US Secretary of State Colin Powell on Thursday dismissed Indian remarks likening Pakistan to Iraq, and urged the two neighbours to resolve their differences peacefully.

Indian External Affairs Minister Yashwant Sinha had said on Wednesday that there was a stronger case for military action against Pakistan than Iraq.

He said Pakistan possessed weapons of mass destruction, a reason cited by Washington to wage war on Iraq, and harboured terror groups.

"I don't think that there is a direct parallel between the two situations [Iraq and Pakistan]," Powell told Pakistan Television.

He said Washington was in "very close touch" with both Pakistan and India.

"We do have a very difficult and a painful situation with respect to actions across the line of control," he said.

"We are looking to help the two parties to resolve this in a peaceful way," he added.