He said an opportunity existed to resolve the Kashmir dispute, and that India's efforts to find a compromise would determine a firm agreement by Pakistan to dispense with a plebiscite in the state, a decades-old demand of Islamabad, which it has virtually given up of late.

"I have not given in an inch. We will not move away from our stance until we see India move away from its stance," Musharraf, expected to meet Singh in Havana on the sidelines of the NAM Summit, told a conference on Kashmir at the European Parliament in Brussels on Tuesday. Asking India to take into account indications from Islamabad that it would no longer insist on a plebiscite in Jammu and Kashmir [Images] to determine its future, Musharraf said it was India's turn to make concessions.

"The objective is within reach. We have to engage in out-of-the-box thinking. An out-of-the-box solution is required," he said, adding he was "really hopeful" the process with India will move forward. Musharraf insisted on greater involvement of Kashmiris in resolving the dispute, saying, "Any settlement must be acceptable first" to the people of the state.

"I sincerely believe that today opportunity exists and it must be seized to resolve the dispute through peaceful dialogue," Musharraf said, adding, "Leaders who cannot grasp a fleeting opportunity are not leaders."

Praising Singh, the Pakistan President said the Indian Prime Minister is a "man of sincerity" with a "flexible approach."

He hoped Singh would show the courage needed to resolve the conflict. He said the best way forward would be to introduce confidence-building measures and increase the involvement of Kashmiri leaders, before finally focusing on a settlement.

Improved relations between the two countries, coupled with a "conducive international environment", could help improve dialogue over Kashmir if regional leaders are sincere, flexible and bold, he said.

"Let us have the motivation for everything by moving forward the Kashmir process toward a resolution and then everything will fall in line, even those terrorists," Musharraf said.

"Kashmir runs in the blood of very Kashmiri and therefore a solution is essential," he said, stressing, "The Kashmir dispute cannot be brushed aside."

Terrorism, he said, should not hinder the peace process and the "rapprochement" with India. He maintained, "Finger- pointing will help no one. We need to move forward."

Musharraf said the scourge of terrorism has been eliminated from the soil of his country and efforts are underway to root out extremism, which will take some time.