Sunday, June 5 2005 15:11 Hrs (IST) - World Time -

Dubai: Observing that the peace process with India is moving ahead at a "fairly good speed", Pakistan President Pervez Musharraf has expressed optimism that issues of Siachen and construction of the Kishenganga hydro-power project in Jammu and Kashmir would be resolved peacefully.

Musharraf, who arrived on a two-day visit to the UAE yesterday (Jun 4, 2005), said the conducive environment of goodwill, witnessed now, has never been there before.

"We have had the joint statement, which was not there earlier when we went to discuss peace with India...so things are moving in the right direction," he was quoted as saying by the local media in Dubai.

"The peace process is moving ahead at a fairly good speed, but it will take time to remove the hatred of 50 years, when both countries went to war three times, besides tens of skirmishes," he said.

He particularly referred to issues of Siachen and construction of Kishanganga hydro-power project in Jammu and Kashmir, discussed by the two countries recently, and expressed hope that they would be resolved peacefully, since both the countries wanted to settle their differences once and for all.

Musharraf also said Pakistan has a great future since it is ideally located. China and landlocked Central Asia need access to global markets which is possible only through Gwader Port in Pakistan, he said.

"The same is the case with India if these high growth economies want to explore Indian markets. They will have to transit through Pakistan. There is no other way," he said.

"The Iran and Qatar gas pipelines cannot work without Pakistan," Musharraf said.

Reassuring India over the Iran-Pakistan-India pipeline plan, he said "we will give international guarantee to India for the gas supply."

Earlier, Musharraf met UAE President Shaikh Khalifa Bin Zayed Al Nahyan and discussed ways to boost bilateral ties.

They also reviewed developments in the Middle East, particularly the Iraq and Palestinian crises, and said they supported a comprehensive peace process in the region in accordance with international resolutions.

Musharraf heads to Qatar from the UAE.