Friday, February 25 2005 13:38 Hrs (IST) - World Time -

New Delhi: Observing that India's relations with Pakistan are of "utmost importance" for peace, stability and prosperity in the neighbourhood, Government today (Feb 25, 2005) said normalisation process is "critically" dependent on Islamabad's pledge to end support to terrorist activities.

"In proposing a range of steps, including Confidence Building Measures (CBM) that may be taken in the near term, leading up to longer term economic cooperation, we are responding to the felt desire of our peoples," President A P J Abdul Kalam told a joint sitting of Parliament at the start of the Budget Session.

"However, the process of normalisation is critically dependent on Pakistan fulfilling its assurance that it would end its support to terrorist activities," he said.

In his 24-page address, the President said that India's relations with Pakistan were of utmost importance in its endeavour to create a neighbourhood of peace, stability and prosperity.

Noting that India-Pakistan peace process was recently taken "significantly" forward, Kalam referred to the agreement reached to start a bus service between Srinagar and Muzaffarabad in this regard.

"It was also agreed in principle to start bus services between Lahore and Amritsar, including to religious places such as Nankana Sahib," he said, adding that Pakistan also agreed to work towards early restoration of the Khokrapar-Munnabao rail link.

"These measures would enhance people-to-people contact, which have also provided palpable support to the present process," Kalam added.