Islamabad: Acknowledging that there were "some problems" in commencing the Srinagar-Muzaffarabad bus service, Pakistan Prime Minister Shaukat Aziz has said he expected palpable progress in one year in talks with India on the Indo-Iranian gas pipeline through Pakistan.

Aziz, in an interview to 'Daily Times', did not see immediate chances of the two countries opening the bus route but said India and Pakistan were holding talks to start it.

"I think it (bus service) is possible, but there are some problems.... We are discussing all issues."

Officials of the two countries are scheduled to meet in New Delhi on Dec 7-8 to discuss all issues relating to the bus service. The proposal was currently bogged down over the nature of travel documents to be used by the passengers.

While India wants passport and visa to be used, Pakistan was opposed to it. Instead it wants the travellers of the bus to be permitted to use identification certificate provided by local officials.

Aziz identified talks on Kashmir and progress on gas pipeline as best confidence building measures for Pakistan.

"The best CBM (Confidence Building Measures) for Pakistan is to engage India in two things. One is to engage it in dialogue on Kashmir. Secondly, make progress on the gas pipeline. I really believe in it. When you create mutual dependency, you open many other doors. Their views may be different to ours. If we open up a door which is not of benefit to both countries, it will not work."

Aziz also said he expected palpable progress in talks with India on the gas pipeline issue in one year.

Aziz said the gas pipeline was a project that created "mutual dependency".

Elaborating his stand further, he said, "I am not saying the pipeline will be installed overnight, but a dialogue should start at least. And it will be of benefit to the provider, whether it is Iran or Qatar. We really want to make progress on the Kashmir issue. The dialogue process should move on. And I think this is the realistic approach."

Talks on the gas pipeline covering around 2,500 km from Iran to Gujarat through Pakistan was expected to be held between the Energy Ministers of both the countries.

It could also figure in the Expert level talks on trade related issues to be held in New Delhi between the two countries on Dec 9-10.

Asked whether the two countries could achieve a breakthrough in resolving difference over the world's highest glacier, Siachen, he said, "We are talking about all these issues. Ideally, if we can make progress on all of them, we would. But I will pick the two issues I have mentioned," he said.

On Pakistan's foreign policy, Aziz said it should be based on the "national interest".

"Our focus is to create mutual dependencies with high priority countries. I have already discussed this approach with the foreign office," he said.

On issues relating to Pakistan's Defence, Aziz said, "We must ensure a credible Defence, we have no hostile design against anyone. Our strategic and conventional programmes are a guarantee of regional peace."