Pakistan will 'counter' India's move to acquire Israeli Phalcon airborne radars, President Pervez Musharraf has said.

He asked the United States to 'try harder' to persuade New Delhi to resume Indo-Pak dialogue.

In an interview to Malaysian daily New Strait Times published on Monday, the Pakistani general said he will not allow his country be at a military disadvantage.

"We will maintain that no-win situation come what may -- this, the world and India should know. They have reached an agreement and we will counter it. That has to be very clear. We will never allow the no-win situation to be disturbed," Musharraf said.

Musharraf is in Putrajaya to attend the meeting of the Organisation of Islamic Conference.

"Yes, they are trying, and I would say they should try harder and everyone should try harder," he said when asked if American efforts to bring India and Pakistan to the negotiating table will make any difference.

He noted that relations with India have improved with New Delhi granting Pakistan MFN trading status but he said the situation cannot be resolved by a 'piecemeal' improvement of relations unless major causes of the dispute are addressed. 

On Pakistan's possession of nuclear weapons and US concerns on the issue, Musharraf said, "I don't think Americans are unhappy with that at all."

He said Pakistan would not engage in proliferation of nuclear arms. But he said disputes have to be resolved to remove any possibility of using the weapons.

On the Iraq issue, he said a UN mandate is needed for Muslim peacekeepers in the country.

"We don't want to go there as an extension of occupation because we will not be able to do our duties," Musharraf said.