Pakistan seeks peaceful resolution of all matters with India, including the Kashmir issue that would usher in a new era of peace and prosperity in South Asia, President Pervez Musharraf [Images] told Chinese President Hu Jintao on Thursday.

"We desire a peaceful environment in our region in the interest of development and to raise the living standard of people," Musharraf said at a banquet hosted in honour of Hu, who arrived in Pakistan to a grand welcome after concluding his India visit.

"Consistent with this aspiration, Pakistan seeks peaceful resolution of all issues with India, including the longstanding Jammu and Kashmir [Images] dispute. Success in this endeavour would usher in a new era of peace and prosperity in South Asia," he said.

He said close ties in diverse fields between Pakistan and China is a shining example of good neighbourly relations and there is complete convergence of interests between the two countries at the global and regional levels. The Pak-China relations would help advance the international agenda for peace and prosperity.

"The friendship between the two countries has remained constant and unchanged regardless of the transformed global circumstances," he said, apparently referring to Pakistan's growing ties with Washington in the aftermath of September 11, 2001 terror attacks.

"The bedrock of our bilateral bonds is a strong faith and trust in each other, nurtured with care and devotion," Musharraf said, adding that China had made an 'admirable contribution to global peace and development and is moral voice in international affairs and its efforts to uphold principles of equity and justice are a source of strength for the developing countries.'

He also admitted the steadfast support China has given Pakistan in all domains. He said there are many important symbols of this cooperation, which include the Karakoram highway, the Gwadar port and the Chashma nuclear power plant.

In his arrival statement, Hu said: "Pakistan and China are good neighbours, good friends and dear brothers and and my visit is aimed at deepening friendship expanding cooperation and planning the future of our relationship."

"I look forward to having indepth exchange of views with President Pervez Musharraf, other Pakistani leaders. Bilateral relations as well as international and regional issues of mutual interest will figure in their talks. I will also meet public leaders of Pakistan," he said.

"This visit will consolidate China-Pakistan traditional relationship and usher in a new state of China-Pakistan relations. History has shown that China-Pakistan friendship meets the interests and shared aspirations of our countries and peoples and contributes to peace, stability and prosperity of our region. China and Pakistan have fostered all weather friendship and enjoyed comprehensive cooperation," he said.