying to questions on Indo-Pak issues, the Prime Minister said all efforts should be made to ensure that outstanding issues between India and Pakistan are resolved through a dialogue and in a peaceful manner.

Deputy Prime Minister L K Advani and Murli Manohar Joshi, who resigned as Human Resource Development Minister in the wake of the verdict of the Rae Bareilly court in the Babri Masjid demolition case, were standing side by side to receive the Prime Minister. They were, however, not seen talking to each other.

Asked about the statement of Musharraf on the sidelines of the UN General Assembly and other fora, the Prime Minister said, "Despite the setback to the peace initiative, a fresh impetus needs to be given to ensure that all outstanding issues between the two countries are resolved peacefully and through dialogue."

On the issue of Iraq, he said developments in the war-ravaged country were high on his agenda of discussions with world leaders in New York, but asserted the UN had to play a bigger role there.

The Prime Minister said he had clearly stated India's position on Iraq during his engagements at the UN.

"The role of UN in Iraq is not clear and the world body needs to have a greater say," he said, adding there was an urgent need for reforms in UN.

Vajpayee said if the challenges facing the world have to be resolve then the UN would required to be reformed.

He hoped that reforms process in the U N would take shape soon and an eminent persons committee, as proposed by UN Secretary General Kofi Annan, has been constituted for this.

Describing his visit to Turkey as "successful", Vajpayee said New Delhi shared democratic and secular principles with Ankara.

"All efforts will be made to give a boost to trade between the two countries as it would be advantageous to both of them," he said.

PTI