In an obvious reference to the Jammu and Kashmir issue, Pakistan Prime Minister Shaukat Aziz on Sunday said ''political disputes and tensions'' in South Asia had impeded the progress of SAARC even as he noted that the political atmosphere between India and Pakistan had improved after they launched their bilateral composite dialogue process.

''We have remained embroiled with conflict management. We need to move towards conflict resolution,'' he said at the inaugural session of the 13th SAARC Summit.

However, he noted that the summit was taking place under propitious circumstance as the region was witnessing a new hope across the Indian sub-continent.

''I am happy to state that the political atmosphere between Pakistan and India has improved, and both countries are engaged in a peace process to resolve all issues, including Jammu and Kashmir. Success of the process augurs well for the region and SAARC,'' Mr Aziz said.

Lamenting that South Asia lagged behind its larger Asian neighbourhood in terms of economic and social advancement, he said, ''We remain mired in poverty and preoccupied with our differences and conflicts. We have not been able to leverage the full potential of SAARC.''

SAARC Summit 2005